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 ( ) 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 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: 1. It does not include waste-to-energy as an eligible renewable resource that can sell renewable energy credits (RECs) 2. It only provides RECs to facilities placed in service after Jan. 1, 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 Message Ultimately 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 110 th 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.