Preview Newsletter
ACC PM 7/28/16
-
(ACC Mentioned) ACC Study: Environmental Cost of Plastic Lower Than Other Materials
Jul 28, 2016 | Waste Dive
By Cole Rosengren
A new study from Trucost, commissioned by the American Chemistry Council (ACC), says that the environmental costs of using plastic are on average four times less than other materials. -
(ACC Mentioned) New Study Suggests Plastics Reduce Environmental Impact
Jul 28, 2016 | Plastics & Rubber Weekly
By Gayle S Putrich
A new study by research firm Trucost has found that the environmental cost of using plastics in consumer goods and packaging is nearly four times less than replacing plastics with alternative materials. -
(ACC Mentioned) Connecticut Releases New Statewide Waste Reduction Plan
Jul 28, 2016 | Waste Dive
By Cole Rosengren
Connecticut's Department of Energy and Environmental Protection (DEEP) has released a new Comprehensive Materials Management Strategy to help meet its existing goal of 60% diversion by 2024. -
(ACC Mentioned) Data Shows Global Chemical Production has Soft Second Quarter
Jul 28, 2016 | Powder & Bulk Solids
The American Chemistry Council (ACC) Global Chemical Production Regional Index (Global CPRI) shows that the second quarter of 2016 ended on a soft note, with the headline index rising only 0.1% on a three-month moving average (3MMA) basis in June, the organization announced in a press release Wednesday. -
(ACC Blog) How the Lautenberg Chemical Safety Act (LCSA) is Already at Work for Consumers, Businesses and Families
Jul 28, 2016 | American Chemistry Matters
By American Chemistry
It’s been just five weeks since the president signed the Lautenberg Chemical Safety Act (LCSA) into law, and we’re already seeing strong evidence that the law is working the way it should. -
EPA Issues Final Rule on Formaldehyde Emissions from Wood Products
Jul 28, 2016 | Chemical Watch
The EPA has issued a final rule, designed to enforce emissions standards for formaldehyde from composite wood products. -
EPA Unveils Formaldehyde Rule
Jul 28, 2016 | E&E Greenwire
By Colby Bermel
U.S. EPA released a pre-publication copy of a final rule yesterday aimed at reducing exposure to formaldehyde vapors from wood products. -
EPA Grants Limited Waiver In Final Formaldehyde Wood Emissions Rule
Jul 28, 2016 | Inside EPA
By Dave Reynolds
EPA has issued a long-delayed final rule under the Toxic Substances Control Act (TSCA) setting standards for formaldehyde emissions from composite wood products, granting industry's requests to exempt certain laminated wood products from the rule while stopping short of some producers' calls to exclude a broader array of products. -
Foes of Climate Rule Find New Weapon in EPA Mine Case
Jul 28, 2016 | E&E Greenwire
By Amanda Reilly
A federal court should take into account a case involving U.S. EPA's retroactive veto of a water permit for a mining project as it considers the legality of the Clean Power Plan, an opponent to the rule argued yesterday. -
Republicans Urge Jewell to Scrap Methane Rule
Jul 28, 2016 | E&E Greenwire
By Hannah Hess
House Republicans asked Interior Secretary Sally Jewell yesterday to withdraw a proposed rule aimed at reducing methane emissions from oil and gas wells on federal land. -
Updated Panama Canal Opens Premium Asian Markets to US LNG
Jul 28, 2016 | Platts Blog
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. -
Safety Board Must 'Come to Grips' with Funding -- CSB Chair
Jul 28, 2016 | E&E Greenwire
By Colby Bermel
The nation's chemicals watchdog yesterday called for more congressional funding to close an "investigative gap" identified in last month's damning report by U.S. EPA's inspector general. -
Politico Morning Transportation
Jul 28, 2016 | Politico Pro
The Surface Transportation Board proposed a long-awaited rule Wednesday to change its standards allowing shippers to pursue “competitive switching” — aka, having one freight carrier move goods to an interchange where another railroad, for a fee, takes over the rail cars. -
New Regs for Friday: Railroads, Health, Finance
Jul 28, 2016 | The Hill - Regulation
By Tim Devaney
Friday’s edition of the Federal Register contains new safety requirements for railroads, guidelines for general wellness products, and finance rules. -
Rockwell Collins: ARINC RailwayNet Positive Train Control Platform
Jul 28, 2016 | Progressive Railroading
Rockwell Collins last month announced the launch of ARINC RailwayNet℠, a hosted network and messaging platform for passenger and freight railroads. -
Fla. OKs Increase of Chemicals in Supplies
Jul 28, 2016 | E&E Greenwire
By Cecelia Smith-Schoenwalder
Florida could see a rise in chemicals in drinking water supplies under regulations approved this week.
Industry and Association News
LCSA News
Chemical Management News
Energy News
Chemical Security News
Transportation News
Environment News
-
(ACC Mentioned) ACC Study: Environmental Cost of Plastic Lower Than Other Materials
Jul 28, 2016 | Waste Dive
By Cole Rosengren
Dive Brief:
A new study from Trucost, commissioned by the American Chemistry Council (ACC), says that the environmental costs of using plastic are on average four times less than other materials.
This calculation was determined by the weight of material needed to perform the same function. When accounting for all lifecycle factors—from production down to ocean damage—the study says plastic's environmental cost is $139 billion as compared to $533 billion for glass, tin, or aluminum.
The study also recommended additional steps involving transportation, energy, and packaging that the industry could take to reduce this environmental cost by as much as $41 billion industrywide.
