Red states see green in recycling

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Feb 28, 2023 View in browser   By Debra Kahn and Jordan Wolman Presented by Panasonic THE BIG IDEA Ohio is one of the states welcoming chemical recycling facilities. | Jordan Wolman/POLITICO RED AND BLUE MAKE GREEN — Both red and blue states are getting into plastics recycling from different ends. Where Democrat-run states like New York and California are passing laws to boost recycling rates and increase of recycled materials, GOP-led states like Texas and Ohio are welcoming a specific form of plastics recycling decried by environmentalists, our Jordan Wolman reports. Twenty-one states, 19 of them with Republican-controlled legislatures, have passed rules since 2017 favorable to permitting chemical recycling. Nebraska, Utah and Indiana are weighing similar measures this session. The result? Companies in blue states have begun sending plastic waste to red states that have embraced chemical recycling, which uses high heat to break down plastics into their fossil-fuel building blocks. "We're open to business and we're open to recycling," said Utah Rep. Tim Jimenez (R), whose bill to permit chemical recycling plants is moving through the state Legislature. "California and Oregon, with the way they're pushing recycling, we certainly would be open, and I think it would be easy for them to bring it here to Utah." It's mostly symbiotic for now, but some see a brewing conflict as blue states keep refining their rules — and considering bans on chemical recycling. Regulators in Democrat-led states could be in the position of evaluating the credibility of recycling operations in a GOP-led state. “Any controversy could start up in only a few years,” said David Allaway, a senior policy analyst at the Oregon Department of Environmental Quality, which has yet to decide whether it will allow chemical recycling to count toward its recycling target of 70 percent by 2050. Colorado is also in the midst of fleshing out its rules. Environmentalists are raising objections over the emissions associated with chemical recycling facilities. "It is a major concern if states...are outsourcing their recycling to other states or other countries with less rigorous standards," said Anja Brandon, a U.S. plastics policy analyst at the Ocean Conservancy. Lawmakers in a dozen other blue states, including Washington, Maryland and New York, are working on their own recycling targets. The American Chemistry Council is fully engaged, lobbying for them not to exclude chemical recycling. In the meantime, companies are watching the policy environment as they decide how much to invest in the technology. "There's no consistency from how the states are designing these programs," said Pete Keller, vice president of recycling and sustainability at Republic Services. "So that adds to the uncertainty, and that adds to the risk.”   A message from Panasonic: Deepening our commitment to sustainability. Learn more about Panasonic’s green impact.   WASHINGTON WATCH PLAYING D ON ESG — The Biden administration is prepared to slap down congressional Republicans' first attempt to pass anti-ESG legislation, Eleanor Mueller reports. The White House said Monday that President Joe Biden would veto the GOP-led repeal of a Labor Department rule that allows retirement plan managers to consider environmental, social and governance factors when selecting investments. The House is expected to approve a Congressional Review Act resolution to undo the rule as soon as today, with the Senate expected to follow on Wednesday. Sen. Joe Manchin (D-W.Va.) is a co-sponsor, and with Sen. John Fetterman (D-Pa.) out sick, it looks likely to pass.   DOWNLOAD THE POLITICO MOBILE APP: Stay up to speed with the newly updated POLITICO mobile app, featuring timely political news, insights and analysis from the best journalists in the business. The sleek and navigable design offers a convenient way to access POLITICO's scoops and groundbreaking reporting. Don’t miss out on the app you can rely on for the news you need, reimagined. DOWNLOAD FOR iOS– DOWNLOAD FOR ANDROID.     