California Moves to Revoke Carbon Credits After Inquiry

revokedCalifornia, operator of the nation’s biggest carbon market, plans to revoke offset credits issued to EOS Climate Inc. and Environmental Credit Corp. for ozone-depleting substances destroyed at a plant in violation of its federal permit.

The companies operated projects that delivered refrigerants, proven to destroy the earth’s ozone layer, to aClean Harbors Inc. (CLH) complex in El Dorado, Arkansas, for disposal. California is proposing to invalidate 231,154 of the credits they generated from the projects in 2012 because the El Dorado plant was found to be selling a brine byproduct instead of disposing of it as federal law requires…

The probe prompted the project registry group Climate Action Reserve last week to lower its forecasts for credits through 2017, saying the inquiry had chilled the offsets market…

“Obviously, everybody should be in compliance with all the laws, but there are a lot of laws out there,” Costantino said.“The air board has now made it clear that you have to worry about the whole facility.” …

Source:

http://www.bloomberg.com/news/2014-10-08/california-moves-to-revoke-carbon-credits-after-inquiry.html

Meanwhile:

9 Oct: Bloomberg: Keystone Be Darned: Canada Finds Oil Route Around Obama

http://www.bloomberg.com/news/2014-10-08/keystone-be-darned-canada-finds-oil-route-around-obama.html

h/t to WUWT reader Pat

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Remains the Tesla “quick swap” scandal to be addressed. They got $50 million in carbon credits for their Tesla S model that – in theory- is capable of swapping out the battery in 15 seconds – only there isn’t a single working quick-swap station in the state the public might use.

spetzer86

And, if there was one, does a Tesla S exist that the swap would actually work on in 15 sec?

Jake2

Scandal? Were they required to have the stations, or just the capacity? I mean, hell, you wouldn’t take on an oil company for following the letter of the law and getting tax discounts out of it, would you? And yes, they get BIG tax discounts.

David A

Tell me about there tax discounts. Do you mean discounts on foreign profits? AFAIKT, oil companies pay a lot of tax on their profits made in the USA. Indeed, I believe the Government makes more from the sale of a gallon of gasoline then the “evil” oil companies.

Greg

Let’s not forget that plenty of car manufacturers get credits for making Flex Fuel vehicles capable of running E85, yet the majority of those vehicles will never see a drop of E85 in their entire life

TobiasN

Reminds me of a story from last year in a mainstream mag:
How Scammers Steal Millions Through Carbon Markets. subtitled: “When the product is invisible, the cons are endless.”
via

“found to be selling a brine byproduct instead of disposing of it”
Yep. Can’t minimize the overhead, you have to eat a loss in the Clamifornia mindset.

NavarreAggie

“The companies operated projects that delivered refrigerants, proven to destroy the earth’s ozone layer”
Lost interest right there. Propaganda all the way through.

rbravery

me too!

The Turtles-all the-way-down meme as Idiots-all-the-way-down is becoming more influential.

Oldseadog

Is there some reason why they can’t build a refinery in N. Alberta where the oil is and ship out the product?

Timing is everything when it comes to refineries:
http://www.huffingtonpost.ca/2012/05/23/canada-oil-refineries_n_1539701.html

MattS

Not particularly, but it would be an huge cost to build the refinery. The refined products are lighter and more volatile. They can’t be shipped in the same kinds of containers / rail cars as the heavy crude from the tar sands. It’s cheaper for them to send the heavy crude to existing refineries.

Oldseadog

Well, lots of product goes out of Grangemouth refinery in rail wagons; and the refinery supports a lot of the local economy.
But maybe the local distance scale makes a difference.

Catcracking

Oldseadog
I would not trust the huffington Post to have a clue about energy.
It makes no sense to refine the crude into the many products then ship every individual product one South circa 450 miles via a pipeline. Over the road shipping would be precarious in the winter. I cannot speak for all the crude production in Alberta, but I do know for a fact that Syncrude processes the crude, runs it through coking units, removing sulfur, adding hydrogen, etc then ship a clean crude South that requires less refining. I understand that some may dilute the thicker oil sands to allow shipping South.
Anyone who works the economics would never refine the in such a remote location except for local consumption.

