Legislature(2023 - 2024)BARNES 124
04/12/2023 01:00 PM House RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| HB120 | |
| HB95 | |
| HB125 | |
| HB143 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 120 | TELECONFERENCED | |
| += | HB 95 | TELECONFERENCED | |
| += | HB 125 | TELECONFERENCED | |
| += | HB 143 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 143-ADVANCED RECYCLING AND FACILITIES
2:02:16 PM
CHAIR MCKAY announced that the final order of business would be
HOUSE BILL NO. 143, "An Act relating to the Department of
Environmental Conservation; relating to advanced recycling and
advanced recycling facilities; relating to waste; and providing
for an effective date."
CHAIR MCKAY explained that HB 143 would create a regulatory
framework around a new industry known as "advanced recycling."
This would take plastics which are not suitable for traditional
recycling and convert them into high value products through
various chemical processes. Without some regulatory processes
governing the industry, these manufacturers are not able to
evaluate the profitability of investing in Alaska. He mentioned
that 23 other states have passed bipartisan legislation like HB
143, and this allows these emerging technologies to operate in
their states. He stated that the proposed legislation would add
Alaska to the list of states for manufacturers to consider when
investing millions of dollars in advanced recycling.
2:04:07 PM
TREVOR JEPSEN, Staff, Representative McKay, gave a PowerPoint
presentation, on behalf of the sponsor, the House Resources
Standing Committee, on which Representative McKay serves as
chair, titled "Advanced Recycling" [hard copy included in the
committee packet]. He directed attention to slide 2. He
detailed that advanced recycling, also referred to as chemical
recycling, is a relatively new industry which has been around
for 10 years. He stated that advanced recycling takes discarded
plastic and turns it into petroleum-based products. He
mentioned that advanced recycling has been used in large scale
commercial operations in the last 5 years. He reiterated that
legislation like HB 143 has passed in 23 other states.
MR. JEPSEN described the flowchart pictured on slide 3, which
related that, using chemistry, post-use plastics can be
converted to valuable products, and this extends the life of
plastic. He suggested that using the basic building blocks of
new chemicals, plastic feedstocks, and plastic additives,
outputs can be asphalt roads, roofing, waxes, and lubricants.
2:06:11 PM
REPRESENTATIVE SADDLER asked if HB 143 allows recycling centers
to break down plastic to return it to its component parts.
MR. JEPSEN confirmed plastics can be broken down through a
process called depolymerization and rebuilt into other
materials.
2:07:34 PM
REPRESENTATIVE RAUSCHER, referring to slide 3, questioned which
states are currently utilizing plastic additives to asphalt
roads.
MR. JEPSEN deferred to Prapti Muhuri.
2:08:21 PM
PRAPTI MUHURI, Manager of Recycling and Recovery, American
Chemistry Council, answered that advanced recycling is being
used to produce additives in asphalt roads in other states,
including Missouri.
REPRESENTATIVE RAUSCHER asked if asphalt requires higher
temperatures to lay.
MR. JEPSEN responded that many different products can be made
from plastics through advanced recycling.
2:09:44 PM
REPRESENTATIVE MEARS mentioned that, because of a lack of
critical mass and low population, recycling in Alaska is
difficult to manage in remote communities. She questioned the
minimum critical mass needed to be recovered from the waste
stream to make advanced recycling practical in Alaska.
MR. JEPSEN stated that an economic model later in the
presentation would address the question. He continued his
presentation with slide 4, addressing the process of advanced
recycling. He stated that there are different processes used to
break down plastic polymers into base chemical components, such
as gasification, pyrolysis, and solvolysis. He further detailed
that advanced recycling is non-combustive and should not be
confused with incineration. He said that there are some air
emissions associated with advanced recycling, and this is
regulated in accordance with the Clean Air Act. It would also
be subject to the Alaska Department of Environmental
Conservation (DEC), just like any other manufacturing plant.
2:12:02 PM
MR. JEPSEN moved to slide 5 and detailed the advanced recycling
processes. He stated that the primary product from gasification
is synthetic gas or syngas. The primary product from pyrolysis
is petroleum liquids, diesel, and naphtha. He pointed out the
flowchart on slide 6 and said that plastics are first collected,
washed, sorted, and shipped to an advanced recycling facility.
He continued that naphtha is a precursor to plastics, and it is
produced through pyrolysis. This can then be sent to a cracker
producer or plastic resin producer to be thermally broken down
into components which can be sent to various manufacturers.
These manufacturers will eventually produce this into consumer
goods.
2:13:53 PM
MR. JEPSEN, in response to a question from Representative
Armstrong, explained that "cracker producers" are facilities
which thermally break down naphtha.