BUILDING BLOCKS MARKET MAKERS — The U.S.'s second economywide carbon-trading market launches today in Washington, where regulators have set up a cap and trade system for greenhouse gases similar to California's. Bids for an allowance — equivalent to one metric ton of CO2 — will start at $22.20, according to the Washington Department of Ecology, which administers the program, James Bikales reports. The auction revenue, which is expected to reach $480 million this year, will be invested in three categories of projects, primarily reducing carbon emissions in the transportation sector, clean energy and air quality. Thirty-five percent of the revenue must go toward projects in disadvantaged communities, and 10 percent toward projects with tribal support. Washington's market could eventually link to California's, and could be a model for New York, which is putting its own system together. “I think they’ve realized that the prospects of the federal government putting in place something similar to the California cap and trade program on a national level is unlikely to happen in the near- or even medium-term,” Alex Holton, a partner at Holland and Knight who advises clients on energy markets, told James. “So states have taken things into their own hands.”   A message from Panasonic:   WEIRD SCIENCE RISKY RESEARCH — Several dozen scientists, including the OG climate advocate James Hansen, threw their weight Monday behind trying to get global warming under control by going back to the source — the sun. Call it "solar radiation modification" if you're into it, "geoengineering" if you're skeptical. Either way, the letter from 60 scientists, which stops short of fully embracing SRM, could provide new momentum for thoroughly researching a type of climate intervention some still consider too dangerous to study. The set of technologies includes spraying reflective aerosols in the stratosphere and altering the density of certain clouds. “Since decisions on whether or not to implement SRM are likely to be considered in the next one to two decades, a robust international scientific assessment of SRM approaches is needed as rapidly as possible,” the letter says. The primary goal of the letter is to add some nuance to the fractious policy debate over SRM, according to lead author Sarah Doherty, an atmospheric sciences professor at the University of Washington. “We do hope to correct the claims that all scientists are opposed to research in this area," she said. Read more from POLITICO's E&E News' Corbin Hiar here. SUPPLY CHAINS  CHIP YIMBYS — We knew the National Environmental Policy Act was a problem for infrastructure projects. Turns out it's also the bugbear of the semiconductor industry, as Brendan Bordelon reports. The Semiconductor Industry Association — the chip industry’s main voice in Washington — is pressing the Commerce Department to grant new manufacturing projects a “categorical exclusion” from NEPA, which requires federal agencies to analyze the impacts of their actions before any project can proceed. Industry groups are expressing concern that NEPA will slow the infusion of $39 billion in federal subsidies into new microchip plants intended to prop up a domestic supply chain. The Chamber of Commerce also weighed in, warning that NEPA reviews could cause some projects to take “as much as seven years to be approved.” But the Biden administration is moving fast: Commerce plans to officially launch the application process for chip subsidies today, Commerce Secretary Gina Raimondo said last week.   LISTEN TO POLITICO'S ENERGY PODCAST: Check out our daily five-minute brief on the latest energy and environmental politics and policy news. Don't miss out on the must-know stories, candid insights, and analysis from POLITICO's energy team. Listen today.     YOU TELL US GAME ON — Welcome to the Long Game, where we tell you about the latest on efforts to shape our future. We deliver data-driven storytelling, compelling interviews with industry and political leaders, and news Tuesday through Friday to keep you in the loop on sustainability. Team Sustainability is editor Greg Mott, deputy editor Debra Kahn and reporters Jordan Wolman and Allison Prang. Reach us all at gmott@politico.com, dkahn@politico.com, jwolman@politico.com and aprang@politico.com. Want more? Don’t we all. Sign up for the Long Game. Four days a week and still free! WHAT WE'RE CLICKING — Banks aren't shifting to clean-energy financing anywhere near as quickly as they need to, a new BloombergNEF report finds. Wells Fargo and JPMorgan are some of the biggest laggards. — Diversity, equity and inclusion is losing momentum: The attrition rate for DEI roles was 33 percent at the end of 2022, compared to 21 percent for non-DEI roles, NBC reports. — Stanford has convened a committee to review its policy of accepting funding from fossil fuel companies.   A message from Panasonic: Panasonic is helping lead the changes necessary to address the climate crisis. Here’s how: From creating more sustainable business practices, products and solutions to helping our customers integrate sustainable technologies in their projects. Learn More     Follow us on Twitter Debra Kahn @debra_kahn Greg Mott @gwmott Jordan Wolman @jordanwolman Allison Prang @AllisonPrang   Follow us

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