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Pay-As-You-Throw and Solid Waste Finance
1.
Pay-‐As-‐You-‐Throw and Solid
Waste Finance Joshua Kolling-‐Perin Cal Cunningham October 22, 2013
2.
About WasteZero •
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 Copyright © 2013 WasteZero 2
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 3
4.
Solid Waste—The Last
Unmetered UFlity Solid waste is the only uFlity residents do not pay for per unit. Metered Electricity Unmetered Gas Water Trash The fact that garbage is an unmetered u=lity leads to avoidable waste of financial and environmental resources. Copyright © 2013 WasteZero 4
5.
The PAYT SoluFon—Overview
Current Approach Solid waste and recycling Residents purchase their All trash bags are collected fees or General Fund dollars own bags (~$0.30 each) for curbside or at drop-‐off curbside/can/cart collecFons centers Recycling is opFonal, but not incenFvized With Bag-‐Based Pay-‐As-‐You-‐Throw City may reduce fees or reallocate General Fund dollars for disposal/ collecFon Only pay-‐as-‐you-‐throw bags are collected curbside or at drop-‐off centers Behavior changes: waste is reduced and recycling increases Convenient Copyright © 2013 WasteZero Residents purchase municipality-‐specific bags at local retail stores (typically $1-‐$2/bag) Easy Effec/ve 5
6.
The Way Things
Work Now 1. Flat Fee 2. Request 3. Blank Check CITY OF ANYTOWN PO BOX 1234 ANYTOWN, USA Solid Waste $138.00 ANYTOWN, USA “Fill ‘er up!” CITY OF ANYTOWN PO BOX 1234 ANYTOWN, USA An unfair approach to those that recycle Copyright © 2013 WasteZero 6
7.
The Pay-‐As-‐You-‐Throw Model
1. Cut Fees/Costs 2. Pay-‐As-‐You-‐Throw 3. IncenFvize What’s Right CITY OF ANYTOWN PO BOX 1234 ANYTOWN, USA ANYTOWN, USA Solid Waste $138.00 CITY OF ANYTOWN PO BOX 1234 ANYTOWN, USA ANYTOWN, USA Usually free A variable-‐rate, equitable approach that incen=vizes people to recycle Copyright © 2013 WasteZero 7
8.
The Steps MunicipaliFes
Need to Take 1 2 3 4 Understand Base Solid Waste Infrastructure Costs Design Program to Meet Municipal Goals Pass Ordinance Requiring Disposal in Pay-‐As-‐You-‐Throw Bags Use ExisFng Infrastructure Copyright © 2013 WasteZero 8
9.
Immediate and Long-‐LasFng
Change Worcester MA ResidenFal MSW, 1986-‐2008 Annual PPC Program IniFaFon Copyright © 2013 WasteZero Source: 1986-‐2003 -‐ City of Worcester 2004-‐2008 – Mass. DEP 9
10.
Immediate and Long-‐LasFng
Change Long Term (Years 2-‐10): Within 90 days: Trash tonnage drops to 50% of naNonal average and someNmes even lower. Bills for Npping fees plummet. Recycling tonnage ofen doubles or even triples. Revenue from recycled material increases. Copyright © 2013 WasteZero • • Tonnage can be reduced by up to 60%1. Tipping fees conNnue to decline and recycling revenues rise accordingly. • Residents become increasingly saNsfied. 1Assuming municipality has no managed waste reducNon program at incepNon. 10
11.
Success Stories DECATUR,
GA 480 lbs. (46% beker than naFonal) WORCESTER, MA 450 lbs. (50% beker than naFonal) MALDEN, MA 480 lbs. DARTMOUTH, MA (46% beker than naFonal) TIVERTON, RI 400 lbs. (55% beker than naFonal) 500 lbs. (44% beker than naFonal) Copyright © 2013 WasteZero 11
12.
Case Study—Decatur, GA
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 — Local media – Public hearings and neighborhood meeNngs – 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 Copyright © 2013 WasteZero 12
13.
PAYT in a
Small North Carolina Town 1,500 eligible households 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 $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 Total Program Net Impact 1Net of program services and supplies Copyright © 2013 WasteZero 13
14.
PAYT in a
Mid-‐Size North Carolina City 20,000 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 1Net of program services and supplies Copyright © 2013 WasteZero 14
15.
PAYT in a
Large North Carolina City 100,000 eligible households Program Benefits and Savings 1 Year 5 Years 10 Years Program Net Revenue1 Disposal Savings Incremental Recycling Revenue OperaNonal Cost Savings Total Program Net Impact $11M $750K $250K TBD $12M $55M $5M $2M TBD $62M $114M $13M $5M TBD $132M Tons of Waste Diverted or Reduced Tons of AddiFonal Recycling 20,000 8,600 125,000 56,000 300,000 135,000 Average Annual Environmental Impact Incremental tons Natural Resources Diverted 13,500 of recycling/year Greenhouse Gas Emissions Reduced 50,950 Metric tons of CO2 equivalent/year Energy Saved Landfill Life Expectancy Increase 478,500 Million BTUs/year TBD Incremental years 1Net of program services and supplies Copyright © 2013 WasteZero 15
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 ImplementaFon • DedicaNng effort to the few weeks before and immediately afer program commencement 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 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 16
17.
Ques=ons & Conversa=on
Copyright © 2013 WasteZero 17
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