Dive Insight:
While this study is being seen as positive news it also doesn't offer full environmental absolution. The findings still back up a 2014 study by Trucost—commissioned by the United Nations Environment Programme—which said "the environmental impacts of plastic cannot be ignored."
"Even though the plastics industry is probably a little bit uncomfortable with a dollar value being assigned to the environmental consequences of production, the more we can make better decisions to improve our business, the better," said Steve Russell, vice president of plastics for ACC, in Plastics News. "As more and more companies … start looking at the consequences of their decisions, they need good information on which to base those decisions."
Many companies have already begun to implement some of the study's recommendations, but having a dollar amount tied to them could help encourage others to join. According to the report, $7.6 billion could be saved by increasing the use of renewable energy sources in production; $7.3 billion could be saved by a 30% reduction in food and beverage packaging; and $10.6 billion could be saved by a 20% improvement in fuel efficiency for transportation fleets.
Representatives of the glass, steel, and aluminum industries were of course quick to point out the superiority of their materials in a recent Bloomberg article. It's true that these materials also have their merits depending on the situation, just as every kind of material has its environmental costs. Finding ways to make the manufacturing process more sustainable, reducing unnecessary use, and ensuring that products can be easily recycled should be important areas of focus for all industries.
http://www.wastedive.com/news/acc-study-environmental-cost-of-plastic-lower-than-other-materials/423390/
-
(ACC Mentioned) New Study Suggests Plastics Reduce Environmental Impact
Jul 28, 2016 | Plastics & Rubber Weekly
By Gayle S Putrich
A new study by research firm Trucost has found that the environmental cost of using plastics in consumer goods and packaging is nearly four times less than replacing plastics with alternative materials.
Trucost's latest study, “Plastics and Sustainability: A Valuation of Environmental Benefits, Costs and Opportunities for Continuous Improvement,” builds on a 2014 study the research company did for the United Nations Environment Program, using the same methodology and “natural capital accounting” metrics.
Trucost estimated that swapping plastic for alternatives such as glass, tin or aluminum would increase environmental costs from $139bn (£106bn) to $533bn (£405bn), taking into account ocean damage, end-of-life management, transportation, production and material and energy recovery costs and impact.
In most cases, the study says, the per-kilogram cost of alternative materials is less than the cost of a kilo of plastic.
“However, on average over four times more alternative material is needed [by weight] to perform the same function,” according to the report. For example, a plastic drink bottle made of 30 grams of plastic would require 141 grams of glass or aluminum.
The scale of the environmental cost difference came as a bit of a surprise to the American Chemistry Council (ACC), which commissioned the new report.
“That is it almost four times higher was a surprise,” said Steve Russell, vice president of plastics for ACC. “It was also a surprise how complicated it is to do this work. But it wasn’t a surprise that plastics would turn out to be such an efficient material.”
Russell said the study was admittedly “risky,” but it provides a new lens into the industry’s ongoing sustainability discussion.
“Even though the plastics industry is probably a little bit uncomfortable with a dollar value being assigned to the environmental consequences of production, the more we can make better decisions to improve our business, the better,” he said. “As more and more companies … start looking at the consequences of their decisions, they need good information on which to base those decisions.”
In addition, the report recommends steps to help further reduce plastics' overall environmental costs by as much as $41bn (£31bn) industry-wide, including suggestions such as:
• A potential $7.6bn (£5.8bn) in overall cost savings from increasing the use of wind, solar and hydro-electric power sources in plastics production.
• A possible $7.3bn (£5.5bn) in environmental costs savings from a 30% reduction in materials used in the food, soft drink and ice packaging sectors alone.
• A potential $10.6bn (£8bn) savings if the industry committed to a 20% improvement in fuel efficiency for the fleets of vehicles used to transport plastic and plastic products.
“Plastics makers are used to hearing about the downsides of our products. And this study is disruptive of conventional wisdom that says plastics are bad for the environment or that we should use other materials,” Russell said.
“But all of the pieces weighed together need to be considered if we want to make the best decision for the planet and the environment. That’s why this study is important…. Not just the end-of-life piece, the full lifecycle.”
http://www.prw.com/article/20160728/PRW/160729804/new-study-suggests-plastics-reduce-environmental-impact
-
(ACC Mentioned) Connecticut Releases New Statewide Waste Reduction Plan
Jul 28, 2016 | Waste Dive
By Cole Rosengren
Dive Brief:
Connecticut's Department of Energy and Environmental Protection (DEEP) has released a new Comprehensive Materials Management Strategy to help meet its existing goal of 60% diversion by 2024.
The state's diversion rate is currently around 35%. According to DEEP, if residents continue to generate an average 3.5 pounds of waste per day then disposal costs could rise by $25 million per year.
Proposed solutions include increased enforcement of municipal waste ordinances, more emphasis on waste reduction, extended producer responsibility requirements, and more recycling of construction and demolition waste.
Dive Insight:
Since the state set its 60% diversion goal in 2014, the path forward has proven more challenging than expected. A 2015 waste characterization study found that food waste tonnage had increased since 2010 despite previous legislation encouraging organics diversion. DEEP estimates that 40% of the state's waste is organic material and this presents a major area for improvement.
On a positive note, Connecticut claims to have the lowest landfill rate of any state, which it achieves by using waste-to-energy facilities for 87% of refuse. The amount of paper, metal, and plastic also decreased since 2015. DEEP also recently announced a partnership with the American Chemistry Council's Flexible Film Recycling Group to boost plastic film recycling which will help tackle the 44% of materials in the waste stream that aren't currently recoverable through traditional systems.