2:14:24 PM
REPRESENTATIVE DIBERT asked where the nearest manufacturer is
located.
CHAIR MCKAY, in continuation of Representative Dibert's
question, asked whether all the steps pictured in the flow chart
on slide 6 are meant to take place within Alaska.
MR. JEPSEN answered that slide 6 displays only a hypothetical
example. He said this would depend on the economic activities
that transpire as a result of the legislation.
MR. JEPSEN advanced to slide 7, which addressed whether advanced
recycling is necessary. He pointed out that it is estimated
that as little as 8.7 percent of recycled plastic is reused. He
stated that China is no longer taking plastic recyclables. He
remarked that, if the committee is concerned with efficiency in
recycling, conserving landfill space, and creating relatively
low greenhouse gas emissions [GHG], then it should be in support
of advanced recycling.
2:16:52 PM
REPRESENTATIVE SADDLER noticed a discrepancy on slide 7.
MR. JEPSEN clarified that slide 7 is from a previous
presentation and mentioned that some of the figures may not be
precisely accurate; however, the estimates demonstrate that the
amount of plastic currently being recycled is relatively low.
Mr. Jepsen described the concept of a circular economy on slide
8. He pointed out that advanced recycling would incentivize
markets to reuse products and allow plastic waste to be returned
to the economy to be used more efficiently. He expressed the
opinion that the issue of conserving space for waste and using
resources more efficiently transcends party lines. He added
that the industry is economically sustainable without government
subsidies, and advanced recycling would complement mechanical
recycling, not replace it.
MR. JEPSEN moved to slide 9, which addressed the economic
benefits of advanced recycling and recovery. He stated that one
advanced recycling facility in the state could process 50
percent of the 59,700 metric tons of landfill plastics. He
stated that these figures resulted from the use of the Impact
Analysis for Planning (IMPLAN) economic modeling software. He
explained that the 59,700 metric ton figure was calculated using
2020 census data with a weighing factor of 8.7 percent, which is
the estimated recycling rate.
2:20:42 PM
REPRESENTATIVE SADDLER asked to clarify if the nearly 60,000
metric tons is calculated or a real figure of how much plastic
waste is produced.
MR. JEPSEN, in response, confirmed that the figure is just a
calculated estimate, not a total measurement.
MR. JEPSEN, in response to Chair McKay, stated that Alaska
currently does not have an advanced recycling center and the
figures are based on IMPLAN. He continued, explaining the table
on slide 9 and said that should an advanced recycling center be
implemented in Alaska, the IMPLAN modeling analysis shows there
is a potential for 100 new jobs with a total economic output of
$34.2 million. He explained that the downstream employment, or
as seen on the chart as the "Indirect Effect," through business-
to-business purchases within the supply chain would create [90
more jobs with $6.7 million in payroll and $24.7 million in
output]. He explained that the "Induced Effect" on the chart is
the value stemming from household spending [and is projected to
create 60 jobs with a payroll of $3.8 million and an output of
$11.3 million].
MR. JEPSEN addressed the earlier question concerning the minimum
critical mass in Alaska and said it would be difficult for the
House Resources Standing Committee to fully calculate the
critical mass and doing so would be outside the scope of the
bill. He said that HB 143 would only set up a regulatory
framework, and the creation of an advanced recycling facility
would involve a private enterprise which would conduct their own
feasibility studies. He concluded that HB 143 sets up the
regulatory framework for investors who may wish to start an
advanced recycling facility within Alaska.
2:23:19 PM
REPRESENTATIVE SADDLER asked about the primary components of
recycled plastics.
MR. JEPSEN responded that plastics are separated into 7
different categories. Types 1 and 2 can be mechanically
recycled. The remaining 3-7 types of plastics can be used in
advanced recycling. He offered, for clarity, to create a
written document with information about the 7 types of plastic.
In response to a follow-up question, stated that because plastic
bottles are made from types 1 and 2 plastics, they are preferred
for mechanical recycling.
2:25:15 PM
MR. JEPSEN, in response to a series of questions from
Representative Armstrong, stated that the 59,700 metric tons
figure on slide 9 assumes Alaska's share of landfill plastics
throughout the country. He responded that plastics could be
retrieved from a landfill, or diverted from going to a landfill,
and brought to an advanced recycling facility for processing.
In response to whether the success of an advanced recycling
program would necessitate better consumer and corporate
recycling programs, he expressed the belief that monetizing
plastics would increase plastic recycling.
2:27:03 PM
REPRESENTATIVE MEARS asked about the program's feasibility. She
gave her professional expertise in recycling and mentioned the
possibility of a more practical method of diverting plastics
from landfills in Alaska. She voiced concerns about the bill.
