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Show The Salt LakeTribune UTAH Monday, May29, 1995 Emissions Trading a Boon To Development? @ Continued from D-1 Coalition, the Frito-Laycaseillustrates how the state ‘‘plays games” with air quality. The emissions transaction looks good on paper because it helps Utah comply with EPA requirements, she said, but will not result in cleanerair. ForFrito-Lay, the program was simply a tool to satisfy its goals and thoseofthe state. “We wanted to locate in the Salt Lake area and we wanted an environmentally sound facility, so we worked {: within the system anddidit,” said spokeswoman Lynn Markley. © Utah Department of Communi- .» ty and Economic Developmentof{ ficial Alan Rindlisbacher pursued « Frito-Lay for its “name recognition and corporate presence — = they’re part of the Pepsico family f¢ [$25 billion in sales in 1993].” * Frito-Lay’s $45 million plant, - he added,fits well with Gov. Mike ;. Leavitt's charge to “bring in the right companies to the right location that provide the most advantageous benefits to the state.” » High Productivity: Its productive capacity is impressive, in~deed. Operating at full tilt, the ‘» plantwill put out 5,400 pounds of ©. potato chips and 2,350 pounds of “corn chips per hour. But the engines that run the plant’s dozen fryers, boilers and ovens generate enough PM10 to necessitate offsets. Even with the best pollutioncontrol technology available, Frito-Lay will release 79.4 tons per year of PM10 and twopollutants that help produceit — nitrogenoxides and sulfurdioxide. To obtain an air-quality permit, Frito-Lay hadto find anotherSalt Lake Valley company willing to give up the right to release that much, plus the 20% offset. Its vendor: The ownerof a cementplant tucked into the bend where northbound Interstate 15 dispatches two lanes to help form the 600 South off-ramp. The cementplant’s air-quality permit allowed annualreleasesof 1,037 tons of PM10-grouppollutants. But production ceased there in 1988. Whenthe kilns were dismantled in 1992, the plant's latest “ owner, Mountain Cement, banked ‘the right to emit 350 tons of PM10 pollutants. Frito-Lay bought those rights “from Mountain Cementlast June, dedicating 97.3 tons to its permit and bankingtherest. Thepurchaseprice wasnot disclosed. An idea of what some emission credits are worth can be gleaned from an EPA auction in » March, whensulfur-dioxide credits sold for about $131 perton. Construction began a few days later on theplant. Attracting Others: But developmenthas been slow. So FritoLay’s presenceis desirable forits taxes and its ability to attract more businesses. ‘‘We're delighted to have Frito-Lay,” said city ,economic-development official Bob Buchanan. The enthusiasm with which the city and the state embracedFritoLay showsthe importanceoffinding ways, like emissions trading, to mesh economics and pollution control, said Roberts. “Most Utahns want economic , development — for themselves, their children and the generalviability of the state, but not by adversely affecting air quality.” The fact Frito-Lay paid good =money for the required offsets shows the program ‘is not the / free lunch kind of deal that some think.” Letting market forces set the selling price does not “hinder or reduce cleanups and in some ‘instances will assist [corporate] decisions to clean up sooner,” Roberts added. Industry officials embrace the notion. Theylikeits flexibility, its - apparent cost effectiveness and its adherenceto the twin ideals of capitalism and decentralization Emissionstrading is inherently fair, said Chevron U.S.A. spokesman Walt McGuire. “It applies ‘ uniformly to all businesses. There “are no exceptions. Laws and regulations can't be written that apply only to large industries and not to The Lamp Company| o)aa Ke] aa| eo) 1443.§ 700 £ S'ACT will Pay TakingPollution to the ‘Bank’ Pays Dividends small businesses.” Sofar, only a dozen or so companies have banked, bought, sold, retired or transferred pollution credits. But the list of players includes some Utah heavyweights — Kennecott, Hercules, Amoco, Questar, GenevaSteel. Participation also is expected to increase with population growth. Federal and state emissionstrading programs haveother advocates. A General Accounting Office report last December concluded the federal trading program, whose aim is to reduce acid rain, should be utilized more. “It can beless costly than other methods of controlling pollution.” EPAtoutsit as a linchpin of the