Preview Newsletter
AM ACC 1/11/2019
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(ACC Blog) Have MIT Researchers Taken Us One-step Closer to Making a Shrinking Superhero Suit a Reality?
Jan 10, 2019 | American Chemistry Matters
By American Chemistry
On the big screen, some of our favorite superheroes can shrink to the size of a tiny insect or toy thanks to a little Hollywood magic. But what if science could make it happen in real life? -
(ACC Mentioned) There’s a Tiny Plastic Enemy Threatening the Planet’s Oceans
Jan 11, 2019 | Bloomberg
By Eric Roston
Environmentalists have identified another threat to the planet. It’s called a nurdle. -
(ACC Mentioned) 5 Stocks Set to Ride Specialty Chemical Industry's Upswing
Jan 11, 2019 | Zacks
By Anindya Barman
Specialty chemicals that include catalysts, surfactants, speciality polymers, coating additives and oilfield chemicals are used in specific fields based on their performance. -
(ACC Mentioned) LafargeHolcim Appoints New Senior Vice President
Jan 11, 2019 | World Cement
By Lucy Stewardson
Lafarge Holcim has announced that Kristin Beck has been appointed as the Senior Vice President of Supply Chain for the US. Beck brings with her 23 years of experience in global supply chain and transportation management. -
Democrats Vow Tough Questions Amid Speedy Wheeler Hearing
Jan 11, 2019 | PoliticoPro
By Zack Colman and Anthony Adragna
Senate Democrats are hoping to grill Andrew Wheeler on the Trump administration's regulatory rollbacks at his confirmation hearing next week, though the government shutdown isn't making their effort any easier. -
With Pruitt Gone, Suit Over Lack of EPA Transparency Tossed
Jan 11, 2019 | BNA Daily Environment Report
By Peter Hayes
A watchdog suit against the Environmental Protection Agency and officials that accused them of avoiding creating records as a way to avoid public scrutiny can’t go forward, the U.S. District for the District of Columbia said. -
As a Partial Us Government Shutdown Continues, Chemists Feel the Pinch
Jan 10, 2019 | Chemical & Engineering News
By Andrea Widener
Amospheric chemist Steven Brown didn’t really suffer the impact of the partial US government shutdown until he returned from the holidays to the reality that he was locked out of his National Oceanic and Atmospheric Administration lab in Boulder, Colorado. -
Caution Signals Flash for M&A Outlook Amid Downdraft
Jan 11, 2019 | ICIS
Coming off a long stretch of strong chemical mergers and acquisitions (M&A) activity, the sector could cool off markedly in 2019, depending on the depth and length of the downturn in financial markets, which reflects expectations of slowing economic growth. -
US EPA Round-Up
Jan 10, 2019 | Chemical Watch
The 8 January virtual preparatory meeting of the TSCA Science Advisory Committee on Chemicals (SACC) to review the draft TSCA risk evaluation for pigment violet 29 was cancelled due to the partial shutdown of the federal government. -
EPA Touts FY18 Enforcement Hike in Pollution Cuts but Criticism Persists
Jan 10, 2019 | Inside EPA
By David LaRoss
Acting EPA Administrator Andrew Wheeler says the agency's pending fiscal year 2018 enforcement results include 800 million pounds of pollution and waste reduced, which he says is a major increase over FY17, despite environmentalists' fears... -
EU ‘Enfometer’ Shows Slight Improvement in REACH/CLP Compliance
Jan 11, 2019 | Chemical Watch
By Clelia Oziel
Compliance with REACH and CLP Regulations showed slight improvement across the EU between 2007 and 2014, the European Commission says in its first report on a new EU-wide enforcement indicator. -
Echa MSC Agrees to Biomonitoring of GenX Workers
Jan 10, 2019 | Chemical Watch
By Dr Emma Davies
Echa's Member State Committee (MSC) has agreed that a plant producing the PFOA replacement GenX should set up a biomonitoring programme with volunteer workers, as part of substance evaluation under the Community Rolling Action Plan (Corap). -
Echa Round-Up
Jan 11, 2019 | Chemical Watch
National enforcement authority inspectors, working with customs authorities, have started checks on the compliance of importers and manufacturers with REACH registration obligations. -
EDF Considers Potential Health Equity Impacts of Partial Lead Service Line Replacement
Jan 10, 2019 | Environmental Defense Fund
By Tom Neltner and Lindsay McCormick
States and communities across the country are taking important steps to accelerate replacement of lead service lines (LSLs) – lead pipes connecting the water main under the street to homes and other buildings. -
(ACC Mentioned) We’re Paying Less at the Pump — and That’s Just the Start
Jan 10, 2019 | Peoria Journal-Star
By Nicolas Loris
Media outlets rarely dwell on positive trends, but it’s been hard to miss the good news at the gasoline pump. As 2018 ended, gas prices fell to their lowest in nearly two years — below $2 a gallon in some areas in central Illinois. -
LNG Projects Stand by as Regulator’s Political Cracks Deepen
Jan 10, 2019 | BNA Daily Environment Report
By Stephen Cunningham
A partisan divide that partially shuttered the U.S. government may also be hindering approvals by the Federal Energy Regulatory Commission. -
Shutdown Could Slow Environmental Reviews
Jan 11, 2019 | E&E Energywire
By Jenny Mandel
Federal regulators are considering more than a dozen proposals to build liquefied natural gas plants, and their permitting schedules could be among the casualties of the ongoing partial government shutdown. -
Oil Drillers, Nature Lovers Get Access to Public Lands Despite Shutdown
Jan 10, 2019 | Washington Post
By Juliet Eilperin and Dino Grandoni
Food is going uninspected by regulators. Time-sensitive data is going uncollected by scientists. And other federal workers are going without pay while doing critical work manning airport terminals and border crossings. -
Group Blasts ANWR Plans
Jan 11, 2019 | E&E News PM
By Kelsey Brugger
Progressives are criticizing the Trump administration's effort to drill in the Arctic National Wildlife Refuge amid a period of confusion about how the government shutdown has slowed the process. -
Republicans Renew Push to Reform NEPA Reviews
Jan 11, 2019 | E&E Daily
By Maxine Joselow
Congressional Republicans are continuing to push for reforming the National Environmental Policy Act to speed up permitting for infrastructure projects. -
Carper: Climate Should Factor into Any Infrastructure Package
Jan 10, 2019 | PoliticoPro - Whiteboard
By Anthony Adragna
Senate Environment and Public Works ranking member Tom Carper (D-Del.) said climate change policies should be considered as part of any broader infrastructure legislation. -
Industry Groups See Shutdown Starting to Hinder EPA Permits, Programs
Jan 11, 2019 | Inside EPA
By Doug Obey
EPA's ongoing shutdown is starting to hinder the agency's ability to process industry permit applications, engine certifications, and key programs that companies support such as the Energy Star efficiency labeling initiative... -
Pallone Renames Panel to Include 'Climate Change'
Jan 11, 2019 | E&E News PM
By Nick Sobczyk
House Energy and Commerce Chairman Frank Pallone (D-N.J.) has tweaked the name of one of his subcommittees to put a bigger emphasis on climate change. -
This Republican Wants to Tax CO2 — and Change Trump's Mind
Jan 11, 2019 | E&E Climatewire
By Ines Kagubare
Republican Rep. Francis Rooney holds one of the reddest seats in Florida, but that hasn't stopped him from supporting aggressive climate action. -
Ocean Warming Accelerates, Bringing Coast Risks, Powerful Storms
Jan 10, 2019 | BNA Daily Environment Report
By Michael Standaert
Ocean warming is accelerating and will continue to do so, with devastating consequences to coastal communities and fishing industries worldwide to a tune of tens of billions of dollars annually through 2100, projections from a new report show. -
Rising Chloroform Emissions Traced to China
Jan 11, 2019 | Chemical & Engineering News
By Tien Nguyen
An international team of researchers has reported a surprising rise in global levels of atmospheric chloroform. The study in Nature Geoscience posits that the ozone-depleting substance is coming from eastern China (2018, DOI: 10.1038/s41561-018-0278-2).
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Jan 10, 2019 | American Chemistry Matters
By American Chemistry
On the big screen, some of our favorite superheroes can shrink to the size of a tiny insect or toy thanks to a little Hollywood magic. But what if science could make it happen in real life?
MIT engineers may have taken us one step closer by recently sharing how to create 3-D nanoscale objects of nearly any shape. These tiny nanoscale structures could have applications in many fields, from optics to healthcare to robotics.
But how does it work? MIT researchers first create a detailed model of a larger structure and embed it in polyacrylate, an absorbent material you find in diapers. They then soak the structure that they want to shrink in a special solution. After adding an acid to the mix, researchers can shrink the entire structure down to the nanoscale. The researchers also found that they can use lasers to fine tune the properties of the final product by adding metals, DNA molecules, or other substances.
The new 3-D nanoscale object created from the researchers’ process is smaller than the eye can see. Nanotechnology comprises the study of matter at an incredibly small scale, generally between one and 100 nanometers. For example, a piece of paper is 100,000 nanometers thick, and a single red blood cell is about 7,000 nanometers in diameter. Learn more about just how small a nanometer really is.
The MIT researchers say their technique for creating 3-D nanoscale size items uses equipment that many biology and materials science labs already have, making it widely accessible for other researchers who want to try it.
With this discovery and others on the horizon, nanotechnology has sizeable potential. In fact, nanotechnology has already changed our world in other remarkable ways. For example, another recent MIT study revealed that nanotechnology could help diagnose bacterial pneumonia and help detect different types of cancers, potentially enabling earlier diagnosis and treatment.
From innovations that could help treat strokes and spinal cord injuries, to creating solutions for clean drinking water, nanotechnology is helping us tackling some of our world’s most critical challenges. Alongside these efforts, the American Chemistry Council’s (ACC) Nanotechnology Panel is at the forefront of guiding the responsible development of nanotechnologies domestically and internationally by advocating for a scientifically sound approach to nanotechnology policy.
To learn more about the Nanotechnology Panel or to inquire about joining the panel, contact Jay West at jay_west@americanchemistry.com.
https://blog.americanchemistry.com/2019/01/have-mit-researchers-taken-us-one-step-closer-to-making-a-shrinking-superhero-suit-a-reality/
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(ACC Mentioned) There’s a Tiny Plastic Enemy Threatening the Planet’s Oceans
Jan 11, 2019 | Bloomberg
By Eric Roston
Environmentalists have identified another threat to the planet. It’s called a nurdle.
Nurdles are tiny pellets of plastic resin no bigger than a pencil eraser that manufacturers transform into packaging, plastic straws, water bottles and other typical targets of environmental action.
But the nurdles themselves are also a problem. Billions of them are lost from production and supply chains every year, spilling or washing into waterways. A U.K. environmental consultancy estimated last year that preproduction plastic pellets are the second-largest source of marine plastic, after micro-fragments from vehicle tires.
Now, shareholder advocacy group As You Sow has filed resolutions with Chevron Corp., DowDupont Inc., Exxon Mobil Corp. and Phillips 66 asking them to disclose how many nurdles escape their production process each year, and how effectively they’re addressing the issue.
As justification, the group cites estimates of high financial and environmental costs associated with plastic pollution, and recent international efforts to address it. These include a United Nations conference in Nairobi and a U.S. law banning micro-plastics used in cosmetics.
“We’ve had information over the last couple of years from the plastics industry, that they’re taking this all seriously,” said Conrad MacKerron, senior vice president of As You Sow. The companies say they have set goals to recycle plastics, he said. “This is really more of a bellwether moment, as to whether they’re serious … if they’re willing to come out, warts and all, and say ‘here’s the situation. Here are the spills that are out there. Here’s what we’re doing about them.’”
The companies already participate in Operation Clean Sweep, a voluntary industry-backed effort to keep plastics out of the ocean. As part of an initiative called OCS Blue, members are asked to share data confidentially with the trade group about the volume of resin pellets shipped or received, spilled, recovered and recycled, along with any efforts to eliminate leakage.
Jacob Barron, a spokesman for the Plastic Industry Association (PIA), an industry lobby, said “the provision about confidentiality is included to eliminate competitive concerns that might prevent a company from disclosing this information.” The American Chemistry Council, another lobbying group, co-sponsors OCS along with the PIA. In May, it announced long-term industry-wide goals to recover and recycle plastic packaging, and for all U.S. manufacturers to join OCS Blue by 2020.
There’s limited information on the extent of this kind of plastic pollution by U.S. companies, and global researchers have struggled to make an accurate assessment. A 2018 study estimated that 3 million to 36 million pellets may escape every year from just one small industrial area in Sweden, and if smaller particles are considered, the quantity released is a hundred times greater.
Eunomia, the British environmental consultancy that discovered that nurdles are the second-largest plastic pollutant, estimated in 2016 that the U.K. could be unwittingly losing between 5.3 billion to 53 billion pellets into the environment every a year.
