NEWS OF THE WEEK
RATCHETING DOWN OZONE EPA: Proposal would strengthen
national air quality standard
DREAMSTIME
E
PA IS PROPOSING to tighten the nation’s air
quality standard for ground-level ozone, a move that could carry a big price tag for industry while delivering large health benefits to Americans. The proposed standard would limit ground-level ozone to between 0.060 and 0.070 ppm, strengthening the current standard of 0.075 ppm set by EPA in 2008 under the Bush Administration. EPA estimates that the proposal would cost between $19 billion and $90 billion to implement and would yield health benefits of between $13 billion and $100 billion. The proposed standard, issued on Jan. 7, is identical to the range that the agency’s Clean Air Scientific Advisory Committee in 2006 said would provide an adequate margin of protection for millions of people susceptible to respiratory illnesses. “Using the best science to strengthen these stan-
CLEAN ENERGY WINDFALL: Chemical firms win recovery-act tax credits for new plants
A
NUMBER of chemical and materials companies
received some happy news from the Internal Revenue Service. As part of a $2.3 billion tax credit program under the American Recovery & Reinvestment Act of 2009, they have been awarded tax breaks designed to spur manufacturing in the clean-energy sector. Hemlock Semiconductor—a joint venture of Dow Corning, Shin-Etsu Handotai, and Mitsubishi Material— will get the largest credit: $141.9 million to expand a polysilicon plant in Hemlock, Mich. In second place with a $128.5 million credit is the North American branch of Wacker Chemie, Hemlock’s German rival, for a polysili-
TAX CREDITS
Lion’s share of top five awards goes to producers of solar materials TAX CREDIT ($ MILLIONS) PLANT LOCATION
Hemlock Semiconductor Wacker Polysilicon DuPont Novozymes Dow Corning
$141.9 128.5 50.7 28.4 27.3
Hemlock, Mich. Charleston, Tenn. Circleville, Ohio Blair, Neb. Hemlock, Mich.
OUTPUT
Polysilicon for solar cells Polysilicon for solar cells Polyvinyl fluoride solar films Enzymes for cellulosic ethanol Monosilane for thin solar films
NOTE: Top five chemical projects winning clean-energy tax credits. SOURCE: White House
WWW.CEN-ONLINE.ORG
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dards is a long-overdue action that will help millions of Americans breathe easier and live healthier,” EPA Administrator Lisa P. Jackson says. Endorsing the plan are the American Lung Association and other health and environmental groups. “If EPA follows through, it will mean significantly cleaner air and better health protection,” says Frank O’Donnell, president of Clean Air Watch, an environmental group. Many industry groups are opposing the proposed standard, saying it will be too expensive to meet. “There is absolutely no basis for EPA to propose changing the ozone standards promulgated by the EPA administrator in 2008,” the American Petroleum Institute says. If finalized, the proposed standard would require state and local regulators to clamp down on ozoneforming emissions from industry and vehicle traffic. “State and local air quality officials are fully aware of the daunting challenges implementation of such new standards will pose,” says S. William Becker, executive director of the National Association of Clean Air Agencies. “However, as stewards of the air that citizens of this nation breathe, we stand ready to face, and overcome, those challenges.” EPA has scheduled three public hearings in February on the proposed rule.—CHERYL HOGUE
con plant in Charleston, Tenn. Both plants will supply raw material for traditional photovoltaic solar cells. DuPont, Dow Corning, PPG Industries, and Dow Chemical will receive tax credits for materials, including films and coatings, used in the manufacture of solar cells. Dow will also get a $17.8 million credit for producing solar building products, including its Powerhouse Solar Shingles, to be manufactured in Midland, Mich. Not all the credits target solar. Biocatalysts maker Novozymes will get a $28.4 million credit to produce enzymes for cellulosic ethanol at a facility in Blair, Neb. Carbon fiber and composites firm Hexcel will enjoy an $8.1 million boost for its wind blade materials facility in Windsor, Colo. Transportation and building equipment firms are also receiving credits. In announcing the credits, President Barack Obama highlighted December’s weak jobs report, saying, “Building a robust clean-energy sector is how we will create the jobs of the future—jobs that pay well and can’t be outsourced.” He also identified energy security, combating climate change, and competition from China as driving the need for tax credits. But the tax credits may not create permanent employment, warns Robert Nolan, principal at NanoMarkets, a technology analysis firm. “They’re taking tax money and funneling it to businesses that don’t necessarily use capital in an efficient manner. What happens when the money runs out?” he asks. He also sees a risk that the incentives could stimulate overcapacity in some industries. Market watchers say this is already a threat for polysilicon (C&EN, Nov. 9, 2009, page 28).—MELODY VOITH
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