Greg

Most refined products can be shipped in the same type of railcars that crude is shipped in

rogerknights

Probably refineries operate less efficiently at colder temperatures in Alberta–especially refineries of heavy crude.

I watch the Detroitification of Kalifornia with sorrow. It is amazing how a place so blessed with natural resources can intentionally squander and destroy its environment under the guise of political correctness, or just political greed.
I have a running bet with some friends and my money is on energy costs dooming Kalifornia, but some of them like drought and others like overspending. Very hard to predict.

Of course, this article is a perfect example of government using the carbon credit system as a weapon to control private enterprize.

Another way for Dems to reward their friends and punish their enemies.

Rolf

There is NO freedom in socialist country

LogosWrench

Here’s an idea just 86 all of that carbon nonsense. I realize doing so will topple a bureaucratic carbon kingdom but all will be better served. But with governor moonbeam I wouldn’t hold my breath.

Leon Brozyna

The government giveth …
the government taketh away …
and so continues the transition from being governed to being ruled.

This post involves issues that for me are incomprehendable.

hunter

Every penny California spends on so-called global warming instead of on improving water infratstructure is wasted money.

Mario Lento

+100

Mark Luhman

Amen

asybot

You are right a hundred times but sadly enough I think the expertise is no longer there and neither is the enthusiasm like it was 50-50 years ago. For Pete’s sake they are taking down dams ( in some cases correctly but it is trend!).

asybot

50-60 years ago , sorry

Greg

Actually they should be concentrating on population control, as an exploding population is the cause of many of our troubles.

What? Someone used the Carbon Credit Program could be an excuse for fraud? I’m shocked! Oh wait Enron.

Mac the Knife

California is proposing to invalidate 231,154 of the credits they generated from the projects in 2012 because the El Dorado plant was found to be selling a brine byproduct instead of disposing of it as federal law requires…
The probe prompted the project registry group Climate Action Reserve last week to lower its forecasts for credits through 2017, saying the inquiry had chilled the offsets market…

This is bureaucratic climate proctology at its finest.
Speaking of ‘chilling’ effects, we have this news:
http://stevengoddard.wordpress.com/2014/10/09/september-snow-cover-was-highest-on-record-in-north-america/

Off topic but important: downward pressure on crude oil prices is expected to continue. Could see a slowdown in drilling, especially for frac o&g. Good subject for a post.

Pat Frank

I read through the report (pdf) at the CARB website. As I understand it, the Clean Harbors Incineration (CHI) Facility in El Dorado, Arkansas was incinerating a batch of various HCFC’s for California. After treatment and neutralization of the combustion residue (mostly mineral acid), CHI ends up with a calcium chloride brine, which they sell as a drilling fluid.
According to CARB, though, the incineration product of a hazardous material, is still a hazardous material. The reason it’s still hazardous is that used to be hazardous. That’s before it was burned, neutralized and turned into calcareous salt water. The CARB designation is unchanged by incineration, even though the original material is no more.
So, the entire onus of the CHI violation rests on bureaucratic labeling. When calcium chloride occurs in its natural form, you can use it for drilling fluid, pour its solutions down the sink, whatever. But when calcium chloride comes from incinerated HCFCs, it’s a hazardous waste that must be disposed in a sanitary landfill.
So goes the insanity.

nielszoo

That’s how we fix the CO2 problem in CA. Since gasoline is a hazardous substance “destroying” it in an internal combustion engine still releases gasoline, NOT CO2. Gosh, liberal logic is fun.

Harold

“The reason it’s still hazardous is that used to be hazardous. ”
Whiskey Tango Foxtrot?
So if you mix hydrochloric acid and lye in equimolar amounts…?

John West

That mixture would then not be a hazardous waste (most likely). HCl and KOH (or NaOH) could be Characteristic Hazardous Wastes depending upon their pH but not Listed Hazardous Wastes and therefore neither the mixture rule nor the derived from rule are applicable. Also elementary neutralization of hazardous wastes is allowed by RCRA without a hazardous waste treatment permit in many circumstances.

