The number one thing that consumers can remember when it comes to recycling is that thin, pliable plastic should be excluded from standard blue recycling bins. Photos by welcomia/Canva.

As waste-to-energy gains a foothold in the energy transition, trash's more palatable cousin, recycling, sits just close enough for deeper inspection. Plastic, by and large, one of the most loved and loathed petroleum by-products, is often singled out as the most nefarious contributor to our declining climate.

With significant efforts underway to reduce the volume of single-use plastic while reusing or repurposing stronger plastics, let us turn attention to the third action in the timeless mantra–recycling.

Over the last few decades, we have embraced recycling globally, assured in our noble commitment to derive further utility out of items that no longer serve an immediate purpose from our unique perspective.

However, the act of recycling still closely resembles taking out the trash. We place items deemed worthy of secondary use into large, usually plastic, bins for carting far away from the rest of the things that still provide utility to our personal household or place of business.

For the most part, simply believing that there could or should be further utility of an item is criterion enough to warrant placement in the exalted blue bin. The small hit of dopamine elicited from the satisfaction that we are “doing our part” is just strong enough to reinforce the idea that we have also “done enough.”

But according to Vu Nguyen, director of corporate development and innovation, Waste Management, one of Houston’s leading trash, recycling, and environmental services companies, there remains one elusive challenge: the plastic bag.

The plastic bag proves problematic for a multitude of reasons, not least because of its role in ruining literally every.other.recyling.effort.ever. On the whole, we have been blissfully ignorant of the recycling process, and even more so of how much our good intentions to reuse and recycle are thwarting the same process for so many other reusable materials.

“The number one thing that consumers can remember when it comes to recycling is that thin, pliable plastic [like] bags and wrappers should be firmly excluded from standard blue recycling bins,” Nguyen shared at a Houston Tech Rodeo event earlier this spring.

After collection, simple but effective mechanisms sort items delivered to a recycling facility. Individuals pick through discarded materials placed on conveyor belts before the remaining items work their way through heavy magnets that extract useful metals while bursts of air pressure push lightweight items like paper away from heavier items like glass.

Plastic bags, including the lovely little blue ones so many of us like to purchase to fill our quaint non-standard recycling bins, tangle up in these conveyor belts, causing shutdowns to unravel them from materials otherwise well-suited for these sorting efforts. Downtime on the sorting line can get expensive, so much so that many recycling facilities often turn away entire trucks filled with potentially reusable items if even a single plastic bag is discovered inside.

Consider this the start of a public service announcement campaign to raise awareness of that simple fact.

Yasser Brenes, area president – south for Republic Services, echoes this sentiment as he shares a few tips and reminders with EnergyCapitalHTX.

  • Know What to Throw: Educate yourself on what can and cannot go inside your recycling bin. Focus on only recycling rigid plastic containers such as bottles, jugs and tubs, metal food and beverage containers, glass bottles and jars, paper and cardboard. Don’t be a wish-cycler, never throw items in your recycling bin if you are unsure if they can be recycled or not.
  • Empty, Clean, Dry: Recyclables should be rinsed free of residual food and liquid. If recyclables are not empty, clean and dry the residual food or liquid could contaminate other more fragile recyclables, like paper and cardboard, and require them to be thrown away.
  • Don’t Bag It: Recyclables should always be placed loose inside your recycling bin. Flexible plastics, such as grocery bags, wrap and tangle around the sorting equipment and should never be placed in your recycling bin.

That’s not to say that plastic bags and wrappers cannot be recycled at all; on the contrary, they absolutely can. The mechanisms for sorting them from other materials like paper, aluminum, glass, and heavy plastics just aren’t quite mature enough… yet.

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Lindsey Ferrell is a contributing writer to EnergyCapitalHTX and founder of Guerrella & Co.

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Houston lawmaker may kill data center tax breaks due to $8B revenue loss

looking at the data

An influential Houston-area state senator is raising concerns about potentially billions of dollars in lost state revenue from tax breaks for Texas data centers—and is pondering legislation that would abolish the tax incentives.

Citing data from the state comptroller’s office, The Texas Tribune reports the state stands to lose nearly $8 billion in revenue from 2026 to 2030 due to sales tax and use tax exemptions for data centers. During the state’s 2025 fiscal year, which ended on Aug. 31, these tax exemptions caused Texas to lose a little over $1 billion, up from an earlier estimate of $130 million.

“These new numbers are extremely concerning, and I will say they’re unsustainable,” Republican state Sen. Joan Huffman, chairwoman of the state Senate Finance Committee, tells The Texas Tribune. “I plan to look at filing legislation to either repeal the exemption or take a very close look at it and see.”