Braden Reddall, a spokesman for Chevron, said the fossil fuel giant’s board reviews shareholder proposals and makes recommendations for each in its proxy statement, planned for April 9. Rachelle Schikorra, a spokeswoman for Dow, said the company regularly talks with shareholders about sustainability issues and works to “develop solutions that keep plastic out of our environment.”
ExxonMobil declined to comment. Phillips 66 didn’t respond to a request for comment.
The companies will decide in the next several months whether to include the resolutions in this year’s proxy statements, according to As You Sow.
https://www.bloomberg.com/news/articles/2019-01-11/there-s-a-tiny-plastic-enemy-threatening-the-earth-s-oceans
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(ACC Mentioned) 5 Stocks Set to Ride Specialty Chemical Industry's Upswing
Jan 11, 2019 | Zacks
By Anindya Barman
Specialty chemicals that include catalysts, surfactants, speciality polymers, coating additives and oilfield chemicals are used in specific fields based on their performance. They have application in the manufacturing process of a vast range of products including paints and coatings, cosmetics, petroleum products, inks and plastics.
Industry Set to Run Higher in 2019
The specialty chemical industry is poised for an upside in 2019 on healthy demand in end-use markets such as construction, electronics, automotive and agriculture. In particular, the U.S. specialty chemical industry is set to ride the growth wave this year on the back of higher industrial activities and rising end-market demand.
The American Chemistry Council ("ACC"), a leading industry trade group, envisions growth in construction markets along with gains in manufacturing and exports to drive the specialty chemicals segments.
According to the ACC, the specialty chemicals segment is expected to see production growth of 2.2% in 2019. Improvement in oilfield chemicals, electronic chemicals, coatings, adhesives, cosmetic chemicals, and flavors and fragrances are fueling growth in specialty chemicals. The trade group expects demand for specialty chemicals to grow in sync with gains in industrial and construction sectors in the years ahead.
The ACC expects improving export markets to contribute to growth of the domestic chemical industry. Strength in export markets and higher business investment have boosted demand in major chemical end-use markets such as light vehicles and housing, per the trade group. While the automotive sector remains at high levels, housing activity is improving with 1.27 million starts in 2018 and 1.34 million in 2019. Light vehicle sales are also expected to remain elevated at 16.8 million in 2019.
Strategic Actions to Reap Margin Benefits
Companies in the specialty chemical space face headwinds from a spike in costs of raw materials as a result of short supply partly due to production outages and plant shutdowns. China’s environmental crackdown has led to the tightening in the supply of certain key raw materials as a result of plant closures. The disruption in the supply chain has pushed up the prices of inputs.
However, the companies in this space are gaining from strategic measures including cost-cutting and productivity improvement, expansion into high-growth markets, operational efficiency improvement and earnings-accretive acquisitions. Moreover, a number of companies are taking aggressive price increase actions in the wake of raw material cost inflation. These actions should help them alleviate any pressure on margin.
Trade Tariffs — A Dampener
Trade tensions between the United States and China continue to cloud the prospects of the chemical industry. The Trump administration slapped punitive tariffs on $250 billion worth of Chinese products last year while China has imposed retaliatory tariffs on $110 billion in U.S. goods. China’s tariffs on American products include a wide range of petrochemicals, specialty chemicals and plastics.
The United States and China reached a temporary ceasefire on tariffs at the G20 Summit in Buenos Aires in December 2018. Under the truce, the countries agreed not to levy further tariffs for 90 days. The Trump administration agreed to hold off on plans to raise tariffs (to 25% from existing 10%) on $200 billion in Chinese goods. However, the existing tariffs remain in place.
Washington and Beijing now have until Mar 1, 2019 to hammer out a deal before additional tariffs are implemented. While recent talks between the countries have raised hopes of a resolution of the trade dispute, the tariffs currently in place are already doing damage to the chemical industry.
China is one of the biggest export markets for U.S. chemicals. Beijing’s retaliatory trade actions have created an uncertain demand environment for U.S. chemical products in this major market. Chemical industry trade groups are worried that the tariffs would hurt U.S. chemical exports and the competitiveness of the American chemical industry. China’s retaliatory tariffs have hit more than 1,000 U.S. chemicals and plastics exports worth an estimated $10.8 billion, per the ACC.
5 Specialty Chemical Stocks to Buy
Notwithstanding a few challenges including input cost pressure and concerns over trade tariffs, the specialty chemical industry is poised for an upswing this year on growing end-market demand, growth in industrial and construction sectors and gains in exports.
The Zacks Chemicals Specialty industry currently carries a Zacks Industry Rank#107, which places it in the top 42% of more than 250 Zacks industries. Our back testing shows that the top 50% of the Zacks ranked industries outperforms the bottom half by a factor of more than two to one.
As such, it would be prudent to invest in specialty chemical stocks that have compelling growth prospects. We highlight the following five stocks with Zacks Rank #1 (Strong Buy) or 2 (Buy) that are good options for investment right now. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ferro Corporation (FOE - Free Report)
Ohio-based Ferro sports a Zacks Rank #1 and has an expected earnings growth of 21.6% for 2019. Earnings estimates for the current year have been revised 4.4% upward over the last 60 days. Moreover, the company delivered positive earnings surprise in three of the trailing four quarters, with an average positive surprise of 0.3%. The company also has an expected long-term earnings per share growth rate of 15.6%.
Ingevity Corporation (NGVT - Free Report)
Our next pick in the space is South Carolina-based Ingevity sporting a Zacks Rank #1. It has expected earnings growth of 21.5% for 2019. The company also has an expected long-term earnings per share growth rate of 12%. Moreover, Ingevity delivered positive earnings surprise in each of the trailing four quarters, with an average positive surprise of 19.8%.
Westlake Chemical Partners LP (WLKP - Free Report)
Based in Texas, Westlake Chemical Partners carries a Zacks Rank #2. The company has expected earnings growth of 14.2% for 2019. Earnings estimates for the current year have been revised 5.1% upward over the last 60 days. The stock also has an expected long-term earnings per share growth rate of 2.8%
Quaker Chemical Corporation (KWR - Free Report)
Pennsylvania-based Quaker Chemical is another attractive choice armed with a Zacks Rank #2. It has an expected earnings growth of 21.1% for 2019. Earnings estimates for the current year have been revised 2.7% upward over the last 60 days. The company delivered positive earnings surprise in each of the trailing four quarters, with an average positive surprise of roughly 5%. The stock also has an expected long-term earnings per share growth rate of 11%
Livent Corporation (LTHM - Free Report)
Pennsylvania-based Livent caries a Zacks Rank #2. The company has an expected earnings growth of 20.5% for 2019. Earnings estimates for the current year have been revised 2.8% upward over the last 60 days. Moreover, the company delivered positive earnings surprise of 19.1% in the last reported quarter.
https://www.zacks.com/stock/news/346894/5-stocks-set-to-ride-specialty-chemical-industrys-upswing
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(ACC Mentioned) LafargeHolcim Appoints New Senior Vice President
Jan 11, 2019 | World Cement
By Lucy Stewardson
LafargeHolcim has announced that Kristin Beck has been appointed as the Senior Vice President of Supply Chain for the US. Beck brings with her 23 years of experience in global supply chain and transportation management.
Beck will join LafargeHolcim from Dow Chemical Company, where she has served as Director of North American Road Logistics since 2014. Before this, she held roles of increasing responsibility, including Programme Manager of Logistics at Insight Corporation and Senior Account Leader at Schneider Logistics.
Beck holds a bachelor’s degree in industrial science from Central Michigan University and is a certified Six-Sigma Green Belt. She also holds certifications as QS/ISO Quality Manager, Internal and External Auditor from the European Quality Association, and Apollo Root Cause Analysis from Effective Problem Solving LLC.
She is also a member of the American Chemistry Council and TRANSCEAER®, a voluntary national outreach effort that focuses on assisting communities to prepare for and respond to possible hazardous material transportation incidents. She has served as a conference speaker for organisations, as well as for Truckers Against Trafficking Industry, at the Dow Chemical Annual Core Carrier Conference, and at the Dow Chemical Annual Safety Director Conference.
https://www.worldcement.com/the-americas/11012019/lafargeholcim-appoints-new-senior-vice-president/
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Democrats Vow Tough Questions Amid Speedy Wheeler Hearing
Jan 11, 2019 | PoliticoPro
By Zack Colman and Anthony Adragna
Senate Democrats are hoping to grill Andrew Wheeler on the Trump administration's regulatory rollbacks at his confirmation hearing next week, though the government shutdown isn't making their effort any easier.
Republicans have launched a speedy process to make the acting administrator the agency's permanent chief, and while Democrats seemed resigned to the fact they can't block his appointment, they complained the shutdown would make getting information from EPA ahead of the Jan. 16 hearing difficult.
They also won't get any of the 20,000 emails between Wheeler, top agency officials and industry groups that a federal judge ordered released, since the clock on the 10-month deadline for those doesn't start until the partial government shutdown ends.
The pending release of those emails from Wheeler is reminiscent of the confirmation process for former Administrator Scott Pruitt, who was narrowly confirmed one day after a federal judge ordered the release of emails he exchanged with energy companies during his tenure as Oklahoma attorney general. Democrats unsuccessfully sought to halt the confirmation hearing until they could review those emails.
Still, Democrats admitted they can accomplish little beyond traditional oversight and vetting. That’s especially true after Republicans widened their Senate advantage in last November’s midterms.
“They’re moving forward. My thoughts about it are inconsequential,” Sen. Cory Booker (D-N.J.), a member of the Environment and Public Works Committee, told POLITICO of the committee’s hearing on Wheeler.
While some Democrats may dig into Wheeler’s alleged conflicts of interest from his years as an energy industry lobbyist, others plan to home in on the agency's policies. That appears to reflect the fact that senators had questioned him about his ties to coal and other fossil fuels producers at his previous confirmation hearing, the slim chances that Democrats have in convincing at least four Republicans to scrap his confirmation and that Wheeler is already overseeing the agency’s policy operations.
“My focus more has been on substantive issues than his objectivity questioned by his previous assignments,” Sen. Ben Cardin (D-Md.), another committee member, told POLITICO.
Still, Cardin said the shutdown could hinder his ability to get documents and correspondence he wants to review to assess Wheeler’s role in policy issues like mercury pollution standards, auto efficiency rules and power plant standards. He said it’s not clear there’s enough EPA staff on hand to produce such material.
His EPW colleague, Sen. Chris Van Hollen (D-Md.), told POLITICO some of his questions during the hearing would focus on the shutdown’s impacts on the agency.
Democrats are also raising additional concerns about ethics practices at EPA. Sens. Van Hollen, Sheldon Whitehouse (D-R.I.), Tom Carper (D-Del.) and Tom Udall(D-N.M.) sent a letter Thursday to Wheeler seeking more information about donations made to Pruitt's legal defense fund.
That fund received a $50,000 donation from Diane Hendricks, a Republican donor, without consultation from the ethics department, EPA ethics official Justina Fugh said in a December filing. The senators asked for communications with Hendricks and a "list of any investigations or enforcement actions" against several companies, noting she also has an LLC that could conceal financial interests in companies regulated by the EPA.
Republicans said there was no reason to delay the process as the partial shutdown drags on, arguing it was important to get Wheeler installed as he prepares to face a torrent of oversight from House Democrats.
“We’re still working and we’re going to run out of time if we don’t get these things done in a timely fashion and continue to expedite these nominations,” Sen. Mike Rounds (R-S.D.), who sits on the panel, told reporters. “The sooner we can complete the nomination, the better off we’re going to be.”
But Democrats are vowing not to make the process an easy one even as they admit there’s little they can do to slow down its pace.
“I have a lot of concern about the Wheeler nomination regardless of when it’s brought forward,” Sen. Jeff Merkley (D-Ore.) told POLITICO. “This is a nomination that should be derailed in any way possibility.”
https://subscriber.politicopro.com/energy/article/2019/01/democrats-vow-tough-questions-amid-speedy-wheeler-hearing-1074122
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With Pruitt Gone, Suit Over Lack of EPA Transparency Tossed
Jan 11, 2019 | BNA Daily Environment Report
By Peter Hayes
A watchdog suit against the Environmental Protection Agency and officials that accused them of avoiding creating records as a way to avoid public scrutiny can’t go forward, the U.S. District for the District of Columbia said.
With former head Scott Pruitt gone, a new acting administrator, and new policies in place, the suit filed by Citizens for Responsibility & Ethics in Washington and Public Employees for Environmental Responsibility is moot, the court said.
The suit is barred because EPA has, since Pruitt’s departure, created a revised records management policy that responds to some of the shortcomings pointed out by the suit.
