Greenhouse Gas Reduction and Waste Management Chuck White

Greenhouse Gas Reduction and Waste Management Chuck White Director of Regulatory Affairs -- WM Western Regional Air Partnership Denver, Colorado – July 18, 2006

What is: • $12. 5 Billion, 48 states, 55, 000 employees – – Decentralized organizational structure 429 solid waste hauling operations 366 transfer stations 21 million customers (residential, industrial, commercial) • 289 Active Landfills – Most with landfill gas collection/destruction – 100 landfill gas-to-energy projects • Wheelabrator: 17 Waste to Energy Plants • Recycle America: 138 Recycling plants ?

What is: Waste Management = Renewable Energy • Landfill Gas: 470 MW – 400, 000 homes • Waste-to-Energy Plants: 650 MW – 600, 000 homes • Recycling Energy Savings: 920 MW – 848, 000 homes ?

Why does Corporate America Care About Climate Change? . . . And to “Do the Right Thing” – Of Course!

Investing in Solutions to Climate Change • Tightening Trend: U. S. will likely follow the global trend to constrain carbon emissions • Legislative Activity: There is a lot happening! • Investment Opportunities: Companies selling products and services that address climate change could benefit significantly • The Clean Dozen: . . . (+ 11 Others)

Solid Waste Management GHG Sources and Sinks Source ? Source Sink

Landfill Carbon Flows 4 3 2 1 Uncollect ed Gas CH 4 CO 2 Collection Efficiency Landfill Gas Sequestered Biogenic Inorganic CO 2 Collect ed Gas CH 4 CO 2 Solid Waste Landfill Fossil Energy Fugitive Emissions Aerobic Oxidation in LF Cover O 2 Flare CO 2 Waste CH 4 CO 2

Recycling Energy Savings Translates into Indirect GHG Reductions !!* *But who gets the credit?

Who gets GHG Credit for Recycling? Consumers? Government? Manufacturers? Collectors/ Processors?

Waste Management/Recycle America – 2005 Recycling Benefits 1. 6 Billion Gallons of Oil 70 Million Mature Trees 19. 3 Billion Kw-Hrs of Electricity 18. 5 Million Cubic Yards Of Landfill Airspace In 2005, we recycled 4. 1 million tons of cardboard and paper; 967, 000 tons of glass; 229, 000 tons of plastics; 57, 000 tons of steel cans; and 30, 000 tons of aluminum. Avoided 3. 4 Million Metric Tons (MTCE) of GHG Emissions 100 Million Gallons of Gasoline 29 Billion Gallons of Water

Positive GHG Messages for Waste Industry • Waste-Related Emissions are small, < 1 -3% • Progress to date has been Significant – – – 50 – 80% reduction in GHG emissions Increased recycling rates Landfill Gas Controls (75% 90+% capture!!!!) Increased conversion to energy Alternative fueled vehicles • Landfill Sequestration? We hope so!!! • Opportunities for further Waste-to-Energy

Overall GHG Reductions for Solid Waste Management – All Sources 70 MMTCE 60 50 1974 Technology Path 52 MMTCE Avoided 40 30 20 10 Actual Technology Path 0 1974 1980 1990 2000

WM’s Contributions to GHG Reduction 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Collection and Destruction of LF Methane CH 4 Emission Oxidation in LF cover materials LFGTE and WTE Plants to displace fossil fuels Development of LFG to LNG Technology Development of Bioreactor Landfill Technology Development of Waste-to-Energy Partnerships Advanced Vehicle Technology for Alt fuels/Hybrids Increased Recyclable Material Recovery Upstream Services Waste Reduction Services Carbon Sequestration and LF Forestry

What is WM Doing About GHGs Now? • Federal Reporting – DOE 1605(b) – Total Emission reductions over 10 years = 197 MMTCO 2 E from >200 WM LFG projects – LFG emissions: • Landfill Cover Methane Reduction? Yes, but how much? • Credit for Landfill Sequestration? Yes, but who gets it? – New Rules: Entity-wide US -- not project specific – Future? May not participate • Not ready for entity-wide US reporting yet • Voluntary GHG Reductions – CCX – 6% reduction for 2003 - 2010

What is WM Doing About GHGs Now? • Carbon Neutrality Donations } – 2002 Winter Olympics Climate – 2004 Houston Super Bowl Neutral !! – 2006 Harvard Business School – Offset Match !! • Reporting to Shareholders – Report WM Initiatives to Carbon Disclosure Project – Dow Jones Sustainability Index for 2005 & 2006 – 2006 Inaugural WM Social Sustainability Report • California Climate Action Registry – WM first SW company to join – Pending Development of SW Protocols – First CA-wide report for 2006 by Aug. 2007

Ø More Emphasis on GHGs In Summary. . . It’s going to be another busy and interesting Ø GHGs will Drive Recycling and Waste Reduction Initiatives Ø Protocol for Assessing GHG Recycling Credits? Ø New models for LFG emissions Ø GHG controls will maximize capture & use of landfill gas Ø Credit for LF sequestration? Ø Waste-to-Energy Revitalized Ø Push for alternative fuel trash trucks & LFG to fuel Ø All together now: “Think Green, Think Waste Management”