pay-as-you-throw and solid waste finance

Pay-‐As-‐You-‐Throw and Solid Waste Finance

Joshua Kolling-‐Perin Cal Cunningham

October 22, 2013

Copyright © 2013 WasteZero 2

•  Founded in 1991 •  Based in Raleigh, NC, with regional offices throughout the country (MA, ME, IL, and SC)

•  Focused on delivering best-‐in-‐class municipal waste reducNon programs (100% customer retenNon rate for programs we design and manage)

•  Work with approximately 800 municipaliNes and countless private customers across 41 states

•  Designed to share in our partners’ success— contracts Ne our payment to waste reducNon targets

•  CerNfied as a B Corp—meets rigorous standards of social and environmental performance

•  Supplies made in US from recycled content

About WasteZero


Pay-‐as-‐You-‐Throw in North Carolina MunicipaliFes with some form of pay-‐as-‐you-‐throw are nothing new in North Carolina.


The fact that garbage is an unmetered u=lity leads to avoidable waste of financial and environmental resources.

Solid waste is the only uFlity residents do not pay for per unit.

Solid Waste—The Last Unmetered UFlity

Electricity Gas

Water Trash

Metered Unmetered


The PAYT SoluFon—Overview

Current Approach

With Bag-‐Based Pay-‐As-‐You-‐Throw

Solid waste and recycling fees or General Fund dollars

Residents purchase their own bags (~$0.30 each) for curbside/can/cart collecFons

All trash bags are collected curbside or at drop-‐off

centers

City may reduce fees or reallocate General Fund dollars for disposal/

collecFon

Residents purchase municipality-‐specific bags

at local retail stores (typically $1-‐$2/bag)

Only pay-‐as-‐you-‐throw bags are collected

curbside or at drop-‐off centers

Recycling is opFonal, but not incenFvized

Behavior changes: waste is reduced and recycling increases

Easy Convenient Effec/ve


The Way Things Work Now

2. Request 3. Blank Check

“Fill ‘er up!”

1. Flat Fee

Solid Waste $138.00

CITY OF ANYTOWN

ANYTOWN, USA PO BOX 1234

CITY OF ANYTOWN


ANYTOWN, USA

An unfair approach to those that recycle


The Pay-‐As-‐You-‐Throw Model

3. IncenFvize What’s Right

Usually free

2. Pay-‐As-‐You-‐Throw

ANYTOWN, USA

1. Cut Fees/Costs

Solid Waste $138.00

CITY OF ANYTOWN


CITY OF ANYTOWN


ANYTOWN, USA

A variable-‐rate, equitable approach that incen=vizes people to recycle


The Steps MunicipaliFes Need to Take

Understand Base Solid Waste

Infrastructure Costs

1

Pass Ordinance Requiring Disposal in

Pay-‐As-‐You-‐Throw Bags

3

Use ExisFng Infrastructure

4

Design Program to Meet Municipal Goals

2


Immediate and Long-‐LasFng Change

Annu

al PPC

Source: 1986-‐2003 -‐ City of Worcester 2004-‐2008 – Mass. DEP

Worcester MA ResidenFal MSW, 1986-‐2008

Program IniFaFon


1Assuming municipality has no managed waste reducNon program at incepNon.

Trash tonnage drops to 50% of naNonal average and someNmes even lower. Bills for Npping fees plummet.

•  Tonnage can be reduced by up to 60%1. •  Tipping fees conNnue to decline and

recycling revenues rise accordingly.

•  Residents become increasingly saNsfied.

Recycling tonnage ofen doubles or even triples. Revenue from recycled material increases.

Within 90 days:

Long Term (Years 2-‐10):

Immediate and Long-‐LasFng Change


Success Stories

DARTMOUTH, MA

400 lbs. (55% beker than naFonal)

MALDEN, MA


DECATUR, GA


TIVERTON, RI


WORCESTER, MA



BACKGROUND "   While the City of Decatur already offered a recycling program, to meet

state requirements to reduce landfill deposits, in 1997 it recognized a need to step up its waste management efforts.