Pruitt resigned July 6, 2018, and has been replaced by Acting Administrator Andrew Wheeler.
The EPA adopted a new “Interim Records Management Policy” August 22, 2018, that "[h]ighlights the obligation to document substantive decisions reached orally,” and supersedes any prior policy.
After filing multiple Freedom of Information Act requests with the agency that went unanswered, the groups sued in February 2018.
The agency’s failure to adequately document its policies, decisions, and essential transactions, resulted in fewer responsive documents, the complaint alleged.
Judge James E. Boasberg issued the opinion.
The case is Citizens for Responsibility & Ethics in Wash. v. Wheeler, 2019 BL 8233, D.D.C., No. 18-406, 1/10/19.
https://news.bloombergenvironment.com/environment-and-energy/with-pruitt-gone-suit-over-lack-of-epa-transparency-tossed
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As a Partial Us Government Shutdown Continues, Chemists Feel the Pinch
Jan 10, 2019 | Chemical & Engineering News
By Andrea Widener
Amospheric chemist Steven Brown didn’t really suffer the impact of the partial US government shutdown until he returned from the holidays to the reality that he was locked out of his National Oceanic and Atmospheric Administration lab in Boulder, Colorado. “We are really starting to feel it now, especially this week,” he says.
Brown is most concerned about the lost time for planning experiments and keeping up with colleagues. He’s had to reschedule meetings with collaborators in industry, academia, and local government. In addition, he had to decline a trip to China, and he will have to cancel a talk if the shutdown continues much longer.
“Just because I’m out of work doesn’t mean the world stops,” Brown says.
Brown is just one of thousands of US scientists feeling the effects of the shutdown, which has partially or fully shuttered many science agencies. As of C&EN deadline, there was little sign of progress in negotiations between President Donald J. Trump and congressional Democrats.
“From the interruption of EPA’s air-quality testing to NSF’s inability to distribute funds or consider new grants, the enterprise is being negatively impacted from advancing science critical to national priorities,” says Glenn S. Ruskin, vice president of external affairs and communications at the American Chemical Society, which publishes C&EN.
A research chemist at the National Institute of Standards and Technology, who asked not to be named, had to throw out her pending experiments when the shutdown started, losing weeks of work. Now she’s worried about a pending patent application. “There are certain deadlines we have to meet. If someone beats us to it, it would be the difference between the government owning the patent versus a company,” she says.
Another NIST chemist is most concerned about his postdoc researcher. Federal staff and contractors are not being paid during the shutdown, and the postdoc has college loans and the Washington area’s high rent to deal with. “I don’t know how long he will be able to hold out” before he has to look for another job, the chemist says.
As the largest public university near the District of Columbia, the University of Maryland, College Park, has dozens of collaborations with federal labs, far more than most universities, says Laurie Locascio, vice president for research there.
Her biggest concern right now is the threat of long-term federal funding cuts, especially for scientists and students who work on federal contracts. Federal employees will likely get back pay, but contractors are a different story. She has identified more than 200 on two contracts alone. “I don’t see a way for us universities to pay people who weren’t working during that time,” she says.
Any delays in research are only hurting US competitiveness in areas like quantum science, where competition with China is fierce, Locascio says. “We are thinking hard about creating policies about how to prepare for a federal shutdown because we aren’t confident this won’t happen again.”
https://cen.acs.org/policy/research-funding/partial-US-government-shutdown-continues/97/i2
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Caution Signals Flash for M&A Outlook Amid Downdraft
Jan 11, 2019 | ICIS
Coming off a long stretch of strong chemical mergers and acquisitions (M&A) activity, the sector could cool off markedly in 2019, depending on the depth and length of the downturn in financial markets, which reflects expectations of slowing economic growth.
“There are negative and positive factors at work. There are concerns about whether there could be a global recession and the US credit markets have significantly tightened,” said Federico Mennella, head of chemicals and materials, North America, for investment bank Rothschild & Co.
“China is up in the air because of US tariffs, there’s a general slowdown in Europe and certain industrial sectors such as automotive are slowing,” he added.
The risks are grouped into three categories – political risks, trade tensions and general economic growth, all of which are intertwined, he noted.
“In general, leveraged finance markets weakened further in December, with macro concerns and market volatility resulting in a broad-based sell-off in both the loan and bond markets. Investors are largely in risk-off mode for lower-rated new issues,” said Mennella.
“There are a number of uncertainties out there. Higher interest rates could slow down the US economy, Brexit is still not solved and there is already a slowdown in China and Europe. Plus, the shift to electric mobility is causing changes in the automotive sector,” said Bernd Schneider, managing director at Germany-based investment bank Alantra.
“2019 probably won’t be a record year for chemical M&A when it comes to cumulated value but it should still be a healthy year,” he added.
The pace of global chemical M&A activity has actually been declining for the last two years and should continue to fall in 2019, according to Peter Young, president of investment bank Young & Partners.
“Separate from one or two mega deals, the dollar volume and number of deals have been declining for the last two years and will continue to decline in 2019,” said Young.
“Although there are strategic buyers who want to add synergistic businesses, particularly in specialties, there are other forces that are pushing M&A volume in the other direction,” he added.
In terms of the number of deals over $25m in size, the first three quarters of 2018 saw 42 deals completed (56 deals on an annualised basis) compared to 89 deals for all of 2017, according to Young & Partners.
In terms of size, the first three quarters of 2018 saw $89.6bn worth of deals closed. However, just two deals dominated and represented $69.7bn of the total – the Bayer/Monsanto and PotashCorp/Agrium deals. All of the rest only represented $19.9bn, noted Young.
“The industry faces many uncertainties that are impacting M&A. Slowing economies worldwide, difficulties in the very large Chinese economy, higher interest rates, the slumping stock market, the unknown trajectory of the US/China trade disputes and tariffs, and the high levels of geopolitical strife are all factors that will drive a slower M&A market and potentially, a severe downturn in activity and valuations,” said Young.
“There is still a window to sell at solid valuations for certain assets, but that window will not stay open for all of 2019,” he added.
EQUITY MARKETS TUMBLE
Chemical equity prices have tumbled since early October along with the broader markets, denting public valuations as well as management confidence. Stock prices are considered a leading indicator. The stock market looks forward, and it doesn’t like what it sees.
“The level of volatility is not instilling confidence in the M&A market. That being said, we are not aware of any [sale] processes that have been pulled,” said Leland Harrs, managing director at investment bank Houlihan Lokey.
“It is serving as a wake-up call that we are in the late innings of the economic cycle, and that it might be a good time to sell,” he added.
Interestingly, earnings estimates for 2019 have not yet been slashed to the extent stock prices would suggest. Consensus estimates as of mid-December show chemical company profits largely rising in 2019 versus 2018.
“Equity volatility could cause some pause for those looking for deals but M&A is a long-term investment and companies take a long-term view,” said Sean Gallagher, managing director at investment bank Janney Montgomery Scott.
“Most companies look at long-term trends and see if the support is there – sales synergies, cost synergies, and the need to add to the team to achieve higher growth, especially with tightness in the labour market. In the end, the deals that make sense will still get done,” he added.
US-focused chemical companies in particular have more cash available from the tax reform to make acquisitions, said the banker.
“And the range of financing sources keep on increasing, branching out from traditional banks. There are PE funds focused on debt that are looking to put capital to work, and BDCs (business development companies) can now take on more leverage,” said Gallagher.
With the March 2018 “Omnibus” bill that was passed to avert a US government shutdown, one provision allowed for BDCs to borrow more money to lend out. Specifically, BDCs can borrow $2 for every $1 in equity versus a 1:1 ratio previously.
PUBLIC COMPANIES IN PLAY
The carnage in equity prices could make publicly traded companies more attractive, putting them “on the radar screen” for potential acquisitions, said Telly Zachariades, co-founder and managing director of investment bank The Valence Group.
“Stocks had gotten ahead of themselves and thus there were less buyouts of public chemical companies. The field has now returned to normality,” he added.
However, buyers won’t necessarily be able to offer takeout premiums for stock prices going back to October 2018 highs and expect to find a willing seller just yet, warns the banker.
“You need stock prices to stay down longer – to have 3-6 months of ‘seasoning’. If stock prices stay where they are or fall lower, then public companies will be in play,” said Zachariades. Lower stock prices could also spur divestitures.
“When equity markets soften a bit, corporates are more willing to pursue smaller, non-core divestitures because they are less dilutive to earnings per share,” said Chris Cerimele, founder and managing director of investment bank Balmoral Advisors.
“Many companies have been on the sidelines because their public trading multiples have been so strong,” he added.
With a high public trading EV/earnings before interest, tax, depreciation and amortisation (EBITDA) multiple, management would be hesitant to divest earnings generating assets, as they are getting a higher valuation on the consolidation of those profits than if they sold them.
CEO CONFIDENCE IS KEY
And what about public chemical companies as buyers? Managements seeing their own stock prices decline precipitously would arguably hesitate paying high multiples for deals. However, Zachariades noted that deal multiples have typically been higher than public valuations.
Recent deal valuations have indeed been solid, highlighting the demand for good assets of size.
Germany-based Evonik’s planned acquisition of US-based hydrogen peroxide and peracetic acid producer PeroxyChem from One Equity Partners announced in November for $625m was at a multiple of 10.4x expected 2018 EBITDA of around $60m and over 2x expected sales of $300m.
Zachariades pointed to US-based Ingevity, which, despite a recent decline in its stock price, announced on 10 December the acquisition of Perstorp’s caprolactone business for €590m, representing a robust 11.8x expected 2018 EBITDA of €50m.
“It all comes down to whether the CEO is confident in prospects for his own company. It’s not about what the market is valuing it at, but what the outlook is for 2019,” according to Zachariades.
“If CEOs start to get nervous, then that will have an impact on how they approach M&A,” he added.
Using capital expenditure (capex) as a proxy for business confidence, the banker points out that around 75-80% of chemical companies reporting capex plans for 2019 have them at similar levels as 2018 or higher.
Yet a consistently declining stock price can impact management confidence.
“From a public company perspective, it’s a lot easier for boards to approve deals when their stock price is up. It’s a matter of confidence,” said Omar Diaz, managing director at investment bank Seaport Global Securities.
In general, chemical companies’ “balance sheets are fantastic as they have not borrowed like drunken sailors, and they are generating strong cash flows. Portfolio realignment is still the name of the game”, he added.
Yet “volatility is not the friend of M&A”, said Diaz.
“China is a wild card. All this uncertainty on the US-China trade front is putting a damper on sentiment, along with worries about a slowing global economy.”
CREDIT TRENDS WEAKENING
While leading indicators are “flashing warning signs” and the market seems to be “on edge”, “as long as credit is available on acceptable terms, and trade and oil aren’t disruptive, US chemical M&A should continue at a good pace,” said Rothschild & Co’s Mennella.
“The availability and pricing of credit have a more direct tie to M&A. We’ve seen some widening of credit spreads and choppiness but it’s too early to say if it will impact activity. Everyone’s antennas are up,” said Houlihan Lokey’s Harrs.
“The debt capital markets are becoming an increasing concern. It’s gotten harder to borrow as institutional investors are looking for higher Libor floors and overall pricing. This may also put a damper on activity in 2019 and beyond,” said Seaport Global’s Diaz.
“The first quarter of 2019 may be on the slow side, but if there’s any indication that volatility may lessen, M&A market growth should accelerate from there. We’re cautiously optimistic for 2019,” he added.
BUYER DYNAMICS
“Buyers might use this as an opportunity to slow things down or lower their price if this volatility persists. However, if you do nothing, you are losing that growth lever. Most chemical companies are still longing to do M&A,” he added.
“There is still more demand than supply of assets for sale. If there’s a downturn, deal multiples may soften. But for now, multiples are still strong and still drawing sellers out,” said Cerimele from Balmoral Advisors.
“The chemical M&A market is still strong. Everyone’s looking at it and wondering how long it can last. How many times does the coin flip come up heads? That’s the mentality today,” he added.
On the positive side, profitability, as measured by EBITDA is expected to continue improving in 2019 for specialty chemical companies, said Mennella from Rothschild & Co.
“While we see certain commodity chemical companies weakening, many specialty chemical margins are expanding on lower commodity prices,” said Mennella.
Profit margins are often a driving force for corporate acquisition interest, noted Cerimele from Balmoral.
“Corporate buyers are often more focused on gross margin improvement (accretion) with acquisitions rather than the dollar size of earnings. If a deal is likely to result in profit margin accretion of the combined business, it will get more attention,” said Cerimele.
However, the US-China trade war could become problematic for M&A if it escalates, causing havoc across global economies and financial markets.
“A key factor is valuations. If you cannot properly value a business because of all the uncertainty, you’re going to be at a disadvantage in terms of M&A,” said Mennella from Rothschild.
