Tuesday, February 24, 2009

Energy And Environment Focus Leads To Rapid Regulation

With the Obama Administration's emphasis on energy and the environment, more people are wondering what this might mean for manufacturing. From what Benz Air Engineering has gleaned from several meetings and presentations, most industry insiders seem to be pointing to the Western Climate Initiative, launched in 2007, and the Regional Greenhouse Gas Initiative (RGGI) as the regulatory drivers for a future national model.

For environmentalists and the energy industry, the most notable feature is that 2012 projections include revenues from a source that does not yet exist: a carbon dioxide cap-and-trade system. Currently, there are two cap-and-trade models being implemented in the Northeast and West.

Some other key points for consideration at Western Climate Initiative meetings:

• Reduce CO2, CH4,N2O, HFCs, PFCs, SF6 emissions to 15 percent below 2005 levels, by 2020.
• Priority reductions, including facilities that emit 10,000 metric tons of C02e by 2010
• Mandatory reporting by all emission producers by 2011
• Future regulations for manufacturers that emit > 25,000 MTCO2e/year by 2012
• Future regulations for electrical generators at the point of first delivery by 2012
• Future regulations for emission sources at the point of emission by 2012
• Future regulations on transportation gasoline and diesel combustion by 2015
• Mandatory implementation of GHG Inventory Management Plan

Benz Air Engineering is already working with several sites to meet future emission mandates while improving efficiencies that result in an immediate fuel cost savings. Most engineering solutions, which optimize efficiency and minimize emissions for industrial, utility and district energy and steam generation facilities, realize an payback in approximately two years. Many qualify for rebates, including up to 50 percent of the installation cost.

No comments: