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Managing Excess Mercury in the USA: Policy Insights and Future Projections

This summary outlines the management of excess mercury in the USA, covering the current supply and trade context, recent policy developments, and the implications of the Mercury Export Ban Act of 2008. The presentation discusses the estimated costs of long-term mercury storage, the sources of mercury including civilian and industrial byproducts, and trends in exports. Key provisions of the export ban and projections for required storage over the next 40 years are also highlighted, emphasizing the importance of protective measures for public health and compliance with international obligations.

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Managing Excess Mercury in the USA: Policy Insights and Future Projections

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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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