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POLLUTION
MERCURY AIRED Lawsuits are expected against EPA rule to control emissions at power plants
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TATES AND ENVIRONMEN-
tal groups are gearing up to sue EPA over a rule that the agency issued last week to con trol mercury emissions from coalfired power plants. The regulation would cut the 48 tons of mercury spewed out by U.S. power plants each year to 38 tons by 2010 and to 15 tons af ter 2018. Electricity generators will receive credits allowing them to emit a specified amount of mercury. Plant operators that curb their releases below this amount can sell excess allowances to facilities that need more. States and environmental groups are preparing lawsuits ar guing that EPA went afoul of the Clean Air Act in creating a capand-trade program for a pollutant that is neurotoxic. They contend that EPA instead should force every U.S. coal-fired power plant to install equipment to cut mer cury emissions. EPA officials respond that gov ernment lawyers carefully con sidered this issue and are ready to defend the new rule in court. The agency acknowledges that generators will not need to install special equipment to achieve the 2010 mercury limits. The reduc tion will happen as a by-product of another regulation requiring power plants to curb releases of sulfur dioxide and nitrogen oxides. Issued on March 10, that rule is expected to reduce emissions of S0 2 and NO x from electricity generators in 28 eastern states. State regulators, environmen tal activists, and public health ad vocates also say the regulation gives utilities too long to curb their mercury emissions. William O'Sullivan, air quality director for New Jersey, says of the mercury regulation: "The HTTP://WWW.CEN-ONLINE.ORG
emission limits in this rule are not nearly stringent enough and do not even reflect the level of con trol capable by currendy available technology." New Jersey is re quiring its power plants to cut their emissions of mercury by 90% by the end of 2007. But Scott Segal, director of the Electric Reliability Coordinating Council, says no control technol ogy now exists to achieve the lev els of mercury required in the fi nal phase of the EPA regulation. Segal, who praises the cap-andtrade approach, says development continues on technologies to re move large amounts of mercury from different plant configura tions and various types of coal. The new rule's goal is to even tually reduce mercury levels in fish eaten by pregnant women, since the nervous systems of de
veloping babies can be damaged by the metal. EPA emphasizes that mercury emissions from U.S. coal-fired power plants are responsible for only a small amount of the metal accumulating in U.S. waters. Americans eatfishcaught all over the world, it adds. The Bush Administration last month helped scuttle a proposal
for a global treaty to lower indus trial releases of mercury It suc cessfully pushed for a voluntary program to control emissions in ternationally (C&EN, March 7, page 30).-CHERYL H0GUE
MERGERS AND ACQUISITIONS
Europe Looks Into Celanese's Acetex Purchase 1
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he European Commission is opening an in-depth review of CeLanese's planned $492 million purchase, announced Last October, of fellow acetyl, chemicals maker Acetex. The EC says it has not prejudged the final result of its review, due out in another four months. But commissioners are concerned that the acquisition may undermine competi tion because it would combine major Euro pean suppliers of acetic acid, vinyl acetate, and acetic anhydride. "This takeover is in a sector that is cur rently undergoing substantial development in terms of both consolidation and shifting pat terns of supply and demand," said European Competition Commissioner Neelie Kroes in a statement. Acetex, which is based in Canada but de rives more than 85% of its revenues from Europe, is not commenting on the review.
Celanese says it believes it has "a com pelling business rationale for the transac tion and is cooperating fully." Celanese also reminds shareholders that it hasn't includ ed results from Acetex in its 2005 earnings guidance. Celanese and Acetex have 38% and 17% shares of vinyl acetate capacity in Europe, respectively, according to the consulting group SRI International. Celanese also makes vinyl acetate for Acetex under a tolling arrangement. Acetex has a 29% share of acetic acid ca pacity in Europe, according to SRI. Celanese closed two acetic acid plants in 2000 and no longer makes acetic acid in Europe. Acetex is building a $1 billion acetic acid and vinyl ac etate joint venture in Saudi Arabia, scheduled for completion in 2007. Acetex has a 6.5% share of acetic anhydride capacity in Europe, SRIadds.-ALEXTULLO
C & E N / MARCH 2 1 , 2005
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