For crossborder M&A between the US and China, the trade war is already taking its toll.
“In the past year and a half, there’s been a significant slowdown in Chinese companies seeking to acquire US assets. The Chinese government has also cracked down on outflows of capital,” said Harrs from Houlihan Lokey.
PRIVATE EQUITY OUTLOOK
Private equity (PE) firms continue to express high interest in the chemical sector, and have been active on both the buy and sell side.
Through November 2018, PE firms were involved on the buy or sell side in 38.9% of total chemical transactions announced in the year, up from 25.7% for all of 2017, according to Rothschild & Co.
On the buy side, PE firms and strategics continued to pay full prices for chemical assets.
Sponsor deal multiples rose to 10.4x earnings before interest, tax, depreciation and amortization (EBITDA) year-to-date through November 2018, compared to 13.6x for strategic deals. Those figures were up from 10.0x for sponsor deals and 10.4x for strategic deals in 2017, according to Edgewater Capital Partners.
“Credit markets are currently supportive of defensive industries and credits with reasonable leverage and terms. Risk has been repriced higher – so sponsors are still getting deals done, but in more expensive and conservative terms. More private equity groups are getting involved in chemicals while valuations are not crazy,” said Mennella.
Rothschild & Co together with Mennella, then at his previous firm Lincoln International, advised Bain Capital on its acquisition of specialty chemical additives producer Italmatch from PE firm Ardian in July 2018.
Italmatch reportedly generated around €400m in sales in 2017. Then in December 2018, Bain Capital and Italmatch, again advised by Mennella, announced the acquisition of US-based BWA Water Additives.
“There’s been a flood of PE firms with interest in the chemicals market with huge amounts of raised capital,” said Alantra’s Schneider.
“And now we see more former bankers joining PE firms. The competition between PE firms is so fierce that they must ramp up every asset they have to win deals, and that includes bringing in expertise to differentiate themselves,” he added.
Mario Toukan, former managing director and head of chemicals at KeyBanc Capital Markets, joined SK Capital Partners as a managing director in December 2018. Earlier in 2017, SK Capital brought on Simon Dowker, formerly an investment banker focused on chemicals with PJT Partners and Jefferies.
Expect PE firms to be opportunistic in 2019, especially if corporates step back from M&A.
“In 2018, deals involving private equity have moved at an extremely accelerated pace. PE firms have massive amounts of capital, and speed in closing a transaction is their primary differentiator,” said Diaz.
FAILED MERGERS, ACTIVISTS
Even failed mergers can lead to M&A activity as the companies take their next steps, noted Mennella.
Switzerland-based Clariant, after its planned merger with US-based Huntsman was scuttled by activist investor White Tail, gained Saudi Arabia’s SABIC as a partner through the activist’s sale of its nearly 25% stake in Clariant to SABIC.
While this was a not a change-in-control acquisition, it brought in new management. The new Clariant CEO Ernesto Occhiello had been heading up SABIC’s specialty chemicals business.
Netherlands-based AkzoNobel, which had to deal with activist investor Elliott Management along with a hostile takeover bid by US-based coatings rival PPG, in October 2018 sold off its specialty chemicals business to PE firm The Carlyle Group and Singapore sovereign investment fund GIC for €10.1bn.
“Failed mergers and activists can either drive direct M&A, or indirect M&A as they raise the flag and essentially clamor for another investor to come in,” said Mennella.
“Once management is exposed, they usually decide to do something,” he added.
Elliott Management also targeted US-based coatings company RPM International, which in June 2018 agreed to appoint two new independent directors to the board and form an “Operating Improvement Committee” to conduct a comprehensive business review.
“Activism typically results in divestitures as the targeted companies refocus their efforts,” said Harrs from Houlihan Lokey.
New CEOs can also often lead to M&A activity, as they seek to make their mark on the company through acquisitions, divestitures or a combination of both.
Chemical companies or those with chemical operations with relatively new CEOs include Clariant, Nouryon (former AkzoNobel Specialties) and Milliken & Co. Coming up in 2019, Solvay will have a new CEO. Plus, the DowDuPont spinoffs Dow, DuPont and Corteva set for 2019 will all have their own new CEOs.
AGE OF MEGA DEALS OVER
The age of the chemical mega deal is likely over, at least for 2019, as it is getting harder to find the strategic rationale for these kinds of transactions. Yet one potential big deal we could see in the new year is LyondellBasell/Braskem.
“Any planned mega deal might take longer than expected because of all the uncertainty,” said Schneider from Alantra.
“The period of mega deals could take a pause, but we could see even more mid-size and smaller deals as new companies like Nouryon seek to grow certain divisions and also dispose of assets to deleverage. The companies spun off from DowDuPont should also see consequential deals,” he added.
COMPOUNDING, COMPOSITES IN DEMAND
Even in a down market, certain subsectors can be in high demand. Compounding and composites are up there on the attractiveness scale.
“Composites in the age of lightweighting and electric mobility are the name of the game. It’s a hot industry and good assets are commanding high multiples,” said Alantra’s Schneider.
“With increasing environmental awareness and potential decrease in the consumption of basic plastics – for example in packaging - resins makers are afraid of losing demand. They are taking the necessary steps downstream,” he added.
Companies such as LyondellBasell, Covestro, Celanese and Ascend Performance Materials have been acquiring such compounding/composite assets to gain access to new applications and improve their long-term margins.
US-based integrated nylon producer Ascend Performance Materials in August 2018 acquired Netherlands-based engineering plastics compounder and customer Britannia Techno Polymers (BTP) – it’s first such acquisition. It is seeking additional acquisitions to broaden its compounding footprint.
The “hunger for composites” stems from companies’ need to find new applications where resins will replace metals, to compensate for a potential loss in classical uses such as packaging, and to achieve better margins and pricing power, noted Schneider.
“Resins companies have to get out of that strategic trap and composites is the answer,” he added.
Along with the electric mobility mega trend, there is renewed interest in electronic chemicals, including electronic coatings and battery materials, said Schneider. While the overall automotive sector faces challenges of slowing growth, certain subsectors continue to show strength.
“Even within automotive, it depends on what you’re supplying. Commodity materials will see a slowdown. But if you produce higher-end materials for lightweighting – certain plastics, adhesives and sound insulation – you may not have witnessed any slowdown at all,” said The Valence Group’s Zachariades.
https://www.icis.com/explore/resources/news/2019/01/11/10304979/caution-signals-flash-for-m-amp-a-outlook-amid-downdraft
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Jan 10, 2019 | Chemical Watch
Preparatory call for TSCA PV29 evaluation cancelled
The 8 January virtual preparatory meeting of the TSCA Science Advisory Committee on Chemicals (SACC) to review the draft TSCA risk evaluation for pigment violet 29 was cancelled due to the partial shutdown of the federal government.
The EPA said in a 31 December notice that if the shutdown continues past 5pm on 11 January, the four-day SACC review of PV29 – scheduled for 29 January to 1 February – will be postponed.
TSCA ‘not likely’ determinations
Prior to the government shutdown, the US EPA issued TSCA 5(a)(3)(c) findings for six substances subject to pre-manufacture notices (PMNs). These "not likely to cause unreasonable risk" findings will allow the substances to come to market without restriction.
They cover:
· P-17-0281, a polysiloxane-polyester polyol carboxylate;
· P-18-0007 and P-18-0008, which are both intended to be used as a plasticiser/stabiliser for flexible PVC;
· P-18-0212, a polymer imported in formulation for industrial use as a coating resin;
· P-18-0219, a polythioether, short chain diol polymer terminated with aliphatic diisocyanate; and
· P-18-0068, metal, oxo alkylcarboxylate complexes, manufactured for use as a polymer composite additive.
Additionally, the agency issued a ‘not likely’ finding for a significant new use notification (Snun) submitted prior to passage of the Lautenberg Act. The 12 December determination relates to the release to water of a confidential fatty acid amide resulting in surface water concentrations above 1 part per billion (ppb).
Oregon Democrats press EPA on asbestos
Oregon’s Senator Jeff Merkley (D) and Congresswoman Suzanne Bonamici (D) have asked the US EPA to provide more information on its policies to control the risk posed by asbestos, following a widely publicised report from Reuters that the substance may appear in everyday consumer products.
The 20 December letter requests information on what actions the EPA has taken to identify and protect populations disproportionately at risk from asbestos, and seeks confirmation that the agency’s proposedsignificant new use rule (Snur) for the substance will allow it to prevent the introduction of new asbestos-containing products into commerce, among others.
Access to TSCA CBI
The EPA has authorised two contractors to access information submitted under TSCA, including some information that has been claimed as confidential business information (CBI).
Chemical Abstracts Service (CAS) of Columbus, Ohio, has been granted access to data submitted under sections 5 and 8 of TSCA to assist the Office of Pollution Prevention and Toxics (OPPT) with developing and operating the TSCA chemical substance inventory. This includes helping to determine whether substances described in user submissions are already present on the inventory.
Science Applications International Corporation (SAIC) has been granted access to information submitted to the agency under all sections of TSCA. The Reston, Virginia company is providing technological support on the eChemView and New ChemRev programmes.
Department of Interior floats FOIA changes
The Department of the Interior – under which the EPA sits – has proposed a rule to revise the regulations that govern how its processes Freedom of Information Act (FOIA) requests. Citing "exponential increases in requests and litigation" around public records requests, the proposal seeks to "clarify and update procedures for requesting information from the Department and procedures that [it] follows in responding to requests from the public."
Comments are due by 28 January.
https://chemicalwatch.com/73219/us-epa-round-up
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EPA Touts FY18 Enforcement Hike in Pollution Cuts but Criticism Persists
Jan 10, 2019 | Inside EPA
By David LaRoss
Acting EPA Administrator Andrew Wheeler says the agency's pending fiscal year 2018 enforcement results include 800 million pounds of pollution and waste reduced, which he says is a major increase over FY17, despite environmentalists' fears that the agency's overall enforcement efforts have plummeted since the Obama administration.
Speaking on a Jan. 10 press call to announce a Clean Air Act enforcement settlement with Fiat Chrysler Automobiles (FCA), Wheeler said the “over 809 million” in pollution cuts is further evidence that -- despite a drop in the number of enforcement actions completed during FY18 -- “EPA is continuing to direct its resources to the most significant and impactful cases,” according to his prepared remarks released by the agency.
Wheeler said EPA will release its annual enforcement results for FY18 "in the coming days,” despite the ongoing government shutdown, and that it will tout an increase of “more than 40 percent” from FY17 in terms of pollution and waste addressed from all media including air, water and land.
EPA's FY17 public enforcement results, covering the last few months of the Obama administration and the first nine months of the Trump administration, showed a significant decrease in facility inspections and evaluations, civil investigations and criminal environmental cases opened compared to the agency's FY16 results.
Although the FY18 results will show what Wheeler says is a massive hike in the pounds of pollution and waste reduced as a result of EPA enforcement actions, it is unclear whether other categories in the results will show increases or decreases.
Environmentalists and Democrats have suggested the results will prove their long-running claims that it has taken far fewer enforcement actions than prior administrations.
The most recent iteration of that claim came from a November report by the Environmental Data and Governance Initiative (EDGI) that predicted drops in most enforcement metrics for FY18 based on interim numbers and also touted internal agency communications that, the group said, featured high-ranking EPA officials complaining of drops in enforcement thanks to new agency policies and looking for ways to reverse the trend.
EPA in public statements said EDGI's forecast of the full-year FY18 figures was flawed because it was extrapolating from incomplete data, and told Inside EPA that “[t]here has been no retreat from working with states, communities, and regulated entities to ensure compliance with our environmental laws."
The FY18 report will be the Trump EPA's latest effort to push back against those claims, perhaps by attempting to focus attention on the 809 million pounds of pollution and waste reduced total, rather than any decreases.
Enforcement Statistics
Wheeler's remarks also note the volatility of year-to-year enforcement statistics, which some observers say makes them less useful as measurements of officials' commitment to pollution reductions. “The FCA settlement also demonstrates how enforcement accomplishments for each year are highly influenced by large cases. The civil penalty for the FCA case alone is more than four times greater than all the civil penalties collected in FY2018,” he said.
In addition to the overall 809 million pound number, Wheeler says in his remarks that in FY18 the agency blocked importation of “approximately 2,200” engines that would violate Clean Air Act emission standards, took 140 actions under the Toxic Substances Control Act to reduce lead paint exposures, and oversaw “cleanup and redevelopment at over 150 sites” under the Superfund program.
He also touted an expansion of the agency's self-audit program, where facilities voluntarily report violations to EPA in exchange for more lenient penalties. The number of entities participating in that program jumped by 47 percent, from 1,062 to 1,561, Wheeler said.
“All these activities advance EPA's environmental compliance, environmental protection, and level playing field goals,” he said.
