Legislature(2011 - 2012)BARNES 124

04/05/2011 03:00 PM House ENERGY


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03:06:09 PM Start
03:07:00 PM HCR10
03:59:15 PM Presentation: Cold Climate Housing Research Center
04:34:30 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HCR 10 ENCOURAGING WASTE-TO-ENERGY TECHNOLOGY TELECONFERENCED
Heard & Held
+ Presentation on Interim Energy Efficiency Policy TELECONFERENCED
Recommendations Report by the Cold Climate
Housing Research Center
+ Bills Previously Heard/Scheduled TELECONFERENCED
         HCR 10-ENCOURAGING WASTE-TO-ENERGY TECHNOLOGY                                                                      
                                                                                                                                
3:07:00 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FOSTER announced that the  first order of business would                                                               
be  HOUSE CONCURRENT  RESOLUTION NO.  10, Encouraging  the state,                                                               
municipalities  of the  state, and  private organizations  in the                                                               
state  to  weigh  the  benefits   and  costs  of  waste-to-energy                                                               
technology and  to consider waste-to-  energy technology  to help                                                               
meet  the  energy  and  waste  management  needs  of  the  state,                                                               
municipalities  of the  state, and  private organizations  in the                                                               
state.                                                                                                                          
                                                                                                                                
3:07:15 PM                                                                                                                    
                                                                                                                                
CO-CHAIR PRUITT moved to adopt  the proposed committee substitute                                                               
(CS) for  HCR 10, Version 27-LS0685\B,  Bullock\Kane, 3/21/11, as                                                               
the working document.                                                                                                           
                                                                                                                                
[Although not  formally announced, there was  no objection stated                                                               
and Version B was treated as adopted and before the committee.]                                                                 
                                                                                                                                
3:08:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PETERSEN  informed  the  committee  that  HCR  10                                                               
encourages the  state, municipalities, and  private organizations                                                               
to   consider  the   benefits   and   costs  of   waste-to-energy                                                               
technology.   This technology  allows garbage  to be  turned into                                                               
electricity, while reducing the  amount of landfill space needed.                                                               
Waste-to-energy  is a  renewable  energy  source which  generates                                                               
between 500-600 kilowatt  hours for every ton  of garbage burned,                                                               
and is being  used throughout the world and in  24 states.  There                                                               
are  at least  86 waste-to-energy  plants in  the U.S.;  in fact,                                                               
this technology is  being utilized at Eielson Air  Force Base and                                                               
will  soon  be  in  use  in  Anchorage  to  harness  methane  gas                                                               
generated  by the  Anchorage Regional  Landfill.   Energy can  be                                                               
generated  from garbage  by burning  the waste  directly or  with                                                               
other  substances,   and  smaller   facilities  continue   to  be                                                               
developed  and   tested  under  various  conditions.     Alaska's                                                               
statewide  energy  policy  established  a  goal  of  creating  50                                                               
percent  of  its electricity  from  renewable  energy sources  by                                                               
2025,  incorporating  a  diversified   approach  to  meeting  the                                                               
state's  energy needs.   Representative  Petersen listed  several                                                               
benefits  of waste-to-energy  technology,  such  as reducing  the                                                               
amount of  emissions created  by dumping  garbage in  a landfill,                                                               
less  environmental  impact  than  almost  any  other  source  of                                                               
electricity,  and  - with  the  use  of  magnetic sorting  -  the                                                               
recovery of over 770,000 tons  of recyclable scrap metal annually                                                               
in the  U.S.  He closed  by noting that  the change to HCR  10 in                                                               
Version B was simply a correction.                                                                                              
                                                                                                                                
3:12:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN  asked  for the  effect  of  waste-to-energy                                                               
technology on air pollution.                                                                                                    
                                                                                                                                
REPRESENTATIVE  PETERSEN advised  that  there  is less  pollution                                                               
than dumping garbage in a  landfill because incinerators are used                                                               
to clean the emissions.                                                                                                         
                                                                                                                                
3:13:09 PM                                                                                                                    
                                                                                                                                
DAVID  DUNSMORE,  Staff,  Representative  Pete  Petersen,  Alaska                                                               
State   Legislature,   called   the  committee's   attention   to                                                               
information in  the committee packet detailing  the Environmental                                                               
Protection Agency's  (EPA) comparison of air  emissions for coal,                                                               
oil, natural gas, and waste-to-energy facilities.                                                                               
                                                                                                                                
