NAHMMA Conference June 2015

Lessons Learned: E-Cycle Washington – Year 7

John Friedrick, Executive DirectorWashington Materials Management & Financing Authority

Financing

Cost internalization • The producers are billed by the WMMFA for their

“share” of the program costs based on their market share (by weight) in comparison to all other members – regardless of product types manufactured

• No fee/assessment at retail • Manufacturers have chosen how to account for the

cost internally• WMMFA undergoes annual financial audits with

independent auditors report to the Board

Overview of System Collectors

Collector Profiles: Number of collection sites by type

Collectors are paid based on individually negotiated rates based in their cost of collections, environmental compliance, and reasonable competition

2009 2014 # added changeNon Profit retailers – used goods 128 200 72 +57%Retailers of used goods 10 23 13 +130%Computer reuse & resale 14 18 4 +29%Private solid waste co. 12 18 6 +70%Local Govt. Transfer Stations and LF 18 11 -7 +7%Other – Small business 13 17 4 +31%Recyclers – All commodities 35 38 3 +9%Processors 5 5 0 0%

TOTAL 235 330 95 +40%

Establishing Service Provider Agreements (processors, collectors, transporters)

• Agree to “fair compensation”• Aim to use existing infrastructure to provide

collection services• Level of service by processors is determined by

several factors:• Capacity for handling materials • Proximity and location to major transport routes • Environmental efficiencies• Administrative competence and billing accuracy

Law requires collection sites:

• Alternative methods are optional (curbside or pick up on demand)

• The WMMFA believes that the collection site model is the most efficient, convenient, and environmentally responsible of all potential product stewardship models based on the scope of products involved with this particular program, due to the equipment necessary to handle, transport, and process electronics per the required environmental standards and the logistics.

Alternate Collection Services

Overview of System Processors

Processor Profiles:Number of approved and registered processors: 7

IMS Recycling, Vancouver, WATotal Reclaim, Seattle, WAElectronic Recyclers International, Auburn, WAEWC Group, Tukwila, WAE-Waste LLC, Lynwood, WAAce Metal Company, Mukilteo, WAECS Refining, Santa Clara, CA

Primary Recycling Methods:

CRT – Glass to Glass – materials used in new glass productsCircuit Boards, misc MOC electronics – Primary smelter with metals recoveryNO processors reported shipments to any Non-OECD countries since plan start up

Pounds collected/processed by product type

KittitasGarfield

ThurstonClark

San JuanIslandKing

Walla WallaLewis

CowlitzJefferson

SnohomishWhatcom

ClallamPierce

ColumbiaChelan

SpokanePacific

Grays HarborAsotin

BentonWhitman

YakimaKitsap

SkamaniaFranklin

Skagit Pend Oreille

LincolnKlickitatStevens

GrantDouglas

MasonWahkiakum

FerryOkanogan

Adams

0.00 2.00 4.00 6.00 8.00 10.00 12.00

Pounds per Capita by County 2014

E-cycle Washington WMMFA Lessons Learned Summary

E-cycle Washington, an EPR program, is a business and must be operated as such to be successful

As a business the WMMFA must treat all service providers – collectors, transporters, and processors as customers and vendors alike.

Service providers to the plan must understand they are competing with others within a competitive environment –and- the WMMFA must not allow agreements that allow rates to service providers that are not sustainable and allow for a financial “drive to the bottom”.

Compensation rates should spur initiative and creativity among service providers. Fairness in negotiating with service providers, respectful of the source of funds (manufacturers), while offering a financially sustainable program is not an exact science.

Things are not always black and white. Do the right thing.

While the laws and associated rules are guidelines intent of the laws must be taken into consideration.

Be transparent in all things – document everything and hide nothing.