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Managing Excess USA Mercury

Managing Excess USA Mercury. David J. Lennett Mercury Policy Project/Zero Mercury Working Group March 4 - Bangkok. Summary of Presentation. USA Mercury Supply and Trade Context Policy Deliberations Highlights of New Export Ban Law Estimated Cost of Above Ground Mercury Storage.

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Managing Excess USA Mercury

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  1. Managing Excess USA Mercury David J. Lennett Mercury Policy Project/Zero Mercury Working Group March 4 - Bangkok

  2. Summary of Presentation • USA Mercury Supply and Trade Context • Policy Deliberations • Highlights of New Export Ban Law • Estimated Cost of Above Ground Mercury Storage

  3. USA Mercury Supply Sources • USA Government Stockpile • Sales of Hg halted since mid 1990s even though no longer needed • To be discussed in detail by Dennis Lynch • Civilian Sources • Byproduct generation from industrial gold mining (currently about 100-125 MT annually) • Recycling of wastes and products (currently about 80-100 MT annually) • Decommissioning of mercury chlor-alkali plants • Imports of calomel and mercury

  4. USA Net Exports (MT)Source : USGS Mineral Commodity Summaries

  5. Factors Contributing to Net Exports • Increased attention to mercury emissions from industrial gold mining • Increasing mandates to recycle mercury products • Significant reduction in number of mercury cell chlor-alkali plants (but after 2009, only 4 plants left) • Decreased demand due to phase-out of mercury use in product manufacturing

  6. Where Did the Mercury Go? • 2005 Top 5 Countries • Netherlands, Guyana, Mexico, India, and Spain • 2006 Top 5 Countries • Netherlands, India, Viet Nam, Spain, Singapore • 2007 Top 5 Destination Countries • Viet Nam, Peru, Colombia, Singapore, Guyana

  7. 40 Year Estimate • Trends leading to mercury exports expected to continue • EPA estimates 7,500-10,000 MT of mercury from civilian sources will require storage over next 40 years • Estimate is based on expert opinion, since EPA does not require reporting of mercury supply, use, or trade

  8. USA Policy Deliberations • Federal government creates interagency task force to obtain information and review policy options • Expert stakeholder panel formed and meets four times from May-September 2007 to provide input • No recommendation formally emerged; process overtaken by action in Congress • Congress enacts the Mercury Export Ban Act of 2008 with support of NGOs and state governments

  9. Key Provisions of Export Ban Law • Federal government mercury stockpile can never be sold or placed into commerce, effective immediately • Beginning January 1, 2013, the export of elemental mercury is prohibited • EPA must submit a Report to Congress within one year on mercury compounds and whether export ban should be extended to cover them

  10. Key Provisions of Export Ban Law (cont.) • Limited exemption from export ban available • Requires submission of petition to EPA and opportunity for public comment on the petition • Must prove receiving country wants the mercury and has no other supply available • Must prove mercury will be used and managed in a manner protective of local and global public health • Must prove export of mercury is consistent with international obligations • Each petition limited to three years and 10 MT

  11. Key Provisions of Export Ban Law (cont.) • Federal government must establish a site that can be used for long-term management of mercury from civilian sources • Government authorized to charge a fee for this service • Private company may also develop a site • Any facility must be licensed under hazardous waste law

  12. US EPA TOTAL 40-YEAR STORAGE COST ESTIMATES FOR A GOVERNMENT FACILITY OPERATOR (2006 DOLLARS) 7,500 METRIC TONS 10,000 METRIC TONS Total Project Costs (undiscounted) $78.9 - $99.8 million $98.3 - $126.0 million Net Present Value of Total Costs $25.6 - $30.0 million $30.6 - $36.4 million Annualized Costs $1.9 - $2.2 million $2.3 - $2.7 million Annualized Costs per pound $0.116 - $0.136 $0.104 - $0.124

  13. US EPA SUMMARY OF ESTIMATES OF TOTAL STORAGE COSTS PRIVATE FACILITY FOR 40 YEARS (2006 DOLLARS) TOTAL COST ESTIMATES RENT SCENARIO BUILD SCENARIO 7,500-Metric Ton Scenario Total Project Costs (undis.) $59.5 - $144.2 mil $50.0 - $137.7 mil NPV of Total Project Costs $18.5 - $39.9 mil $17.8 - $41.0 mil Annualized Costs $1.4 - $3.0 mil $1.3 - $3.1 mil Annualized Costs per pound $0.084 - $0.181 $0.081 - $0.186 10,000-Metric Ton Scenario Total Project Costs (undis.) $69.8 - $183.9 mil $57.3 - $174.9 mil NPV of Total Project Costs $21.3 - $50.9 mil $20.0 - $51.9 mil Annualized Costs $1.6 - $3.8 mil $1.5 - $3.9 mil Annualized Costs per pound $0.072 - $0.173 $0.068 - $0.177 Assume Perpetual Storage 6.2% - 7.5% + 4.8% - 6.6% +

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