1. Pay-As-You-Throw Presentation to the Belmont Sustainability Committee
Carolyn Dann/ MassDEP
April 5, 2017
Welcome Slide

2. Introduction Municipal Assistance Coordinator – Today’s Presentation
Helped implement PAYT in Hamilton (2007) , Wenham (2008), Wayland (2009), Acton (2015)
Working with Boxborough now
Today’s Presentation
Overview of PAYT and its various program structures
Benefits: What does the data tell us?
Case Studies
Predicting the financial impact on our towns?
Common concerns and criticisms

3. What is in Our Trash?
Despite all our recycling, there is STILL 68% of refuse going to incinerators that could be recycled (paper, plastic, metal, glass) or composted (organic materials)! (2011 Waste Characterization)
PAYT/SMART programs are one of the best known ways to increase recycling
Recycling More helps to address CLIMATE CHANGE
There is an environmental value to waste reduction and recycling!
44% less energy is used in the recycling of paper compared to virgin paper
66% with plastic and
95% with aluminum

4. What is PAYT? Unit-based pricing (like a utility)
Signals to residents the true costs of solid waste disposal
Creates a financial incentive to use less and recycle compost more
PAYT is a widely used solid waste program. There are 137 municipalities that used some form of PAYT.
I will go in to the different types of PAYT in a moment, but they all share the common characteristics of being unit-based, like a utility such as water and electricity.
This signals to residents the true cost of throwing away trash and creates a tangible financial incentive to reduce the amount of trash they throw away.
Under a PAYT program, residents should be provided a variety of free recycling options to help them reduce their trash.

5. PAYT Terminology
For some, Pay-As-You-Throw (PAYT) is a four letter word.
Instead:
Unit-Based Pricing
Variable Rate Pricing
Volume or User Based Pricing
“Green bag” program
Re-Branded Save Money And Reduce Trash (SMART) in MA and EPA
PAYT is a widely used solid waste program. There are 137 municipalities that used some form of PAYT.
I will go in to the different types of PAYT in a moment, but they all share the common characteristics of being unit-based, like a utility such as water and electricity.
This signals to residents the true cost of throwing away trash and creates a tangible financial incentive to reduce the amount of trash they throw away.
Under a PAYT program, residents should be provided a variety of free recycling options to help them reduce their trash.

6. How does it work?
The fixed costs of collecting trash and recyclables is paid for by either an annual fee or by property taxes.
PAYT bags are priced to cover the cost
of transporting and disposing of trash
Bags are sold usually at local retail locations.
Vendors can handle the
production, distribution, and billing
of PAYT bags
This slide refers to bag-based PAYT programs.
The resident would still purchase an annual permit for use of the transfer station and cover the “costs to open the door” such as staffing, equipment, maintenance, etc.
In the case of a town with a curbside collection program, such as Provincetown, you may want to charge a fee for that service or simply continue covering some of those costs through the tax base. That’s much of a political question since it’s difficult to transition from a “free” service to a fee-based service.
In addition to the annual sticker-fee, residents would purchase official PAYT bags from various retail locations – hardware stores, supermarkets, etc. You may also want to sell bags at town hall, although this is not necessary.
There are several vendors in Massachusetts that can handle all of the logistics of production, distribution, and billing for PAYT bags. There is an existing state contract available to MA municipalities. Some vendors will even handle PAYT planning, outreach, and education efforts… for a fee.

7. PAYT Program Types Annual Fee plus all trash in PAYT bags
Most Drop-off programs
Annual Fee for “1st Barrel” plus overflow bags
No Annual Fee, all trash must be in PAYT bags or stickered
No Annual Fee, “Free” 1st Barrel or Bag, plus overflow bags
plus
And, If
needed
for
There are many variations of PAYT (bags, stickers, tags, weighed, etc), but the all share the common characteristic of being unit based.
Go through each.
National data on PAYT program shows that larger communities and urban and suburban communities tend to use can programs. Smaller communities and more rural communities are more likely to use bag, tag, or sticker programs. Bag and drop-off programs are most prevalent in the East, can and bag programs are most common in the Midwest and the South, and can programs are the most popular in the western U.S.
For transfer station program, bags are really the best way to go, and is strongly encouraged from MassDEP. In fact, only bag programs are eligible for grant money from DEP to help cover the start-up costs. It’s much easier for enforce PAYT with bags because they are clearly visible from a distance. Stickers and tags are more difficult for transfer station staff to see. Bags are a more fair system because all residents purchase the same size bags. With a sticker or tag program, staff have to make a judgment on the spot about whether or not a bag is oversized. Tags and are also easier to counterfeit.
Show data about prevalence of difference types of programs in Massachusetts
And, If
needed

8. Curbside PAYT Works in Worcester
No annual fee; fixed costs are tax funded
$1.00/30-g bag, none free
$0.50/15-g bag
Fees for bulky waste

9. Malden’s PAYT Results PAYT implemented October 2008 No annual fee
All trash goes in bags.
Bags cost $2.00 each
50% reduction in trash, first years

10. Shrewsbury PAYT Results
Shrewsbury’s 1st Year (Curbside):
Before: (1.10 T/Hh)
After: 7137 (0.74T/Hh)
32% less SW

11. Wrentham’s Evolution Automated PAYT: 35-gal for SW and 96-gal for SSR
PAYT with “1st barrel free” and overflow bags
Automated PAYT results:
Trash down another 6%
Recycling up 20%
SW Budget reduced 16%
= $140,000!
Unlimited Trash
PAYT Results:
Trash down 32%
Recycling up 34%
Solid Waste Budget reduced 5%, $41, 552 equaled a FT position, saving a core services

