1. Boosting Recycling in Tennessee August 13, 14, & 15, 2012 1

2. SERDC.org SERDC Sponsor members 2

3. SERDC.org What is recycling? 3

4. SERDC.org How Does Recycling Work? a.Generator separation i.We have tried the dirty MRF method, doesn’t work. b.Public collection i.Here the material is at its lowest point in the value chain. ii.Today we will discuss how to keep these programs efficient c.Initial processing, the MRF d.Marketing i.Intermediate processor ii.End user e.End user f.Retailer g.Consumer/generator 4

5. SERDC.org Part of the manufacturing process Step one in material management. 1.In the mines we separate the ore from the overburden 2.In recycling we separate the material from the waste Only those items that we truly need get recycled If there is a market, someone is willing to pay. They wouldn’t pay unless they had a real reason to do so. Meaning, they intend to sell it at a profit. This may be after improving it or working with it, but the point is that it has value because it has a/many use(s). 5

6. SERDC.org Recycling Provides the Manufacturer Energy savings Transportation savings Competitive edge 6

7. SERDC.org Recycling Saves Energy Aluminum95% Paper64% Plastic50% Steel75% Glass50% What do we expect energy prices to do in the next twenty years? 7

8. SERDC.org Regional Collaboration = Increased Access to Markets Summary of Region Wide Findings: 206 manufacturers 47,525 employees $29.4 Billion sales revenue 8

9. SERDC.org Tennessee Manufacturing 9

10. SERDC.org Tennessee 30 Manufacturing Facilities $4.3 Billion in yearly sales 6,500 Tennessee Jobs 10

11. SERDC.org Material Recovery Facilities MRFs 11

12. SERDC.org Recycling Provides the Community 12 Jobs Personal income Tax revenue

13. 13

14. SERDC.org Jobs 4 TN Current capture 1.9 million tons Potential 5.7 million tons Potential increase 6,384 jobs $300,200,000 Personal income $13,680,000 State Tax Revenue 14

15. SERDC.org How do we do it? Resources Real Estate Resolve 15

16. SERDC.org Possible Steps to Take Declare commodity status Disposal restrictions Tip fee surcharges Mandate waste metering (PAYT) Hub and spoke infrastructure development Required participation Select industries (ABC permits) General 16

17. SERDC.org NC Plastic Bottle Recovery (tons)

18. SERDC.org NC Plastic Bottle Recycling Rate

19. SERDC.org States with Tip Fee Surcharges

20. “Pay-as-you-throw (PAYT) programs, also called unit-based or variable rate pricing, provide a direct economic incentive for residents to reduce waste. Under PAYT, households are charged for waste collection based on the amount of waste they throw away, in the same way they are charged for electricity, gas, and other utilities.” Pay-As-You-Throw What Is PAYT? According to the EPA,

21. SERDC.org Possible Steps to Take Declare commodity status Disposal restrictions Tip fee surcharges Mandate waste metering (PAYT) Hub and spoke infrastructure development Required participation Select industries (ABC permits) General 21

22. SERDC.org Today’s agenda a.Hear from Industry b.Have lunch c.Look as cost efficiencies and some effective Tenn programs d.Discuss next steps 22

23. 23

24. Afternoon Session Design for Success 24

25. SERDC.org What is recycling? 25

27. SERDC.org Efficiency/Cost Effectiveness Participation PAYT Total cost accounting. Avoided disposal cost. 27

28. SERDC.org Participation Key element in cost effectiveness How much outreach is enough? Voluntary vs mandatory Incentives EPA Toolkit Earth 911 28

29. SERDC.org Outreach by Design Design the program – Multifaceted – Targeted audiences Measure results – Radio Frequency Identification, RFID tags – What sectors perform? Web Site – Keep it current 29

30. SERDC.org Strategies for Behavior Change Mandatory Recycling Disposal Ban Disposal Surcharge Grants Bottle Bills Recycling Goals PAYT (Unit-Based Pricing) Product Stewardship (e.g. Producer/Manufacturer Takeback) Advance Disposal Fees Environmentally Preferable Purchasing Programs 30

31. SERDC.org Mandatory Recycling Effectiveness: Good to Great Cost: Varies with enforcement methods Pros: Communicates a strong message Cons: Requires an infrastructure and can be difficult to enforce. 31

32. SERDC.org Disposal Bans Effectiveness: Good Cost: Low to medium Pros: Proven results Cons: Difficult to enforce 32

33. SERDC.org Disposal Surcharge Effectiveness: Good Cost: Low to implement Pros: Provides funding for infrastructure development, negligible impact on households. Cons: Opposition from waste industry 33

34. SERDC.org Grants Effectiveness: Varies Cost: Requires funding source, ie disposal surcharge Pros: Can provide infrastructure development, also can target certain state wide initiatives Cons: Requires indirect funding source 34

35. SERDC.org Bottle Bills Effectiveness: Good to Great Cost: Low for local government Pros: High recovery of included containers Cons: Costs transferred to different groups, can result in reduced recycling of other materials, very difficult to implement 35

36. SERDC.org Recycling Goals Effectiveness: Low Cost: Low Pros: States a clear mission Cons: Generally ineffective 36

37. SERDC.org Advance Disposal Fees Effectiveness: Good Cost: Low administration expense Pros: Provides program funding Cons: Limited materials effected 37

38. SERDC.org Preferred Purchasing Policy Effectiveness: Fair Cost: Low Pros: Increases market demand for recycling materials, increases awareness for recycling participation Cons: Little impact on diversion, markets have matured leaving lower need for development 38

39. SERDC.org Extended Producer Responsibility Effectiveness: Varies Cost: Born by Manufacturers Pros: Removes burden from local government Cons: Free riders. Unlikely to happen on the state or local level 39

40. SERDC.org PATY Effectiveness: Good to very good, depends on unit of measurement Cost: Low for select systems, high for subscription programs Pros: Strong results, more material recycled, less waste to dispose, equitable and fair, easy to enforce Cons: Resistance to change, theft of service, single stream contamination 40

41. SERDC.org PAYT WasteZero, a company that provides support for PAYT programs has recorded recycling increases from 40% to 400% after implementation. 41

42. Pay-As-You-Throw Program Variations Measuring via:  Variable rate carts  Overflow containers  Tag affixed to bag  Specialized bag PAYT Options Collection at curbside or convenience center by:  Municipalities  Private waste haulers  Recycling companies Across Different Systems Employing:  Differing pricing methods  Differing approaches to measuring results  Various means of sharing benefits with residents Pricing and Benefit-Sharing Options

43. SERDC.org Feedback

44. SERDC.org Contact Information Will Sagar Executive Director will.sagar@serdc.org (828) 507-0123 Jenn Cooper Communications Coordinator jenn.cooper@serdc.org (864) 214-5955