As seen recently in California, where the diversion rate has dipped, even the most ambitious programs can still be affected by outside factors. By outlining new strategies for change and calling for new investment in infrastructure, Connecticut is moving in the right direction, but it will still be tough to see the desired jump in diversion rates if recycling markets don't improve.
http://www.wastedive.com/news/connecticut-releases-new-statewide-waste-reduction-plan/423406/
-
(ACC Mentioned) Data Shows Global Chemical Production has Soft Second Quarter
Jul 28, 2016 | Powder & Bulk Solids
The American Chemistry Council (ACC) Global Chemical Production Regional Index (Global CPRI) shows that the second quarter of 2016 ended on a soft note, with the headline index rising only 0.1% on a three-month moving average (3MMA) basis in June, the organization announced in a press release Wednesday.
While chemical production increased in Western Europe, Central and Eastern Europe, Africa and the Middle East, and Asia-Pacific in June, production fell in North America and Latin America. The Global CPRI was up 2.1% year-over-year (Y/Y) on a 3MMA basis and stood at 108.5% of its average 2012 levels in June.
This June capacity utilization in the global business of chemistry declined 0.2 percentage points to 79.2%. This is off from 80.7% last June and is below the long-term (1987-2015) average of 89.1%, according to the ACC.
The organization said its findings were mixed in relation to products 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,” the organization said.
Taking year-over-year comparisons into consideration, the ACC noted that chemical production increased in most categories aside from the agricultural chemical segment. Plastic resins showed strong growth, with growth of organic chemicals coming in second.
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 US CPRI data, a timely source of U.S. regional chemical production.
http://www.powderbulksolids.com/news/Data-Shows-Global-Chemical-Production-has-Soft-Second-Quarter-07-27-2016
-
Jul 28, 2016 | American Chemistry Matters
By American Chemistry
It’s been just five weeks since the president signed the Lautenberg Chemical Safety Act (LCSA) into law, and we’re already seeing strong evidence that the law is working the way it should.
Late last week, in one of EPA’s first actions under the new law, the Agency evaluated a group of new chemicals submitted to EPA for review and published its first affirmative determinations. The Agency determined that four new chemicals – three lubricants and a finishing agent – are “not likely to present an unreasonable risk” to human health or the environment.
These affirmative determinations by EPA, based on the new, risk-based chemical review process outlined under the LCSA, marks the start of implementation of the LCSA’s chemical regulatory regime for the U.S. – and it tells us two important things:That the Agency was able to review and approve these new substances efficiently and in a transparent and timely manner under the new law;And, in so doing, U.S. companies can have confidence that they can bring new products to market in a time frame that will allow them to compete globally and give people more confidence in the safety of the products.How new chemical reviews and determinations work under the new LCSA
Under the LCSA, just as under old TSCA, EPA must review a company’s “pre-manufacture notice” on a new chemical before the new chemical can come to market. What’s new about the LCSA is that EPA must publish an “affirmative determination” of its decision about the new chemical.
In the process outlined under the law, manufacturers provide information to EPA about new chemicals and their intended uses. Those chemicals undergo a risk-based review where EPA evaluates information about the chemical, including the chemical’s characteristics and its intended uses, as well as available testing and exposure data and information. If the Agency finds that the chemical is not likely to present an unreasonable risk, the chemical can proceed to market. On the other hand, if the Agency finds the chemical presents an unreasonable risk, EPA must take regulatory action to the extent necessary to protect against such risk, including restrictions or a prohibition. If EPA concludes that it lacks sufficient information to evaluate a new chemical, it can determine that the chemical “may present” an unreasonable risk and issue an order restricting the new chemical, pending further information.
For the industry, a workable, new chemicals program helps innovation, growth and competitiveness. A workable program allows companies to move innovative solutions quickly to the marketplace after an EPA determination, make decisions about next steps or adjust plans for the future accordingly.
For consumers, an EPA affirmative decision about a new chemical’s safety is more transparent. It also provides greater peace of mind. Knowing that new chemicals not only provide valuable benefits to everyday products, but also that those chemicals have been reviewed for safety by EPA before they hit the shelves, should help give people more confidence in the safety of the products they purchase for themselves and their families.
https://blog.americanchemistry.com/2016/07/how-the-lautenberg-chemical-safety-act-lcsa-is-already-at-work-for-consumers-businesses-and-families/
-
EPA Issues Final Rule on Formaldehyde Emissions from Wood Products
Jul 28, 2016 | Chemical Watch
The EPA has issued a final rule, designed to enforce emissions standards for formaldehyde from composite wood products.
The substance is used as an adhesive in a wide range of wood products, such as some furniture, flooring, cabinets, bookcases and building materials, including plywood and wood panels.
The rule implements the 2010 Formaldehyde Emission Standards for Composite Wood Products Act. It is consistent with California's requirements for these products.
One year after the rule is published in the Federal Register, composite wood products that are sold, supplied, offered for sale, made or imported in the US will have to be labelled as compliant with the emission standards.
The EPA is setting testing requirements to ensure products comply, and to establish eligibility requirements for third-party certifiers and accreditation bodies.
The rule was originally two draft rules, one covering the emission standards and the other certification requirements, but these have been merged into a single rule.
The inter-agency national toxicology programme lists formaldehyde as a known human carcinogen, while the International Agency for Research on Cancer says it is "carcinogenic to humans". The EPA classifies it as a “probable” human carcinogen, and says it can also cause eye, nose and throat irritation.
