Increasing
Commercial Diversion
Tuesday,
April 20, L.A. County Sanitation Districts,
Organized
by the Southern California Council on Environment and Development
[Summary
report prepared by Jim Stewart]
WELCOME
AND PURPOSE OF FORUM
Joe
Haworth
,
Public Information Officer for the Sanitation Districts of L.A. County: We
welcome you. The Districts are pleased to be a supporter of SCCED.
Kathleen
Gildred
,
Director of SCCED: This forum is a follow-up to the "Getting to 50%"
conference we held in June 1998, which was designed to help municipalities
achieve 50% diversion by 2000. Following that conference we sent out a
questionnaire to get your priority interests, which we have used to plan this
forum series.
EXECUTIVE
SUMMARY
Dr.
Eugene Tseng
,
UCLA Extension Waste Management and Recycling Program: We are reporting
preliminary findings on the first thousand waste audits of businesses. Waste
prevention/recycling provides big cost savings. Go after big businesses first.
The larger 20% of businesses have 90% of any additional potential diversion.
Lupe
Maria Vela
,
Director, Solid Resources Citywide Recycling Division, Bureau of Sanitation,
Los Angeles Department of Public Works: We established partnerships with
businesses and developed over 50 publications to provide guidance for
commercial recycling, accomplishing 45% citywide diversion for 1995.
Dean
Richardson
,
Raytheon Hughes West: We are now at a 35% diversion rate, our goal is 50% for
this year and we are going for 70% the following year. We recycled white paper
and cardboard and achieved a diversion rate of 21%, with revenue/cost avoidance
of $25,000. In 1998 we diverted or recycled nearly 500 tons of solid waste,
scrap metal and surplus equipment for a savings of over $750,000.
Bruce
Dolezal
,
Gillette Company PaperMate Division: We recycle all metals, oil, and plastics.
We have found recycled pallets cost effective. The overall result is 80%
diversion. We have also had a 95% reduction in hazardous emissions since 1987.
Joe
Sloan
,
Director of Market Development for Consolidated Disposal: A hauler can: (1)
Spread the message about recycling/diversion, (2) Provide separate pickup of
recyclables, (3) Direct the material into a MRF, which can recover 25-40%.
Mark
Harmon
,
Integrated Waste Manager for the City of Claremont: A successful commercial
recycling program is a partnership between the public agency, commercial
customer and the hauler, with one goal: Develop a cost-effective customer
friendly, environmentally responsible, operationally feasible and legally
compliant program.
WORKING
WITH BUSINESSES
Jaime
Lozano
,
City of Carson Waste Management Specialist: Carson has a proactive AB 939
compliance program, concentrating on public-private partnerships. This means
we must get the cooperation of the business sector and the haulers.
Dr.
Eugene Tseng, has worked with the CIWMB on quantification methodologies, to
identify how much diversion is actually occurring. He has worked with the
USEPA, United Nations, China and elsewhere in designing and teaching these
methods.
Survey
of 1,000 Businesses on Potential Source Reduction and Diversion
Dr.
Eugene Tseng
,
UCLA Extension Waste Management and Recycling Program:
We
have completed 2,000 waste audits of businesses. I am reporting our
preliminary findings on the first thousand businesses.
The
waste management hierarchy is (in order of decreasing desirability):
1. Source
Reduction
,
which includes Waste Prevention, Waste Minimization, Reuse and Repair, and
Improved Durability
2. Recycling,
which includes Pre-Consumer Recycling (Internal Recycling), Post-Consumer
Recycling, and Composting
3a.
Environmentally-Safe
Transformation
,
such as Waste-to-Energy (Incineration, etc.) to use the "energy content" of
solid waste
3b.
Environmentally-Safe
Landfilling
Diversion
is classified as #1 and #2, but Transformation (such as Waste-to-Energy) and
Biomass is eligible for Year 2000, under certain conditions.
According
to CIWMB Regulation 30 PRC 40196: "Source Reduction" means any action which
causes a net reduction in the generation of solid waste. "Source reduction"
includes, but is not limited to, reducing the use of nonrecyclable materials,
replacing disposable materials and products with reusable materials and
products, reducing packaging, reducing the amount of yard wastes generated,
establishing garbage rate structures with incentives to reduce the amount of
wastes that generators produce, and increasing the efficiency of the use of
paper, cardboard, glass, metal, plastic, and other materials. "Source
reduction" does not include steps taken after the material becomes solid waste
or actions which would impact air or water resources in lieu of land,
including, but not limited to, transformation.
