NEWS OF THE WEEK REGULATION
EPA PLANS AIR POLLUTION CUTS Proposals seek NO x , S0 2 , and mercury cuts from coal-fired power plants
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AST WEEK, EPA A D M I N I S -
trator Michael O. Leavitt proposed plans to cut mercury, nitrogen oxides, and sulfur dioxide emissions in 29 states and the District of Columbia over the next decade and a half.
Leavitt
The proposals mainly affect air emissions by old coal-fired power plants and would require the plants to meet emissions targets in 2010 and 2015. The proposals set national emission caps and allowutilities to meet them by pollution trading as well as by installing controls. The result would be cutbacks in NO x by 65% (1.8 million tons) and in S0 2 by 70% (5.6 million tons) annually by 2015. The mercury reductions are proposed separately and required under a court order because of Clinton Administration footdragging. For mercury, Leavitt has two proposals. Both back away from
a Clinton-era agreement requiring utilities to meet a 90% mercury reduction by 2007 One approach would simply require utilities to comply with the proposed NOx and S0 2 emissions reductions; as a cobenefit, mercury will be reduced by 69% (33 tons). Asecond approach calls for utilities to reach a 29% reduction by 2007 (C&EN, Dec. 15, page 20). Leavitt's proposals shadow the Bush Administration's Clear Skies Initiative, stopped in Congress. Industry and utility groups generally applaud Leavitt's proposals but note that compliance will be expensive. State air regulators back the cuts but say the reductions would come quicker through enforcement of the Clean Air Act's new source review provisions, which the Bush Administration dropped (C&EN, March 11,2002, page 33). Environmental groups also oppose trading of mercury, a hazardous air pollutant and neurotoxic agent that is especially harmful to children.—JEFF JOHNSON
polychlorinated biphenyl contamination at a former Monsanto manufacturing site in Anniston,Ala. "We believe that the Chapter 11 process will give us a forum to shed" those costs, Hunter says. Though Monsanto picked up the bulk of the $600 million cost to settle Anniston résidents' legal claims, "the straw that broke F EVER A CHEMICAL COMPANY Pharmacia unit of Pfizer in an ef- the camel's back," according to had the deck stacked against fort to assign it responsibility for Buckingham Research analyst it, Solutia did. Spun out of $475 million in retiree benefit li- John E. Roberts, came earlier this Monsanto in 1997, the firm has abilities. Pharmacia owned Mon- month when Monsanto refused had to deal with a host of legacy santo until it spun it off last year. to assume a $3 million settlement environmental and retiree obli"We simply could not contin- in two legacy asbestos cases. gations even as it confronted pro- ue to sustain our operations burAlthough it refused to pay that found economic and competitive dened by Monsanto's legacy lia- bill, Monsanto may now have to difficulties. bilities," saysJohn C. Hunter III, kick in cash if ordered by the And so last week, Solutia did Solutia's CEO. Those liabilities— bankruptcy court. Hugh Grant, what it has threatened to do: It costing more than $100 million Monsanto CEO, says hisfirmis filed for bankruptcy reorganiza- annually—include retirement "fully prepared to manage potion in the U.S. Bankruptcy Court pensions for former Monsanto tential liabilities that may come to for the Southern District ofNew employees as well as the legal and it" because of Solutia's filing.— 'York. Separately, Solutia sued the remediation costs of dealing with MARC REISCH BUSINESS
S0LUTIA FILES FOR BANKRUPTCY
Firm seeks protection from crushing retiree and environmental costs
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C&EN
/ DECEMBER
22,
2003
HTTP://WWW.CEN-ONLINE.ORG
