Contact: Elvin Montero
609.392.4214
emontero@chemistrycouncilnj.org
The New Jersey Global Warming Response Act (S2114/A3301)
CCNJ’s statement as delivered by Executive Director Hal Bozarth before the NJ Senate Environment Committee on Thursday, May 24, 2007.
The Chemistry Council of New Jersey’s position on climate change policy is evolving. This is in part because climate policy development is challenging and complex and requires a thoughtful, deliberate approach. Any climate policy should be an environmentally effective and economically sound program. The global nature of this issue must be taken into account and must enable the domestic chemistry industry to remain competitive in the global marketplace, and equitably address all sectors that contribute to greenhouse gas emissions.
While well intended, climate policy includes a lot of interrelationships and the potential for “unintended consequences.” For example, CCNJ’s principles on climate change policy are rooted in the strong linkage between energy consumption and greenhouse emissions. The business of chemistry brings a unique perspective to this linkage: we use energy to save energy. More specifically, we use energy inputs to make energy-saving materials. For example, our industry makes building insulation materials that save as much as 40 BTUs of energy for every BTU of energy consumed to make the material. Energy saved equals lower greenhouse gas emissions. Legislation to address climate policy should recognize the essential link to a national energy policy, and the significant economic and environmental challenges that could result from such legislation.
It is important for the state and nation to put in place enabling technologies and policies before or concurrent with passing legislation with hard caps or enormous renewable fuels standards. Such policies, tools and technologies are new supplies/adequate natural gas supply; carbon capture and sequestration (CCS) technology; energy efficiency. These enabling policies and technologies are critical to ensuring a smooth transition to a lower-carbon economy. This is important since our industry operates in a nationally and global competitive economy, massive economic dislocations are possible if policies are instituted in NJ without emissions reductions requirements in other states or even nations such as China and India, where emissions are accelerating and will soon eclipse the US. This is compounded if adequate domestic natural gas supply is not brought online as a “companion” piece to climate legislations.
To continue to supply the nation with energy efficient materials, the business of chemistry must have access to an adequate and affordable supply of low-carbon natural gas. Climate policies that have the effect of increasing demand for natural gas – in the absence of new sources of supply – could have significant ramifications, not only in our sector, but throughout the economy. Over the past decade, the competition for scarce supplies of natural gas – which our industry uses as a raw material (feedstock) that helps the rest of the US economy be more energy-efficient -- drove the price of natural gas to record levels. Those high prices imposed $425 billion in added costs to consumers and contributed to the loss of 3 million US jobs in the manufacturing economy. In NJ, this has meant more than 30,000 high-paying jobs in the chemistry manufacturing sector alone.
We ask that the Legislature recognize that the products of chemistry – including feedstock uses of hydrocarbons – result in energy efficiency and reduced greenhouse gases emissions intensity in all sectors of the economy. Any policies that disadvantage the chemistry industry can diminish the nation’s ability to become more energy efficient and lower greenhouse gas emissions. Any effective policy should include incentives for (e.g. through tax/economic incentives) and eliminate barriers to research, development and deployment of new technologies that provide significant improvements in energy production and conversion, energy efficiency, and greenhouse gas reductions. As well a mechanism should be in place to take account of, and adjust to, future scientific research and economic impacts.
The business of chemistry – nationwide – has reduced its emissions to levels below those called for in the Kyoto Protocol. Any mandatory controls on greenhouse gases emissions should provide appropriate baseline protection and credit for early action that recognizes the chemistry industry’s previous efforts to improve energy efficiency and reduce greenhouse gas emissions. Any credit for early action should be based on an accurate greenhouse gas emissions registry/inventory for all emission sources.
New Jersey should not act on this global issue alone. Before regulating carbon emissions or imposing caps, the state should focus on policies that will not put the state in an economic disadvantage and foster the development and implementation of new technologies that will assist in reducing emissions. We are committed as an industry to decreasing our greenhouse gas footprint, and are glad to be a part of the ongoing debate on this very important issue. But we need to be clear that while we are an energy intensive industry, we are an enabling industry which provides the products that will allow other industries and the general public to become more energy efficient; therefore, reducing their greenhouse gas footprint.
###
The Chemistry Council of New Jersey (CCNJ), founded in 1955, is the premier trade and advocacy organization representing the interests of about 100 New Jersey manufacturers in the business of chemistry. Our membership consists of large and small companies that are part of New Jersey’s chemical, pharmaceutical, consumer products packaging, petroleum, flavor & fragrances and precious metals industries. The CCNJ is committed to a better quality of life through science.
