Chairman Tauzin

Prepared Witness Testimony

The House Committee on Energy and Commerce

W.J. "Billy" Tauzin, Chairman

Link to Committee Tip Line:  Fight Waste, Fraud and Abuse
   

 

 

Three Bills Pertaining to the Transport of Solid Waste: H.R. 382, H.R. 411 and H.R. 1730

Subcommittee on Environment and Hazardous Materials
July 23, 2003
3:00 PM
2123 Rayburn House Office Building 

 

 
 

Mr. Michael Garfield
Director
The Ecology Center
117 N. Division St.
Ann Arbor, MI, 48104

My name is Michael Garfield. I'm the Director of the Ecology Center, a statewide environmental organization that has worked on Michigan solid waste issues for 33 years. In addition to our advocacy work, the Ecology Center is the parent organization of the largest community-based recycling program in the state of Michigan. That program has been cited by the U.S. Environmental Protection Agency as one of the 15 best recycling programs in the country, achieving a 52% recovery rate. I am a former manager of that recycling program, and have worked in waste management policy and the recycling business for sixteen years. I am also an organizer of Don't Trash Michigan, a coalition of organizations devoted to placing sensible restrictions on waste imports and improving Michigan's solid waste policies. Don't Trash Michigan consists of 29 environmental, church, and labor organizations which collectively represent over 250,000 Michigan residents.

Thank you very much for the opportunity to testify today.

I would begin by emphasizing that our objections to out-of-state waste are not borne of blind hostility to other people's garbage. We are not calling to close down Michigan's borders, and we do not see a net benefit from a federal law that would create a blanket ban on interstate waste shipments. Instead, we believe that the core problem facing Michigan and other states is that we have not been given the tools to conduct thoughtful and environmentally protective waste management planning in the face of the regionalization of solid waste markets. We need your help to empower local and regional planning systems to fix serious problems like Michigan and other states now experience, and to prevent future problems from arising elsewhere.

We could support H.R. 382, if it is found to be compliant with the North American Free Trade Agreement and other international agreements. We are aware of concerns raised by some experts regarding the consistency of this approach with international agreements. I am not a legal expert, and will offer no opinion on this matter. But I urge you, in addressing the waste transportation problem, to advance carefully crafted legislative solutions whose implementation is least likely to be stalled by legal challenges. Michigan's problem is immediate and growing.

We also support H.R. 411 to deal with the international aspect of our problem. Frankly, it is hard for residents and organizations in Michigan to understand why a long-standing agreement, signed by both countries, has so far gone unimplemented and unenforced, and now requires a Congressional resolution to be put in effect. We are disappointed that EPA has done nothing to date to carry out its provisions.

We're further confounded by this inaction given that the Government of Canada provides Canadian waste generators and haulers with a significant financial incentive to export solid waste to the United States. When Canadian waste is dumped in Canadian landfills or other Canadian disposal facilities, their federal government assesses a 7% Goods and Services Tax (GST) on the transaction. However, when Canadian waste is disposed in the United States, the GST is not assessed. When the State of Oregon applied differential taxation rates to waste originating from in-state sources versus out-of-state sources, the practice was ruled an unconstitutional restraint of commerce by the U.S. Supreme Court. Wouldn't Canada's differential taxation on waste based on its disposal destination also be an unfair protection of its landfill space, and subsequently a violation of NAFTA?

Finally, we strongly support H.R. 1730 as a measure to give local communities the wherewithal to conduct thoughtful waste management planning. In Michigan, the press has lasered in on the trash shipments to Michigan from the City of Toronto, but our problem is not only with Canada's largest city. Less than half of the Canadian waste dumped in Michigan originates in Toronto. Nor is our concern just a Michigan-Ontario dispute. Forty-three percent of the out-of-state waste dumped in Michigan originates in other U.S. states.