3:13:37 PM                                                                                                                    
                                                                                                                                
TED  MICHAELS, President,  Energy Recovery  Council, pointed  out                                                               
the value  of every  state looking  at as  many ways  to generate                                                               
electricity  as possible.   Municipal  solid waste  and household                                                               
trash  are  an abundant  source  of  energy from  materials  that                                                               
communities across the  U.S. have difficulty managing.   In fact,                                                               
after  communities  reduce, reuse,  and  recycle,  there are  two                                                               
options:  send  the waste to a waste-to-energy facility,  or to a                                                               
landfill.   The  Energy  Recovery Council  agrees  with EPA  that                                                               
waste energy is  preferable to adding to  landfills, and supports                                                               
HCR  10.   He  affirmed that  the  waste-to-energy technology  is                                                               
compliant  with  the  most  stringent   EPA  regulations  on  air                                                               
pollution, and is also compatible  with recycling; as a matter of                                                               
fact,  communities  with  waste-to-energy  facilities  also  have                                                               
higher  rates of  recycling.   Mr.  Michaels  stated that  metals                                                               
represent 2-3 percent  of the volume of the waste  stream and can                                                               
be recycled  with this system.   He expressed his support  of the                                                               
resolution.                                                                                                                     
                                                                                                                                
3:17:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  asked  for  the origins  of  the  Energy                                                               
Recovery Council.                                                                                                               
                                                                                                                                
MR. MICHAELS  explained that the  Energy Recovery Council  is the                                                               
national   trade   organization    representing   companies   and                                                               
communities that own and operate  waste-to-energy facilities.  It                                                               
also  provides  educational,  technical, research,  and  advocacy                                                               
services for its members.                                                                                                       
                                                                                                                                
3:19:01 PM                                                                                                                    
                                                                                                                                
CO-CHAIR PRUITT  asked for  an estimate of  the typical  cost and                                                               
return on investment of an individual unit.                                                                                     
                                                                                                                                
MR. MICHAELS  observed that  costs vary  with location  and size;                                                               
for  example,  a large  plant  under  development in  Florida  is                                                               
expected  to   cost  $650  million.   Much  smaller   plants  are                                                               
available, and  capital costs for  construction are bid out  in a                                                               
competitive  manner.   He was  unable to  provide an  estimate of                                                               
cost except  to say that  these are sophisticated power  plants -                                                               
installed  with the  best  in emission  control  equipment -  and                                                               
expensive  when  compared to  a  landfill  which has  much  lower                                                               
capital  costs.   However, renewable  energy  policies that  will                                                               
allow   waste-to-energy  plants   to  recoup   more  from   their                                                               
electricity  revenue stream  enable them  to be  more competitive                                                               
with landfills.                                                                                                                 
                                                                                                                                
3:22:38 PM                                                                                                                    
                                                                                                                                
MR.  DUNSMORE provided  statistics  on the  price of  electricity                                                               
produced by a waste-to-energy plant  in Fairfax County, Virginia.                                                               
Furthermore, the  U.S. Department  of Energy (DOE)  estimates for                                                               
the average,  levelized costs of  power for a power  plant coming                                                               
on-line in  2016 - in 2009  dollars - are:   biomass, $112.50 per                                                               
megawatt hour  (mWh); hydroelectric,  $86.40 per  mWh; combustion                                                               
turbine natural  gas, $124.50 per mWh;  conventional coal, $94.80                                                               
per mWh; carbon-capture coal, $136.20  per mWh; advanced combined                                                               
cycle natural gas, $63.10.                                                                                                      
                                                                                                                                
3:25:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PETERSEN concluded that depending on size, waste-                                                                
to-energy   plants  are   competitive  with   other  sources   of                                                               
electricity.                                                                                                                    
                                                                                                                                
MR. DUNSMORE,  in response to  Representative Saddler,  said mWhs                                                               
are divided by 1,000 to determine kilowatt hours.                                                                               
                                                                                                                                
3:26:45 PM                                                                                                                    
                                                                                                                                
CO-CHAIR PRUITT asked  for the source of  energy that incinerates                                                               
the waste.                                                                                                                      
                                                                                                                                
3:27:07 PM                                                                                                                    
                                                                                                                                
MR. MICHAELS explained  that at start-up, the  plant uses diesel,                                                               
fuel oil,  or natural gas to  burn the first ton  of waste; after                                                               
the first ton  ignites, the waste continues to burn  and is self-                                                               
perpetuating.  If  the plant goes into a shut-down  mode, fuel is                                                               
added  to ensure  the  complete  combustion of  the  last ton  of                                                               
trash.                                                                                                                          
                                                                                                                                
CO-CHAIR PRUITT  asked whether special considerations  are needed                                                               
for colder climates.                                                                                                            
                                                                                                                                