That Keystone XL alternative, “Energy East”,

It will cost C$12 billion ($10.7 billion) and could be up and running by 2018. Its 4,600-kilometer (2,858-mile) path, taking advantage of a vast length of existing and underused natural gas pipeline, would wend through six provinces and four time zones. It would be Keystone on steroids, more than twice as long and carrying a third more crude.

will be no bigger gamble than the Trans-Alaska Pipeline. Longer, half the capacity of TAPS, it will have easier construction issues. It is a great strategy when negotiating the other two routes (KeystoneXL and via Vancouver, BC)

Construction of a pipeline to bring Canadian tar sand crude to market will be of surpassing benefit to all nations (except for OPEC members). The prodigious amount of oil in the Athabasca tar sands (upwards of one trillion bbls in place) will prove a boon to the US and indeed to all petroleum consuming nations.

Catcracking

They are oil sands, not tar.
Tar can be made by destroying oil, Once it is tar conversion to gasoline and fuel oil is nearly impossible.
The enviros use the term tar to confuse the public and make it sound dirty.

Cat cracking:
The volatiles have long escaped and left a residue of a tarry, heavy crude which must be heated in situ in order to pump it out of the ground. ” Tar sands” is an appropriate term and no nit to be picked. To the enviros oil is as dirty as it gets; they do not need tar for a dirty word.

Dodgy Geezer

“…proven to destroy the earth’s ozone layer…”
?? Asserted, yes. Remind me again when it was ‘proven’…

John West

“found to be selling a brine byproduct instead of disposing of it”
This doesn’t make sense. RCRA intentionally encourages finding uses of materials instead of disposing of them. Unless it’s some sort of sham use that effectively constitutes a banned disposal method then selling the brine exempts the material from most waste regulations.

Harold

It is supposed to make sense?

John West

The report, http://www.arb.ca.gov/cc/capandtrade/ods_preliminary_determination.pdf contains this statement:
”Under RCRA, R-11 (CFC-11), is a listed hazardous waste when disposed (U121) and
R-12 (CFC-12), is a listed hazardous waste when disposed (U075).

Which is only true if the material is 1) a discarded commercial chemical product, 2) off-specification species, 3) container residues, or 4) spill residues thereof.
While “discarded commercial chemical product” may sound like it would apply to almost anything it actually must be unused, must be pure (commercial or technical pure grades, or a sole active ingredient in a formulation), cannot have been used or become spent, and cannot have been mixed with other chemicals to form another product.
So if I were Clean Harbors I would:
1) Find out who determined the waste was a U-List waste and why. If it turns out it was a bad determination the whole issue goes poof.
2) Begin the delisting process. If the brine solution is a direct replacement for a commercial product and has a similar contamination range then the delisting should be no problem, and the issue goes poof.