Over 3.5 million tons of out-of-state garbage is disposed in Michigan landfills, approximately 20% of the total. This amount has been increasing rapidly in recent years, particularly the portion coming from Ontario. Some have argued that Michigan also exports solid waste to other states. However, we only export 85,000 tons per year, which means that 41 tons come in to Michigan for every one we send out. Likewise, some have argued that Michigan exports hazardous waste to Canada and other states. However, Michigan is also a net importer of hazardous waste, receiving approximately twice as much hazardous waste (506,000 tons) as we export (246,000 tons).

The current system has left Michigan citizens in the predicament of being victimized for good behavior. We're surrounded by four of the Great Lakes. Half of our residents rely on groundwater for their drinking water. The citizens of Michigan share a strong land stewardship ethic.

Dating back to the mid-1970s, we had put in place a protective and responsible waste management policy. Our beverage container recycling program has achieved a best-in-the-nation 95% recovery rate. We have extensive yard waste diversion programs. Some of our communities have outstanding recycling programs.

When Michigan began to run short on landfill space in the late-1980s and early-1990s, we didn't look to Ohio, Indiana, Wisconsin, Illinois, and Ontario to assume our burden. We went through the politically torturous process of siting new landfills, and we allowed new facilities to open - in some cases, over strenuous local objections.

Michigan could manage its problem because we have in place what was a fairly sophisticated county-based planning system that requires counties to assume the obligation for disposing or recovering their trash. They can do this through the designation of facilities within their boundaries, or through the designation of facilities in other counties or states, provided that the recipient units of government agree to the exports. In almost all cases, the recipient unit of government does agree to the export designation, and the process affords them a mechanism for handling their obligations. This system of negotiating designated capacity forces counties to assume the practical and moral responsibility for getting rid of their trash, while letting them carefully plan disposal capacity so they don't have to site more landfills than they need.

We believe that a solid waste planning system like this - based on the principles of local/regional responsibility, local/regional control, and state-based minimum standards - is the most sensible way to manage solid waste policy. It is similar to good land use planning, also best managed locally and regionally in accordance with statutory minimum standards. For solid waste, we believe it is the best way to balance the need for disposal against a reasonable community interest in preserving land for other, better uses. It is also an economically efficient method of solid waste program planning.

However, the influx of out-of-state waste into Michigan has thrown our planning system into chaos, and has undermined our citizens' commitment to waste reduction and responsible waste management. Many citizens have given up recycling on the grounds that their efforts are only saving landfill space for trash from other states and Canada. Our recycling office has received dozens of calls to this effect, and the recycling rate in our community has decreased slightly during the past three years. Throughout the State of Michigan over the past several years, the growth in recycling programs has plateaued, and in some cases, slid back.

Second, the influx of out-of-state waste to huge regional mega-landfills devastates the quality of life in our local communities. It brings large amounts of heavy truck traffic, increased air pollution, blowing debris, and foul odors. It brings the threat of long-term future groundwater contamination, as took place at many older facilities.

The impacts are unmistakable every hour of every day for Lynette and Ken Guzman, of Huron Township, about twenty miles southwest of Detroit. The Guzmans and their two young children live on what used to be a quiet two-lane country road filled with tree-lined front yards and families relaxing outdoors in the summertime. But now that road is abuzz with the red Wilson Logistics trailer trucks - almost 200 hundred per day, six or seven days per week - each carrying more than 30 tons of Toronto's trash, arriving as early as 6:00 a.m. The road is the most direct route from the highway to Republic Services' Carleton Farms Landfill. The prevailing winds blow from the landfill toward the Guzmans' community, so they and their neighbors rarely leave their windows open in the summer, much less sit outside anymore. As trucks leave the landfill, they frequently leave a trail of trash and mud or thick dust along the road and in residents' front yards. Four months ago, as one of the Guzmans' neighbors tried to pull into her driveway, a Wilson truck rear-ended her into a second Wilson truck coming from the other direction. The woman required major reconstructive surgery to her face and is still confined to a wheelchair. Her eight-year old son witnessed the accident as he was boarding his school bus.