US flooring retailer Lumber Liquidators recently reached a 'recall to test' agreement with the Consumer Product Safety Commission (CPSC), after the commission launched an investigation into reports that formaldehyde emissions from the company's laminate flooring, sourced from China, did not meet California's emission standard.
https://chemicalwatch.com/48866/epa-issues-final-rule-on-formaldehyde-emissions-from-wood-products
-
Jul 28, 2016 | E&E Greenwire
By Colby Bermel
U.S. EPA released a pre-publication copy of a final rule yesterday aimed at reducing exposure to formaldehyde vapors from wood products.
The announcement comes six years after President Obama signed the Formaldehyde Emission Standards for Composite Wood Products Act into law, directing EPA to finalize the rule.
The rule -- which is expected to go into effect on or around Aug. 7, 2017 -- will require special labeling on composite wood products that are manufactured in, supplied in, offered for sale in, sold in or imported into the United States. Plywood, fiberboard, particle board and other products will be expected to comply with Title VI of the recently reformed Toxic Substances Chemicals Act.
EPA and the California Air Resources Board partnered to guarantee the new rule would work with the Golden State's composite wood product requirements.
Formaldehyde, an adhesive, can be found in some furniture, flooring, cabinets and bookcases. EPA says exposure can cause cancer; respiratory ailments; and eye, nose and throat irritation. In 2011, the Health and Human Services Department declared formaldehyde to be a known human carcinogen.
The nonprofit Environmental Working Group rates formaldehyde 10 out of 10 in its hazard scoring system, calling the substance a high hazard.
"We are carrying out important measures laid out by Congress to protect the public from harmful exposure of this widely used chemical found in homes and workplaces," said Jim Jones, EPA's assistant administrator for the Office of Chemical Safety and Pollution Prevention.
He added, "The new rule will level the playing field for domestic manufacturers who have a high rate of compliance with the California standard and will ensure that imported products not subject to California's requirements will meet the new standard and thus not contain dangerous formaldehyde vapors."
Separately, EPA announced today the receipt of several dozen pre-manufacture notices from companies wanting to bring new chemicals or products with new chemicals in them to market. They were an epoxy coating, an oil field additive and an "industrial" product not described, presumably due to Cardolite Corp.'s claim of confidential business information.
While companies under the original TSCA were still required to let EPA know of their new chemicals, the agency didn't have any mandate to act. Under the month-old Frank R. Lautenberg Chemical Safety for the 21st Century Act, EPA is required to conduct multiyear risk evaluation and management processes, a move praised by all stakeholders as giving the agency more teeth for regulation and enforcement.
http://www.eenews.net/greenwire/2016/07/28/stories/1060040927
-
EPA Grants Limited Waiver In Final Formaldehyde Wood Emissions Rule
Jul 28, 2016 | Inside EPA
By Dave Reynolds
EPA has issued a long-delayed final rule under the Toxic Substances Control Act (TSCA) setting standards for formaldehyde emissions from composite wood products, granting industry's requests to exempt certain laminated wood products from the rule while stopping short of some producers' calls to exclude a broader array of products.
According to a July 27 pre-publication version of the rule scheduled for publication in the Federal Register in the next two weeks, EPA grants an industry request to exempt products using low-formaldehyde glues, as well as no-added formaldehyde resins, from most of the rule's requirements.
But the EPA rule appears to reject some producer's requests that the rule's exemptions for laminated wood products mirror those of a 2008 California Air Resources Board (CARB) rule, which more broadly exempts such products from regulation.
The exemption in the final rule for laminated products containing low levels of formaldehyde appears to strike a compromise between EPA's June 2013 proposed rule -- which industry has argued would impose unwieldy requirements on fabricators of laminated wood products -- and industry requests to strictly mirror the CARB rule. The rule also allows producers to petition the agency to seek additional exemptions in some cases.
“They did a really good job of threading the needle, and finding a way to reduce the burden on manufacturers while still protecting public health, and children's health from formaldehyde,” Tom Neltner, of the Environmental Defense Fund, said of the agency's exclusion for certain laminated products.
Formaldehyde is widely used in the manufacturing of building materials and household products, and exposure can irritate the skin, eyes, nose and throat. High levels of exposure can cause certain cancers.
In 2010, Congress amended TSCA to require that EPA issue regulations controlling formaldehyde emissions for wood "equivalent to compliance" with CARB's rule for pressed wood products produced or sold in the state.
Some domestic producers and healthy housing advocates have backed Congress' 2010 call for the EPA rule, arguing it is necessary to create a level playing field for domestic producers who comply with the 2008 standard against some importers who may not, and to reduce exposures. But the rule was significantly delayed, in part, due to questions of how to regulate laminated wood products.
Final Regulation
EPA's final rule sets emissions standards for composite wood products manufactured, imported, or sold in the United States and establishes testing requirements to ensure compliance. The requirements take effect one year after the rule's upcoming publication in the Register.
In a statement, EPA says the rule seeks to level the playing field for domestic manufacturers, many of whom are already complying with CARB's 2008 standards. The rule covers composite wood products including hardwood plywood, medium-density fiberboard, as well as household and other finished goods containing those products.
“We are carrying out important measures laid out by Congress to protect the public from harmful exposure of this widely used chemical found in homes and workplaces,” said Jim Jones, EPA’s assistant administrator for the Office of Chemical Safety and Pollution Prevention. “We have worked with the state of California as a partner to help ensure consistency in our requirements.”
CARB's existing rule effectively regulates the amount of formaldehyde that manufacturers can use in their products by setting emissions limits for composite wood products in some cases as low as 0.05 ppm, and also requires third-party certification to ensure compliance.