However, Wheeler in his Jan. 10 remarks also concedes that in addition to a drop in the total number of enforcement actions, from 1,978 cases concluded in FY17 to 1,818 in FY18, “the dollar value of Superfund cleanup commitments, oversight costs, and cost recoveries obtained” dropped to $613 million in FY18. According to the current version of EPA's FY17 figures available on its website, the corresponding figure for the prior year was $1.227 billion.
“[T]hose numbers also are greatly impacted by a few cases,” Wheeler said.
In general, however, despite the agency's claim that many enforcement numbers for FY18 saw an increase from the corresponding FY17 statistics, it is unclear which figures that comparison is based on.
For the overall pollution-reduction numbers, the current version of the FY17 report available on EPA's website shows 217 million pounds of pollution reduced and 245 million pounds of hazardous waste that was slated to be “treated, minimized, or properly disposed of” as a result of EPA enforcement, for a total of 262 million pounds. An FY18 figure of 809 million pounds would be 75 percent higher than that FY17 level, rather than the 40 percent figure Wheeler stated.
https://insideepa.com/daily-news/epa-touts-fy18-enforcement-hike-pollution-cuts-criticism-persists
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EU ‘Enfometer’ Shows Slight Improvement in REACH/CLP Compliance
Jan 11, 2019 | Chemical Watch
By Clelia Oziel
Compliance with REACH and CLP Regulations showed slight improvement across the EU between 2007 and 2014, the European Commission says in its first report on a new EU-wide enforcement indicator.
The report, released at the end of November, also shows that duty holder compliance fluctuated from 80-85% for REACH obligations and 83-88% for CLP over the period.
This comes as the culmination of three years' work on developing a single benchmark to measure compliance. The so-called enfometer calculates average compliance across the EU by combining 11 separate indicators on different aspects of enforcement gathered from:
· member states;
· Echa's Enforcement Forum; and
· EU authorities.
It is one of several steps the Commission is working on to strengthen chemicals enforcement, identified last year as an area of REACH needing improvement.
The report shows that the overall enforcement benchmark increased by 2% by 2014 with the period 2010-12 used as a baseline. The Commission stresses, however, that it is "premature" to draw conclusions from this, calling for a "thorough analysis" and a possible revision of the indicators.
In the period 2010-14, REACH and CLP compliance for imported goods fluctuated from 82-90%, the report says. Other results from the 11 individual indicators included:
· the average level of compliance – detected by Echa through its own controls of REACH registration dossiers and follow-up evaluation conclusions – fluctuated from 77-84%. Compliance with REACH dossier information duties was as low as 32% in some cases;
· of 152 appeals against REACH enforcement decisions only three were overturned. This was four of nine appealed CLP decisions; and
· penalties represented less than 30% of the compliance cost.Variation of controls
Work began in 2015 on how to calculate enforcement indicators at EU level. At that time, around 2,000 pieces of data collected from 31 countries enforcing REACH and CLP pointed to an average compliance rate of 80%. This figure, however, would have been influenced by enforcers focusing on cases of likely non-compliance.
EU countries have different notions of 'control', and it is essential to clarify what should be reported, the Commission says. For example, data on the first three indicators – REACH and CLP compliance and non-compliance in imported goods – is not consistent across the member states, it says.
Member states have also expressed concern over using inspection numbers as a league table, stressing the need "to be clear on what those numbers mean".
The Commission's report thus includes clarifications of what REACH and CLP controls member states need to report.
Additionally, it provides information obtained from member state enforcement authorities. This shows that:
· REACH and CLP controls are deeply integrated;
· eight countries rated poor understanding among duty holders as a difficulty;
· supply chain information is ranked as the top priority in REACH enforcement; and
· hazard communication in labelling is considered as the top priority for CLP enforcement.
Member states report to the Commission on enforcement controls every five years, with the next reporting period due in 2020.
In October, a REACH compliance project by Germany's Federal Institute for Risk Assessment (BfR) and Environment Agency (UBA) examined more than 3,800 dossiers and found 32% to be non-compliant for substances at tonnage levels of 1,000 tpa.
https://chemicalwatch.com/73235/eu-enfometer-shows-slight-improvement-in-reachclp-compliance
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Echa MSC Agrees to Biomonitoring of GenX Workers
Jan 10, 2019 | Chemical Watch
By Dr Emma Davies
Echa's Member State Committee (MSC) has agreed that a plant producing the PFOA replacement GenX should set up a biomonitoring programme with volunteer workers, as part of substance evaluation under the Community Rolling Action Plan (Corap).
The biomonitoring request is the first agreed by the MSC.
Germany and the Netherlands are evaluating ammonium 2,3,3,3-tetrafluoro-2-(heptafluoropropoxy)propanoate, also known as HFPO or GenX, because of concerns over environmental exposure and persistent, bioaccumulative and toxic (PBT) properties. GenX is "not readily biodegradable", according to the Corap justification document.
The substance is a later generation, short-chain PFAS. It has been detected in river water worldwide and there are widespread concerns about its persistence and mobility.
At its meeting on 10-14 December 2018, the MSC debated a request for a GenX carcinogenicity study in mice. It also fully supported the request for a biomonitoring study.
In its risk management option analysis (RMOA) conclusion, published last year, the Dutch National Institute for Public Health and the Environment (RIVM) suggested that it should also be put forward as a substance of very high concern (SVHC) because of "apparent toxicity, extreme persistence, very high mobility and exposure to humans and the environment".
The RMOA document points out that the chemical has been imported in Europe since 2012. In the environment, it quickly dissolves to form its anion (HFPO-DA), which is found in drinking water, fish and home-grown vegetables, it adds.
In 2017, a study by Wouter Gebbink and colleagues at Wageningen University, the Netherlands, detected GenX in river samples collected downstream from a fluorochemical production plant near Dordrecht. The highest concentration was measured at the sampling location nearest the plant.
The RMOA document quotes water companies as saying that it is not possible to remove the substance from drinking water using "current techniques". But it also points to a September 2018 press release from US chemical company Chemours, detailing plans to invest €75m in its Dordrecht manufacturing plant to reduce overall emissions of organic fluorinated compounds.
In particular, the company announced its intention to "abate 99% of overall GenX emissions by the end of 2020, compared with the 2017 emission levels".
GenX does not have a harmonised classification under REACH but RIVM considers that there is enough evidence to classify it as a category 2 carcinogen. The registrant and other notifiers have self-classified the chemical for specific target organ toxicity, repeated exposure (Stot-Re 2), it adds.
The RMOA conclusion document predicts that information on bioaccumulation in humans may be relevant to classification discussions. If the biomonitoring results show this higher than extrapolated from rodent results, they may imply that adverse effects in test animals at doses above the threshold for classification may still be relevant, it suggests.
Germany and the Netherlands prepared their draft Corap decision in April last year.
https://chemicalwatch.com/73236/echa-msc-agrees-to-biomonitoring-of-genx-workers
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Jan 11, 2019 | Chemical Watch
Checks begin on registration obligations
National enforcement authority inspectors, working with customs authorities, have started checks on the compliance of importers and manufacturers with REACH registration obligations.
The checks are part of an EU-wide enforcement project managed by Echa's Enforcement Forum.
Inspections will go on throughout 2019. A report on the results will be available in the fourth quarter of 2020.
2018 enforcement report published
Echa has published a report which tracks the Enforcement Forum's key activities over the last few years. It contains information on inspector training sessions, participation in enforcement projects, number of enforcement issues addressed, tools that inspectors use and stakeholder satisfaction.
The report is entitled Enforcement Forum – indicators 2018, and is available as a free download from the agency's website.
CLH proposals
The agency has received three proposals to harmonise classification and labelling (CLH) for the substances:
· 2,2-dimethylpropan-1-ol, tribromo derivative. Norway proposes harmonised classifications of mutagenicity 1B, H340, and carcinogenicity 1B, H350;
· dibutyltin di(acetate). Norway proposes harmonised classifications of mutagenicity 2B, H341, reproductive toxcity1B, H360FD ,and Stot Re, H372; and
· N-(2-nitrophenyl)phosphoric triamide. Austria proposes a harmonised classification of reproductive toxicity 1B, H360FD, Stot Re 2, H373 and aquatic chronic 3, H412.
Opinions on applications for authorisation
Echa has published two new consolidated opinions from the Committees for Risk Assessment and Socio-economic Analysis (Rac and Seac) on applications for REACH authorisation.
The opinions are on:
· two uses of bis(2-ethylhexyl) phthalate by Plastic Planet; and
· one use of chromium trioxide by Hapoc.
Report on 2017 national helpdesk activities
The agency has published a report on national helpdesk activities in 2017, which gives a picture of the scale and scope of HelpNet operations. This "reflects the maturity of the helpdesk assistance provided to companies tackling compliance issues under the regulations managed by Echa", it says.
Substance identity adaptation webform reminder
The substance identity adaptation webform now includes a reminder to coregistrants on their obligation to keep their dossiers up to date, when submitting their joint submission plan and documentary evidence.
https://chemicalwatch.com/73249/echa-round-up
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EDF Considers Potential Health Equity Impacts of Partial Lead Service Line Replacement
Jan 10, 2019 | Environmental Defense Fund
By Tom Neltner and Lindsay McCormick
States and communities across the country are taking important steps to accelerate replacement of lead service lines (LSLs) – lead pipes connecting the water main under the street to homes and other buildings. As part of this progress, many programs have strictly limited the standard practice of partial LSL replacement – replacing only the portion of the LSL on public property, which commonly arises when rehabilitating the main and reconnecting the existing line. Partial replacement is likely to increase, at least temporarily, lead levels in drinking water in homes and may not reduce lead exposure in the long run.
The default approach for most water utilities rehabilitating their main has been to simply alert property owners to the risk of partial replacement and advise them to hire a contractor to voluntarily replace the remaining portion of the LSL on their property.
Other utilities have rejected this approach and gone further to protect residents. For example, Washington, DC offers to coordinate private side and public side replacement to reduce costs and make participation easier but still expects the property owner to pay for the private side. Others, such as Cincinnati, OH, have required full LSL replacement, providing a significant subsidy to the homeowner and allowing the cost to be spread over ten years through a property tax assessment. Indiana American Water and Philadelphia, PA go even further and pay for the cost of full LSL replacement out of ratepayer or capital improvement funds. States are acting too, with Michiganrequiring utilities to pay the cost of replacement on private property and Wisconsin requiring cost sharing. For more examples, see our webpages recognizing communities and states that are leading the way.
As described in the Health Impact Partnerships’ recent report on equity concerns in lead prevention policies, there are potentially serious health equity implications from the default approach. Low-income residents may be less likely to participate than higher-income residents and property owners. Similarly, landlords may be hesitant to make the investment. As a result, renters – who are more often low-income – may be exposed to greater levels of lead in their drinking water due to partial LSL replacement.
The issue is important because low-income and minority residents already are disproportionately impacted by lead poisoning. The Environmental Protection Agency’s (EPA) National Drinking Water Advisory Council raised this issue as an environmental justice concern in its recommendations to the agency to overhaul the Lead and Copper Rule (LCR). The LSL Replacement Collaborative, of which EDF is a founding member, set equity as one of its nine guiding principles (see quote above).
In addition to these potential health equity issues, relying on the homeowner to voluntarily replace the private side of the LSL also has legal consequences if the work is funded, even in part, by the federal government, such as through the Drinking Water State Revolving Loan Fund (DWSRF). Specifically, Title VI of the Civil Rights Act of 1964prohibits federal government funding from being used to create or aggravate a disproportionate impact on minorities. EPA must also consider this issue when it revises the LCR.
To date, the equity concerns have generally been based on anecdotes, expert opinions and hypotheses. EDF saw the need to determine whether voluntary LSL replacement programs have disproportionate impacts on minority and low-income residents in a more rigorous, scientific manner. To explore further, we are partnering with American University to design a study evaluating a decade of DC Water’s data, the most data-rich system we are aware of. DC Water has agreed to join the study, and Robert Wood Johnson Foundation has generously provided funding. Dr. Karen Baehler of American University’s School of Public Affairs will lead the effort.
In the mid-2000s, the city offered grants and low interest loans to property owners to encourage full LSL replacement during the accelerated LSL replacement program triggered by the city’s lead action level exceedance. These grants and loans were no longer funded when the city’s lead levels returned below federal standards. On a positive note, in December 2018, the Council for the District of Columbia (Washington DC) passed a bill that, if adequately funded, would appear to address the health equity issue going forward. Under the bill (once signed), the city will pay for full LSL replacement when the utility needs to disturb the LSL on public property. Where it had previously replaced the LSL on public property but the homeowner chose not to participate in the voluntary program, the homeowner can get financial assistance to replace the LSL on private property. Finally, the City will require residential property owners to disclose the presence of LSLs and other information to homebuyers and renters.
