Tuesday, November 6, 2012

California's first auction of greenhouse-gas credits nears

CA'ians, you know that sowin' and reapin' thing?  Well, get ready to reap.  And weep.

The system probably will prove expensive for Cal Portland Co., a Glendora cement maker with plants in Colton and Mojave. The two plants are expected produce about 1 million tons of greenhouse gases this year.

"We're projecting in 2013 that we're going to see a direct increase in costs of somewhere between $2 million and $5 million per year. It's a significant percentage of our costs," said Steve Regis, Cal Portland's vice president for corporate services. The company also expects the credits system to cause big hikes in the cost of electricity, which it uses to run furnaces to bake limestone and other cement ingredients to more than 1,600 degrees.

"Our concern is, we may no longer manufacture in California," Regis warned. "We'd ... bring it in from overseas or out of state."

Another unhappy company is Pacific Coast Producers, a farmer-owned cooperative that has a tomato canning plant in Woodland, northwest of Sacramento.

Buying the credits it needs through 2020 would add as much as $2.5 million to the cost of canning tomatoes, Vice President Mona Shulman predicted.

"This is a cost for a product that's being imposed on us that's not being imposed on our competitors" out of state and overseas, she said. "Adding a penny a pound does make a difference in a global market for a product like ours."
Import cement from overseas?  You know who else does that?  Saudi Arabia.  At least they have a good reason for doing so.  CA, what's your excuse?

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