EPA's final rule requires composite wood products manufactured, imported or sold in the United States to be labeled as complying with TSCA. It also creates a third-party certification program for ensuring compliance with the new emissions limits, and sets requirements for organizations that will accredit third-party certifiers.
“This helps to ensure only composite wood products compliant with the formaldehyde emissions standards enter the supply chain,” EPA says in a fact sheet on the rule.
Emissions Standards
Although the specific requirements vary by the type of wood, the EPA rule combines emissions standards with provisions requiring quarterly testing; labeling that includes the producer's name and a statement of compliance with TSCA; and record-keeping requirements.
The rule sets emissions standards for hardwood plywood of 0.05 parts per million (ppm), for particleboard 0.09 ppm, and for medium-density fiberboard of 0.11 ppm, among others.
According to Jones' statement, “The new rule will level the playing field for domestic manufacturers who have a high rate of compliance with the California standard and will ensure that imported products not subject to California’s requirements will meet the new standard and thus, not contain dangerous formaldehyde vapors."
But EPA struggled with crafting a rule consistent with the CARB rule, which is far narrower with respect to laminated products than EPA's June 2013 proposed version of the rule.
EPA in April 2014 held a public meeting to take comment on how or whether to include laminated products in its forthcoming rule, and also reopened its public comment period that year to accept further input on issues, including how to square its 2013 proposal with the CARB rule.
This spring, wood products industry representatives pressed White House Office of Management and Budget officials reviewing the rule for swift issuance of a final rule that strictly adheres to the CARB standard, thereby exempting certain laminated products that would otherwise be covered under EPA's 2013 proposal.
Industry representatives asked that the final rule exempt wood veneers that are laminated to a compliant panel using low-formaldehyde resins, as well as products laminated with materials other than veneer, such as paper, foil or decorative laminates. Industry officials also argued that EPA should not require testing by fabricators who use certified composite products.
While EPA appears to have partially addressed the industry concerns with the expanded exemption for products that use low formaldehyde resins, Neltner says the rule includes an additional avenue for exemption that could spur companies to manufacture new glues containing very low levels of formaldehyde.
Wood products containing new forms of glues may be granted an exemption provided that the glue manufacturer can show the product is unlikely to emit dangerous levels of formaldehyde, Neltner said.
http://insideepa.com/daily-news/epa-grants-limited-waiver-final-formaldehyde-wood-emissions-rule
-
Foes of Climate Rule Find New Weapon in EPA Mine Case
Jul 28, 2016 | E&E Greenwire
By Amanda Reilly
A federal court should take into account a case involving U.S. EPA's retroactive veto of a water permit for a mining project as it considers the legality of the Clean Power Plan, an opponent to the rule argued yesterday.
The Competitive Enterprise Institute told the U.S. Court of Appeals for the District of Columbia Circuit that the dissent in the water permit case "strongly supports" its arguments that EPA failed to adequately consider the costs and benefits of its power plant rule.
In a filing, CEI asked that the D.C. Circuit allow time for cost-benefit issues at upcoming oral arguments on the Clean Power Plan in September.
In the mining case, Arch Coal Inc. and its subsidiary, Mingo Logan Coal Co., had sought to overturn EPA's 2011 veto of the water permit for the controversial Spruce No. 1 mine in Logan County, W.Va.
Last week, the D.C. Circuit upheld the agency's withdrawal of the permit, finding that the agency adequately explained its decision and that the action fell under the "broad veto power" provided under the Clean Water Act (Greenwire, July 19).
While the D.C. Circuit sided with the Obama administration in the case, the Competitive Enterprise Institute yesterday argued that "the only judge to reach the cost-benefit issue" found that the permit should have been vacated.
Judge Brett Kavanaugh, an appointee of President George W. Bush, wrote in his dissent that EPA "must go back to the drawing board" on the water permit because its cost analysis was "one-sided."
"The bottom line is that EPA considered the benefits to animals of revoking the permit," Kavanaugh said, "but EPA never considered the costs to humans -- coal miners, Mingo Logan's shareholders, local businesses, and the like -- of revoking the permit."
In the majority opinion, Judge Karen LeCraft Henderson, appointed by President George H. W. Bush, found that Arch Coal forfeited its claims about costs, though, because the company had failed to raise the issue to either EPA or to a lower court.
But Henderson wrote that she agreed with Kavanaugh's conclusion that "reasoned decisionmaking requires assessing whether a proposed action would do more good than harm."
"Indeed, we do not quibble with his general premise -- and that of the many legal luminaries he cites -- that an agency should generally weigh the costs of its action against its benefits," Henderson wrote.
Unlike in the Mingo Logan case, CEI said, challengers to the Clean Power Plan haven't forfeited cost as an issue because they've raised concerns throughout the rule process.
"Petitioners have explicitly argued that EPA's cost-benefit analysis is invalid, identified specific costs that the Agency overlooked, and demonstrated quantitatively that the rule's domestic costs outweigh its domestic benefits," the filing says. "Mingo Logan strongly supports those arguments."
Some legal experts have also mined the Mingo Logan decision for clues as to how easy it would be for a Republican administration to overturn the Clean Power Plan if the program is eventually upheld by the courts.
In the case of Mingo Logan, the Obama administration reversed a decision made by the George W. Bush administration. Henderson found that EPA "plainly relied" on information about water-quality changes that became available after the permit was issued.