We hope to have results of the study available in May of 2019 so we can share them with EPA for consideration as part of its LCR revisions and its ongoing decisions on the DWSRF to ensure its policies are consistent with the Civil Rights Act of 1964. We will seek feedback on draft reports of the study from environmental justice groups, water utilities, and other stakeholders to get their feedback on the findings.
Please contact either of us if you have questions or suggestions.
Tom Neltner: tneltner@edf.org
Lindsay McCormick: lmccormick@edf.org
http://blogs.edf.org/health/2019/01/10/health-equity-partial-lead-service-line-replacement/
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(ACC Mentioned) We’re Paying Less at the Pump — and That’s Just the Start
Jan 10, 2019 | Peoria Journal-Star
By Nicolas Loris
Media outlets rarely dwell on positive trends, but it’s been hard to miss the good news at the gasoline pump. As 2018 ended, gas prices fell to their lowest in nearly two years — below $2 a gallon in some areas in central Illinois.
The good news goes beyond what we spend fueling our cars and trucks. In many ways, 2018 was the story of America’s continued energy dominance.
Throughout the year, American energy producers broke records and surpassed domestic supply levels that we haven’t seen in many decades. Last September, the United States became the world’s largest crude oil producer, surpassing Russia and Saudi Arabia.
According to the federal government’s Energy Information Administration, crude oil production increased from about 9.5 million barrels per day in the beginning of 2018 to 11.7 million barrels per day by year’s end. In December, EIA announced that the United States exported more oil and refined petroleum products than it imported — the first time in more than 35 years.
America’s energy revolution is a remarkable story that demonstrates the rewards of human ingenuity and entrepreneurial passion. Those rewards trickle down to the driver through lower prices. While many factors influence the price at the pump, we cannot overlook the fact that domestic supply continues to roar ahead.
Oil isn’t the only energy source that thrived in 2018. The United States continues to be the global leader in natural gas production, ranking number one for the past decade. According to a new report from EIA, “When final data become available in the coming months, EIA expects that U.S. natural gas production will have reached record levels in 2018.” Increased supplies spell more affordable, dependable power for American households.
Abundant, low-cost power is also a win for energy-using businesses, especially America’s energy-intensive manufacturing base. Natural gas is not only an important energy source, but also an important raw material for many manufacturing processes for fertilizers, chemicals and pharmaceuticals, food processing, industrial boilers and much more.
In fact, capital investment from the chemical and plastics industries topped $200 billion in 2018, an extraordinary number that’s generated hundreds of thousands of direct and indirect jobs. When investment surpassed $200 billion (on 333 projects since 2010), American Chemistry Council president Cal Dooley remarked, “The U.S. remains the most attractive place in the world to invest in chemical manufacturing. We look forward to continuing to transform energy into a stronger economy and new jobs.”
Domestic producers are shipping more liquefied natural gas to our friends overseas, too. For the first time ever, LNG exports surpassed 5 billion cubic feet per day. We’re now shipping LNG to 30 different countries across five continents. Furthermore, LNG exports would bolster U.S. national security and the security of America’s allies by reducing the ability of any one nation to use its control of energy resources to threaten U.S. interests. LNG exports can be an integral source for Europeans pining for energy freedom.
Natural gas shipments to Mexico traveling via pipeline exceeded 5 billion cubic feet per day, too. With a new zero-tariff on energy trade deal and new pipeline construction in the works, our neighbors to the south are benefiting tremendously from the glut of U.S. energy abundance.
The success of American energy production in 2018 provides a lot of positive momentum for the New Year. With a new Congress, there are several broken policies to fix that take energy choice away from Americans.
We continue to pick winners and losers among energy technologies using the tax code. The federal government mandates that we blend corn ethanol into our fuel, and more than half the states in the Union have mandates that force a certain percentage of their electricity generation come from renewables. Quite simply, if these energy sources are cost-competitive, they won’t need mandates.
In addition, advances in different small modular nuclear reactors continue to improve, though frustrating regulatory obstacles have proven a giant thorn in the side of nuclear innovation.
When policymakers fully empower producers and consumers by removing all of the government-imposed barriers to innovation, America’s energy renaissance will be firing on all cylinders.
Nicolas Loris is the Herbert and Joyce Morgan Fellow in Energy and Environmental Policy, Center for Free Markets and Regulatory Reform at The Heritage Foundation.
https://www.pjstar.com/opinion/20190110/loris-were-paying-less-at-pump---and-thats-just-start
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LNG Projects Stand by as Regulator’s Political Cracks Deepen
Jan 10, 2019 | BNA Daily Environment Report
By Stephen Cunningham
A partisan divide that partially shuttered the U.S. government may also be hindering approvals by the Federal Energy Regulatory Commission.
Decisions on two major projects brought before the group at its last meeting were tabled—Venture Global LNG Inc.’s $4.5 billion liquefied natural gas project in Louisiana, and Dominion Energy Transmission’s $48 million Sweden Valley natural gas line to move natural gas from northern Pennsylvania into Ohio.
While neither project drew either positive or negative comment, analysts say political differences at the commission, which is split equally between Republican and Democratic members, is raising questions about the future of natural gas projects. After tabling the Venture Global decision, the group’s Republican chairman, Neil Chatterjee, implicitly blamed the hold-up on his Democratic counterpart, Cheryl LaFleur.
“When she was chairman she had a reputation of being a strong supporter of LNG exports. The policy was fine then,” Chatterjee told reporters, without elaborating.
LaFleur, meanwhile, called the comment “a bit of a cheap shot.“
The back and forth has left LNG developers wondering about the extent of internal discord at the agency and how it could affect their project timelines.
Approval Expected
“In our view, this implies that the commission presently lacks the votes to advance either project (possibly due to a 2-2 impasse),” Washington-based ClearView Energy Partners said in a note at the time. “We had expected approval of both projects.“
Dominion declined to comment on the matter while Venture Global did not respond to a request for comment.
In an interview with Bloomberg, LaFleur sought to allay concerns about proposed projects, characterizing the meeting dust-up as a disagreement over how to approach the work. While she’s not allowed to discuss pending cases such as Venture Global’s, she rejected the notion that Democrats are willfully blocking infrastructure.
Political Divide“That’s not a narrative in which I believe nor that I think reflects my record,” she said. “I have made it very clear I think we need to be very diligent in doing our environmental reviews so that our cases can survive appeals—but I am in no way opposed to infrastructure.“
Still, she acknowledged that issues involving natural gas infrastructure and overseeing energy markets have “a little bit more of a political cast” since Donald Trump became president.
Nowadays, the work is more challenging, she said. The commission’s senior staff is peppered with political appointees placed into jobs usually held by experienced civil servants. Turnover is a real concern. “When I came, we had much more stability in the commission,” LaFleur said.
A main issue will be whether they can agree on how the agency evaluates environmental impact, according to LaFleur. The problem isn’t Democratic obstruction, she said—it’s making decisions that will withstand future legal challenges.
“I am more of a moderate than when I joined,” she said.
—With assistance from Ryan Collins and Naureen S. Malik.
https://news.bloombergenvironment.com/environment-and-energy/lng-projects-stand-by-as-regulators-political-cracks-deepen
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Shutdown Could Slow Environmental Reviews
Jan 11, 2019 | E&E Energywire
By Jenny Mandel
Federal regulators are considering more than a dozen proposals to build liquefied natural gas plants, and their permitting schedules could be among the casualties of the ongoing partial government shutdown.
The Federal Energy Regulatory Commission, which leads the environmental and safety reviews for LNG export plants, has not faced a funding gap since its fiscal 2019 appropriations were approved in September.
But FERC works with several other agencies in weighing the siting, engineering and environmental considerations around LNG export projects, and delays in consultations with those agencies could affect project timelines.
Agencies that commonly participate in FERC's LNG review process and are affected by the shutdown include the Pipeline and Hazardous Materials Safety Administration, EPA, the U.S. Coast Guard, NOAA, the Federal Aviation Administration, the Fish and Wildlife Service, the National Park Service, the Bureau of Land Management, and the Forest Service.
FERC staff seeks input from coordinating agencies in the development of environmental impact statements and environmental assessments for LNG projects. Delays in obtaining opinions from furloughed staff at those agencies could push back the completion of draft and final EIS documents.
The commission is juggling reviews for 13 LNG export projects and working with five other projects that are in a consultative, "pre-filing" stage. It's also working with five projects that are currently under construction.
A FERC spokeswoman said she could not comment on possible schedule changes related to the shutdown.
"I can't speculate about potential future actions of FERC staff, including whether any of the notices of environmental review schedule for upcoming LNG projects will be revised," she said. "FERC stands ready to work with our partner agencies to ensure that these reviews move forward once the government is fully operational, and we will endeavor to do what we can to work effectively with these agencies, such that we can minimize the impact of the shutdown and complete the reviews."
Among the projects with a pending environmental review is the massive Alaska LNG effort, scheduled to see a draft EIS next month; Driftwood LNG, scheduled to receive its final EIS a week from today; and Port Arthur LNG, expecting a final EIS on Jan. 31.
Fred Hutchison, president and CEO of industry advocacy group LNG Allies, said the shutdown's effects will likely vary from project to project. "It depends on where the EIS is and how much got done before the agency had to close its doors," he said.
Hinson Peters, a spokesman for the Center for Liquefied Natural Gas, said his group is more concerned about how the ongoing shutdown could distract the administration and Congress from filling the vacancy left by former Republican Commissioner Kevin McIntyre, who died last week of brain cancer.
McIntyre was unable to fully participate at FERC for several months as he underwent medical treatment, and the White House has had some time to consider replacements, but no nominee has been announced (Energywire, Jan. 4).
McIntyre's absence leaves the commission with a 2-2 split between Democratic and Republican members, and many observers saw the postponement of a December vote on Venture Global LNG Inc.'s proposed Calcasieu Pass project as a sign that the commission was deadlocked on whether to approve it.
Hutchison expressed optimism that the FERC nomination process would have limited impact on the pending LNG projects. "We've talked to the commissioners, and there's a sense that they want to keep the LNG projects on track," he said.
But Peters said his group is concerned that the FERC vacancy is "not the highest priority" with the shutdown consuming attention in Washington. "We're a little worried about the impact that might have," he said.
https://www.eenews.net/energywire/2019/01/11/stories/1060111645
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Oil Drillers, Nature Lovers Get Access to Public Lands Despite Shutdown
Jan 10, 2019 | Washington Post
By Juliet Eilperin and Dino Grandoni
Food is going uninspected by regulators. Time-sensitive data is going uncollected by scientists. And other federal workers are going without pay while doing critical work manning airport terminals and border crossings.
While the partial government shutdown’s effects reverberate throughout the federal bureaucracy, the Trump administration is actively working to ease the impact on wilderness lovers and oil drillers alike.
Officials at the Interior Department have made a conscious effort to pursue two priorities President Trump has emphasized in his time in office — energy exploration and access to public lands — during the shutdown, according to a top department official who spoke on the condition of anonymity in order to talk frankly.
When discussing what is most critical during the shutdown, “we have looked first to executive orders, those things the president has made a point of giving us guidance and direction on, and secretarial orders,” the official said.
The push to press ahead with as many operations as possible marks a sharp contrast with how the Interior Department, which oversees 1 in every 5 acres of U.S. land, operated during extended shutdowns under Barack Obama and Bill Clinton. The department is one of nine Cabinet-level departments hobbled by the partial government shutdown amid a standoff between congressional Democrats and Trump over border wall funding.
The Trump administration’s prioritization of energy exploration means the oil and gas business, one of the most heavily regulated industries in the United States, says it has yet to feel any real consequence from the shutdown.
“To this point, we have not seen any major effects of the shutdown on our industry,” Mike Sommers, president and chief executive of the oil and gas business’s chief lobbying organization, the American Petroleum Institute, told reporters Tuesday.
The department’s Bureau of Land Management, for example, has accepted and published 22 new drilling permit applications in Alaska, North Dakota, New Mexico and Oklahoma between the start of the shutdown and Wednesday afternoon. Officials said they did not anticipate any delays in the processing of either permit applications or requests for inspections of drilling operations on federal land.
The Bureau of Energy Management, which gets a large portion of its budget from fees, is operating at near full strength. Nearly every job is exempt “in order to comply with the administration’s America First energy strategy” and expand leases to the oil and gas industry -- “work must continue toward” selling leases that could lead to drilling on the outer continental shelf, according to the agency’s contingency plan.
But elsewhere the department says it is not even accepting other sorts of filings — such as public-records requests from journalists, activists and other members of the public made under the Freedom of Information Act — due to the shutdown.
“It seems that the oil companies are getting services from the Department of the Interior when the public is not,” said Kelly Fuller, energy and mining campaign director at the Western Watershed Project, an advocacy group.
