Waste Management 2015 Annual Report Download - page 75

Additionally, emission and fuel economy standards have been imposed on manufacturers of
transportation vehicles (including heavy-duty waste collection vehicles). The EPA and the Department
of Transportation proposed Greenhouse Gas Emissions and Fuel Efficiency Standards for Medium and
Heavy-Duty Engines and Vehicles – Phase 2 on July 13, 2015. The rule, expected to be finalized in the
fall of 2016, will increase fuel economy standards and reduce vehicle emissions standards for our
collection fleet between model years 2021 and 2027; however, we expect to be able to purchase
compliant vehicles that will meet our operational needs. The regulations could increase the costs of
operating our fleet, but we do not believe any such regulations would have a material adverse impact
on our business as a whole.
• The Occupational Safety and Health Act of 1970, as amended, (“OSHA”) establishes certain employer
responsibilities, including maintenance of a workplace free of recognized hazards likely to cause death
or serious injury, compliance with standards promulgated by the Occupational Safety and Health
Administration, and various reporting and record keeping obligations as well as disclosure and
procedural requirements. Various standards for notices of hazards, safety in excavation and demolition
work and the handling of asbestos, may apply to our operations. The Department of Transportation and
OSHA, along with other federal agencies, have jurisdiction over certain aspects of hazardous materials
and hazardous waste, including safety, movement and disposal. Various state and local agencies with
jurisdiction over disposal of hazardous waste may seek to regulate movement of hazardous materials in
areas not otherwise preempted by federal law.
We are also actively monitoring the following recent developments in United States federal regulations
affecting our business:
• In 2010, the EPA issued the Prevention of Significant Deterioration (“PSD”) and Title V Greenhouse
Gas (“GHG”) Tailoring Rule, which expanded the EPA’s federal air permitting authority to include the
six GHGs, including methane and carbon dioxide. The rule sets new thresholds for GHG emissions that
define when Clean Air Act permits are required. The requirements of these rules have not significantly
affected our operations or cash flows, due to the tailored thresholds and exclusions of certain emissions
from regulation.
In June 2014, the U.S. Supreme Court issued a decision that significantly limited the applicability and
scope of EPA permitting requirements for GHGs from stationary sources, concluding that: the EPA
may not treat GHGs as an air pollutant for purposes of determining whether a source is required to
obtain a PSD or Title V permit; and the EPA can continue to require that PSD permits otherwise
required based on emissions of conventional pollutants contain limitations on GHG emissions based on
Best Available Control Technology (“BACT”). Following this ruling, the EPA issued a policy
memorandum in July 2014 advising that Supreme Court ruling effectively narrows the scope of
biogenic CO2 permitting issues that remain for the EPA to address. Further, the EPA states in its
November 19, 2014 memorandum that it intends to propose revisions to the PSD exempting biogenic
carbon dioxide emissions from waste-derived feedstocks (municipal solid waste and landfill gas) from
PSD and Title V air permitting. The EPA anticipates basing this proposal on the rationale that those
emissions are likely to have minimal or no net atmospheric contributions, or even reduce such impacts,
when compared to an alternate method of disposal. As a result of this U.S. Supreme Court ruling and
EPA policy action, the potential impact of the PSD and Title V GHG Tailoring Rule on our air permits,
compliance and results of operations is significantly reduced.
Other recent final and proposed rules to increase the stringency of certain National Ambient Air
Quality Standards, such as the Ozone rule finalized in October 2015, and related PSD increment/
significance thresholds could affect the cost, timeliness and availability of air permits for new and
modified large municipal solid waste landfills and landfill gas-to-energy facilities. In general,
controlling emissions involves installing collection wells in a landfill and routing the gas to a suitable
energy recovery system or combustion device. At December 31, 2015, we had 136 projects at solid
waste landfills where landfill gas was captured and utilized for its renewable energy value rather than
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