Brian Potts, a partner at Perkins Coie, said that the decision to uphold EPA's veto of the permit builds on prior court decisions that policies can be changed from one administration to the next, adding that it takes "some amount of work because you have to justify it."
"If you're going to change it for policy reasons, you're going to have to include some factual findings," Potts said. "This case does seem to pretty clearly say you can do it -- you just have to justify it, and the court's going to defer to your justification if there's a rational connection."
In her opinion, Henderson cited a 2009 decision on the Federal Communications Commission's policies on expletive language that found reversing a prior policy doesn't trigger a tougher standard of view.
Daniel Farber, a professor of law at the University of California, Berkeley, said that while he supports the Clean Power Plan, he believes a future EPA could meet the required standard to overturn the program issued under Section 111(d) of the Clean Air Act.
"Since the record includes the fact that the previous regulation was in effect and also evidence about the effect of that rule in the meantime," Farber said, "EPA would have to provide a reasoned explanation of its determination that Section 111(d) does not apply or does not allow regulations of the type chosen by EPA or that those regulations are otherwise inappropriate."
http://www.eenews.net/greenwire/2016/07/28/stories/1060040928
-
Republicans Urge Jewell to Scrap Methane Rule
Jul 28, 2016 | E&E Greenwire
By Hannah Hess
House Republicans asked Interior Secretary Sally Jewell yesterday to withdraw a proposed rule aimed at reducing methane emissions from oil and gas wells on federal land.
Natural Resources Chairman Rob Bishop of Utah and Majority Leader Kevin McCarthy of California joined 55 other Republicans accusing the Bureau of Land Management of exceeding its legal authority with the rule, a key part of the Obama administration's effort to maximize domestic energy production and reduce greenhouse gas emissions (Greenwire, Jan. 22).
The rule would require well operators to use off-the-shelf technologies to reduce flaring, or burning off excess gas. Methane, the main component of natural gas, is more than 25 times as potent a greenhouse gas as carbon dioxide.
The rule would also require companies to conduct periodic leak inspections and replace outdated equipment that vents large amounts of gas.
"The rule oversteps BLM's regulatory jurisdiction, and completely fails to address crucial failures by the BLM to capture methane emissions through common sense methods such as timely right-of-way permitting," the letter states.
BLM has said the rule would allow the agency to redirect administrative resources to process drilling permits and right-of-way applications, and to conduct inspections.
Republicans requested that BLM detail what measures the department is taking to address right-of-way permitting backlogs, which Obama administration critics point to as major contributing factors to venting and flaring.
A recent Government Accountability Office report highlighted the need for better oversight of methane releases from the roughly 100,000 oil and gas wells on federal and tribal lands. GAO said the rule, which BLM aims to finalize by the end of the year, would help solve many of the problems identified in the report by setting monthly flaring limits on each well (E&ENews PM, July 21).
However, GOP lawmakers say private-sector initiatives have been effective at keeping methane emissions under control. The letter rails against the new rule as "another layer of duplicative federal regulation on top of already existing federal and state regulations."
Republicans also steered Jewell to their election-year plan to ease regulatory burdens on the energy sector (E&E Daily, June 14).
Bishop was among the nine committee chairmen appointed by Speaker Paul Ryan (R-Wis.) to a task force on regulatory reform. The 57-page plan they rolled out says federal regulatory programs should be used only when the states are not better suited or a major policy failure has occurred.
The letter says many of the department's regulations penalize and discourage entrepreneurship, overstep state jurisdiction and drive up costs for developing energy resources of federal land.
"We are concerned that the BLM has rushed forward to finalize new methane emissions measures as a solution in search of a problem," the lawmakers wrote.
BLM has said the primary goal of the rule is keeping more natural gas in the pipeline and out of the atmosphere. According to BLM, it would save society up to $188 million annually by allowing more natural gas to be sold and preventing the escape of methane and other pollutants.
The new regulations would also clarify when companies owe the government royalties for flared gas. And it would update regulations to give BLM more flexibility to raise the existing 12.5 percent royalty rate for onshore production, set in 1920.
http://www.eenews.net/greenwire/2016/07/28/stories/1060040933
-
Updated Panama Canal Opens Premium Asian Markets to US LNG
Jul 28, 2016 | Platts Blog
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 to North 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/
-
Safety Board Must 'Come to Grips' with Funding -- CSB Chair
Jul 28, 2016 | E&E Greenwire
By Colby Bermel
The nation's chemicals watchdog yesterday called for more congressional funding to close an "investigative gap" identified in last month's damning report by U.S. EPA's inspector general.
In June, EPA's Office of Inspector General found that the U.S. Chemical Safety and Hazard Investigation Board (CSB) investigated only one out of 27 fatal accidents last fiscal year, part of a five-year slide that saw the agency fail to probe more than 90 percent of workplace fatalities. But the CSB says it's between a rock and a hard place: It wants to improve its record, and has the authority to, but can't without more funding.
"I think we have to come to grips with an agency with our resource constraints," CSB Chairwoman Vanessa Allen Sutherland said yesterday in a public quarterly business meeting mandated by the Government in the Sunshine Act.
"If we can't investigate every one of them," she asked, "how do we investigate the ones that are going to have significant impact, lasting impact, taking into account injuries, death, environmental damage and then analysis that we hope will also bring broad change to an industry sector or to a type of practice that's being practiced across sectors?"
CSB is an independent federal agency that investigates chemical accidents. It can't issue fines or citations, but it does make recommendations to federal and state agencies, along with private stakeholders.
The agency has six open investigations: one from fiscal 2016, two from fiscal 2015 and three from previous fiscal years.
