
Displaying items by tag: Legal
EPA sets national coal ash regulations for US
22 December 2014US: The Environmental Protection Agency (EPA) has announced the first national regulations to provide for the safe disposal of coal ash from coal-fired power plants. The ruling establishes safeguards to protect communities from coal ash impoundment failures and establishes safeguards to prevent groundwater contamination and air emissions from coal ash disposal.
"The EPA is taking action to protect our communities from the risk of mismanaged coal ash disposal units and putting in place safeguards to help prevent the next catastrophic coal ash impoundment failure, which can cost millions for local businesses, communities and States," said EPA Administrator Gina McCarthy.
The new federal regulations include:
- The closure of surface impoundments and landfills that fail to meet engineering and structural standards and will no longer receive coal ash;
- Reducing the risk of catastrophic failure by requiring regular inspections of the structural safety of surface impoundments;
- Restrictions on the location of new surface impoundments and landfills so that they cannot be built in sensitive areas such as wetlands and earthquake zones;
- Protecting groundwater by requiring monitoring, immediate clean up of contamination and closure of unlined surface impoundments that are polluting groundwater;
- Protecting communities using fugitive dust controls to reduce windblown coal ash dust;
- Requiring liner barriers for new units and proper closure of surface impoundments and landfills that will no longer receive coal combustion residues.
In response to feedback on the proposal, the ruling clarifies the technical requirements for coal ash landfills and surface impoundments under Subtitle D of the Resource Conservation and Recovery Act (RCRA), the country's primary law for regulating solid waste. Implementation of the technical requirements will be reported through disclosure to States, and communities. Examples of this include power plants providing information to the public and States and new transparency requirements, including recordkeeping and reporting requirements, as well as the requirement for each facility to post specific information to a publicly-accessible website. This final rule also supports the responsible recycling of coal ash by distinguishing safe, beneficial use from disposal.
Canada: Lafarge is moving ahead with an attempt to use plastic waste instead of coal at its Brookfield cement plant in Nova Scotia. Scarth MacDonnell, Brookfield's plant manager, appeared before Colchester County council to inform them of the plant's intent to use plastic waste as a low-carbon fuel.
"We think we have found a solution to the very real problem of plastics that build up in landfills," said MacDonnell. "We hope to get 30% substitution of coal." MacDonnell added that the emissions are safe and meet or exceed provincial and federal government standards.
The plant will submit an application to Nova Scotia's Department of Environment for an industrial trial replacing coal with shredded plastics. It will also host an open house on 17 July 2014 for people who want to learn more about and talk about the idea.
MacDonnell said that a study by the province's Department of Natural Resources indicates that there is 79,000t/yr of plastic going into landfills in Nova Scotia and that a study by Dalhousie University states that using plastics reduces carbon dioxide emissions up to 34% and other greenhouse gas emissions can be reduced by as much as 98%.
US: Martin Marietta Materials' US$2.7bn purchase of Texas Industries has been approved by the US Justice Department under a settlement that requires asset sales. Martin Marietta will sell rail yards in Texas and a quarry in Oklahoma to maintain competition in the market for gravel, sand and crushed stone.
"Without the divestiture obtained by the antitrust division, customers would have likely faced higher prices as a result of this acquisition," said Bill Baer of the US Justice Department.
Taxing arguments for European cement producers
18 June 2014Industrial energy consumers in Romania have succeeded in extracting concessions from the government's green certificates scheme this week. Cement producers, including Lafarge, Holcim and local HeidelbergCement subsidiary CarpatCement Holding, will benefit now from a 10-year facility to acquire the certificates and they will be allowed to buy up to 85% fewer certificates than at present.
The Romanian government reckons the change will save industry Euro750m. It will be good news for the cement producers and aluminium producer Alro Slatina, one of the chief lobbyists for the change which paid Euro39m for the certificates in 2013, reported losses of Euro17m and threatened production closures.