We
are currently working with CIWMB on the methodology of establishing a new base
year for 2000, because the present base year data are faulty for many
jurisdictions.
Our
research goals in the UCLA Waste Management and Recycling Program are to:
develop recommended approaches, do sampling/targeting of various types of
business, develop audit protocols, and collect and analyze data. We want to
learn how to quantify source reduction and diversion and how to tie the
calculations to the jurisdiction's calculation methodologies. We also want to
identify exemplary business programs, such as Disney, which is trying to reduce
waste by 50% through source reduction.
Purposes
of a Waste Reduction and Recycling Review include:
1. Reducing
Costs
through reduced disposal costs, more efficient use of materials, and reduced
liability (e.g., less hazardous wastes).
2. Corporate
Greening
through use of non- or low-toxic substitute materials, use of recycled content
feedstock, product design for increased recyclability, process design for
minimum waste.
Process
of an audit includes analysis of:
• Shipping
/ Receiving / Inventory Control
• Materials
Utilization, including type of materials and efficiency of use
• Waste
Management and Collection Procedures
• Recycling
Practices, including:
Disposal
Practices / Contamination Issues
Waste
Characterization
Disposal
Sites Utilized
Service
Costs
• Environmental
Management Infrastructure, including:
Corporate
Policy and Commitment
Management
Organization
Education
and Outreach Efforts
The
audit looks at each function where trash is created, asking the following
questions:
• What
is the material?
• Who
and what generated the material?
• How
and why was it generated?
• Could
it be avoided altogether?
• Could
it be reduced?
• Could
it be recycled?
• What
is the best "disposal option"?
• Factors
to consider include:
a) recycled
content
b) designing
for recyclability
c) designing
for minimum waste
We
have verified the theory that if you concentrate on the largest 20% of the
businesses, you will be dealing with nearly 80% of the total commercial waste.
Jurisdictions with large businesses will have 40-80% of the existing commercial
diversion. Additional potential diversion businesses can do themselves could
add 5-15%. Smaller jurisdictions with smaller businesses have 25-40% existing
diversion rate, with an additional potential diversion of 3-10%.
Summary
of lessons learned:
1. Waste
prevention can be a significant help. With an average existing internal
diversion rate of 25% already being accomplished by the businesses, only an
additional 25% of the waste stream must be diverted to reach 50% diversion.
For haulers that guarantee a 50% diversion rate, it is only fair to give credit
to the hauler for the diversion that has already taken place before they pick
up the trash.
2. Waste
prevention/recycling provides big cost savings.
3. Hauler
recycling accounts for a small percentage (less than 10%) of the actual
diversion, the other 90% is internal diversion.
4. Go
after big businesses first. The larger 20% of the businesses have 90% of any
additional potential diversion.
5. Could
do a regional MRF to increase diversion in smaller businesses because it may
not be cost effective for individual small businesses to set up recycling
programs.
We
are doing audit training sessions with CIWMB staff and could do similar
training for city and county staff. Scheduled date is June 28 to 30, 1999 in
the Los Angeles Area. Please contact Eugene Tseng for participation in the
training session with CIWMB staff on conducting Waste Reduction and Recycling
Audits.
Los
Angeles Strategies for Commercial Recycling
Lupe
Maria Vela
,
Director, Solid Resources Citywide Recycling Division, Bureau of Sanitation,
Los Angeles Department of Public Works:
Following
a 1995 analysis of overall city waste composition by generator, the Los Angeles
City Council decided to emphasize commercial and residential recycling. The
Integrated Solid Waste Management office has developed a lot of recycling
programs. Susana Reyes heads up the program which is encouraging all City
departments to buy recycled products.
The
Solid Resources Citywide Recycling Division was created in 1998, with 26 staff
from various groups, including ISWMD, to oversee citywide recycling programs.