John F. Hultquist

2 questions:
a. Why is CA shipping hazardous material halfway across the continent to a facility not under its jurisdiction when it could be taking care of its own waste?
b. What is an appropriate and approved method of disposal of the material?
~~~~~
“… even though the original material is no more.” [Pat Frank, 12:58 pm]
Reminds me of the labeling issue faced by a vintner who used egg whites as a fining agent.

Neil Jordan

Responding to the first of your two questions:
“a. Why is CA shipping hazardous material halfway across the continent to a facility not under its jurisdiction when it could be taking care of its own waste?”
There is the CA that imposes these regulations and benefits from them by shipping “its own waste” to the part of CA (and US) that pays the price. Try a web search for “Duroville”, for example, in chronological order:
http://pzacad.pitzer.edu/~hfairchi/News/psychology/SouthlandsSlumsFarmworkersLAT032607.htm
The Southland’s hidden Third World slums
In the Coachella Valley, hundreds of trailer parks house desperately poor Latino workers amid burning trash, mud, contaminated water. By David Kelly
Times Staff Writer
March 26, 2007
THERMAL, CALIF. — Like most of their neighbors in the sprawling, ramshackle Oasis Mobile Home Park, the Aguilars have no heat, no hot water. On cold nights, the family of eight stays warm by bundling up in layers of sweaters and sleeps packed together in two tiny rooms.
Bathing is a luxury that requires using valuable propane to boil gallons of water. So the farmworker clan spends a lot of time dirty.
Jose Aguilar, a wiry 9-year-old, has found a way around the bath problem. He just waits until dinner. “My mom makes frijoles ,” he said, “then I take a bath in that water.”
Jose and his family live in a world few ever see, a vast poverty born in hundreds of trailer parks strung like a shabby necklace across the eastern Coachella Valley.
Out here — just a few miles from world-class golf resorts, private hunting clubs and polo fields — half-naked children toddle barefoot through mud and filth while packs of feral dogs prowl piles of garbage nearby.
Thick smoke from mountains of burning trash drifts through broken windows. People — sometimes 30 or more — are crammed into trailers with no heat, no air-conditioning, undrinkable water, flickering power and plumbing that breaks down for weeks or months at a time.
“I was speechless,” said Haider Quintero, a Colombian training for the priesthood who recently visited the parks as part of his studies. “I never expected to see this in America.”
http://health.universityofcalifornia.edu/category/spotlight/page/19/
Bringing hope and health to Duroville
March 9, 2010. Tags: Medical education, Students
uch_uci_durovillestoryA dusty trailer-home park near the Salton Sea may seem like an unconventional venue for medical education, but to a group of UC Irvine students, it’s ideal.
At Duroville — a 40-acre tract in the Coachella Valley that’s home to some 4,000 mostly Latino farmworkers and laborers — they’re providing essential healthcare to an impoverished community while gaining real-life experience.
“This is my mission,” says Tatianne Velo, a third-year student. “This is why I’m going to medical school.”
Duroville is a California few ever see. Officially, it doesn’t even exist. A shantytown erected on the Torres Martinez Desert Cahuilla Indian Reservation, it’s named after the landowner, Harvey Duro.
Here, an open body of water serves as a sewage lagoon, and children play on a dioxin-contaminated landfill. Most residents speak only Spanish or the native language Mixtec and work all day in the blast-furnace heat of the desert. Injury and illness are often overlooked if a day’s pay is at stake. Few have health insurance.
http://www.river-of-hope.org/duroville/wp1/lawmakers-visit-mecca-and-thermal/
June, 2011
California lawmakers, holding an oversight hearing in a rural school in Thermal, heard impassioned testimony from residents Friday as well as the concession from a state official that her agency’s mishandling of toxic waste permitting at a Mecca processing plant was “embarrassing.”
The hearing, held by the state Assembly’s Committee on Environmental Safety and Toxic Materials, also explored why, in a state with some of the nation’s strictest hazardous waste standards, investigators failed to enforce against the soil-recycling facility believed responsible for a foul odor that until recently drifted through the area. The facility, Western Environmental Inc., has operated for more than seven years without the required state permits.
http://www.scpr.org/programs/madeleine-brand/2012/06/04/26799/illegal-trash-dumping-impacts-eastern-coachella-va/
In the first of a three-part series on what happens to our trash, KPCC’s Ruxandra Guidi takes us to the Lawson Dump, located on tribal land in the small town of Mecca in the Eastern Coachella Valley. About 150 miles east of Los Angeles, the dump is home to 40 acres of garbage that rises two stories high — a toxic collection of electronic waste, household chemicals and construction debris.
There’s ash, residue from nearby grape fields that have been treated with pesticides. Years ago, this pile of trash was incinerated — today, it’s still smouldering.