The department is also pressing ahead with its goal of preparing the Alaskan Arctic for more oil and gas drilling. The department decided to go ahead with four public listening sessions about BLM’s push to define what activities can be permitted at the National Petroleum Reserve-Alaska because doing so would help the scoping process move forward. The sessions, which were slated to wrap up before Interior stops accepting comments on Jan. 22, had been postponed because of the Nov. 30 earthquake that hit Alaska.
“The NPRA was one that jumped out as being one of those priorities,” said the official, adding that only two to three employees were required to conduct the listening sessions.
It remains unclear if the shutdown will stymie perhaps the top goal in Alaska for the Trump administration: opening the pristine Arctic National Wildlife Refuge to drilling. While the agency announced Wednesday that it would postpone meetings in Alaska and Washington to discuss a draft document evaluating the impact of drilling on caribou, polar bears and other animals there, it indicated the Feb. 11 deadline for public comments remained unchanged.
The administration, along with Alaska’s Republican delegation in Congress, wants to see sections of the refuge’s coastal plain leased before the end of Trump’s term.
The Trump administration is also looking for ways to keep national parks and refuges open so as not to hurt local economies that rely on tourism.
Earlier this week officials said they would temporarily close California’s Joshua Tree National Park on Thursday to clean bathrooms and do other maintenance work, such as address the felled trees vandals cut down to drive illegally through the park. But they pledged to “restore visitor access to the park as quickly as possible to mitigate any negative impact to the local economy.”
A day later, the National Park Service did just Using revenue from entrance fees, officials averted the scheduled closure and even said they would make some recently closed areas again accessible to park visitors.
And on Tuesday, U.S. Fish and Wildlife Service officials told employees they will bring back roughly 240 of them, for 30 days, to help operate 38 national wildlife refuges across the country.
A coalition of organizations that work on park and refuge issues urged Trump in a letter Wednesday to keep areas closed. They argued that keeping understaffed parks and refuges open to visitors makes them vulnerable to vandalism, habitat degradation and illegal hunting.
“A lot of the damages could be avoided, knock on wood, if the refuges were closed,” said Geoffrey Haskett, president of the National Wildlife Refuge Association.
In all of these instances the department is using unspent appropriated funds from the last fiscal year, which ensures that it does not violate the Antideficiency Act.
Fish and Wildlife Service spokeswoman Barbara Wainman said in an email that the agency is using its previously appropriated funds “to resume work for the next 30 days on high-priority projects and activities in support of the service’s mission and on behalf of the American public.” The agency is using $2 million of the $8 million remaining in its wildlife habitat and visitor services account to bring back its furloughed employees.
“These expenditures will meet the public’s desire for access to National Wildlife Refuge lands and use taxpayer dollars in a responsible manner consistent with existing service mission and priorities,” she said.
The agency has halted other activities during the shutdown, such as work on listing endangered species or writing biological opinions on proposed federal projects.
The decision to reopen some wildlife refuges comes as the Park Service is pressing ahead with a plan to tap entrance fees to help remove the trash and human waste that has built up in many sites, which has prompted a series of partial closures.
One senior Park Service official, who spoke on the condition of anonymity in order to avoid retaliation, said that Interior Department officials “did a 180” on their approach to park site closures once it became clear that mounting human waste and other factors posed serious health risks.
“Week one, it was ‘Keep it all open,’ ” this employee said. “Week two or three, it was, ‘Close what you need to close.’ ”
Wild animals quickly access and spread human waste, which has prompted at least a half-dozen parks across the country to bar public access to some sites. While acting interior secretary David Bernhardt has just authorized parks that collect fees to dip into those funds to pay for maintenance operations, this official explained that it will take time to send park staffers in to clean up the human waste that has already accumulated.
“It’s essentially hazardous material,” the staffer said. “It’s not like you can have Boy Scouts come in and clean it up.”
In a sign of how closing parks remains a sensitive subject for the administration, this week the agency’s acting deputy director for operations, Rick Obernesser, sent out an email telling park managers they needed to let the Washington office know “as early as possible” when planning a closure due to the shutdown.
“This is not about us second guessing you or your park teams and their actions,” Obernesser wrote in the email, obtained by The Washington Post. “It is about informing DOI Leadership as soon as possible.”
https://www.washingtonpost.com/energy-environment/2019/01/10/oil-drillers-nature-lovers-get-access-public-lands-despite-shutdown/?utm_term=.7dab3df6a5dd
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Jan 11, 2019 | E&E News PM
By Kelsey Brugger
Progressives are criticizing the Trump administration's effort to drill in the Arctic National Wildlife Refuge amid a period of confusion about how the government shutdown has slowed the process.
In a report released this morning, the Center for American Progress took issue with several pieces of the Interior Department's environmental review of a plan to open the refuge's 1.6-million-acre coastal plain to oil drilling. CAP said Bureau of Land Management officials grossly underestimated their environmental findings of possible oil spills, impacts to polar bears and Porcupine caribou, and impacts to water and air.
Interior's draft environmental impact statement was released Dec. 20, and a 45-day public comment period kicked off a week later. But after three weeks of a partial government shutdown, it is unclear exactly who at BLM is still working or what they are doing.
Yesterday, BLM postponed public hearings in Alaska and Washington, D.C., on the environmental documents after conservationists had criticized the Trump administration for barreling ahead with oil exploration on federal land amid the government shutdown. The Feb. 11 deadline for public comment on drilling in the refuge has not been extended.
"How do you postpone the public meetings but not extend the comment period?" asked Kate Kelly, public lands director at CAP.
Throughout the country, BLM has continued to process permit applications to drill by using funding from the fees associated with drilling applications, the agency has said. This point fueled frustration from environmentalists who charged the Trump administration is unduly prioritizing the oil industry during the shutdown.
Much of the criticism surrounding drilling in ANWR has focused on the impact to polar bears and wildlife. Environmentalists say BLM's environmental assessment fails to quantify the number of polar bears that could be endangered or killed as a result of drilling activities. As sea ice has melted, conservationists stress, polar bears have been forced to retreat to the coastal plain to den. BLM documents say infrared cameras could help prevent injury to animals, but analysts said such surveys miss up to 50 percent of dens due to poor weather conditions, among other things.
The same is true for the Porcupine caribou, CAP said, dismissing BLM's plans to mitigate harm to the herd. BLM proposed suspending major activities — excluding drilling — for a month of the year.
In addition, CAP argued, the prospect of a major spill in the Arctic refuge "seems almost certain." Environmental documents anticipate there will be 1,745 oil spills, including six large spills. But CAP argued the government "downplayed the risk."
"Across Alaska, there were 16 major spills from 2002 to 2016 that released at least 10,000 gallons of oil each into the environment," the report reads. Of those, five leaked more than 100,000 gallons, according to CAP.
Similarly, CAP said, the analysis underestimated the amount of water needed to drill wells and extract oil. BLM currently estimates that 142 million barrels of oil is produced per year. That translates to an "unthinkable" amount of water as the environmental assessment estimates that 50,000 barrels of oil would require 2 million gallons of water per day.
"Available fresh water in the coastal plain is scarce and growing scarcer," and the Fish and Wildlife Service, which manages the refuge, has flagged concerns about the "cumulative impacts of all stages of oil and gas development on water," CAP wrote.
An Interior official declined to comment on the CAP report, citing the government shutdown.
https://www.eenews.net/eenewspm/2019/01/10/stories/1060111623
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Republicans Renew Push to Reform NEPA Reviews
Jan 11, 2019 | E&E Daily
By Maxine Joselow
Congressional Republicans are continuing to push for reforming the National Environmental Policy Act to speed up permitting for infrastructure projects.
The latest indication of the renewed push came yesterday, when Rep. Ken Calvert (R-Calif.) reintroduced the "Reducing Environmental Barriers to Unified Infrastructure and Land Development (REBUILD) Act."
The bill would amend NEPA to "authorize assignment to states of federal agency environmental review responsibilities," according to draft text obtained by E&E News.
In particular, states would be allowed to enter into a memorandum of understanding with a designated federal agency that has environmental review responsibilities under NEPA. The agreement would transfer those responsibilities to the state.
"The REBUILD Act reduces the cost and time necessary to build infrastructure projects at a time when many California communities are struggling to find the resources necessary to construct them," Calvert said in a statement.
"For far too long we have allowed our regulatory red tape to grow into a complex web that makes it too costly and time consuming to build adequate infrastructure," he said. "As a result, our communities are unable to upgrade their critical systems, jeopardizing public safety and thwarting economic growth."
Conservatives have long complained that the environmental review process for large infrastructure projects is too long and unwieldy, presenting a significant hurdle for developers and communities.
Progressives counter that NEPA was designed to protect ecologically sensitive species and habitats, and any changes to the landmark law must preserve public health and environmental safeguards.
Still, the legislation is unlikely to advance in the 116th Congress. The bill was referred to the House Natural Resources Committee, where Chairman Raúl Grijalva (D-Ariz.) is unlikely to grant a hearing.
https://www.eenews.net/eedaily/2019/01/11/stories/1060111613
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Carper: Climate Should Factor into Any Infrastructure Package
Jan 10, 2019 | PoliticoPro - Whiteboard
By Anthony Adragna
Senate Environment and Public Works ranking member Tom Carper (D-Del.) said climate change policies should be considered as part of any broader infrastructure legislation.
"We’d be smart to keep in the back of our minds extreme weather, climate change as we deal with a lot of issues, including transportation," said Carper, whose committee would have jurisdiction over any infrastructure bill.
In addition to infrastructure, Carper said climate change should be considered as a part of tax or energy legislation.
Carper's views echo those of Minority Leader Chuck Schumer (D-N.Y.), who wrote in a December op-ed that any infrastructure package must include policies like permanent tax incentives for clean energy technologies and reductions in methane emissions from domestic energy production.
https://subscriber.politicopro.com/energy/whiteboard
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Industry Groups See Shutdown Starting to Hinder EPA Permits, Programs
Jan 11, 2019 | Inside EPA
By Doug Obey
EPA's ongoing shutdown is starting to hinder the agency's ability to process industry permit applications, engine certifications, and key programs that companies support such as the Energy Star efficiency labeling initiative, according to industry representatives who say the problems will grow if the shutdown persists for several weeks.
“There is some federal permitting that manufacturers need that they are telling us is being delayed,” U.S. Chamber of Commerce Executive Vice President and Chief Policy Officer Neil Bradley told Inside EPA Jan. 10, on the sidelines of the group's annual State of American Business event on the group's 2019 priorities.
The shutdown is in its 20th day and shows no sign of ending, with House Democrats pushing bills to reopen federal agencies despite a veto threat from President Donald Trump who refuses to reopen the government unless Democrats grant his request for $5.7 billion to fund a U.S.-Mexico border wall and other measures.
Bradley declined to offer more details on issues that affect specific companies, but cited delays on certification of “engines” as “beginning to happen” as a result of EPA staff on furlough.
And he made clear that his members' fears over the shutdown's effects are only likely to grow over time. “Initially we were hearing about [effects on] regulations, this week we are starting to hear about certifications, permits,” he said. “Some if it has already happened, some if it [people] are just planning out, and assuming if we don't get out of this in the next two weeks, here are the things that they are worried about getting through the system.”
U.S. Chamber of Commerce President Thomas Donahue in Jan. 10 remarks at the group's event called for “compromise” to get the government open and also cast the shutdown as a growing threat to the broader economy, as individual households are forced to tighten their belts. “It will affect economic growth,” he warned.
The Chamber event also featured, in response to a reporter query, a direct public statement from industry that the shutdown threatens an array of fending industry friendly rule revisions the Trump EPA is racing to get through the administrative and legal pipeline before the next presidential election -- including its rollbacks of the Obama-era Clean Power Plan greenhouse gas rule for power plants and Clean Water Act jurisdiction rule.
“Administrations only have so many days,” Bradley said. “If you have lost 20 days where you are supposed to be working on a process . . . you are never going to get those back. That begins to have real world consequences. You are exactly right about the impediment it represents to the deregulatory agenda.”
Among the shutdown's impacts on the agenda is the fact that until it ends, EPA cannot publish in the Federal Register its proposal announced late December to undo the “appropriate and necessary” cost finding underpinning the Obama-era mercury and air toxics power plant emissions rule. Publication is necessary to start the public comment period on the proposal, so the effort is on hold until the shutdown ends.
But the industry representatives' comments suggest as the shutdown continues it is starting to frustrate the programs they support, including Clean Air Act permit approvals and more.
Affected Programs
For example, the shutdown has temporarily suspended the federal voluntary Energy Star program jointly funded by EPA and DOE to encourage more efficient equipment and buildings.
The website for the program states that “For the duration of the U.S. Government shutdown, all ENERGY STAR tolls, resources and data services will not be available.”