Texas on track to be No. 1 data center market in U.S.

Scrutiny of the tax breaks comes amid an explosion of data center development in Texas, where data provider Aterio identifies nearly 1,000 centers that are operating, under construction or planned.

A report issued in January by Bloom Energy says the state is poised to become the No. 1 U.S. market for data centers within three years. By 2028, according to the report, Texas is projected to exceed 40 gigawatts of data center capacity—representing nearly 30 percent of total U.S. demand.

Among companies benefiting from the data center boom are:

  • Tech titans like Apple, Google, Meta Platforms, and Microsoft, which are spending billions of dollars to build data centers in Texas.
  • Spring-based ExxonMobil and Houston-based Chevron, two oil and energy giants that are developing natural gas plants to supply power for data centers.
  • Houston-based energy technology company Baker Hughes, which is collaborating with Google Cloud to develop AI-enabled power optimization and sustainability software for data centers.
  • DataBank, Data Foundry, Equinix, Digital Realty, Lumen Technologies, and IBM, all of which operate data centers in the Houston area.

The Texas Legislature will begin debating tax breaks for data centers in July, when Huffman’s Senate Finance Committee meets for an interim hearing before the 2027 legislative session, according to the Tribune.

Data center industry defends tax breaks

Leaders in the data center industry warn that watering down or halting the tax breaks could slow down or even end Texas’ ascent in the data center sector.

A 2025 report commissioned by the Data Center Coalition found that in 2024, data centers provided more than $1.6 billion in state tax revenue and almost $1.6 billion in local tax revenue in Texas. Over the next several years, according to the report, planned development of data centers in the Lone Star State could generate almost $3.8 billion in state tax revenue and more than $4.9 billion in local tax revenue.

In 2024, the Houston area had 8.1 million gross square feet of data centers, with the properties’ real estate investments sitting at $10 billion, according to the report. That year, data centers in the region produced a little over $700 million in state and local tax revenue. About 60 data centers operate in the Houston area.

Watchdog group warns of tax breaks’ danger to state budgets

On the other side of the debate over tax breaks for data centers, a report released last year by Good Jobs First, a nonprofit, nonpartisan watchdog group that tracks economic development incentives, decries the tax breaks as dangerous to state budgets.

“We know of no other form of state spending that is so out of control. Therefore, we recommend that states cancel their data center tax exemptions,” says Good Jobs research analyst Kasia Tarczynska, co-author of the report. “Shy of that, states should amend … legislation to cap how much any facility and company can avoid paying in taxes each year.”

Rice, UH launch joint effort to accelerate plastics recycling solutions

plastics partnership

Institutes at two Houston universities are joining forces to help position the city as a global leader in plastics recycling innovation.

The Center for Energy Studies (CES) at Rice University’s Baker Institute for Public Policy and the University of Houston’s Energy Transition Institute (UH-ETI) have announced a strategic partnership that aims to develop real-world solutions for plastic recycling.

The universities will kick off the new initiative with the Annual Sustainability Summit: Innovations and Collaborations in Circularity & Supply Chain Resilience event April 22 at the Baker Institute.

“Houston sits at the center of the global plastics and petrochemical value chain, which makes it uniquely positioned to lead in circular solutions,” Rachel Meidl, deputy director of CES, said in a news release. “This partnership is about moving beyond theory and bringing together data, policy and industry insight to accelerate technologies and frameworks that can scale.”

The partnership—which was made official during CERAWeek—will integrate policy, economics, science and engineering. The universities will work to “share data, insights, networks and connections to advance global work in protecting the environment, economy and society,” according to a news release from Rice.

Initially, the universities will focus on evaluating scalable advanced recycling pathways, developing policy frameworks to improve plastics circularity, analyzing emerging technology and using industry stakeholders for deployment.

Plastics circularity aligns with Rice and UH’s energy transition efforts to advance a circular economy. UH's ETI recently published a white paper that analyzes how the U.S. currently handles plastics recycling and advocates for a new approach. Ramanan Krishnamoorti, author of the paper and vice president of energy and innovation at UH, said the partnership with Rice’s Baker Institute could help bring some of the ideas outlined in the paper to reality.

“Our research has shown that a uniform approach may be the best way for the U.S. to tackle plastic waste,” Krishnamoort said in a news release. “By partnering with Rice’s Baker Institute for Public Policy, we will be better positioned to deliver real-world solutions that advance a circular plastics economy.”