The waste industry often argues that their landfills generate a significant source of revenue for the impacted communities. But the Guzmans' story refutes this argument. Republic Services has signed a host community agreement with Sumpter Township, the rural township where its landfill is located. But Republic's landfill is located in the far southeastern corner of the township, and few residents of Sumpter Township live within two miles of the facility. However, hundreds of households are located within shouting distance of the facility to the east, in Huron Township, and to the southeast, in Ash Township, which is even in a different county (Monroe) than the landfill (Wayne). The trucks roll through Huron Township, where the Guzmans live, and don't even pass into Sumpter Township until they enter the landfill property. While Sumpter Township receives a fee payment for every ton of trash dumped in the Republic landfill there, Huron and Ash Townships do not receive one cent.

Third, the huge regional landfills consolidate the inherently toxic nature of ordinary municipal solid waste, posing a long-term future groundwater contamination threat. Municipal solid waste typically includes household hazardous wastes such as pesticides and batteries, heavy metals from used electronics, toxic compounds from automotive fluids, and other potential contaminants. During the course of this year, U.S. Customs officials have identified several Canadian trucks carrying medical waste and other prohibited items. But how many trucks carry prohibited items which are never discovered?

To partially address the concern of toxic loading into disposal facilities, Michigan has banned the landfill disposal of lead-acid batteries, used motor oil, yard waste, sewage, asbestos waste, and other items. Some of our neighboring jurisdictions, however, do not have restrictions as stringent. For example, Ontario does not ban disposal of lead-acid batteries or used motor oil.

Finally, the lack of local control over out-of-state waste undermines Michigan's recycling programs. Disposal over-capacity in Michigan and in other over-built states has created powerful downward price pressures in regional landfill markets. Large waste generators have recently been signing contracts with Michigan landfills for less than one-third the going rate in Ohio, Indiana, and other neighboring states. While local governments can break even or return modest profits from an investment in recycling programs, they cannot beat the artificially low prices in Michigan's current landfill-heavy economic climate. As a result, Michigan communities have been witnessing a slow and steady disinvestment in recycling and recovery programs by both private and public sector service providers, despite otherwise reasonable profitability in the recycling industry.

The most innovative and entrepreneurial solutions for waste management - state-of-the-art recycling, composting, reuse, household hazardous waste programs - are being developed at the local level. These solutions are part of a growing, yet still young, recycling/recovery industry. The economic development of this industry relies on a regulatory structure which holds local communities responsible for managing their own trash. If local communities and waste generators can look 300 miles and more across state and international borders to low-cost regional disposal options, then the incentive for recycling innovation is eliminated. At present, the federal framework presents local communities with a no-holds-barred approach to landfill siting and waste transport. States have no tools to counter-balance dramatic capacity and price differentials between each other. Michigan, Pennsylvania, Virginia, and a handful of other states have been the losers in the first decade of regional landfills after the Ft. Gratiot decision. Without federal intervention, other states will no doubt join us in coming years.

This prospect was foreseen by Chief Justice Rehnquist in his Ft. Gratiot dissent. He wrote:

"In adopting this legislation, the Michigan Legislature also appears to have concluded that, like the State, counties should reap as they have sown - hardly a novel proposition. It has required counties within the State to be responsible for the waste created within the county. It has accomplished this by prohibiting waste facilities from accepting waste generated from outside the county, unless special permits are obtained.

"The Court today penalizes the State of Michigan for what to all appearances are its good-faith efforts, in turn encouraging each State to ignore the waste problem in the hope that another will pick up the slack. The Court's approach fails to recognize that the latter option is one that is quite real and quite attractive for many States - and becomes even more so when the intermediate option of solving its own problems, but only its own problems, is eliminated."

Eleven years later, the Chief Justice's forecast has materialized in Michigan and other states. We now need the help of Congress to regain some measure of local control over landfill siting, to restore a level playing field between the states, and to promote the economic development potential of recycling. Please take action as soon as possible to address this growing problem.

 
 

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