3:29:11 PM                                                                                                                    
                                                                                                                                
MR.  MICHAELS acknowledged  there  is a  potential  issue if  the                                                               
waste  has significantly  higher moisture  content; for  example,                                                               
wet grass clippings.                                                                                                            
                                                                                                                                
CO-CHAIR FOSTER  asked whether the  sponsor has support  from the                                                               
Alaska  Energy  Authority   (AEA),  municipalities,  and  private                                                               
organizations.                                                                                                                  
                                                                                                                                
3:30:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PETERSEN  said these  facilities are  considered a                                                               
form of renewable or alternative  energy and would help reach the                                                               
state's goal of  generating 50 percent of  the state's electrical                                                               
power  by a  renewable energy  source by  2025.   Also, waste-to-                                                               
energy  plants  keep landfills  smaller  and  in more  convenient                                                               
locations.                                                                                                                      
                                                                                                                                
3:32:25 PM                                                                                                                    
                                                                                                                                
MR. DUNSMORE  recalled the sponsor's  effort during  the drafting                                                               
of the legislation  to avoid unintended consequences.   He opined                                                               
the  state's energy  policy allows  for a  variety of  new ideas,                                                               
rather than a  "one size fit[s] all" approach.   House Concurrent                                                               
Resolution  10 raises  awareness  of the  potential of  waste-to-                                                               
energy technology,  but allows  each community  to decide  on its                                                               
uses.                                                                                                                           
                                                                                                                                
3:34:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  asked for  the minimum and  maximum sizes                                                               
of the units that would be effective in Alaska.                                                                                 
                                                                                                                                
MR. MICHAELS said the smallest  units are scaled to process about                                                               
75 tons  per day.   There are  companies that can  create modular                                                               
units to  meet the particular  needs of a community;  however, at                                                               
some point the economy of scale  is lost.  There is precedent for                                                               
the successful operation of 75-80 tons per day.                                                                                 
                                                                                                                                
3:35:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SADDLER  asked   for   the   downside  of   this                                                               
technology, other than cost.                                                                                                    
                                                                                                                                
3:36:03 PM                                                                                                                    
                                                                                                                                
MR. MICHAELS acknowledged this technology  is more expensive than                                                               
a landfill  at this  time, although  on the  East Coast  waste is                                                               
being shipped by  rail for processing.   Additionally, the waste-                                                               
to-energy  plant  does produce  ash  that  has little  beneficial                                                               
reuse and must be disposed of in a landfill.                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  observed that  Eagle River has  plenty of                                                               
land.                                                                                                                           
                                                                                                                                
3:38:15 PM                                                                                                                    
                                                                                                                                
CO-CHAIR PRUITT asked whether all waste can be incinerated.                                                                     
                                                                                                                                
MR. MICHAELS  explained that certain  items are  restricted, such                                                               
as   medical,   radioactive,   mercury,  or   electronic   waste.                                                               
Consumers  are encouraged  to  sort these  items  out for  proper                                                               
disposal,  but  some  of  these  items  can  be  incinerated  and                                                               
processed by the emission control system.                                                                                       
                                                                                                                                
3:41:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PETERSEN  noted  that  emissions  from  waste-to-                                                               
energy facilities meet EPA standards.                                                                                           
                                                                                                                                
CO-CHAIR  FOSTER  agreed  with Representative  Saddler  that  the                                                               
committee  should   heard  testimony   from  the   Department  of                                                               
Environmental  Conservation (DEC)  on the  permitting of  a plant                                                               
and whether the state has  the capability to screen out hazardous                                                               
waste.                                                                                                                          
                                                                                                                                
REPRESENTATIVE PETERSEN surmised that  a full, curbside recycling                                                               
service serves  to prevent problems  caused by  putting hazardous                                                               
materials in an incinerator.                                                                                                    
                                                                                                                                
3:43:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  asked when  the practice  of incinerating                                                               
municipal waste was stopped.                                                                                                    
                                                                                                                                
MR.  DUNSMORE assumed  that the  EPA national  regulation of  air                                                               
quality stopped the burning of  municipal waste.  Regarding water                                                               
quality, he said  the ash created in  the waste-to-energy process                                                               
must be  disposed of in a  permitted landfill to prevent  the ash                                                               
from seeping into the water table.                                                                                              
                                                                                                                                