Clinton Administration’s “reinventing government” proposal. “It's not about relaxing standards but relaxing procedures. Less time, less process, moreresults,” said Paul Riederer, EPA’s deputy Program Offers Utah Firms A Reward for Cleaning Up By Mike Gorrell THE SALT LAKE TRIBUNE Chevron, U.S.A.: In 1993, Chevron ciosed an old refinery “cracker” that breaks crude oil down into gasoline and otherfuels. Credits for the pollution it no longer re leased — especially carbon monoxide — were banked and will be redeemed when Chevron Opens a new cracker that produces more and pollutesless. “Emission credits allowedus to modernize and remain competitive,” said spokesman Walt McGuire. Kennecott Corp.: This industrial giant has been active in the pollution-credits market, buying them, banking them and transferring them internally. Once its new smelter opens, LDS Hospital: Three years ago, the hospital in Salt Lake City’s Avenues neighborhood cut emissions by switching from coal to a natural gas-poweredelectrical system. Those credits the company can bank 16,575 tons of sulfur- in Denver. Some environmentalists also endorse it. The Environmental Defense Fund helped devise the federal trading program,seeingit as a practical way to get cleaner air faster and cheaper. Butit has detractors, too. In the Novemberissue of Sierra magazine, University of Montana economist Thomas Michael Power and associate editor Paul Rauber concluded that “at its worst, tradingpollution rights can legitimize continuingpollution.” Closer to home, Dougherty feels the Frito-Lay case reveals a larger problem afflicting pollution-control efforts: More emphasis is placed on satisfying EPA than actually cleaningthe air. In this instance, she said, the offset does reduce the inventory of sourcesidentified in thestate's 1989 PM10-control plan. But, in Shutting down a plant. Switching from coal to natural gas. Investing in new technology. Companies can do anyorallof these things to reducepollution and earn emissionscredits that can be putina state “bank” account. They can besold, used later or even retired to improve overall air quality. Here are a few examples of how Utah companies have participated in the program: dioxide (SO2) emissions credits — nearly three times the account's current total. Of those, Kennecott has pledged to “permanently retire” the right to emit 11,000 tons of SO2 annually to help Utah meet clean-air standards. The program,said Kennecott Copper’senvironmental-affairs director Fred Fox, “provides for orderly development. Quality oflife is maintained in termsof air quality while allowing more businesses to movein.” Kennecott acquired credits from Morton International and Four Court when ‘i bought those companies’ properties for the expansion ofits tailings pile north of Magna. It also obtained credits from Proler International, a contractor that used to have a kiln and metalseparation facility on Kennecott land near assistant regional administrator reality, Frito-Lay will emit pollution absent from the air since the cement plant ceased production in 1988. So any wayyoulookatit, Salt Lakeair loses. The argument has some shortterm validity, said Air Quality official Montie Keller. More pollution will enter the air. But over the long run,he added, the offset assures that 20% of the cement plani’s authorized emissions never enter the atmosphere again. Moreover, Roberts said, emissions trading “‘buys timeuntil we figure out what we're going to do in the next 25 years to accommodate 950,000 more people in the eight counties along the Wasatch Front and Wasatch Back [Wasatch, Summit and Morgan counties].” Time is needed for technical studies and, more importantly, for formulating policies clarifying how people,industry and motor vehicles fit together in a society that values a “qualityoflife,” dependent on breathableair. “This is an issue we must deal with, but haven’t yet,” Roberts added. In the meantime, emissions trading canhelp hold pollution in check. “It's a much more attractive option than deciding today who grows and who doesn't with little overall understanding of the issues involved.” Copperton. Manyofthose credits were transferred to Kennecott’s Barney's Canyon gold mine, sustaining production to prevent layoffs, said Fox Chip Production Will Require Lots of Water Wateralso is important to the Frito-Lay plant. Kearns Improvement District ultimately will supply Frito-Lay with around 600,000 gallons per day, about 30% of what Micron International