Our
responsibilities include:
• AB
939 monitoring and report preparation
• Oversight
of AB 939 implementation in all City departments
• Providing
commercial, industrial and multi-family recycling assistance
• Recycling
organics contact and marketing activities (we are looking at developing our own
composting/mulching operation run by city employees)
• Household
hazardous waste and used oil collection program
• Market
development for recycled materials and products
• Biosolids
contract development and education
City
Approach
:
We started in 1990 to look at generation, disposal and diversion. We targeted
24 generator groups and established 24 working groups, hotels, grocers,
schools, etc. The groups develop their own targets and decide how they can
help, we do not mandate. We targeted 6 groups per year and have established
partnerships and developed over 50 publications to provide guidance to
businesses in the various generator groups. We have published a Recycling
Resources Catalog with an order form for our publications, nearly all of which
are free. You also may use them for your municipality, as long as you give us
report credit.
We
have spent a lot of effort on monitoring and uating results. We have
surveyed 1200 diversion facilities and 300 disposal companies so we have a good
idea of the recylclables and solid waste flow in the city. From 1995 through
1997 we have disposed about 3.5 million tons each year, so it is about
constant even though population is increasing. Our diversion is improving, in
1995, it was 44.5%, in 1996, 46.1%, and in 1997, 46.6%. Our 1995 AB 939 report
cost $75 for consultants, but it is free to cities. The City government
diverted only 29% in 1995, but the commercial/industrial sectors diverted 71%.
Strategies
Beyond 95
:
• Maximize
commercial diversion programs, working with CMRA recycling association
• Focus
on C&D and paper recycling
• Focus
on the 19 major City departments
• Emphasize
offices, schools, grocers, printing and multi-family buildings
• Prioritize
source reduction/reuse programs
• Buying
recycled is a crucial part of any program
• Documentation
• Staff
development so they are familiar with a variety of issues
Our
2000 strategy was developed in 1998:
• Office
building promotional campaign, in which we look at successful offices and ask
them to be co-sponsors and join in leading the campaign to involve the 1000
largest office buildings
• Waste
characterization/diversion studies (2 year effort, 2000-2001), in which we will
sample 1400 businesses of all types
• Reuse/take
back outreach, starting with electronics, we will ask large retailers to get
out information to the public on where to take electronics back for reuse.
This should be a regional program which we invite other cities to join
• Concentrate
on targeted materials: C&D and paper
• Institutional
recycling in schools
• Smart
gardening, including composting, grasscycling, may 22 we launch "mow down
pollution," featuring mulching mowers at Home Depot
• Buy
recycled programs and market development
Summary
of Results:
• Diverted
46.6% in 1997
• Established
recycling business network, our guidebooks have all been done in partnership
with businesses
• Award
winning programs, including the CIWMB Trash Cutters award in 1998, selection as
one of 32 "Best Practices models in the U.S., 1999 best organics program, CRRA
Future
Outlook:
• More
positive State legislative environment, including SB 332 expansion of the
bottle bill to include all bottles, SB 110 strengthening recycled plastic
content in food and cosmetic containers
• Stronger
City Council positions, including resolution condemning the Miller Beer
composite metal/plastic bottle (it has 2 PET layers and 3 other types of
plastic with a metal cap and a metal label. Councilmember Ruth Galanter's
resolution said the City would submit a bill to Miller for the additional cost
of recycling. Miller's response so far was to say they would add 25% recycled
plastic content.
• City's
aim for 70% diversion/recycling by 2020
• Integrate
other issues into workshops, including pesticide concerns, storm water
pollution, buying recycled
• Look
for source reduction opportunities
Lozano:
Fox Electronics of San Jose will accept shipments of old electronics, if we are
willing to pay the shipping costs.
Report
from Businesses on How We Reduced Waste and Saved Money
Dean
Richardson
,
Raytheon Hughes:
Raytheon
Hughes West is now at a 35% diversion rate, our goal is 50% for this year and
we are going for 70% the following year.
Our
driving force is not AB 939, is not being green and is not even cost savings
(because often it takes money to save money). Our driver is intra company
competition. Our new Vice President says the Texas Instruments Division
recycles 70-90%, "Why aren't we doing that?"
In
1994 I tried to develop a corporate wide recycling program, but couldn't get
anywhere -- our diversion rate was 6%. Then in 1997 Raytheon became part of
General Motors and developed a national solid waste contract. Management
pushed recycling as revenue source (from reduced waste collection), not for
waste reduction.
