Wednesday, February 10, 2010

Mercury-reduction law would change Olin

Legislation that would require an Augusta chemical plant to undertake a $90 million conversion to eliminate its use of mercury -- or shut down -- was approved by the House Energy & Commerce Committee this week with an amendment offering such companies two additional years to complete their renovations.

The Mercury Pollution Reduction Act, sponsored by U.S. Rep. Jan Schakowsky, D-Ill., is aimed at the nation's four remaining chlorine factories that use a mercury processing system to manufacture chlorine. Olin Corporation's Augusta plant -- with about 100 jobs and a $9 million annual payroll -- is among them.

Trevor Kincaid, a spokesman for Ms. Schakowsky, said the original bill required conversion or closure by 2013 and the amendment would allow until 2015 to complete renovations. "It gives them two years to decide -- then they have a year to close if they choose to or until 2015 to convert," he said.

In addition to Olin's Augusta plant, the legislation would affect an Olin plant in Charleston, Tenn.; a PPG Industries facility in Natrium, W.Va.; and the Ashta Chemicals plant in Ashtabula, Ohio.

Such factories make chlorine by pumping saltwater through a "cell" of mercury to create a chemical reaction. The process causes mercury to be released into the environment, where it can accumulate in fish and be passed to humans.

Olin officials have opposed previous versions of the bill and are closely watching its progress.

"The vote on Wednesday was one step in a long process," said Olin spokeswoman Elaine Patterson. "As we have said throughout this process, an unrealistic and impractical deadline is not in the best interests of our employees or the communities in which our plants are based. We will continue to work in both the House and Senate toward a more practical legislative approach (that) would allow manufacturers more time to make such a significant transition -- helping to preserve good jobs while continuing environmental progress."

She would not say whether Olin would convert the Augusta plant or close it if the legislation becomes law.

Mr. Kincaid said the amended bill would require a decision by June 30, 2012. Plants that would not be converted must close by June 30, 2013, and those planning to convert to mercury-free technology must do so by June 30, 2015. The next stop for the legislation is the House floor for a vote, but a companion bill in the Senate, sponsored by Sen. Sheldon Whitehouse, D-R.I., is still awaiting committee review.

Since 1974, more than 116 plants have shifted to mercury-free technology, according to data provided by Ms. Schakowsky. Plants that shifted to membrane-cell technology generally have achieved increases in energy efficiency of 25 to 37 percent per ton of chlorine produced. The mercury cell chlor-alkali technology has been used since 1894.

Olin's Augusta plant generates more than $35 million in local goods and pays about $500,000 in property taxes. In addition to its 100 manufacturing jobs, 103 jobs are tied to support services.

Reach Rob Pavey at 868-1222, ext. 119 or rob.pavey@augustachronicle.com.

THE COMPANY: Olin's 43-year-old chlorine plant remains in compliance with all its state and federal regulatory permits, and contributes 100 jobs -- and $500,000 in annual property taxes -- to the community.

THE ISSUE: Environmentalists say Olin's Augusta plant uses outdated technology and excessive amounts of toxic mercury to make chlorine. They have asked Olin to convert to mercury-free technology.

Since 1974, at least 116 plants have shifted to mercury-free technology, leaving just four in the U.S. -- including the Augusta facility -- that continue to use the mercury manufacturing process. Pending legislation would force those four plants to close or convert to mercury-free processes. Such a conversion in Augusta has been estimated at $90 million.

THE PLAN: Olin has not announced whether the Augusta plant will convert or close if the legislation becomes law.

Comments

afadel

This is the link to the hearing, although the video is not available yet. http://bit.ly/1Ovb8H This is the link to the bill and its progress through Congress. http://bit.ly/3qGjIa Does anybody know how Barrow voted? Especially on the amendment which pushed the deadline back another 2 years?

ripjones

I would hope that Olin finally decides to convert this plant. With the increase in efficiency, it might make the pill a little less bitter.

soldout

According to our government the only safe place for mecury is either in your mouth or in vaccinations.

grinder48

We in the Augusta community love having Olin here and - at the same time - want to reduce mercury contamination. I sure hope Olin will convert the plant and stay but I'm sure it will ultimately be a matter of numbers - how long will it take to recover the cost and generate profit. Let's keep our fingers crossed that the Augusta plant stays open.

ron_rlw

With an old building and a cost of $90M to retro-fit the old building ... I would think if Augusta wants the jobs and the money Olin brings in ... then we will have to start working on conviencing Olin that they should stay.

RedQuinoa

Oh? The company should stay, at what cost to the public health? As long as this company continues to pump mercury into the environment, it is not a public asset, it's a public menace. This deadly health hazard isn't some kind of late-breaking news, either. Olin could've cleaned up its production method long ago. Now it's faced with an ultimatum. The company's response to this call to convert will be a measure of its goodwill toward the people of this area and its true concern for public health over corporate profit.

gaspringwater

Four polluters in the nation want the privilege to continue doing business as usual and jeopardizing the public's health. But hopefully we have more responsible people in our government than those named in the article. Here's a paragraph from the current issue of Discover magazine: The Bad News - Us Geological Survey scientists found mercury in every fish tested from 291 streams around the country. Mercury concentrations in fish at over a quarter of the sites sampled registered above the level recommended by the Environmental Protection Agency for safe consumption.

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