Quo vadis, Paulsboro (NJ) Refinery?


The Wilmington (DE) News Journal carried a report today that had to be a bit unsettling for management and employees at the Valero Refinery in Paulsboro, NJ. It read in part:

The nation’s largest refiner is reassessing its plans for the Paulsboro Refinery along the Delaware River in New Jersey, part of an ongoing “hard look” at plants eligible for major improvements or open for a possible sale.

In a brief comment during a morning earnings briefing, Valero Energy Chief Executive Officer Bill Klesse stopped short of listing Paulsboro among the plants already under consideration for “strategic alternatives,” a classification that includes sale.


But Klesse set Paulsboro apart from refineries considered to be “core” producers for Valero and those that are tightly integrated with core plants.
“Delaware City is a key refinery for us. We’re trying very hard to improve it. The assets there have lots and lots of potential, and our people are doing a good job,” Klesse said while outlining the company’s fourth-quarter and year-end performance.
“However, at the Paulsboro Refinery, we’re trying to decide what the long-term future is.”

Here’s the full News Journal story.
Also: Valero Rises After Profit Drops Less Than Estimated

Quo vadis, Paulsboro (NJ) Refinery? Read More »

Maryland LNG case could have wider impacts

AES Corporation, a company that wants to build a LNG terminal in Bethlehem Steel’s former shipyard in Baltimore, MD will be in federal district court today challenging Baltimore County’s coastal zoning plan which was recently amended to prohibit LNG plants and other facilities, such as oil refineries, from being located in environmentally sensitive coastal areas.

The case is being closely watched for impacts in other jurisdictions, like New Jersey, where similar prohibitions have been enacted or are contemplated.

The Baltimore Sun reports:

When an energy company and Baltimore County government square off in a federal appeals court today, the arguments might have widespread interest beyond whether a liquefied natural gas terminal should be built on Sparrows Point.

According to some experts, energy companies and local governments nationwide are interested in how successful Baltimore County is at using a federally and state-mandated program designed to protect coastal areas to defeat the controversial LNG project.

“I think folks will be watching to see if this can be used as a template to oppose any type of project,” said Bill Cooper, president of the Center for Liquefied Natural Gas, a Washington-based trade association.

The county’s modified coastal zone management plan has withstood one court challenge. But lawyers for Baltimore County and AES Corp., the company that wants to build the LNG plant, will present their arguments this morning to a panel of judges at the 4th U.S. Circuit Court of Appeals in Richmond, Va.

Donald Santa, a former member of the Federal Energy Regulatory Commission and president of the Interstate Natural Gas Association of America, agreed that both companies and local governments will be monitoring the outcome of the federal appeal.

“If Baltimore County were to prevail, it would invite local jurisdictions to enact similar statutes,” Santa said. “That could frustrate the ability to locate LNG facilities in any locality.”

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Jersey company helps save FL desalination plant

The Tampa Bay Water Desalination Plant, the largest facility of its kind in the nation, had its second grand opening Friday, Jan. 25, in Tampa, Florida.

It’s first took place in 2003, but early design problems led to clogging of the plant’s reverse-osmosis membranes that were supposed to strain salt from bay water to make drinking water. Developer bankruptcies followed and the plant was closed within two years.

The New Jersey-headquartered American Water, through its joint-venture subsidiary American Water-Pridesa, was contracted to fix the problem. The solution came primarily through the addition of pretreatment techniques similar to those employed to remove sediment from river and lake water used as potable sources. The company will continue to operate the plant under an 18-year agreement.

The desalination plant is expected to cover at least 10 percent of the drinking water needs of the more than 2.4 million people in the Tampa Bay area and it has built-in expansion capacity which may come in handy if the area’s drought conditions, which stretch back to 2006, persist or worsen.

The 25-million-gallon-per-day facility, originally expected to cost $110 million, topped out at $158 million. That amount could have been far higher had the plant not been co-located with with Tampa Electric’s Big Bend power plant. The newly refurbished plant uses warm water from Tampa Electric, which has already gone through the power plant’s condensers, so it takes less energy to desalt it.