The most recent investigation -- of a November 2015 accident at a Delaware City Refining Co. alkylation unit that inflicted second-degree burns on an operator -- has been open for six months. The longest-running CSB investigation, of the June 2013 explosion and fire at the Williams Olefins plant in Geismar, La., is 3 years old. Two of the six open investigations involve fatalities -- two deaths in Geismar, and four from the November 2014 DuPont chemical release in La Porte, Texas.
This fiscal year, CSB was appropriated $11 million by Congress. The agency requested $12.436 million for fiscal 2017, but the Interior-EPA appropriations bills in both chambers recommended that funding remain at $11 million.
"We sought this increase in order to strengthen our investigative and outreach functions, a goal which I passionately support," said CSB board member Manny Ehrlich. "There's still a long way to go in the budget process before an appropriation is finalized for next year, and so we'll have to wait for the final results, which I hope will be favorable to the agency."
Sutherland agreed with Ehrlich's sentiment.
"I think it's always difficult in congressional language to know what anyone means, or why it's written," she said. "It is difficult to attribute thinking, intent, analysis to the people who write them."
Congressional Republicans are doubtful that the chambers' Interior-EPA bills can be reconciled in a conference. President Obama has threatened to veto the House's version, which cuts EPA's budget, among other provisions (E&ENews PM, July 14). The most likely outcome will be an attempt to roll all 12 spending bills into an omnibus package during the post-election, lame-duck session (E&E Daily, July 14).
So while CSB's final budget hasn't been decided, it's likely that members will follow the recommendation and keep funding at $11 million.
"We will assume that it may end up being the same as previous years," Sutherland said.
CSB is drafting its 2016-20 strategic plan, and it's not clear whether it will address last month's IG report (Greenwire, June 30).
Asked whether the plan will include a statement to rectify the IG-identified faults, Sutherland said, "Probably not as explicitly as that."
"I don't know that it's going to be as definitive," she said.
She did say CSB is tackling criteria and protocol for deployment and investigation.
The plan has three goals: Prevent recurrence of significant chemical incidents through independent investigations; advocate safety change through recommendations, outreach and education; and create and maintain an engaged, high-performing workforce.
The agency touted its new vision and mission, developed in an attempt to address the low morale also identified in the IG report.
"Did you know the new CSB vision has a 79 percent approval rate amongst CSB staff?" flyers hung on the meeting room's walls asked. "Did you know the new mission has a 73 percent approval rate amongst CSB staff?"
http://www.eenews.net/greenwire/2016/07/28/stories/1060040934
-
Politico Morning Transportation
Jul 28, 2016 | Politico Pro
TIME TO MAKE A SWITCH?: The Surface Transportation Board proposed a long-awaited rule Wednesday to change its standards allowing shippers to pursue “competitive switching” — aka, having one freight carrier move goods to an interchange where another railroad, for a fee, takes over the rail cars.
Shipping interests called on STB to modify its approach five years ago, arguing that the status quo wasn’t fostering enough competition among freight railroads. But freights have opposed the effort, saying that revenue losses they’d incur would translate into adverse impacts on rail service.
State your case: STB is suggesting that it evaluate competitive switching requests on a case-by-case basis where the shipper would have to show that such a move is “practicable and in the public interest” or needed to provide a level of competition in the marketplace.
-
New Regs for Friday: Railroads, Health, Finance
Jul 28, 2016 | The Hill - Regulation
By Tim Devaney
Friday’s edition of the Federal Register contains new safety requirements for railroads, guidelines for general wellness products, and finance rules.
Here’s what is happening:
Railroads: The Department of Transportation (DOT) is proposing new safety requirements for railroads.
The Transportation Department’s Pipeline and Hazardous Materials Safety Administration (PHMSA) and Federal Railroad Administration (FRA) on Thursday proposed expand the requirements for railroads to develop comprehensive oil spill response plans.
The oil spill response plans would apply to railroads that transport at least one train "carrying 20 or more loaded tank cars of liquid petroleum oil in a continuous block,” the agencies said.
The public has 60 days to comment.
Finance: The Securities and Exchange Commission (SEC) is moving forward with new rules of practice.
The rules of practices will address “the timing of hearings in administrative proceedings, depositions, summary disposition, and the contents of an answer,” the agency said.
The changes go into effect in 60 days.
Wellness: The Food and Drug Administration (FDA) is moving forward with new guidelines for general wellness products.
The FDA’s guidance is intended to clarify its policy for devices that “promote a healthy lifestyle,” the agency said.
"They are intended for only general wellness use as defined in the guidance and present a low risk to the safety of users and other persons,” the agency said.
http://thehill.com/regulation/289599-new-regs-for-friday-railroads-health-finance
-
Rockwell Collins: ARINC RailwayNet Positive Train Control Platform
Jul 28, 2016 | Progressive Railroading
Rockwell Collins last month announced the launch of ARINC RailwayNet℠, a hosted network and messaging platform for passenger and freight railroads. The new solution is designed to increase safety and reliability in the railroad industry and to help railroads meet the positive train control (PTC) requirements mandated by the Rail Safety Improvement Act of 2008.
Built on the same Rockwell Collins' mission-critical infrastructure relied upon by aviation customers around the world for more than 80 years, ARINC RailwayNet℠ aims to address the technical challenges of PTC adoption by offering a hosted service to short-line, regional and commuter railroads in North America.