12. Hamilton’s Evolution
PAYT with 35-gal barrel “free” PLUS weekly SSR and weekly organics collection
PAYT with “1st barrel free” and overflow bags
Unlimited Trash

13. Hamilton’s Results ~2400 Households

14. PAYT Benefits
Reduction in waste disposal (and associated cost savings) from 25% to as much as 50% reported (depending on where you are starting from)
Reductions may occur from a variety of reasons, including:
More recycling and yard waste diversion
More donation of items (furniture, etc.)
Reductions in illegal use of current program
Backyard composting
Other forms of waste and materials diversion

15. PAYT Administration Is Easy!
Bag vendors have taken over most of the work
They warehouse the cases of bags
They ship to retailers
They track the sales
They bill the retailers
They provide the Town a monthly report and a CHECK!

16. Retailers Like Selling The Bags
Where Do I Buy Bags?
Local grocery, hardware and convenience stores.
Retailers do not charge a mark-up; they enjoy the “traffic”
Can I still use my barrel?
Yes, if you want to use it
to put your official bag inside
Yes, you can use it for recyclables
Bottles, cans, and plastics

17. This chart shows that almost all of the recent PAYT program, within the last 10 years or so, are bag programs. In the earlier days of PAYT, in the 90’s, there was more variety, but bag programs have proven to be more effective.

18. Explain map. Provide handouts. Shows the effectiveness of PAYT in MA.\

19. Common Concerns Illegal dumping
Impact on large families and low income residents
Perception that PAYT is a new tax
Leveling the playing field with private haulers
Start with next slide on Illegal Dumping

20. No Illegal Dumping Prevented by having comprehensive recycling options
Think about what you see illegally dumped! It is usually a TV, couch or other difficult to dispose of item.
Stopped by early enforcement action + publicity about enforcement.
Enlist police in tracing any illegally dumped trash by looking at the mail inside. Most people don’t plan ahead!
Word gets around and no one wants to get caught!

21. Impact on large families and low income residents
Large families MAY have to pay more, IF they dispose more. But, much of what they buy can be recycled and donated
Milk and juice cartons,
Cereal boxes
Outgrown clothing
And, children are often the best recyclers!
For low income residents, Towns can offer free or reduced priced sets of bags to those who qualify for other subsidies.
Free or reduced lunch programs or
Tax abatement programs

22. Perception of “Tax”
Note that more than half of the Municipalities in MA do not pay for trash out of property taxes. You are competing with them and they have more property taxes to pay for school and public safety as a result of their trash fees and PAYT programs.
Set fees transparently, to cover the actual costs of the program, this shouldn’t be an issue. However, if bag fees are priced to be an additional revenue source for the town, you may have justifiable run into this criticism.
Consider an Separate Enterprise Fund
Note that using property taxes to pay for residential service (but not business service) is in essence a subsidy from businesses to households

23. Not a Tax: If You Don’t Have Money to Burn, Recycle!
Residents are in control! They determine how much they want to spend on trash disposal!

24. Private Haulers
New template available from DEP for Health Depts to use to regulate private haulers.
No private haulers should be permitted to collect just solid waste from residential customers without separately collecting recyclables. One can assume that recyclables are thrown into the trash which is a violation of the Waste Bans.
Many Health Depts are updating their regulations now to:
Make recycling mandatory for all (as do the Waste Bans)
Require haulers to collect both trash and recycling and
Require haulers to educate their customers about the Waste Bans.

25. Best Practices for Advocates
Develop the “why”!
Many communities have had the advantage of a “crisis” such as dramatic increases in tipping fees, landfills closing, or very high annual fees
More challenging to extract SW from the property taxes. Does your community have “money to burn”? Doubtful! Make the case that you are in a shrinking minority of towns still paying for trash out of property taxes!
Remind people that things that are “free” are almost always overused. Who doesn’t overeat at an “all you can eat buffet”?
Work with the local officials
Get the leadership to agree that they will adopt PAYT if you can “sell” it.
Agree with the DPW on a plan and include enough details to answer everyone’s questions. (Bulky waste items, other fees?)
Plan a political campaign
Plan events, go to clubs/groups/organizations that will host a speaker, talk to PTOs and Senior Centers, explain the benefits and ask for their support.
Treat it like a political campaign with calls, signs, flyers, slogans. Get commitments from people to attend the meeting or to vote because those “against” will always come out!

26. Getting the Details Right
Work with the spreadsheet to determine the right prices, fees, number of free items, or whatever.
Figure out the other details to tell residents what to do with :
Bulky Waste
Branches, brush and leaves, christmas trees
Other items that are collected at the curb
Develop a flyer to send to all residents

27. Save As You Throw Pay As You Throw It is up to You!
Results – Residents reduce their waste; the Town pays less for disposal; the State generates less trash
Responsibility – Residents actions determine how much they pay
Right Messaging – It aligns the financial incentives with actual costs, reflecting savings from recycling, waste reduction, donations, and composting

28. Municipal Assistance Coordinator
Questions?
Carolyn Dann
Municipal Assistance Coordinator
MassDEP
(781)