For more on the project, check out:
Desalination Plant Has Formal Opening Ceremony
Tampa Bay desalination plant rises again
New Water Plant To Improve Supply

Jersey company helps save FL desalination plant Read More »

NJ lawmakers plug into alternative energy bills

If you’re a fan of alternative energy, you would have enjoyed today’s meeting of the New Jersey Assembly’s Environment and Solid Waste Committee.

The committee released legislation combining three bills–A1612, A385 and A1781–that exempt from local property taxes any equipment added to a residence, commercial or industrial property, or mixed-use building if the equipment produces renewable energy for the building’s heating, cooling or general energy needs.

To qualify for the exemption, the property owner would make written application to his/her municipal construction code official who would issue a certification and could inspect the equipment to make sure that the application is valid.

One committee member objected on grounds that residents who cannot afford to install alternative energy systems should not be required to shoulder the taxation burden that is avoided by those who can afford the installations.

Also released was A-1559 which authorizes municipal planning boards to adopt a green buildings and environmental sustainability element in their municipal master plans which, among other things, would promote the installation of renewable energy systems.

Finally, the committee reported A-1629 which authorizes the Commissioner of Community Affairs to amend the Uniform Construction Code’s energy subcode to establish enhanced energy-saving construction requirements, the added cost of which may reasonably be expected to be recovered through energy conservation over a period of not more than seven years.

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Inspect me, Jersey DEP, please!

Until now, the sudden appearance of a DEP inspector on your business doorstep was about as welcome as a social disease. But now, at least for some in New Jersey, that’s about to change in a radically welcome way.

Long known for its strict (some might prefer the term ‘aggressive’?) enforcement tactics, the state Department of Environmental Protection is adopting a kinder and gentler approach when its inspectors, failing to find violations, actually encounter businesses making an extra effort to be good environmental citizens.

“The concept of an environmental cop on the beat has always been strong in New Jersey,” says DEP Commissioner Lisa Jackson. “What is also strong is the spirit of innovation at the DEP. We are leading the country again, this time by defining and measuring the incredible amount of environmental good that exists in our state.”

How are they planning to do this?

The Department is implementing an Environmental Stewardship Program to publicly recognize businesses that go beyond minimum environmental requirements. The goal, they say, is to encourage all businesses to evaluate their current facility operations and integrate stewardship initiatives into their operations.

In other words, the carrot instead of the stick.

How will DEP inspectors go about the job? The following is directly from a DEP news release:

“The companies will be asked, among other things, whether they have broadly adopted stewardship activities, whether they have a comprehensive written environmental policy, whether they operate under an Environmental Management System designed to reduce environmental impacts, and whether they publish an annual environmental report. The companies also will be asked whether they have documented their greenhouse gas emissions, whether they employ environmentally friendly purchasing policies, whether they operate certified green buildings, and whether they have employee trip reduction programs.The inspector may review certain documents, processes and operating procedures to verify stewardship activities.”

Does that sound just a tad bureaucratic to you? Maybe, but remember, this is state government we’re talking about. At least they’re trying. And besides, how would you like to be the DEP supervisor who explains the new program to Inspector Callahan?

For more, here’s DEP’s news release and a link to its Stewardship program.

Inspect me, Jersey DEP, please! Read More »

States’ tailpipe suit gets new bite at media apple

Earlier this month, New York, New Jersey, Pennsylvania, Connecticut and Maryland were joined by 10 other states in an environmental law suit challenging the Bush administration’s conclusion that states have no business setting vehicle emission standards.

The long-expected suit was filed after EPA Administrator Stephen L. Johnson on Dec. 19 denied California a waiver it needs under the federal Clean Air Act to enforce its own law which sets tougher tailpipe standards than those established by the EPA.

New Jersey, New York and Pennsylvania have all passed similar versions of the “California Car” law, claiming they were forced to act because of environmental foot-dragging in Washington under President Bush’s watch.

On Tuesday, Jan. 22, Pennsylvania Governor Ed Rendell plans to testify on Capitol Hill about greenhouse gases. The Patriot-News headline? Rendell to Gore it up on Capitol Hill.

States’ tailpipe suit gets new bite at media apple Read More »