HomeMy WebLinkAboutPSD-057-13 Clarftwn REPORT
PLANNING SERVICES DEPARTMENT
Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date: September 23, 2013 Resolution#: -4163-1 By-law#:
Report#: PSD-057-13 File#: PLN 21.2.7
Subject: NITROGEN OXIDE AND SULPHUR DIOXIDE EMISSIONS FROM ST MARYS
CEMENT BOWMANVILLE PLANT
RECOMMENDATIONS:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report PSD-057-13 be received; and
2. THAT all interested parties listed in Report PSD-057-13 and any delegations be advised
of Council's decision.
Submitted byk1retor �� Reviewed by: '��-
- J
C MCIP Franklin Wu,
f PI Wing Sery ces Chief Administrative Officer
JAS/CS/df
17 September 2013
CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379
REPORT NO.: PSD-057-13 PAGE 2
1. PURPOSE OF REPORT
1.1 At its May 13, 2013 meeting, Council considered the minutes of the January 22, 2013
meeting of the St. Marys Cement Community Relations Committee (CRC). The minutes
indicated that the nitrogen oxide and sulphur dioxide emissions for the St. Marys plant in
2012 exceeded their allowances for the year as set by the Government of Ontario, and
that St. Marys had used banked allowances from previous years to cover their 2012
emission exceedances. (This practice is permitted by the cap and trade regulations
discussed in Section 2 of this report).
1.2 Council resolved (Resolution # C-164-13) to refer the minutes to staff for the preparation
of a report regarding St Marys' expected levels of emissions for 2013, the number of
exceedances they have experienced in the last five years, and the amount of
allowances purchased in the last five years. This report has been prepared in
response to Council's resolution.
2. EMISSIONS CAPS AND TRADING
2.1 Nitrogen oxides (NOx) and sulphur dioxide (SO2) are universally recognized as
significant smog-causing pollutants, and many governments have initiated various
actions to reduce the industrial emissions of these two air pollutants. One of the
initiatives adopted by the Province of Ontario to reduce NOx and SO2 pollution is
"emissions trading", also known as "cap and trade".
2.2 Emissions cap and trade uses a market-based approach to control pollution by
providing economic incentives to achieve reductions in the emission of pollutants. The
amount of a pollutant that a facility can emit is capped and the limit of the cap is
gradually reduced over a number of years. A company that emits fewer pollutants than
permitted by its cap for a particular year can "bank" its unused allowance to meet its
future reduction requirements or"sell" the unused allowance to another emitter. This
allows a facility to bank unused allowances during an economic downtown and then tap
into these banked allowances as the economy improves.
2.3 The value of any unused allowances increases as the limit of the cap is reduced. As a
result, the cap and trade system is designed to financially reward companies with high
environmental performance, while requiring companies with lower environmental
performance to pay to exceed their emissions caps.
2.4 Through the issuance of regulations issued under the Environmental Protection Act, the
Government of Ontario has adopted a cap and trade approach to control and gradually
reduce the amount of NOx and SO2 emitted by industries in Ontario. Seven large
industrial sectors, including the cement sector, became subject to the regulations in
2005, with 2006 being the first year of implementation.
REPORT NO.: PSD-057-13 PAGE 3
2.5 Regulation 194/05 established the emissions caps for NOx and S02 for each industrial
sector with the permissible caps decreasing in stages over a number of years. The NOx
and S02 caps for the cement sector set by Regulation 194/05 are shown in Figure 1.
Figure 1
Regulation 194/05
Nitrogen Oxide And Sulphur Dioxide Emission Allowances - Cement Sector
Amount tonnes
Nitrogen Oxide NOx Sulphur Dioxide SO2
2006 2007-2009 2010-2014 2015 & 2006 2007' 2010-2014 2015 &
after 2009 after
19,872 19,1361 17,8351 14,875 22,339 21,8201 20,773 16,1391
As indicated by Figure 1, the allowable NOx emissions for the cement sector in Ontario
are intended to decrease by approximately 25% from 2006 to 2015, while the allowable
S02 emissions are intended to decrease by approximately 28%.
2.6 The Regulation also establishes emission caps for specific facilities within each sector,
recognizing that each company will have varying levels of production. The permissible
emissions limits are based on an "intensity rate" (tonnes per unit of regulated product)
using formulas provided in the Regulation. Each "capped" emitter is required to monitor
its actual emissions throughout the year and report the emission amounts to the
government. At the end of the year, if a capped emitter's emissions are equal to or less
than the number of allowances it is permitted for that year, the emitter is considered to
have achieved compliance.
2.7 Figure 2 shows the NOx and S02 emission intensity rates for the St. Marys Bowmanville
plant set out by Regulation 194/05.
Figure 2
Regulation 194/05
Nitrogen Oxide And Sulphur Dioxide Emission Intensity Rates
St. Marys Cement Plant, Bowmanville
Emission Intensity Rates
Nitro en Oxide NOx Sul hur Dioxide SO2
2006 2007- 2010-2014 2015 & 2006 2007- 2010-2014 2015 &
2009 after 2009 after
0.0028 0.00241 0.00201 0.0020 0.0029 0.0026 0.00221 0.0022
As noted above, formulas provided in the Regulation allows a company to determine its
annual emission allowances for NOx and S02. Based on its production in 2012, the St.
Marys' Bowmanville plant was permitted to emit 2,808 tonnes of S02 and 2,553 tonnes
of NOx (discussed in Section 3 of this report).