"ARINC RailwayNet leverages Rockwell Collins’ expertise to create a common communication infrastructure for all railroads," said Rockwell Collins Vice President of Surface Transportation Systems for Denny Lengyel in a press release. "ARINC RailwayNet provides the network connections and office applications required to exchange critical information among Class 1 railroads and their partner short line and commuter railroads. With RailwayNet, Rockwell Collins is helping short line and commuter railroads meet the PTC mandate efficiently, cost-effectively and securely."
Rockwell Collins also announced that it has received a $4.9 million grant from the Federal Railroad Administration (FRA) to help implement the new system. The FRA grant award is being used to provide technical support to participating short line and commuter railroads that need assistance implementing the office and networking segments of a PTC system. The grant is also being used to develop a guide to assist smaller railroads in implementing PTC systems.
Rockwell Collins has been involved with the evolution of PTC since its beginning as "advanced train control" more than 30 years ago. The company's information management, command and control, and network solutions are used throughout the rail industry, Rockwell Collins officials said.
ARINC RailwayNet is currently available on a subscription basis as a hosted, software as a service (SaaS) solution. PTC messaging from the back office to the locomotive through VHF, cellular and WiFi is available today and additional value added services will be available in the future.http://www.progressiverailroading.com/rail_product_news/details/Rockwell-Collins-ARINC-RailwayNet-positive-train-control-platform--48970
-
Fla. OKs Increase of Chemicals in Supplies
Jul 28, 2016 | E&E Greenwire
By Cecelia Smith-Schoenwalder
Florida could see a rise in chemicals in drinking water supplies under regulations approved this week.
The Florida Environmental Regulations Commission on Tuesday approved new regulations in a 3-2 vote that would change drinking water limits for 43 chemicals and would impose new limits for 39 additional chemicals. The changes require final approval from U.S. EPA.
The changes would be the first updates to the state's water quality standards under the Clean Water Act in over 20 years, and environmentalists are not happy.
Linda Young, the executive director of Florida Clean Water Network, started a petition demanding that the Florida Department of Environmental Protection withdraw the plans and submit new ones that do not "devalue human life."
She said hydraulic fracturing companies would benefit from the new regulations.
"They're saying, 'We've got to let them dump some of this stuff in the water, and some of you are going to get cancer for it ... and you're just going to have to deal with it.'"
In addition to environmental groups, nine Democratic lawmakers, including Sen. Bill Nelson (D-Fla.), sent a letter to EPA Administrator Gina McCarthy after the vote expressing their "serious concerns" with the regulations.
"We urge you to provide a more appropriate public comment period for the proposal and to carefully evaluate each proposed human health criteria to ensure the utmost protection for our population, environment and economy," the letter said.
Rep. Gwen Graham (D-Fla.) previously spoke out on the regulations in her own letter to DEP, and on Tuesday she said the commission and Florida Gov. Rick Scott (R) were ignoring "the will of the people they represent."
"Lowering our water quality standards while our lakes, springs, rivers and coasts are turning green is insulting. Allowing more cancer-causing chemicals after the disaster in Flint is unconscionable," Graham said in a statement.
Graham's letter to the DEP urging the panel to dismiss the proposals was read during the hearing's public comment period.
"I find it inconceivable that the department charged with protecting our environment would ease restriction on dangerous chemicals that threaten the health of Florida's waters and the people and industries that depend on them," she said in the letter.
Graham also expressed concern that the oil and gas industry would benefit from the new regulations. Hydraulic fracturing is an oil and gas production technique that blasts sand, chemicals and water down boreholes to force out hard-to-reach hydrocarbons.
But when the panel asked Drew Bartlett, DEP deputy secretary for water policy and ecosystem restoration, whether the regulations would help the industry, he said: "We don't see a connection between this ruling and fracking."
The panel said 80 public commenters wanted to speak during the daylong hearing. Most of the commenters came to express dissatisfaction with the plan, but DEP officials said the regulations would strengthen water quality standards for a state with such close ties to water.
"I thank the Environmental Regulation Commission for its approval of Florida's human health criteria rules, which will increase protection of Florida's water quality and the health of our state's families and visitors," said DEP Secretary Jon Steverson in a statement.
Public commenters said DEP's limits would fall below EPA's recommendations for many carcinogenic chemicals.
The regulations would raise the level of acceptable toxins for over two dozen carcinogens and decrease the level for 13 other chemicals. Of the 39 newly regulated chemicals, two are considered carcinogens.
Some public concern was expressed about the new methodology used in DEP's process, which the agency has worked on since 2012. DEP adopted a method nicknamed the "Monte Carlo" to determine Florida-specific guidelines. Instead of considering the average person when making the new criteria, like EPA does, DEP included information on how often and to what extent Floridians consume seafood and water, shower, and swim.
Of the commenters who discussed the Monte Carlo method, most expressed concern about being the first state to trust this process for regulating chemicals.
Several residents and environmental advocacy group members called for the state panel to postpone the vote until its two vacant panel spots are filled. Scott appoints members of ERC, but the panel currently has vacancies in the seats designated for the local level and environment.
When the panel began to vote, an audience member tried to sit in one of the panel's vacant seats, claiming he would vote for the environment position.
DEP said the regulations will head to EPA for final approval once any challenges within the state are settled. Once EPA receives them, it will have 60 days to respond with approval or 90 days to respond with disapproval under the Clean Water Act. An EPA spokeswoman, however, noted that this process can sometimes be extended up to nine months.
http://www.eenews.net/greenwire/2016/07/28/stories/1060040911
Industry and Association News
LCSA News
Chemical Management News
Energy News
Chemical Security News
Transportation News
Environment News
Add recipients
Suggested