WTE in Washington: Making the Case for Waste-to-Energy

1. WTE in Washington: Making the Case for Waste-to-Energy Presented by: Ted Michaels President Integrated Waste Services Association September 20, 2007

2. IWSA in Washington -- Overview • New Political Landscape • WTE Status as Renewable • Climate Change Legislation • Emissions Standards (MACT) • WTE in the Court of Public Opinion

3. The New Washington Political Climate • Democratic Control of House (233-202) and Senate (51-49) versus Republican White House. • The Presidential Election of 2008 has begun early and the stakes are high. • As in any Congress, the House is aggressive and the Senate deliberates with greater effect.

4. WTE as Renewable • Congress is seeking to promote renewable electricity sources through two primary mechanisms: • Mandatory national renewable portfolio standard (RPS) • Extension of the Section 45 renewable energy production tax credits

5. WTE as Renewable • The Senate Energy bill passed in June • It did not include an RPS • It did not extend the production tax credits • The House Energy bill passed in August • Created a national RPS by a 220-190 vote that does not recognize WTE as renewable • Extended the production tax credits for WTE for 4 additional years • The House-Senate conference which will reconcile these vastly different proposals has not yet begun.

6. WTE as Renewable • From a WTE perspective the House RPS has 3 major flaws: • It does not include waste-to-energy as an eligible renewable resource that can sell renewable energy credits (RECs) • It only provides RECs to facilities placed in service after Jan. 1, 2001 • It gives RECs to utilities that buy power under existing contracts

7. WTE as Renewable • How does this affect waste-to-energy facilities? • Facilities will not be able to sell their RECs in a market thirsty for renewable energy. This will be a significant source of lost potential revenue. • Facilities will have to compete against landfills with energy recovery who will receive revenue from REC sales • Waste-to-energy will lose the cache of being renewable in the most aggressive federal renewable policy

8. Climate Change in the Headlines • The climate change issue has taken hold of Washington and perhaps the nation. • Multiple articles in the news every day. • Congressional action has been promised by the new leadership. • States are taking action in different ways which will motivate many to seek one federal solution rather being forced to comply with 50 individual plans. • Media coverage will spark congressional action which will in turn spark more media coverage.

9. IWSA and Climate Change • Priorities in the debate • WTE exempt from mandatory reductions • WTE allowed to sell credits (offsets) from avoided emissions to those that must reduce emissions • IWSA is making this a top priority and has hired consultants to hone our message and lobby the relevant members of Congress. • Help from our local government partners will be incredibly valuable in this debate.

10. To Summarize the Task at Hand • Rep. Rick Boucher (D-Va.), the chairman of the Energy and Air Quality Subcommittee, vowed to write an economy-wide, cap-and-trade bill that could overcome a Senate filibuster and be signed into law by President Bush. • Upon hearing his Democratic colleague's predictions, House Energy and Commerce Committee ranking member Joe Barton (R-Texas) responded, "What Mr. Boucher has outlined would be a legislative miracle of biblical proportions."

11. MACT Timeline and IWSA Efforts • December 19, 2005 – EPA proposed revised MACT standards. • February 6, 2006 – IWSA submits voluminous comments. • February 16, 2006 – IWSA meets with Walt Stevenson of EPA in RTP, North Carolina. • March 16, 2006 – IWSA meets with Acting Assistant Administrator for Air and Radiation Bill Wehrum. • April 19, 2006 – IWSA meets with White House Office of Management and Budget. • April 28, 2006 – EPA finalizes the revised MACT standards. • July 7, 2006 – Sierra Club/Earthjustice challenge the rule both administratively and judicially. • August 3, 2006 – IWSA intervenes in the litigation to defend the final rule. • October 16, 2006 – The DC Circuit Court stays the litigation pending reconsideration by EPA of the Sierra Club’s administrative appeal • March 14, 2007 – EPA signs a proposed rule agreeing to reconsider three issues raised by the Sierra Club, but recommends no changes to the final rule.

12. Disseminating the MessageUltimately Support WTE’s Lobbying Efforts • IWSA Public Affairs Committee is tasked with promoting the industry. • Columbia University’s WTERT provides independent perspective. • IWSA Municipal Committee supports the mission through Legislative Fly-Ins and timely correspondence.

13. IWSA Information Tools • IWSA has completely redesigned its webpage. • IWSA has reinvigorated its roster of publications through a combination of new and revised fact sheets, brochures, and booklets. • IWSA responds to negative articles or op-eds. Please forward any that you see so we can set the record straight.

14. Conclusions • The 110th Congress has presented WTE with opportunities and challenges. • The industry must be vigilant and persistent. • Local government support is critical in having our message heard in congressional offices. • Information is our best tool.