Government Watch: French carbon tax

technology has been around for several years, but fewer than ... Government Watch. French carbon tax ... regulations in September with the passage of ...
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Government Watch

French carbon tax

Energy-gobbling water heaters soon passé? A new water heater poised for field testing at 43 sites across the United States could cut the amount of energy needed for heating household water by at least 50%, as well as decrease national carbon emissions by 9 million metric tons per year, say researchers involved with testing the unit. This super-efficient water heater, which is manufactured by EnviroMaster International Corp., a subsidiary of ECR International, uses a heat pump to extract heat from surrounding air to warm water inside a storage tank. The technology has been around for several years, but fewer than 2000 units have been sold annually compared to 4 million conventional electric water heaters per year, which use resistive heating

elements. The high price tag ($375-$400 above the installed cost of a conventional 50-gallon electric water heater), lack of consumer awareness, and design problems (three separate pieces of equipment—heat pump module, storage tank, and pump) have contributed to the stagnant market, says ECR's Karl Mayer. The new unit has been designed as a "drop-in" replacement for electric heaters with a 50- to 80-gallon storage capacity (see figure) and "could really help with efficiencies, particularly for residents in southern climates" because it also provides some airconditioning and dehumidification, says Steve Rosenstock, manager of electric solutions for Edison Electric Institute, a trade association of electric companies.

France plans to implement a tax on carbon emissions early next year, once the National Assembly, the lower house of parliament, approves. Announced last January as part of a government plan to combat global warming, the tax is designed to encourage companies that burn fossil fuels to reduce energy consumption through better efficiency and fuel switching. The tax rates, set using a base price of approximately $34.65 (U.S.) per ton of carbon equivalent emissions and assessed on approximately 40,000 firms that consume more than 100 petroleum equivalent tons (PET) of energy annually, would be specific to the fuel. For example, coal consumption beyond the 100 PET would be levied approximately $23 (U.S.) per ton, and electricity $1.74 per megawatt-hour. However, 1000 of France's most energy-intensive companies—chemical, glass, steel, and aluminum producers—would be taxed differently. Beginning in 2001, these firms would agree to separate consumption levels negotiated with the government and they would be taxed on their fuel use above that amount. The plan does allow companies to meet their consumption targets by purchasing emission credits, once an international carbon trading scheme is in place, although the government prefers reductions be made by Frenchbased companies, says Serge Couvreur, economic counselor at the French Embassy in the United States.

16 air regs in one The U.S. EPA took a giant step toward streamlining federal air regulations in September with the passage of the first consolidated air rule (CAR) targeted Look familiar? The latest version of energy-efficient heat pump water heaters is more like conventional water heaters.

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DECEMBER 1, 2000 / ENVIRONMENTAL SCIENCE & TECHNOLOGY / NEWS • 5 0 1 A