Offset Credits for CFC Destruction Included in Senate Climate Bill

Destruction of CFCs prevent Global Warming and damage to the Ozone Layer

Last week the Senate Environment and Public Works Committee voted to report S. 1733, the Clean Energy Jobs and American Power Act, out of committee by an 11-1 vote. The bill must now be considered by other Senate committees before it moves to the floor for reconciliation with the Energy Bill that was reported out of committee earlier this year. The House passed its version of Climate legislation earlier this year.

Both bills create a “cap and trade” mechanism to control greenhouse gases and other climate change initiatives. Both bills will also allow carbon offset credits for the destruction of certain ozone depleting substances such as CFCs. CFCs not only destroy the ozone layer, but they have a very high global warming potential.

Although the Montreal Protocol phases out production, import, and export of ODS, emissions of ODS are not controlled explicitly. In addition, no obligations to destroy ODS exist under either the Montreal Protocol or the Kyoto Protocol, and while many countries, including the U.S., have no-venting regulations, they are not always well enforced. Moreover, current destruction of unwanted ODS is minimal or nonexistent , with the majority of unwanted ODS currently being stored in original equipment (which leads to slow leakage or accidental release), rather than being destroyed. Thus, any ODS that is destroyed is considered a greenhouse gas emission reduction, since, in the absence of destruction, nearly 100 percent of the ODS will eventually be released to the atmosphere.

Therefore, both bills will incentivize the destruction of ODS by allowing offset credits determined by each chemical’s global warming potential. It is uncertain if the Senate Bill will be debated and voted on this year.

RemTec offers destruction services for ODS that can result in offset credits. See http://www.remtec.net/ for more information.