"   The city rolled out its new PAYT system to residents in 1998. —  Mail and outreach – Public hearings and neighborhood meeNngs —  Local media – Three sizes and colors of WasteZero customized plasNc trash bags

"   Residents citywide purchase WasteZero Trash Metering™ trash bags in grocery stores, hardware stores, and municipal offices.

"   As a result, the city saves more than $150,000 annually and applies that savings to fund local recycling events, raise awareness, and increase recycling rates even further.

DECATUR RESULTS WITH WASTEZERO: 1998 TO PRESENT –  42% reducNon in solid waste tonnage –  79% increase in amount of recycling tonnage –  33% increase in compost tonnage –  100% increase in recycling rate (from 10.7% to 22%) –  More than $150,000 saved in disposal costs in their first year and each year since

Case Study—Decatur, GA


1Net of program services and supplies

Program Net Financial Impact 1 Year 5 Years 10 Years Program Net Revenue1 $66K $333K $718K Disposal Savings $15K $111K $304K Incremental Recycling Revenue TBD TBD TBD OperaNonal Cost Savings TBD TBD TBD Total Program Net Impact $81K $444K $1.0M

Program Environmental Impact 1 Year 5 Years 10 Years Tons of Waste Diverted or Reduced 325 2,250 5,800 Tons of AddiNonal Recycling 130 900 2,300

PAYT in a Small North Carolina Town 1,500 eligible households



Program Net Financial Impact 1 Year 5 Years 10 Years Program Net Revenue1 $1.2M $5.9M $11.6M Disposal Savings $219K $1.6M $4.1M Incremental Recycling Revenue TBD TBD TBD OperaNonal Cost Savings TBD TBD TBD Total Program Net Impact $1.5M $7.5M $15.7M

Program Environmental Impact 1 Year 5 Years 10 Years Tons of Waste Diverted or Reduced 4,500 31,000 75,000 Tons of AddiNonal Recycling 1,800 12,500 30,000

Metric Tons of CO2 Reduced 8,500 59,000 141,000 Millions of BTUs Conserved 71,500 494,000 1,200,000

PAYT in a Mid-‐Size North Carolina City 20,000 eligible households


PAYT in a Large North Carolina City

Program Benefits and Savings 1 Year 5 Years 10 Years Program Net Revenue1 $11M $55M $114M Disposal Savings $750K $5M $13M Incremental Recycling Revenue $250K $2M $5M OperaNonal Cost Savings TBD TBD TBD Total Program Net Impact $12M $62M $132M

Tons of Waste Diverted or Reduced 20,000 125,000 300,000 Tons of AddiFonal Recycling 8,600 56,000 135,000


Average Annual Environmental Impact

Natural Resources Diverted 13,500 Incremental tons of recycling/year

Greenhouse Gas Emissions Reduced 50,950 Metric tons of CO2 equivalent/year

Energy Saved 478,500 Million BTUs/year

Landfill Life Expectancy Increase TBD Incremental years

100,000 eligible households


Best PracFces for ImplementaFon The most successful pay-‐as-‐you-‐throw programs are those that are implemented with the understanding that the municipality is conducFng smart change management.

Resident Engagement

•  ProacNve outreach •  EducaNon campaigns

Sound Program Design

•  Based on current and desired infrastructure and technology

•  Easy to understand and adopt

Appropriate Pricing Model

•  Understanding starNng point Ø  General Fund, Enterprise Fund

or blend? Ø  Visible or hidden fee?

•  True costs vs. required revenues •  ResidenNal impact

ImplementaFon

•  DedicaNng effort to the few weeks before and immediately afer program commencement

PosiFve Feedback Loop

•  Media and community outreach at milestone points, heralding success of program

In the aggregate, planning thoughHully for pay-‐as-‐you-‐throw is itself a best management prac=ce.


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