Legislative Update: Vinyl Industry Attends UN Meeting, Biden Administration Moves to Replace Lead Pipes

Vinyl Industry Attends Third Round of UN Talks on a Global Plastic Pollution Treaty 

From Nov.13-19, international negotiators convened for the third round of talks addressing plastic production and waste management on a global scale. Delegates from 170 nations, including Ned Monroe, Vinyl Institute (VI) President and CEO, and current chair of the Global Vinyl Council, gathered in Nairobi, Kenya, to deliberate on a “zero draft” document outlining potential policies and actions. These discussions, part of the Intergovernmental Negotiating Committee (INC), are pivotal in shaping a legally binding treaty expected to be finalized by the end of 2024.

Mr. Monroe and the vinyl industry delegation advocated and educated attendees about PVC’s benefits and durability while opposing potential restrictions on the material.  “Our fundamental purpose here is to educate, to talk to people about the quality PVC products in health care that are saving lives with the blood bags that we have, or providing clean tap water in communities that need clean and safe drinking water,” said Ned Monroe said in an interview with Plastic News,

The vinyl and plastic industries and organizations like the International Council of Chemical Associations and oil-exporting nations like Saudi Arabia stressed the importance of circularity models for recycling and reusing plastic, arguing that inefficient waste management is the root cause of plastic pollution.  Additionally,  Monroe and vinyl delegates raised awareness among other countries and stakeholders that implementing bans or restrictions on PVC or its components could impede the achievement of the United Nations’ official Sustainable Development Goals. PVC possesses a unique capability to provide clean and safe tap water to communities in need, and any prohibition or limitation on its use, Monroe argues, would result in inequalities and hinder progress toward these vital sustainability objectives.

While the negotiations are ongoing, many questions remain about the scope and specifics of the treaty, procedural matters, whether the rules should be binding or voluntary, and many countries remain far apart on the draft text and issues such as single-use plastics, limits on production, and chemical content.  There is no concrete idea yet on how a specific plastic or application will be addressed in an agreement, but the European Union and countries like Japan, Canada, and Kenya advocating for a treaty with binding provisions to reduce the production and use of virgin plastic produced from petrochemicals and restrict or phase out certain “problematic plastics.”  Some also advocate increasing chemical recycling and biomass plastics to replace fossil fuel-derived products.  PVC packaging has appeared on some lists of problematic materials, and some individual groups are seeking to include some chemicals and plastic additives, but nations have not yet begun to determine such lists.

Several Members of Congress also pushed for the U.S. to advocate establishing binding targets to reduce the production of plastics.  Representative Jared Huffman (D-San Rafael) and Senators Jeff Merkley (D-OR), authors of the Break Free From Plastic Pollution Act, wrote a letter with Senator Whitehouse (D-RI) urging Secretary of State Antony Blinken to embrace strong action to combat plastic pollution at the INC’s session, including mandatory production limits and to resist the validity of ongoing innovation and effectiveness of circularity business models to manage plastic waste.

Separately, a group of 13 members sent a letter to Secretary Blinken addressing what they considered critical oversights currently missing in the Zero Draft Text.  They urged for “robust criteria to identify and phase out single-use plastics and implement rigorous measures to prevent and remove secondary microplastic pollution.”

VI points out that 80 percent of PCV goes into long-lasting, durable products such as pipes, flooring, and components for electric vehicles, and preserving blood,  rather than single-use packaging and products ending up as litter. (Only 4 percent of vinyl is used for packaging, and is often specialized.)  Again, this underscores PVC’s unique role in sustainable infrastructure and green technology.  VI advocates that the treaty should focus on a more narrow scope, concentrating on plastic pollution rather than restricting chemicals and the building blocks of plastics or PVC itself.

At this time, the United States has stated that it wants each nation to “implement actions aimed at diminishing the need for primary plastic polymers known to pose discernible risks to human health or the environment.” This approach positions the U.S. as a mediator in the negotiations.

Monroe pointed out three potential areas of consensus that emerged during the treaty talks: ingredient transparency, common design standards for recycling, and the establishment of chemical management systems, such as the Toxic Substances Control Act (TSCA). These areas of agreement reflect the plastic industry’s commitment to finding sustainable solutions and actively participating in global efforts to address plastic pollution.