“That’s burning underground,” says Environmental activist, Luis Olmedo, from Comite Civico del Valle, or Civic Committee of the Valley. “And you know, that stench is of chemicals? Look how creepy that looks, coming from under the ground. Who knows how deep this fire is?”
The fact that it’s still burning at all is a problem. That’s because the dump was shut down by the Environmental Protection Agency six years ago.
http://www.pe.com/articles/duroville-678572-park-mobile.html
BY DAVID OLSON / STAFF WRITER
Published: June 28, 2013 Updated: June 26, 2014 5:39 p.m.
The rivers of raw sewage no longer flow through Duroville, the ramshackle mobile home park near the Salton Sea where more than 4,000 people once lived in squalor.
The tangled electrical wiring is gone. The garbage dump next door is closed, no longer spewing toxic ashes into residents’ yards. Brown water doesn’t come out of trailers’ faucets.
After a decade of legal battles to shut it down, Duroville is finally scheduled to close Sunday, June 30, by court order. Only the mobile-home park’s namesake and owner, Harvey Duro, and his family members will be allowed to stay.
Tom Flynn, appointed by a federal judge as a receiver to oversee Duroville for the past four years, said the scale of misery was overwhelming.
“A lot of the issues we dealt with were Third World safety and health issues,” said Flynn, who previously worked at the U.S. mission to the United Nations. “I’d never seen that in the United States.”
Many of the former residents are now settled in Mountain View Estates, a 181-unit mobile home park six miles away that was built as replacement housing for Duroville.
Others moved over the past several months into subsidized or market-rate apartments, houses or mobile homes. The last few Duroville families were scheduled to move out by Sunday.
Most of the adults who lived at Duroville are farmworkers who earn the $8 minimum wage or just above for the often backbreaking work of picking grapes, lettuce and lemons that end up on Inland kitchen tables. A space in a decrepit mobile-home park was all many of them could afford.
Advocates for residents celebrated the demise of Duroville.
But Ilene Jacobs, director of litigation, advocacy and training for the nonprofit California Rural Legal Assistance, which represented four Duroville tenants in the court case, said Duroville never should have been allowed to fester for so long.
“There’s no excuse for our clients to have had to live in the unbelievably substandard and dangerous conditions at Duroville,” Jacobs said.

Neil Jordan

Responding to the first of your two questions:
“a. Why is CA shipping hazardous material halfway across the continent to a facility not under its jurisdiction when it could be taking care of its own waste?”
There is the CA that imposes these regulations and benefits from them by shipping “its own waste” to the part of CA (and US) that pays the price. Try a web search for “Duroville”, for example. The following 2007 item starts a series of links that I originally submitted that might have gone into m0deration. Duroville was finally resolved in the summer of 2014 – at least seven years.
http://pzacad.pitzer.edu/~hfairchi/News/psychology/SouthlandsSlumsFarmworkersLAT032607.htm
The Southland’s hidden Third World slums
In the Coachella Valley, hundreds of trailer parks house desperately poor Latino workers amid burning trash, mud, contaminated water. By David Kelly
Times Staff Writer
March 26, 2007
THERMAL, CALIF. — Like most of their neighbors in the sprawling, ramshackle Oasis Mobile Home Park, the Aguilars have no heat, no hot water. On cold nights, the family of eight stays warm by bundling up in layers of sweaters and sleeps packed together in two tiny rooms.
Bathing is a luxury that requires using valuable propane to boil gallons of water. So the farmworker clan spends a lot of time dirty.
Jose Aguilar, a wiry 9-year-old, has found a way around the bath problem. He just waits until dinner. “My mom makes frijoles ,” he said, “then I take a bath in that water.”
Jose and his family live in a world few ever see, a vast poverty born in hundreds of trailer parks strung like a shabby necklace across the eastern Coachella Valley.
Out here — just a few miles from world-class golf resorts, private hunting clubs and polo fields — half-naked children toddle barefoot through mud and filth while packs of feral dogs prowl piles of garbage nearby.
Thick smoke from mountains of burning trash drifts through broken windows. People — sometimes 30 or more — are crammed into trailers with no heat, no air-conditioning, undrinkable water, flickering power and plumbing that breaks down for weeks or months at a time.
“I was speechless,” said Haider Quintero, a Colombian training for the priesthood who recently visited the parks as part of his studies. “I never expected to see this in America.”

tom s

What a colossal charade and waste of money and resources, for the benefit of no one and nothing.

CodeTech

Not so at all, tom s. For the benefit of people gaming the system, opportunists, liars, misguided idealists, and leftist billionaires.