2.8 The Ontario Emissions Trading Registry for NOx and S02 created by the Government of
Ontario tracks the creation, transfer and use of allowances and emission-reduction
credits. The provincial emission targets for each pollutant apply to the combined total
REPORT NO.: PSD-057-13 PAGE 4
emissions for all sectors, thereby allowing a company to purchase or sell emission
allowances with another sector if necessary.
3. ST. MARYS CEMENT BOWMANVILLE PLANT
3.1 Figure 3 shows the total NOx emissions and allowances for the St. Marys' Cement
Bowmanville plant for the years 2006-2012, while Figure 4 shows the NOx data for
2012. These two figures indicate that the plant had 1,381 tonnes of banked NOx
allowances for the years 2006-2011, plus an allowance of 2,553 tonnes for 2012,
providing a total NOx allowance of 3,934 tonnes. This allowance was sufficient to cover
the 2012 emissions, leaving 643 tonnes of unused NOx allowances that can be applied
against NOx emissions in future years.
Figure 3 Figure 4
St. Marys Cement NO, Emissions St. Marys Cement NO,Emissions
and Allowances 2006-2012 and Allowances 2012
30,000 8,000r� � >�
7
s'S �(� �✓' a oa � . ,000
25,000
6,000
20,000a
a to 5,000 -
C 15,000 4,000 �
10,000 - ;
2,000 Y
5,000
1 � 1,000
5
0 0 c
NOX 2006-2012 oAllowances NOX 2006-2012 F E NOX 2012 ❑Allowances NOX 2012
Unused NOx Allowance 2006-2011 = 1,381 tonnes NOx Emissions Exceedence 2012 = 738 tonnes
NOx Allowance 2012 = 2,553 tonnes Remaining NOx Allowances =643 tonnes
Total NOx Allowance =3,934 tonnes
3.2 Similarly, Figure 5 shows the total S02 emissions and allowances for the St. Marys plant
for the years 2006-2012, while Figure 6 shows the S02 data for 2012. These two
figures indicate that the plant had 3,421 tonnes of banked S02 allowances from 2006-
2011, plus an allowance of 2,808 tonnes for 2012, providing a total S02 allowance of
6,229 tonnes. This allowance was sufficient to cover the 2012 emissions, leaving 1,147
tonnes of unused S02 allowances that can be applied against emissions in future years.
3.3 St. Marys Cement has indicated that they are completing the implementation of a new
emissions control system at their Bowmanville plant, and are also evaluating other
technologies to further reduce S02 emissions. The new system is currently being
commissioned and, as such, has not been operated continuously, which is part of the
REPORT NO.: PSD-057-13 PAGE 5
reason for the NOx and S02 exceedances at the plant in 2012. St. Marys plans to
present information on their new emissions control system at the September 30, 2013
Council meeting when the CRC presents its annual report.
Figure 5 Figure 6
St. Marys' Cement S02 Emissions St. Marys' Cement S02 Emissions
and Allowances 2006 - 2012 and Allowances 2012
30,000 8,000 r
wr�r
�,f.` �
s 7,000Y ;
2S,000 '
6,000
20,000 �� r
5,000 r r r
N ax .
= 15,000 4,000 "
<: 3,000 �� ..a
10,000 � � ' r s
r r 2,000
c Y y 3. s ✓' r .a -; r114
5,000 � ar l r x r
1,000 r
Jr'' y �.
0 _4 0 Nr v
-M-10))006-201) n Aliewanr.P.s S02 200`-2012 N S02 2012 ❑Allowances 502 2012
Unused S02 Allowance 2006-2011 =3,421 tonnes S02 Emissions Exceedence 2012 =2,274 tonnes
S02 Allowance 2012 = 2,808 tonnes Remaining S02 Allowances = 1,147 tonnes
Total S02 Allowance = 6,229 tonnes
3.4 St. Marys has provided the following information in response to Council's questions
regarding emissions from the plant:
• Figure 7 indicates that St. Marys expects to exceed both its NOx and S02
allowances in 2013.
Figure 7
St. Marys Cement (Bowmanville Plant)
Expected Emissions 2013
2013 Emissions Allowances Difference (Estimated)
Estimated
NOx 3,154 tonnes 2,747 tonnes -407 tonnes
S02 4,661 tonnes 3,021 tonnes -1,640 tonnes
St. Marys will be able to apply unused allowances from previous years to cover the
exceedances, as noted in Figure 8. To cover the expected S02 shortfall in 2013,
St. Marys is planning to transfer S02 allowances from its cement plant in St. Marys
Ontario to its Bowmanville plant.
REPORT NO.: PSD-057-13 PAGE 6
Figure 8
St. Marys Cement (Bowmanville Plant)
Emissions 2006 - 2013
Total 2006- Emissions Allowances Difference (Estimated)
Estimated
NOx 28,788 tonnes 28,974 tonnes 186 tonnes
S02 31,216 tonnes 30,724 tonnes -492 tonnes
• St. Marys Bowmanville has not purchased NOx or S02 allowances since the
implementation of the cap and trade program in 2006. The plant sold 767 tonnes
Of S02 allowances in 2007.
4. CONCURRENCE - Not applicable
CONFORMITY WITH STRATEGIC PLAN
The recommendations contained in this report conform to the general intent of the following
priorities of the Strategic Plan:
X Promoting economic development
Maintaining financial stability
Connecting Clarington
X Promoting green initiatives
Investing in infrastructure
Showcasing our community
Not in conformity with Strategic Plan
Staff Contact: Janice Szwarz and Cynthia Strike
List of interested parties to be notified of Council's decision:
Ruben Plaza, St. Marys Cement
Glenda Gies, Co-Chair St. Marys Community Relations Committee