Waste Management 2015 Annual Report Download - page 78

Hydraulic Fracturing Regulation
Our Energy Services line of business provides specialized environmental management and disposal services
for oil and gas exploration and production operations. There remains heightened attention from the public, some
states and the EPA on the alleged potential for hydraulic fracturing to impact drinking water supplies. There is
also heightened federal regulatory focus on emissions of methane that occur during drilling and transportation of
natural gas with regulations promulgated in 2012 and 2015, as well as state attention to protective disposal of
drilling residuals. Increased regulation of hydraulic fracturing and new rules regarding the treatment and disposal
of wastes associated with exploration and production operations could increase our costs to provide oilfield
services and reduce our margins and revenue from such services. On the other hand, we believe the size, capital
structure, regulatory sophistication and established reliability of our Company provide us with an advantage in
providing services that must comply with any complex regulatory regime that may govern providing oilfield
waste services.
Emissions from Natural Gas Fueling and Infrastructure
We operate a large fleet of natural gas vehicles, and we plan to continue to invest in these assets for our
collection fleet. As of December 31, 2015, we were operating 84 natural gas fueling facilities, 28 of which also
serve the public or pre-approved third parties, in 30 states and three Canadian provinces. Concerns have been
raised about the potential for emissions from the fueling stations and infrastructure that serve natural gas-fueled
vehicles. We have partnered with the environmental organization Environmental Defense Fund, as well as other
heavy-duty equipment users and experts, on an emissions study to be made available to policy makers. We
anticipate that this comprehensive study of emissions from our heavy-duty fleet may ultimately help inform
regulations that will affect equipment manufacturers and will define operating procedures across the industry.
Additional regulation of, or restrictions on, natural gas fueling infrastructure or reductions in associated tax
incentives could increase our operating costs. We are not yet able to evaluate potential operating changes or costs
associated with such regulations, but we do not anticipate that such regulations would have a material adverse
impact on our business or our future investment in natural gas vehicles.
Federal, State and Local Climate Change Initiatives
In light of regulatory and business developments related to concerns about climate change, we have
identified a strategic business opportunity to provide our public and private sector customers with sustainable
solutions to reduce their GHG emissions. As part of our on-going marketing evaluations, we assess customer
demand for and opportunities to develop waste services offering verifiable carbon reductions, such as waste
reduction, increased recycling, and conversion of landfill gas and discarded materials into electricity and fuel.
We use carbon life cycle tools in evaluating potential new services and in establishing the value proposition that
makes us attractive as an environmental service provider. We are active in support of public policies that
encourage development and use of lower carbon energy and waste services that lower users’ carbon footprints.
We understand the importance of broad stakeholder engagement in these endeavors, and actively seek
opportunities for public policy discussion on more sustainable materials management practices. In addition, we
work with stakeholders at the federal and state level in support of legislation that encourages production and use
of renewable, low-carbon fuels and electricity.
We continue to assess the physical risks to company operations from the effects of severe weather events
and use risk mitigation planning to increase our resiliency in the face of such events. We are investing in
infrastructure to withstand more severe storm events, which may afford us a competitive advantage and reinforce
our reputation as a reliable service provider through continued service in the aftermath of such events.
Item 1A. Risk Factors.
In an effort to keep our stockholders and the public informed about our business, we may make “forward-
looking statements.” Forward-looking statements usually relate to future events and anticipated revenues,
earnings, cash flows or other aspects of our operations or operating results. Forward-looking statements are often
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