Tuesday, November 11, 2008

The air -- and our kids -- can't wait

Hamilton's two largest steelmakers, Dofasco (now part of Arcelor-Mittal) and Stelco (now part of US Steel) did something a few weeks ago that I and others found totally perplexing. They submitted a joint application (rare in itself) to environmental regulators asking that they be granted a delay in implementing tough new environmental discharge standards. One of the reasons they're offering is that in the current economic downturn and the sharp demand for durable goods such as automobiles and appliances forcing the rules on them now would require them to spend millions they could use for other priorities -- in Stelco's case, to upgrade some outdated facilities so they can (ironically) actually meet the standards.

In short, they're saying, we'll comply, just not now.

Given that steel runs in my family, this isn't an easy one at first. Obviously, the business of business should be business and making a profit. As well, even before the current recession, the companies have become mere shadows of what they used to be. Both companies which used to employ in the tens of thousands are barely in the mid thousands now.

But despite the hundreds of millions they've both spent over the decades to reduce discharges, the discharges still happen both for water and in the air. It's especially tricky for Hamilton where an escarpment cuts through the city. Because of the 150 m cliff side, we're all too prone to weather inversions where parts of the city are milder than others during weather events and when there's excessive pollution the smog levels in the lower city skyrocket. (The worst is in the East End but thanks to Mike Harris we don't even know what the exact levels in that part of town are anymore at any given time -- we only get readings for downtown and the "Mountain".)

The bad air causes respiratory problems especially for children. With the high poverty levels here, people tend to migrate to where the housing is the least expensive -- which just happens to be the lower and older part of town. Generally, people up on the Escarpment tend to have higher incomes and therefore really don't care if someone "down there" gets sick unless it's one of their relatives.

Pollution control creates an opportunity to not only improve the corporate image but also to create jobs in itself which at this time is desperately needed. It also has the side effect of reducing illnesses thus reducing the strain on a heavily burdened public health care system.

There are only two options here: The first, and the preferable one, is no extension at all -- the companies must comply now. In such a case however, the federal government should give preferential tax treatment to green technologies (for these companies and others) and allow write off of new equipment that would ensure lower pollution as a carbon offset at an accelerated 100% Capital Cost Allowance rate. A 100% CCA write off should also be granted for any carbon offsets including green belting both on property as well as in other parts of town with a present dearth of trees.

The second is that they're given a one-time only extension but at a sooner date than being requested. Children and the elderly really shouldn't have to wait but if that's what it's going to come to a two year extension beyond the presently mandated date should be the maximum tolerated. Hamilton should be a natural leader in green technologies given our history, and to countenance continued excess discharges is just another slap in the face.

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