In
the first year, with no budget or resources, we recycled white paper and
cardboard and achieved a diversion rate of 21%, with revenue/cost avoidance of
$25,000. In 1998 we diverted 31%, recycled 2,013 tons of solid waste, for a
cost avoidance of $44,000. We won some awards, we became sponsors of America
Recycles Day.
This
year we put 2 containers in every office cubicle, for trash and for
recyclables. Our goal for 1999 is 50%. We are doing recycling, source
reduction, subcontract restructuring , communication, benchmarking. We are
expecting a cost avoidance of $58,000. We are going beyond white paper to
recycling anything that tears. We have involved the janitorial staff. To go
beyond that we need some seed money, which is hard to get.
In
terms of source reduction, we have asked our office supplies vendor Boise
Cascade to provide recyclable office supplies. We are also requiring 2-sided
copying and use of electronic mail (we are not distributing office phone books,
making directories available only on email). Cardboard recycling has gone from
193 tons in 1998 to an expected 312 tons in 1999. Our cafeteria tray reuse
program is saving 9,000 pounds/month, for a $4,000 cost avoidance. We have
asked Boise Cascade to use reusable supplies distribution containers, to
eliminate cardboard shipping boxes. We also have asked our landscaping
services contract to recycle greenwaste, and leave grass clippings on the
ground. We recycled 56 tons of scrap metal for a savings of $27,000.
Recycling surplus equipment was about 410 tons for a savings of $688,493.
The
key is strong management support. Our CEO Dan Burnham is aggressive on the
environment and on safety issues. Also important is communications with the
employees and vendors to reduce waste. Benchmarking is helpful. We are using
the OPM scoring system in which we multiply the amount for each of the
categories by a weighting factor to track our progress. Awards and
commendations are very helpful, such as the WRAP award.
Bruce
Dolezal
,
Gillette Company PaperMate Division:
The
Santa Monica PaperMate Division produces over 1 billion writing instruments
annually using 300,000 square feet of space. Gillette's mission for years has
included the statement: "Our products will be safe to make and to use, we will
conserve natural resources and will continue to invest in a better
environment."
Each
manufacturing facility business plan has critical success factors which include
hazardous waste reduction, energy conservation/optimization, recycling
programs, etc. We look at each waste stream to determine the quantity of waste
generated, where it can be recycled, the cost to recycle, the cost to dispose,
the cost to replace, and the overall total cost savings from recycling. For
example, we have the plastic waste from the mold runner recycled at the machine
instantly. Rejects from the manufacturing process are ground up and recycled
at the plant.
We
are driven by doing the right thing. For example, machine and hydraulic oil is
recycled in-house. We have found recycled pallets cost effective. We recycle
all metals. Even extruded PVC has some markets. We reuse corrugated tote
containers until they fall apart. Whenever we are doing construction or
remodeling, we recycle everything we can. Customer returns are ground up and
sent to a waste-to-energy facility. We will accept bulk shipments of
disposable razors and recycle the materials. Our office recycling program
mixes all the paper together for convenience, rather than separate out white
and colored paper.
The
overall result is 80% diversion. We have also had a 95% reduction in hazardous
emissions since 1987. We have eliminated use of ozone depleting compounds. We
also have a ride sharing program.
We
have made significant reductions in overall product packaging since 1990. We
have just produced the "Eco-pen," made from recycled materials. We have
increased energy efficiency 40% and water efficiency 51% since 1990.
WORKING
WITH HAULERS
Kim
Braun
,
Solid Waste Manager for the City of Santa Monica: Working with haulers is
important because to get our city diversion rate up, we have to ensure the
private haulers are doing the diversion from commercial facilities.
How
Haulers Can Help Increase Commercial Diversion
Joe
Sloan
,
Director of Market Development for Consolidated Disposal:
We
have designed and implemented many waste programs including specialized
pickups, commingled recyclables, and dirty MRFs. Our industry is basically a
transportation business, so we are similar to the Post Office, UPS, or any
delivery company.
As
someone said, we create trash with capitalism and collect it with socialism.
Haulers
can help you with commercial diversion. The challenge is to make it work for
both the hauler and the business. Business people look at the bottom line.