plans to use at its Lehi computer-chip plant. That much water will cost Frito-Lay about $200,000 a year, said district manager Michael Embley. More importantly, the plant will put out so much wastewater that Frito-Lay had to pay the district a $3.3 million connection fee (plus an expected $250,000 per year)to help finance expansion of the Central Valley Water Reclamationfacility. The Kearnsdistrict is part owner of that facility. “All of what they put outis biodegradable. It’s not toxic or anything, butit’s in such large loads it’s hard to handle in mosttreatment plants,” Embley said. “It will be almost as thick as gravy runningout of there.” Nonetheless, he added, ‘we worked hard to help West Valley City attract it. We had dozensof meetings and tried to keep our connection fees as low as possible They’re a good corporate neighbor and customer... the biggest industrial installation we've ever done in Kearns.” most likely will be retired, said hospital spokesman Jess Gomez. “We converted to meet stringent EPA re quirements and to enhance the environmentin the residential area around us. Wehave not sold or marketed those credits. We have been approached, but do not intendto sell and have politely declined.” Geneva Steel: Emissions credits allowed Genevato stagger the introduction of two processes in its modernization program, increasing production without a commensuraterise in fine-particulate (PM10) releases. “You want to reduce pollution, but a lot of time you can’t doit all at once,” said chief environmental engineer K.C. Shaw. “We didn’t have enough money.” In 1992, the companyinstalled an automatic See eee D3 “scarfer” that released far less PM10 than the acetylene torches previously used to remove a metallic skin from the surface of fiery-hot steel slabs Those pollution savings offset emissions from a newmetallurgyfurnacethat replaced a smaller, less-efficient one in 1994. The result Geneva's economic viability was enhanced without a net increase in emissions. Monroc:Closureof two gravelpits enabled Monroc to bank credits for dust no longer kicked up by diggers, crushers and trucks Company President Robert Parry said the credits will be used for new pits, whose products are necessaryto sustain Utah’s growth. Cargill: Newconveyors and grain-handling systemswereinstalled at its Ogden flour mill, reducing airbornedust. Cargill is unsure how the credits will be used, but they could permit expansion, said plant manager Dallas Rahn ‘We want to grow. Questar and Pennzoil: Their credits differ from the rest because they were banked in counties — Daggett and Duchesne — that do not violate pollution standards. As such spokesmen for neither expect financial rewards for cutting pollution — Questar for switching from generatorstoelectricity to run natural-gas storagereservoirs between Vernal and RockSprings, Pennzoil for closing a refinery in Roosevelt Aboutthe only value the credits could have. said Utah Division of Air Quality Director Montie Keller,is by lowering somefuture project’s emissions — on paper — enoughthat the companyneed not do the extra paperworkrequired of large polluters. CGA errr ee Weekend! CheSalt Lake Cribune Ne wSpaper Day! — Mike Gorvell fe”S3 Holiday Special! iN) SAVE $50.00 ¥ Summer'sfirst holiday is here and to celebrate, we're offering $50 in savings J on any option oose, Select m windows, vents, shelves - even paint and more. See us this holida weekend. Offer expires 6/9/9 TUFF SHED Sat., May 27 & Mon., May 29 This Memorial Day weekend, bring the whole family to Lagoon andstart the summeroff tight! Just bring the front page from TheSalt Lake Tribune VOLUNTEERS NEEDED TO PARTICIPATE IN A y RESEARCH PROJECT PARTICIPANTS WILL RECEIVE FREE MEDICAL CARE AND STUDY MEDICATIONS. QUALIFICATIONS FEMALE 18-35 YEARS FOR MORE _.-7INFORMATION CALL your insurance deductible ‘to $100, Approved by e comp Fast, Free mobile service den to 0, Please Rememberto Recycle. Thanks, to the Lagoon ticket window and get Two All-day Passports for the price of One! YourAll-day Passport includes Lagoon A Beach, Rides andalll the Entertainment that makes summer fun. And, while you're there, stop by the Newspaper truck by Colossus and Play “Paperboy.” You could WIN @ LagoonAll-day Passports @ T-shirts and lots of other great prizes “Purchase one Regular All-Day Adult Passport and receive o second one FREE Each front page of the newspaperis good for only one "2 for 1” pass. Offer good only on May 27 & 29, 1995. There’s Only ONE... Lageen |