The debacle strikes a chord with other government-led attempts to nudge society towards lower-carbon emitting energy sources. First a national or international scheme offers economic incentives toward some sort of carbon reduction. Then major industrial users either complain that the system 'unfairly' penalises them or they find a way to play the system. The latest example of the adjustments in Romania is an example of the former, as is the current Australian government's intention to remove its carbon tax. Multinational companies surrendering carbon offsets into the European Union's (EU) emissions trading scheme (ETS) is an example of the latter.
In defence of government-industry negotiation, the EU ETS is now in its third phase of trying to make the scheme work as the EU tries to reach its target of a 20% cut in emissions compared to 1990 levels by 2020. In late 2013 environmental group Sandbag accused the target of containing a loophole that allows for a much smaller cut in emissions due to a slack in carbon budgets, of potentially 2% of 1990 levels. However, the EU confirmed in early June 2014 that it is on track to beat its target and cut down total emissions by 24.5% by 2020.
Alongside all of this arguing, overall energy costs have steadily risen over the last decade, as have the rates of co-processing at European cement plants. As a secondary major fuels consumer, behind energy generation and transportation, the cement industry is particularly susceptible to energy prices being jolted around behind various market trends, such as increases in natural gas supply in the US market. In effect the cement industry hops between different 'next best' options, after the leading energy consumers have taken the premium fuels. The interplay between legislators and heavy industry over carbon taxes prompts the following question: what encourages cement producers more to move to reduce their carbon emissions – legislation or fuel prices?
In other news this week, the chief executive of African producer Bamburi Cement, Hussein Mansi, has announced his plans to move on to Lafarge Egypt. In his memo to staff he mentioned, '...five very interesting years leading the Kenya – Uganda business.' Telling words perhaps given the Kenyan government's attention on Bamburi Cement and the East Africa Portland Cement Company, a producer minority-owned by Lafarge. Of course Mansi may discover that 'interesting' is relative in Egypt, a country on the other side of the energy subsidy spectrum to Europe and its carbon taxes.
Holcim implicated in Cuban cement plant investment
04 June 2014US/Cuba: A lawsuit in Spain has revealed documents indicating that Holcim may have invested in a cement plant in Cuba despite warnings the deal might violate US law because the plant sits on land seized from US citizens. The deal took place in 2000, when Holcim was known as Holderbank, but allegedly the ownership went through a string of companies in Spain, the Netherlands and Panama, according to documents filed in a lawsuit reported upon by the Miami Herald.
"Holderbank's investment in the Cienfuegos property clearly would constitute 'trafficking' in confiscated property under Title IV of Helms-Burton," wrote US lawyers hired to advise Holcim. Holcim denies that it owns a business or a stake in a business in Cuba.
The court documents are part of a lawsuit involving three Spanish firms. Firebrick SA and Acedos Trading allege that Inversiones Ibersuizas owes them more than US$2m from an investment in Cuba in 2000. The documents suggest that Ibersuizas created a Spanish firm, Las Pailas de Cemento, in 2000 that paid US$70m to Cuba for 50% of the joint venture, Cementos Cienfuegos plant. Holcim allegedly controlled the project through a Panama company, Windward Overseas. The deal subsequently began to break down in 2004.
Since 2004, the US Treasury Department's Office of Foreign Assets Control, which enforces the US embargo on Cuba, has fined foreign companies more than US$1.25bn for violating US laws and regulations.
Uganda: The High Court in Kampala has ordered the Minister of State for Gender and Cultural Affairs Rukia Nakadama Isanga to pay US$52,000 to Hima Cement for construction materials she bought from the company.
According to court documents, Hima supplied cement worth US$31,000 to Nakadama and her husband, Dauda Isanga, between 2003 and 2005. The couple later issued cheques worth US$31,000 to the company but these cheques were rejected by the bank due to insufficient funds. Justice David Wangutusi also ordered Nakadama and Isanga to pay US$19,500 in interest to Hima Cement accrued since 2009. The judge also ordered the couple to pay 8% interest per annum on both amounts from the date of judgement until the payment is completed.
Egyptian court accepts appeal by Assiut Cement
22 January 2014Egypt: An Egyptian court has accepted an appeal by Assiut Cement to prevent the overrule of its privatisation in 1999. The case regarding the Cemex subsidiary has now been referred to an administrative court.