We
can pick up most efficiently on routes where the customers are most dense, and
we have uniform containers so we can use the same vehicles. In our survey of
5,000 customers, we found 45% of our revenue from 60% of our customers have us
pick up 1 or 2 3-yard bins once a week.
Only
10% of commercial diversion is attributed to the hauler, but most of your
ordinances, permits are directed to the hauler. But haulers find all the
recyclable plums are already picked out of the commercial trash, so there is
nothing of value left in the trash.
Avon
saved $90,000 per year doing recycling, but small generators cannot achieve
this large amount of savings. If a customer used a 3-yard container, we could
give two 1.5-yard containers instead to separate plastic, white paper from the
trash, it will actually cost him more because we need to send two trucks to the
same place. In the last 12 years there was only one brief time when the value
of recyclables exceeded the cost of pickup.
Haulers
can provide some technical services, but the municipalities should hire
consultants to do this. A hauler can:
1. Spread
the message about recycling/diversion.
2.
Provide
separate pickup of containers for recyclables, even if it costs more (or you
can provide the hauler with a reduced rate structure for recycling services if
you wish).
3.
Direct
the material into a MRF, which can recover 25-40% of a mixed commercial waste
stream. This is the cheapest way to get the diversion because we only have to
pick up one container.
Question:
Is 25% recycling from a MRF typical?
Sloan:
Yes, because businesses have already pulled out the recyclables from the waste
stream. The MRF provides the lowest cost per ton. La Mirada, Norwalk, and San
Gabriel require waste to go through a MRF
Question:
Isn't diversion reducing the hauler's income?
Sloan:
Haulers have implemented a lot of recycling programs, but gross revenues have
still increased. The new legislative requirements make it more difficult for
the smaller haulers.
Working
with Haulers from the Public Sector Perspective
Mark
Harmon
,
Integrated Waste Manager for the City of Claremont:
Our
department has 25 employees that provide:
• Full
service trash and recycling collection program 7 days a week.
• Commingled
recycled program with MRF-processed recyclables.
• Variable
sanitation rate with recycling costs as part of the commercial rates, so there
is no separate fee for recycling. We charge people on basis of how often we
pick up. If you add fees for recycling, it is a disincentive. We think
everybody should pay for the programs to implement recycling. (If you don't
separate out the recycling fee, you can keep away from Prop 218 problems.)
• Full
cost accounting system. Our Enterprise Fund means we have to recover all of
our expenses from the customers.
The
program has three players:
• Commercial
customers who want a clean, efficient service at a cost comparable to
neighboring businesses and/or communities. The recycling program is perceived
as environment-friendly thing to do.
• Haulers
who want full cost recovery for collection services and compliance with
municipal contracts. Quality customer service is important to them, but the
companies answer more to Wall St. (or company headquarters), not to Main St.
(or the local community).
• The
public agency which is concerned with public policy and law, legislative
compliance (AB 939, etc.) and environmental responsibility. They are sensitive
to rate impacts on commercial customers (because it may affect the tax rolls).
All
three meet in the middle with the same goal: Develop a cost-effective customer
friendly, environmentally responsible, operationally feasible and legally
compliant commercial recycling program.
Steps
toward achieving this goal include:
1. Identify
your waste stream and the business composition of your community. Look at your
SRRE and waste audits. Decide what materials to target. The majority of
commercial recyclables are usually one or two commodity types. After you
identify those, focus on the businesses that produce the highest percentage of
these materials.
2. Clearly
define your measurable diversion goal, it can be a percentage, tonnage or
participation rate.
3. Create
a partnership with your hauler to develop programs to meet your goals. Be
prepared to discuss program options, contract modifications, and rate impacts.
If a dirty MRF that costs $70/ton is too expensive, what about a clean MRF? In
terms of rate impacts, do you want a low rate or do you want to increase it a
little to add recycling pickup? Don't ask a hauler to accept the value of
recyclable materials as full payment, the market for these commodities is too
unstable.
4. Present
the program to City Council and the business community (include the Chamber of
Commerce). Explain how the program works, prepare printed materials. Educate
business community as to the:
-
environmental benefits
-
diversion goals
-
rate impacts
5. Measure
success of the program.
In
conclusion, a successful commercial recycling program is a partnership between
the public agency, commercial customer and the hauler. An appropriate
recycling program should address the concerns or needs of all the players.