Administration Proposes Rule to Accelerate Replacement of Lead Water Lines Within 10 Years

The Environmental Protection Agency (EPA) on Nov. 30 proposed a rule building on its current Lead and Copper Rule, requiring water systems nationwide to replace millions of lead service lines within 10-year years. The rule accelerates the Biden administration’s goal of completely eliminating lead pipes due to their link to severe health and developmental issues, especially in children. The proposal mandates the 100 percent replacement of lead service lines within a decade, irrespective of the lead levels in tap water samples. Some exceptions may be considered for systems necessitating complete system-wide line replacements.

The new rule also seeks to locate legacy lead pipes, improve lead level testing procedures, lower the lead action level, and ensure consistent progress in lead pipe replacement. Water systems would need to replace a minimum of 10% of lead pipes annually, with minimal exceptions. Non-compliance with the rule may result in civil penalties or fines enforced by the EPA under the Safe Drinking Water Act.

Estimates indicate that there are still 9.2 million lead service lines in the U.S., which will cost billions to replace.  The Bipartisan Infrastructure Law provides $50 billion to support the nation’s drinking water and wastewater infrastructure upgrades. This includes $15 billion dedicated to lead service line replacement and $11.7 billion of general Drinking Water State Revolving Funds that can also be used for lead service line replacement.  EPA has so far awarded over $3.5 billion in funding for lead service line replacement nationwide.

EPA will hold a 60-day public comment period, and a public hearing is scheduled for mid-January.

STB Extends Response Comment Time for Reciprocal Switching Rule;  STB Chair Martin Oberman Announces He Is Not Seeking Second Term

The Surface Transportation Board (STB) announced on Nov. 21 that it has extended the reply comment period on a proposed rule providing rail shippers access to reciprocal switching for inadequate service until Dec. 20. The previous deadline was Dec. 6.  The changes also extended the ex parte meeting period through Nov. 30.

The board’s decision is in response to a motion by a coalition of shipper groups — the American Chemistry Council, the Fertilizer Institute, and the National Industrial Transportation League requesting an additional 14 days to submit reply comments. The rule would facilitate a reciprocal switching agreement when service to a terminal-area shipper fails to meet any of three performance standards: service reliability, service consistency, and inadequate local service.

In other news, Martin Oberman, the current Chairperson of the STB, announced that he will not seek renomination for a second term. His first term, which began in January 2019, is set to expire on December 31. Oberman plans to depart from the agency in early 2024, during his statutory 12-month holdover period. This decision opens the door for a new leadership transition at the STB. Until President Biden names a new permanent chairperson, the agency’s vice chairperson will become acting chairperson upon Oberman’s departure.  Although the vice chair position traditionally rotates among members annually. It remains uncertain whether the Board will extend current Vice Chair Democrat Karen Hedlund’s term or opt for Democrat Robert Primus.

Legislators Concentrate on Year-End Agenda

We are approaching the end of the year, which means the next three weeks will be busy as Congress works overtime to try to address must-pass and expiring legislation before the holiday recess. The  House is scheduled to leave on Dec. 14 and the Senate on Dec. 15.

As legislators returned from Thanksgiving last week, one noticeably missing element contributing to the sense of urgency was the need to pass a continuing resolution (CR) to fund the government before Christmas break—something lawmakers, staff, and Hill watchers haven’t seen for years.   Before leaving for Thanksgiving recess, Congress again averted a government shutdown by passing a “laddered” stopgap bill (H.R. 6363) extending the previous stopgap set to expire on Nov. 17 until after the new year.  The new CR extends funding for four spending bills through January 19, 2024 (Agriculture, Energy-Water, Military Construction-VA, and Transportation-HUD) and the remaining eight bills through February 2.  The measure also extends agriculture programs authorized by the 2018 Farm Bill for a full year through Dec. 2024 while further extending various other programs extended by the original CR enacted in September.  President Joe Biden signed the measure on Thursday, November 16.

The House of Representatives still has a significant amount of work ahead as Speaker Mike Johnson (R-LA) tries to build consensus and pass the remaining five individual FY24 appropriations bills–Agriculture, Commerce-Justice Science, Financial Services, Labor-HHS, and Transportation-HUD.

The Senate and House appointed conferees to begin negotiations to finalize the FY24 National Defense Authorization Act (NDAA).  The compromised text could be released as early as this week or early next week as lawmakers work on a handful of remaining outstanding issues. After the text is released, the Senate will vote on it, followed by the House.