A source with the American Council for an Energy Efficient Economy says the fact the entire site is unavailable is a problem for numerous groups, including “utilities and other partners that run programs around Energy Star, and for manufacturers who have specific commitments under the program.”
The website outage is also particularly ill timed not just for consumers looking not only for energy efficient products but for information on how to lower energy bills in the middle of winter, the source adds.
Meanwhile, EPA's defenders, including Environmental Defense Fund, have begun circulating examples of the disparate effects the shutdown is having on agency operations and blaming President Trump.
They include testing now on hold related to release of the cancer causing chemical Gen X into a North Carolina river, removal of EPA oversight on the Westlake Superfund site in Missouri, and other Superfund-related delays of public meetings or other activities in Illinois and Massachusetts.
“President Trump is fond of saying he wants clean air and clean water,” the group said in a Jan. 10 press release. “However, his willing, prolonged closure of the government . . . shows a president with little genuine regard for the present and future well-being of American families and communities.”
Another example of the budget shutdown's impact at the EPA regional office level includes a Jan. 9 report from WBUR radio in Boston noting that EPA's Region 1 office is operating with only 22 of its usual 516 person staff. That means cessation of “routine inspections of air, water and wastewater treatment plants” as well as enforcement of air pollution violations. “Hopefully the people operating these [wastewater and water treatment] plants are operating them properly,” EPA Region 1 union official Steven Calder said in the report.
“But there is the potential that these facilities -- because they know they're not going to be inspected, or because they aren't being inspected -- there could be violations,” he said.
An industry attorney, meanwhile, suggests that the effects on permitting activities could be mixed, citing the example of EPA's Clean Air Act Title V operating permits program.
Many permits are written by the states -- with a set time for EPA to review the permits -- raising the question of what happens if the clock runs out during the shutdown. The source suggests from the state or industry perspective, the shutdown could “work to your advantage in getting a permit through because you wouldn't have people [at EPA headquarters] breathing down your neck” reviewing the states' work.
But the source also notes that there can be close coordination between state and federal permit writers, and that this could delay things if states need to use EPA as a resource and cannot during the shutdown.
https://insideepa.com/daily-news/industry-groups-see-shutdown-starting-hinder-epa-permits-programs
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Pallone Renames Panel to Include 'Climate Change'
Jan 11, 2019 | E&E News PM
By Nick Sobczyk
House Energy and Commerce Chairman Frank Pallone (D-N.J.) has tweaked the name of one of his subcommittees to put a bigger emphasis on climate change.
The Subcommittee on Environment will become the Subcommittee on Environment and Climate Change, Pallone announced today, marking a shift in priorities.
The subcommittee's jurisdiction will be unchanged. It will still have authority on Clean Air Act issues, Superfund sites, and chemical contamination and drinking water regulations.
But House Democrats are looking to make climate one of their top messaging issues in the new Congress amid pressure from progressive groups to aggressively target greenhouse gas emissions.
Pallone has faced blowback from those groups, who say he isn't progressive enough on climate and is too cozy with industry.
They were especially critical after he said in a radio interview this week that banning members on his panel from taking fossil fuel campaign contributions "goes too far" (E&E Daily, Jan. 9).
"The Energy and Commerce Committee has a long and proud tradition of conducting the majority of its work in its subcommittees," Pallone said in a statement. "I'm confident these six subcommittees will allow us to focus on our priorities of strengthening the economy, reducing costs for consumers, combating climate change and conducting vigorous oversight."
The previous Subcommittee on Digital Commerce and Consumer Protection also has a new name. It will now be the Subcommittee on Consumer Protection and Commerce.
House leadership announced last night that eight new members will join Pallone's panel, one of the top committees in the House, with jurisdiction that ranges from health care to energy (E&E Daily, Jan. 10).
https://www.eenews.net/eenewspm/2019/01/10/stories/1060111615
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This Republican Wants to Tax CO2 — and Change Trump's Mind
Jan 11, 2019 | E&E Climatewire
By Ines Kagubare
Republican Rep. Francis Rooney holds one of the reddest seats in Florida, but that hasn't stopped him from supporting aggressive climate action.
And he thinks President Trump should, too.
Rooney is a rare Republican who's pushing for a carbon tax, and he also wants to end the use of coal. Unlike other GOP lawmakers who are pushing for a price on greenhouse gases — there are just a few — Rooney wasn't endangered in last year's midterm elections.
"I wish [Trump] would use his leadership to acknowledge the complexity of this issue and that there are different points of views that could very well be man-made contributing causes to the changes that are going on in the environment," Rooney said in an interview.
His stance on climate has generated mixed reactions in his Gulf Coast district. Some conservative voters have "vigorously" opposed some of his climate proposals, he said.
"Our area is very conservative and there are people who are definitely not happy with me doing this," Rooney said. "But I would like to try to have the time to talk to them and explain the particular circumstances of southwest Florida as it pertains to hurricanes, sea-level rise and the Everglades."
A businessman and a former ambassador to the Holy See, Rooney was re-elected for a second term to the 19th District last year. He received 63 percent of the vote.
Not shy about taxing carbon
A few months before the November election, Rooney co-sponsored a carbon tax bill with Rep. Brian Fitzpatrick (R-Pa.) and Rep. Carlos Curbelo (R-Fla.), who has since lost his Miami-area seat.
The bill, known as the "Market Choice Act," would put a $24-per-ton tax on carbon, with 70 percent of the revenue going toward infrastructure projects (Greenwire, July 23, 2018).
Rooney said he plans to introduce a similar bill in this Congress.
He co-sponsored another carbon tax bill — the "Energy Innovation and Carbon Dividend Act" — which would put a $15-per-metric-ton fee on carbon, rising by $10 per year, with the revenue going back to households as a rebate (E&E Daily, Nov. 28, 2018).
"What most interests me is the tax side to disincentive the burning of coal," Rooney said. "I want to make coal less economic than natural gas and cleaner fuels."
He added: "I don't think we need to burn coal in the United States with all the natural gas that we've got."
Offshore drilling
The 19th District is known for its connection to the Everglades. Rooney said that's why he introduced a resolution last fall to bring attention to the impacts of sea-level rise.
"Sea-level rise and flooding, amplified by devastating hurricanes such as Hurricane Irma that ravaged our community one year ago, are an urgent concern to our many coastal communities in Florida," Rooney said in a statement at the time.
Rooney has also been outspoken against offshore drilling in the Gulf of Mexico. He introduced a bill last year to permanently ban offshore drilling in the eastern Gulf. He reintroduced this month.
He hasn't always been a green-minded Floridian.
Rooney served as a board member for two oil companies. In 2010, he was named a board manager of Laredo Petroleum Inc. And for many years, he said, he served as a board member for Helmerich & Payne Inc., one of the largest drilling companies in the world. Both companies are based in Tulsa, Okla., the state where Rooney was raised.
Rooney said his experience with oil companies made him aware of the risks involved with drilling. And some environmental advocates say they welcome his newfound conviction on climate.
That wasn't always the case. In 2017, Rooney voted against all the climate and environmental bills prioritized by the League of Conservation Voters. The group gave him a zero score on its scorecard.
He seems to have made amends.
"Rep. Rooney has been an outspoken opponent of offshore drilling and we welcome his significant engagement on climate change policy," said Sara Chieffo, LCV vice president for government affairs, in an email.
Pushback from the right
Rooney has also faced pushback from many of his Republican colleagues on Capitol Hill.
"There's a lot of Republicans who disagree with a carbon tax," Rooney said. "[But] it would be nice if they would consider the different characteristics of different areas of o
https://www.eenews.net/climatewire/2019/01/11/stories/1060111647ur country."
Peter Bergerson, a political science professor with Florida Gulf Coast University, said that Rooney's stance on climate change shouldn't endanger his political future. It's unlikely he'll draw a Republican primary challenger, he said.
Although that could change if Rooney steps too far in prioritizing climate.
"I wouldn't classify [Rooney] as a [climate] flag waver, but he's been an advocate and understands the importance of environmental issues to the district," Bergerson said.
Jonathan Martin, chairman of the Lee County Republican Party, said he has heard concerns about Rooney's carbon tax proposals. Some worry that it could increase their electricity bills.
But many voters there accept that climate change could hurt their way of life.
"[Since] our identity is plugged into our beaches and water, we have to be attuned to what our long-term planning is for this region as the world continues to get warmer," he added.
https://www.eenews.net/climatewire/2019/01/11/stories/1060111647
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Ocean Warming Accelerates, Bringing Coast Risks, Powerful Storms
Jan 10, 2019 | BNA Daily Environment Report
By Michael Standaert
Ocean warming is accelerating and will continue to do so, with devastating consequences to coastal communities and fishing industries worldwide to a tune of tens of billions of dollars annually through 2100, projections from a new report show.
Hotter oceans mean sea levels could rise by 1 foot on average on top of a rise in ocean waters due to global ice melt, if the global community follows a business-as-usual scenario, according to a paper to be published Jan. 11 in the journal Science.
Even if commitments under the Paris Agreement on climate change to cut carbon dioxide emissions and keep global temperatures from rising above 2 degrees Celsius (3.6 degrees Fahrenheit) by the end of the century are met, ocean heating will cause a rise of about half a foot on top of a rise from melting ice sheets and glaciers worldwide, according to the report.
“Every degree of warming matters, every action we take will impact the future climate risk,” Cheng Lijing, lead author on the study from the Institute of Atmospheric Physics, Chinese Academy of Sciences, told Bloomberg Environment.
“That also means, although it is almost impossible to keep future sea-level rise at the present level, we could take action to reduce the impacts of sea-level rise in the future,” he said.
Record-Breaking YearAnother paper by Cheng, which will appear Jan. 16 in the journal Advances in Atmospheric Sciences, shows that 2018 was the warmest year on record for the world’s oceans, breaking the previous year’s record.
Hotter oceans also mean the strength and frequency of hurricanes, typhoons, and extreme rainfall events will escalate as more moisture is available in the air over ocean waters.
“Warmer air can hold more moisture at a rate of about 7 percent per degree Celsius,” Cheng said. “In turn, this leads to increases in the intensity of storms and heavy rains. The ocean provides ‘fuels’ of storm. So ocean warming will naturally support stronger and longer lasting storms.”
Under the business-as-usual scenario, that means a 118 percent increase in the frequency of tropical cyclones and 10 percent increase in wind speed by the end of the century, he said, referencing previous studies.
“The physical damage and economic losses from coastal storms and related flooding, erosion, and cliff failures in highly developed regions are [already] increasing,” Cheng said.
In addition, losses of coastal wetlands, coral reefs, decreased coastal water quality, and saltwater intrusion into coastal groundwater resources will increase and have follow-on impacts.
“Loss of coral reefs driven by climate change and the subsequent declines in the physical reef structures strongly affect the coral reef fishes and invertebrates, thus impacting fisheries productivity in the low-latitude oceans,” Cheng said.
Researchers from the University of St. Thomas in St. Paul, Minn.; University of California, Berkeley; and the National Center for Atmospheric Research in Boulder, Colo., also contributed to the study.
https://news.bloombergenvironment.com/environment-and-energy/ocean-warming-accelerates-bringing-coast-risks-powerful-storms
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Rising Chloroform Emissions Traced to China
Jan 11, 2019 | Chemical & Engineering News
By Tien Nguyen
An international team of researchers has reported a surprising rise in global levels of atmospheric chloroform. The study in Nature Geoscience posits that the ozone-depleting substance is coming from eastern China (2018, DOI: 10.1038/s41561-018-0278-2).
Atmospheric chloroform can come from both natural sources, such as marine algae, and anthropogenic sources, which mainly include chlorodifluoromethane production and water chlorination. The team found that from 2010 to 2015, global chloroform levels rose at a rate of 3.5% each year, despite being relatively stable or declining in previous decades. They calculated that the increase in emissions detected at measurement stations in South Korea and Japan was similar in magnitude to the global emissions increase and, using models of wind patterns, traced the emissions’ origins back to eastern China, which is highly industrialized. Recently, researchers discovered rogue emissions from east Asia of the banned substance trichlorofluoromethane that may delay ozone recovery by a decade. The spike in chloroform emissions could also delay the ozone layer’s recovery by several months or even years if the rate of increase continues.
With an atmospheric lifetime of less than six months, chloroform is considered a very short-lived substance (VSLS) and is not regulated by the 1987 Montreal Protocol, the successful global agreement to reduce the emission of ozone-destroying gases. Susann Tegtmeier of the Helmholtz Center for Ocean Research writes in an accompanying review that the findings are “an important step toward opening the discussion of regulating the anthropogenic VSLS emissions.”
https://cen.acs.org/environment/greenhouse-gases/Rising-chloroform-emissions-traced-China/97/i2
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