Two former Assiut employees, who were among workers to take an early-retirement package following the privatisation, brought a lawsuit against Assiut and certain Egyptian government representatives in 2011, seeking to annul the privatisation. The civil court ruled to annul the sale in 2012, but Assiut appealed. The civil appeals court accepted the appeal, overruled the first instance court and has referred the case to an administrative court, said Maher Al-Haffar, Cemex's vice president of corporate communications and investor relations.
"The process will start from the beginning, and the new court will have to hear the merits of the case," Al-Haffar said. Meanwhile, Egyptian cement operations are continuing and will continue normally, he added.
Mexico-based Cemex purchased a controlling stake in Assiut Cement in 1999 from Egypt's state-owned Metallurgical Industries Holding. It has since increased its cement production capacity to 5.4Mt/yr from 3.7Mt/yr and added ready-mix concrete, aggregates and housing developments to its cement operations. Assiut had sales of US$471m in 2012, equivalent to about 3.1% of Cemex's US$15bn in global sales.
EPA and industry fail to settle waste unit risk policy fight
22 January 2014US: The US Environmental Protection Agency (EPA) and industry groups including cement producers have failed to settle a permit dispute that is testing whether the agency has the authority to require operators of hazardous waste combustion units to conduct risk assessments that can be used to strengthen emissions limits for mercury and other pollutants when renewing the facilities' existing waste and air permits. Negotiations stalled during a meeting in November 2013 between EPA lawyers and cement kiln operators at EPA's Region V offices, according to an 8 January 2014 status report the parties filed with the Environmental Appeals Board (EAB). Litigation will continue on 20 February 2014.
The case began on 8 July 2013 when ESSROC Cement petitioned the EAB to review Region V's decision requiring a site-specific risk assessments (SSRA) at ESSROC's hazardous waste combustor facility in Logansport, Indiana, during the 2012 renewal of the facility's RCRA permit. After the facility conducted the SSRA, Region V imposed a restrictive annual mercury feed rate limit, which ESSROC said, "goes far beyond what is necessary to protect human health and the environment."
The case marks a new test for the risk assessment requirements EPA attached to its 2005 regulations governing hazardous waste combustion facilities that emit air pollutants, including cement kilns. The 2005 regulations set strict new maximum achievable control technology (MACT) standards under the Clean Air Act (CAA) for the combustion facilities that burn the hazardous waste. The rule also integrated the MACT standards with Resource Conservation and Recovery Act (RCRA) requirements so that facilities must comply with the MACT standards to be eligible for RCRA permits.
EAPCC adjusts financial reports following US$2m cement theft
08 January 2014Kenya: The East African Portland Cement Company (EAPCC) has adjusted its previous financial reports following the discovery of a theft of cement worth US$2m. The fraud led to the under-declaration of its overdraft by US$1.4m for cement lost in 2012, with the firm also overstating its sales and VAT payments by the same amount.
"The company lost cement worth US$1.4m and US$0.66m during the years ending 30 June 2012 and 30 June 2013 respectively through fraud, which was discovered in 2013," the EAPCC said in its latest annual report.
"The financial statements have been restated to correct these misstatements."
The Treasury and the National Social Security Fund (NSSF), which have a combined stake of 52% in the EAPCC, have questioned the accuracy of the EAPCC's accounts, which are examined by the National Audit Office and its agent Ernst & Young. The EAPCC management has disputed this claim.
In 2013, EAPCC suspended seven of its employees who were charged with allegedly stealing cement worth US$2m.
Tong Yang Cement files for court receivership
02 October 2013South Korea: Tong Yang Cement, a subsidiary of Tong Yang Group, has filed for court receivership. The receivership with the Chuncheon District Court was lodged in an official note, as reported by the Korean Broadcasting System. Sister-companies Tongyang Incorporated, Tongyang International, Tongyang Leisure and Tongyang Networks have also filed for court receivership in recent days.
Tongyang Group will have to repay debts of more than US$1bn.