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
Copyright © 2013 WasteZero 3
Pay-‐as-‐You-‐Throw in North Carolina MunicipaliFes with some form of pay-‐as-‐you-‐throw are nothing new in North Carolina.
Copyright © 2013 WasteZero 4
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
Copyright © 2013 WasteZero 5
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
Copyright © 2013 WasteZero 6
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 PO BOX 1234
ANYTOWN, USA
An unfair approach to those that recycle
Copyright © 2013 WasteZero 7
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
ANYTOWN, USA PO BOX 1234
CITY OF ANYTOWN
ANYTOWN, USA PO BOX 1234
ANYTOWN, USA
A variable-‐rate, equitable approach that incen=vizes people to recycle
Copyright © 2013 WasteZero 8
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
Copyright © 2013 WasteZero 9
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
Copyright © 2013 WasteZero 10
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
Copyright © 2013 WasteZero 11
Success Stories
DARTMOUTH, MA
400 lbs. (55% beker than naFonal)
MALDEN, MA
480 lbs. (46% beker than naFonal)
DECATUR, GA
480 lbs. (46% beker than naFonal)
TIVERTON, RI
500 lbs. (44% beker than naFonal)
WORCESTER, MA
450 lbs. (50% beker than naFonal)
Copyright © 2013 WasteZero 12
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
Copyright © 2013 WasteZero 13
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
Copyright © 2013 WasteZero 14
1Net of program services and supplies
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
Copyright © 2013 WasteZero 15
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
1Net of program services and supplies
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
Copyright © 2013 WasteZero 16
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.
Copyright © 2013 WasteZero 17
Ques=ons & Conversa=on