MR.  MICHAELS  observed   the  oldest  operating  waste-to-energy                                                               
facility was opened  in 1975, and at that  time emission controls                                                               
and  air quality  standards were  in effect.   In  1990, Congress                                                               
amended  the Clean  Air Act  to make  municipal waste  combustors                                                               
subject   to  Maximum   Achievable   Control  Technology   (MACT)                                                               
standards,  which enhanced  the  level of  control applicable  to                                                               
waste-to-energy   facilities.       Thus   most   waste-to-energy                                                               
facilities  were built  from 1975  to 1995;  however, in  the mid                                                               
'90s  waste-to-energy plants  were  not  built because  landfills                                                               
became  more  economical  and  the   price  of  energy  was  low.                                                               
Currently, landfills  are becoming  more expensive and  the sales                                                               
of electricity  and recovered metals have  increased the revenues                                                               
of  waste-to-energy  facilities.    As   a  result,  there  is  a                                                               
resurgence of  interest, especially  with the national  desire to                                                               
reduce dependence on fossil fuels.                                                                                              
                                                                                                                                
3:47:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER asked  whether  this  technology will  be                                                               
useful in villages.                                                                                                             
                                                                                                                                
MR.  MICHAELS advised  that the  smallest commercially  operating                                                               
waste-to-energy facility in  the U.S. processes 70  tons per day;                                                               
however,  new  technology has  scaled  to  smaller operations  in                                                               
rural  communities   in  Oklahoma.     In  further   response  to                                                               
Representative Saddler, he explained  that the primary purpose of                                                               
waste-to-energy technology is waste  disposal, and the generation                                                               
of energy  is "a  big bonus."   He estimated  that a  decision by                                                               
local government  to change to  a waste-to-energy  plant accounts                                                               
for  about one-half  of  the facilities  operating  in the  U.S.;                                                               
otherwise,  a  private  company  builds the  plant  and  bids  to                                                               
process waste for the community.                                                                                                
                                                                                                                                
3:51:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PETERSEN pointed  out the  first facility  was in                                                               
Ames, Iowa, and he was living there at the time it opened.                                                                      
                                                                                                                                
CO-CHAIR FOSTER  stated his inclination  to hear opinions  on the                                                               
resolution from DEC,  the Denali Commission, AEA,  and the Alaska                                                               
Municipal League.                                                                                                               
                                                                                                                                
3:53:13 PM                                                                                                                    
                                                                                                                                
CO-CHAIR PRUITT  noted his desire  to hear from  Waste Management                                                               
and Solid Waste Services in Anchorage.                                                                                          
                                                                                                                                
3:53:58 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FOSTER said he supports the concept.                                                                                   
                                                                                                                                
3:54:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK reminded the  committee the resolution is not                                                               
a mandate, and any new plant  will have to meet DEC standards and                                                               
emission controls.  He pointed out  that many units were built in                                                               
the  '80s, and  are still  in use.   He  called attention  to the                                                               
supporting documents found in the committee packet.                                                                             
                                                                                                                                
REPRESENTATIVE  PETERSEN  pointed  out   that  the  cost  of  the                                                               
facility is reduced and the original  debt is retired by the sale                                                               
of electricity.                                                                                                                 
                                                                                                                                
3:57:22 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SADDLER saw  the merits, and restated the  need for more                                                               
information.                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  asked whether this technology  qualifies for                                                               
federal tax credits for construction.                                                                                           
                                                                                                                                
3:58:22 PM                                                                                                                    
                                                                                                                                
MR. MICHAELS advised if the owner  is a taxpayer, the facility is                                                               
eligible  for  a  Section  45  Renewable  Energy  Production  Tax                                                               
Credit.                                                                                                                         
                                                                                                                                
[HCR 10 was held over.]                                                                                                         

Document Name Date/Time Subjects
HCR 10 - 01 Bill Packet Table of Contents by Bill Sponsor.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 02 Original Resolution, Version M.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 03 Sponsor Statement.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 04 Draft CSHCR 10, Version B.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 05 Summary of Changes, Original versus Version B.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 07 U-S Environmental Protection Agency memo on municipal waste combustion emissions, 10 August 2007.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 09 Wikipedia article on waste-to-energy.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 08 American Society of Mechanical Engineers paper on waste-to-energy.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 10 Energy Recovery Council letter of support, 22 March 2011.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 06 2010 Energy Recovery Council Directory of Waste-to-Energy Plants.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
HCR 10 - 11 Fiscal Note HCR10-LEG-COU-04-04-2011.pdf HENE 4/5/2011 3:00:00 PM
HENE 2/7/2012 3:00:00 PM
HCR 10
Energy Efficiency Policy Update by John Davies, 5 April 2011.pdf HENE 4/5/2011 3:00:00 PM
Cold Climate Housing Research Center Presentation