CHAIR MCKAY replied that HB 143 is only a discussion of the
regulatory framework of advanced recycling. He continued that
private entities interested in investing in advanced recycling
would need to decide if it was economically feasible.
REPRESENTATIVE MEARS expressed her concern that HB 143 could
harm existing industries.
2:29:48 PM
MR. JEPSEN, pointing out the value of advanced recycling on
slide 10, stated it would be a low GHG process to create
petroleum-based products, decrease landfill space taken up by
plastics, greatly increase the percentage of recycled plastics,
and bring economic benefits to Alaska. He reiterated that these
benefits are contingent on the passage of HB 143. Concluding
the presentation, he further outlined the contents of HB 143 in
slide 11, which read as follows [original punctuation provided]:
• Delegates authority to the DEC to develop
manufacturing regulations related to air emissions and
water discharges from advanced recycling facilities
• Clarifies that advanced recycling facilities will be
regulated as manufacturing facilities not as waste
disposal facilities
• Clarifies that plastic feedstock and products will
not be classified as industrial, solid, or other waste
• Defines terms
2:31:18 PM
MR. JEPSEN gave the sectional analysis of HB 143 [included in
the committee packet], which read as follows [original
punctuation provided]:
Sec. 1 Designates the Department of Environmental
Conservation with the power to develop manufacturing
regulations related to advanced recycling.
Sec. 2 - 6 Provides clarification that certain
definitions currently in statute do not apply to
advanced recycling materials, products, and
facilities.
Sec. 7 Provides new definitions to define advanced
recycling and the chemical processes associated with
it.
Sec. 8 Provides for an effective date.
2:32:01 PM
REPRESENTATIVE ARMSTRONG questioned the difference between
managing the regulations for a waste facility versus a
manufacturing facility. She questioned whether there are other
advanced recycling facilities which are classified as both a
waste facility and a manufacturing facility.
MR. JEPSEN expressed the opinion that regulating advanced
recycling as a manufacturing facility would make more sense, as
this would be consistent with the regulation of these facilities
in other states.
CHAIR MCKAY acknowledged Representative Mears' expertise on the
topics presented in HB 143 and invited her to testify at the
next meeting.
2:33:30 PM
CHAIR MCKAY announced that HB 143 was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB120 Sponsor Statement.pdf |
HRES 4/5/2023 1:00:00 PM HRES 4/12/2023 1:00:00 PM SFIN 3/7/2024 9:00:00 AM |
HB 120 |
| HB120 Sectional Analysis.pdf |
HRES 4/5/2023 1:00:00 PM HRES 4/12/2023 1:00:00 PM SFIN 3/7/2024 9:00:00 AM |
HB 120 |
| HB 120 Fiscal Note (Sport).pdf |
HRES 4/12/2023 1:00:00 PM |
HB 120 |
| HB 120 Fiscal Note (Wildlife).pdf |
HRES 4/12/2023 1:00:00 PM |
HB 120 |
| HB 120 Fiscal Note (Support).pdf |
HRES 4/12/2023 1:00:00 PM |
HB 120 |
| CSHB 125 (RES).pdf |
HRES 4/5/2023 1:00:00 PM HRES 4/12/2023 1:00:00 PM |
HB 125 |
| HB 125 Summary of Changes (R to Y).pdf |
HRES 4/5/2023 1:00:00 PM HRES 4/12/2023 1:00:00 PM |
HB 125 |
| HB 125 Fiscal Note.pdf |
HRES 3/27/2023 1:00:00 PM HRES 4/12/2023 1:00:00 PM |
HB 125 |
| HB 125 Amendment Y.1.pdf |
HRES 4/12/2023 1:00:00 PM |
HB 125 |
| HB 143 Sponsor Statement Version U.pdf |
HRES 4/12/2023 1:00:00 PM HRES 4/19/2023 1:00:00 PM HRES 4/21/2023 1:00:00 PM |
HB 143 |
| HB 143 Sectional Analysis Version U.pdf |
HRES 4/12/2023 1:00:00 PM HRES 4/19/2023 1:00:00 PM HRES 4/21/2023 1:00:00 PM |
HB 143 |
| HB 143 Fiscal Note (DEC).pdf |
HRES 4/12/2023 1:00:00 PM |
HB 143 |
| HB 143 FAQ_for_policymakers.pdf |
HRES 4/12/2023 1:00:00 PM |
HB 143 |
| HB 143 HRES Presentation 4.12.23.pdf |
HRES 4/12/2023 1:00:00 PM |
HB 143 |
| HB 95 Written Testimony (HRES).pdf |
HRES 4/12/2023 1:00:00 PM |
HB 95 |
| HB 143 Advanced Recycling - Follow-Up Documentation #01.pdf |
HRES 4/12/2023 1:00:00 PM |
HB 143 |