Congress will also likely work on a few outstanding reauthorizations, including the Federal Aviation Administration (FAA) and health provisions, which expire on Dec. 30, and Senate Majority Leader Chuck Schumer says he plans to vote on a national security supplemental providing aid to Israel, Ukraine, and Taiwan, but House Republicans continue to push back on Ukraine aid leaving doubts about the bill being brought to the House floor.  Another complicated disruption in the House that will cut into floor time will be a move to expel Rep. George Santos (R-NY), which will also narrow the Republican’s already-slim majority.

There are also whispers of a possible tax package deal as Republicans seek business tax breaks, including for research and development, and Democrats want to expand the child tax credit.   We believe the likelihood of closing the deal and finding a legislative vehicle to pass this in the next few weeks is unlikely, but discussions remain on the table for now.

EPA Releases Guidance for Assessing Environmental Justice in Regulatory Analysis

Environmental Protection Agency (EPA) released a comprehensive draft guidance document titled “Technical Guidance for Assessing Environmental Justice in Regulatory Analysis.” This draft, spanning 130 pages, represents an update to the agency’s initial environmental justice (EJ) technical guidance from 2016. EPA says the new guidance will enhance the consideration of EJ concerns in regulatory analysis across all aspects of EPA decision-making.

The updated guidance seeks to align with President Joe Biden’s April 2023 executive order on EJ. President Biden’s order calls for strengthened reporting, analytical practices, and other requirements to mitigate adverse impacts in regulatory actions. The document outlines the “analytic expectations” and offers insights into the “technical approaches and mandates” that can be employed to assess EJ concerns in regulatory actions.

While the draft guide aims to advance EJ considerations comprehensively, it acknowledges significant data and research gaps. For example, it highlights the challenges in linking demographic characteristics with responses to environmental stressors that lead to adverse health outcomes. Additionally, the draft underscores the complexities of co-exposures in EJ communities and the need to understand variability in individual responses across different populations. The guide also emphasizes the importance of considering life stages and pre-existing conditions in risk assessments. Overall, the draft guide recognizes these challenges and provides flexibility for agency analysts to address them.

EPA also introduced a $2 billion initiative designed to address environmental harm in communities that have borne an unequal burden of pollution. EPA Administrator Michael Regan hailed this funding as the “largest-ever investment in environmental justice.” The funds originate from the Inflation Reduction Act and will predominantly support approximately 150 community-led initiatives. These projects have objectives ranging from enhancing resilience against climate change and pollution monitoring to combating extreme heat and more.

EPA Proposes Stricter TSCA Regulations on Persistent Bioaccumulative and Toxic Chemicals

The EPA on Nov. 20  issued more stringent regulations concerning two chemicals categorized as “persistent, bioaccumulative, and toxic” under TSCA. The EPA’s proposal includes measures to enhance workplace safety and limit water discharges associated with DecaBDE, a flame retardant (Regulation 2070-AK34), and PIP (3:1), a plasticizer and flame retardant (Regulation 2070-AK58). Additionally, the proposal seeks to tackle supply chain issues affecting industries affected by these regulations.

National Science Foundation Announces Innovative Environmentally-Friendly, Cost-Neutral Way to Convert Plastic Waste into Hydrogen

The National Science Foundation announced on Nov. 14, that researchers at Rice University have developed a groundbreaking method to produce hydrogen from plastic waste that is both cost-effective and environmentally friendly. This innovative approach generates hydrogen and yields valuable graphene as a byproduct. The key highlight of this method is its potential for cost neutrality, as even if the graphene produced is sold at just 5% of its current market value, the clean hydrogen could essentially be produced for free. This holds significant promise for sustainable and low-emission hydrogen production, which is crucial for addressing climate change and achieving net-zero emissions targets.

Conventional hydrogen production methods often come with significant carbon dioxide emissions or high costs. For instance, ‘green’ hydrogen, produced using renewable energy sources, can cost around $5 for slightly over two pounds. However, a vast majority of hydrogen produced globally in 2022 was derived from fossil fuels, contributing to approximately 12 tons of carbon dioxide per ton of hydrogen. The Rice University team’s innovative approach addresses these challenges by efficiently converting waste plastics, including mixed and unsorted plastics, into high-yield hydrogen gas and high-value graphene.