Plant Services - April 2008 - (Page 74)

energy eXPerT Blessing or curse? Your plan for U.S. climate legislation L for greenhouse gas neutrality. Multiple teams were identiegislation to cap greenhouse gas emissions is lookfying and implementing carbon-reduction actions. There ing more likely to become a reality within the next was a willingness to learn from others’ experiences in acacouple of years. The Lieberman-Warner Climate demia, real-estate and other manufacturing industries. The Security Act probably will make it to full senate debate by group gathered for the workshop included, in addition to June. If passed, it will set binding targets for emissions on the inside manufacturing and environment team, the chief power plants, industry and fleet operators, under a cap and sustainability officer (CSO) from headquarters. The plant trade scheme similar to that already in place in Europe for invited vendors, suppliers and the local mayor to take part greenhouse gases and here for other regulated emissions. in the discussion about making the plant’s carbon footprint Industrial facilities with annual emissions exceeding as small as possible. The message was clear: Suppliers able to 10,000 metric tons by 2011 could fall within the parameters engage in this would be viewed positively, and sustainability of this act. Electric utilities will face an ever-tightening cap. is a prerequisite for competitiveness, employEnergy consumers realize this kind of regulament and a thriving local tax base. tion will have far-reaching effects on how they Another corporation reassessed its energyprocure and manage energy. regulation management approach in the light of the pendThere’s concern about the price of emission is almost ing Lieberman-Warner bill. Initial reactions allowances, with forecasts as high a $250 or inevitable and saw more risks than opportunities. However, more per metric ton by 2030. Plants operatmay be deeper the assessment already was well underway ing below the limit can sell their excess allowances, and those above must buy allowances than many had with resources and committed support from the highest level. The awareness grew that the or face penalties as great as three times the expected. opportunities to build competitive edges were market price. This is for direct emissions comgreater than they had first appeared, once the ing from process, natural gas and heating oil linkage between holistic energy-management approaches usage, and transportation. A plant’s carbon footprint and and greenhouse gas mitigation was clarified. how to manage it suddenly takes on a new meaning. Any legislation that tackles energy-related climate change On average, every megawatt-hour of electricity used in inevitably causes structural shifts that generate market opthe United States generates about 600 kg of carbon dioxportunities for suppliers of equipment and services. The ide. Under the Climate Security Act, the responsibility to messages that management is beginning to hear are louder reduce this falls on the utility, and produces uncertainty in and clearer in the United States than they’ve ever been. the cost of electricity. Estimates go as high as four cents a Regulation of greenhouse gas emissions is almost inevitable kilowatt-hour. It’s important to understand the amount of and might be deeper than many had expected. Companies electricity being used, its carbon content and how difficult it that already have sound energy plans are well equipped to will be for the supplier to meet new emissions constraints. adjust and respond. Those who haven’t might fall behind. Climate scientists and environmentalists welcome the act The market changes climate regulation causes will be meaas a “useful first step,” but are indicating that it falls short of sured in billions of dollars for those with the willingness their perception of the reductions needed for climate stabilito explore and pursue new opportunities. There’s no queszation. A few more hurricanes and tornados could well push tion that climate regulation will cause pain and there will be the public to demand even tougher regulation. some losers, but as with every major market shift, there also The depth of the changing conversation was underlined will be big winners. Where will you choose to stand? for me with two recent activities, both with major global corporations. A manufacturing plant, one of many the corporation owns around the world, was being challenged to Peter Garforth is principal of Garforth International LLC, Toledo, be the prototype for the corporation to manage its activities Ohio. He can be reached at garforthp@cs.com. www.PLANTSERVICES.com April 2008 74 http://www.PLANTSERVICES.com

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Plant Services - April 2008

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