Zero Waste Economics

Student Learning Outcomes By the end of this lesson, learners will be able to: Identify 3 incentives that communities can adopt to stimulate generators, haulers, processors and/or disposal facilities to reduce wasting and increase reuse, recycling and composting Describe how to harness the avoided costs of garbage collection and disposal as the engine of change for Zero Waste Examine how a garbage rate structure can incentivize waste reduction. Explain various job positions and expected job growth associated with SRM

Zero Waste Economics Contracts and Incentives Keys to Funding Job Impacts Zero Waste Purchasing

The Role of Local Government Program Design Contracting Fees and Taxes Policies and Regulations

Collection System Options Franchises Exclusive Non-exclusive Open Market Permit system/License License only Self-Haul

Contracting Goals Specify the services you want from your contractor Specify what happens if it is not done right Offer incentives as rewards

Key Contract Clauses Waste diversion performance standards Higher compensation for tons recycled than tons landfilled Performance incentives & penalties Innovations and new services during contract Public outreach and notice requirements Reporting & review requirements Require hauler to provide recycling plan with rate review application

Incentives For Single Family Residents Pay As You Throw (PAYT) Programs Pay for service based on garbage thrown out Pay for waste like a utility Residents only pay for what they use

Types of PAYT Programs Cans: Residents pay higher fees for larger containers Bags: Residents pay a fee for garbage bags Stickers: Residents pay for stickers affixed to bags/containers

Incentives For Business Require Hauler to provide recycling service, unless business already has Require equal recycling and garbage Require Hauler offer recycling services for free to businesses, or at a discount Offer “curbside” recycling services free to small businesses Require recycling of C&D, recycled products, space for containers, and recycling Allow Fee For Service Recycling So Generators Can Choose

Incentives For Franchised Haulers Pay on the basis of tons recycled or inversely to the amount landfilled Let haulers keep all recycling revenues Require haulers to take C&D to recycling facilities “Allow” costs of all reasonable waste prevention, reuse, recycling and market development initiatives, including outreach

Incentives For All Haulers Decrease Franchise Fees as Waste Diversion Increases Lower franchise fee if they have a City- approved recycling program Exempt recyclables revenues from “gross receipts” Require waste diversion goal Require waste diversion plans

Funding Zero Waste 13 If there is no garbage, what do you charge for? If there are NO landfills, there are no landfill tipping fees! BUT, there are still operational costs for collection, labor, processing and managing the system

Recycling Revenues & Funding Sale of Recyclables Grants/loans for recycling infrastructure Beverage Container Processing Fees Tire and Oil Funds Reduced tipping fees

Keys to Funding – Garbage Rates Rate Base Allowable Costs Avoided Collection and Disposal Costs Tipping Fee Surcharges

Keys to Funding – Fees & Taxes AB939 Fees Franchise Fees Business Taxes, Parcel Taxes Host Fees Proposition 218

Keys to Funding – Mitigation Fees Cap and Trade Conditions of CUPs Environmental Fines

Keys to Funding - Grants Cap and Trade CalRecycle Economic Development Conservation Corps Agriculture Energy Air Foundations

Keys to Funding - Indirect Product Stewardship policies Encourage/mandate existing recyclers and generators help meet diversion goals Requirements for City projects Labeling Certification

Zero Waste Purchasing 1 of every 5 purchasing dollars are spent by government. Use tax dollars to purchase the future we want Combined power of government & large contractor purchasing will dictate changes in product design and manufacture that we cannot legislate.

Zero Waste Purchasing Adopt Precautionary Principle for municipal purchases Purchase Zero Waste products and services Avoid single use products and packaging Return to vendors wasteful packaging Reduce packaging and buy in larger units Use reusable shipping containers Purchase reused, recycled and compost products Buy remanufactured equipment Lease, rent and share equipment Buy durables (using life-cycle cost analyses) Encourage businesses and Institutions to follow Source: Alicia Culver,

ZW Partnership With Suppliers Ricoh Green Procurement RETURNREUSERECYCLEREFUSEREDUCE

Jobs and Zero Waste LANDFILL = WASTE

….Wasted Resources – Land – Water – Energy Money Jobs

LANDFILL = 1 Job/ 10,000 ton disposed

Composting = 4 Jobs/10,000 tons Recycling = 10 Jobs/10,000 tons

Reuse & Repair = Jobs/10,000 tons

ZERO WASTE = JOBS

Scraps become Products Precision Manufacturing Product Redesign Green Chemistry Design for Long-life and Compatibility Where are the Opportunities? Design for Zero Waste Build/ Manufacture for Zero Waste Recycling of Materials CRV Collection for EPR Products & Services, Purchase and Resale for Zero Waste Connects Business to Public Determines Packaging Package, Ship, Market for Zero Waste

Job Market Sectors Government Agencies Manufacturers Electronic Recyclers Recycling Companies Hauling Companies Fashion Design Construction Companies Non-profit Organizations Events Management Engineering/Automotive Re-use Stores Retail Business Grocery Stores Colleges & Universities Packaging Companies Healthcare Property Management Consulting Agencies Marketing Restaurants Architecture ….almost any job

Resource Management Jobs 31 Prevention – Product Design and Marketing Reduce, Repair & Reuse – Sales Donate, Swap or Sell – Mostly Non-Profits Re-cycle, Up-cycle & Down-cycle – Collection and processing Manufacturing new products Compost – production and landscaping Land Bank – landfill worker, heavy equipment operator Convert to Energy – with anaerobic digestion Landfill – landfill worker

Discuss your future job. How will SRM help you with job search? How can you incorporate what you have learned about Zero Waste into your job responsibilities?