Pay-As-You-Throw Presentation to the Belmont Sustainability Committee Carolyn Dann/ MassDEP April 5, 2017 Welcome Slide

Introduction Municipal Assistance Coordinator – Today’s Presentation Helped implement PAYT in Hamilton (2007) , Wenham (2008), Wayland (2009), Acton (2015) Working with Boxborough now Today’s Presentation Overview of PAYT and its various program structures Benefits: What does the data tell us? Case Studies Predicting the financial impact on our towns? Common concerns and criticisms

What is in Our Trash? Despite all our recycling, there is STILL 68% of refuse going to incinerators that could be recycled (paper, plastic, metal, glass) or composted (organic materials)! (2011 Waste Characterization) PAYT/SMART programs are one of the best known ways to increase recycling Recycling More helps to address CLIMATE CHANGE There is an environmental value to waste reduction and recycling! 44% less energy is used in the recycling of paper compared to virgin paper 66% with plastic and 95% with aluminum

What is PAYT? Unit-based pricing (like a utility) Signals to residents the true costs of solid waste disposal Creates a financial incentive to use less and recycle compost more PAYT is a widely used solid waste program. There are 137 municipalities that used some form of PAYT. I will go in to the different types of PAYT in a moment, but they all share the common characteristics of being unit-based, like a utility such as water and electricity. This signals to residents the true cost of throwing away trash and creates a tangible financial incentive to reduce the amount of trash they throw away. Under a PAYT program, residents should be provided a variety of free recycling options to help them reduce their trash.

PAYT Terminology For some, Pay-As-You-Throw (PAYT) is a four letter word. Instead: Unit-Based Pricing Variable Rate Pricing Volume or User Based Pricing “Green bag” program Re-Branded Save Money And Reduce Trash (SMART) in MA and EPA PAYT is a widely used solid waste program. There are 137 municipalities that used some form of PAYT. I will go in to the different types of PAYT in a moment, but they all share the common characteristics of being unit-based, like a utility such as water and electricity. This signals to residents the true cost of throwing away trash and creates a tangible financial incentive to reduce the amount of trash they throw away. Under a PAYT program, residents should be provided a variety of free recycling options to help them reduce their trash.

How does it work? The fixed costs of collecting trash and recyclables is paid for by either an annual fee or by property taxes. PAYT bags are priced to cover the cost of transporting and disposing of trash Bags are sold usually at local retail locations. Vendors can handle the production, distribution, and billing of PAYT bags This slide refers to bag-based PAYT programs. The resident would still purchase an annual permit for use of the transfer station and cover the “costs to open the door” such as staffing, equipment, maintenance, etc. In the case of a town with a curbside collection program, such as Provincetown, you may want to charge a fee for that service or simply continue covering some of those costs through the tax base. That’s much of a political question since it’s difficult to transition from a “free” service to a fee-based service. In addition to the annual sticker-fee, residents would purchase official PAYT bags from various retail locations – hardware stores, supermarkets, etc. You may also want to sell bags at town hall, although this is not necessary. There are several vendors in Massachusetts that can handle all of the logistics of production, distribution, and billing for PAYT bags. There is an existing state contract available to MA municipalities. Some vendors will even handle PAYT planning, outreach, and education efforts… for a fee.

PAYT Program Types Annual Fee plus all trash in PAYT bags Most Drop-off programs Annual Fee for “1st Barrel” plus overflow bags No Annual Fee, all trash must be in PAYT bags or stickered No Annual Fee, “Free” 1st Barrel or Bag, plus overflow bags plus And, If needed for There are many variations of PAYT (bags, stickers, tags, weighed, etc), but the all share the common characteristic of being unit based. Go through each. National data on PAYT program shows that larger communities and urban and suburban communities tend to use can programs. Smaller communities and more rural communities are more likely to use bag, tag, or sticker programs. Bag and drop-off programs are most prevalent in the East, can and bag programs are most common in the Midwest and the South, and can programs are the most popular in the western U.S. For transfer station program, bags are really the best way to go, and is strongly encouraged from MassDEP. In fact, only bag programs are eligible for grant money from DEP to help cover the start-up costs. It’s much easier for enforce PAYT with bags because they are clearly visible from a distance. Stickers and tags are more difficult for transfer station staff to see. Bags are a more fair system because all residents purchase the same size bags. With a sticker or tag program, staff have to make a judgment on the spot about whether or not a bag is oversized. Tags and are also easier to counterfeit. Show data about prevalence of difference types of programs in Massachusetts And, If needed

Curbside PAYT Works in Worcester No annual fee; fixed costs are tax funded $1.00/30-g bag, none free $0.50/15-g bag Fees for bulky waste

Malden’s PAYT Results PAYT implemented October 2008 No annual fee All trash goes in bags. Bags cost $2.00 each 50% reduction in trash, first years

Shrewsbury PAYT Results Shrewsbury’s 1st Year (Curbside): Before: 10686 (1.10 T/Hh) After: 7137 (0.74T/Hh) 32% less SW

Wrentham’s Evolution Automated PAYT: 35-gal for SW and 96-gal for SSR PAYT with “1st barrel free” and overflow bags Automated PAYT results: Trash down another 6% Recycling up 20% SW Budget reduced 16% = $140,000! Unlimited Trash PAYT Results: Trash down 32% Recycling up 34% Solid Waste Budget reduced 5%, $41, 552 equaled a FT position, saving a core services

Hamilton’s Evolution PAYT with 35-gal barrel “free” PLUS weekly SSR and weekly organics collection PAYT with “1st barrel free” and overflow bags Unlimited Trash

Hamilton’s Results ~2400 Households

PAYT Benefits Reduction in waste disposal (and associated cost savings) from 25% to as much as 50% reported (depending on where you are starting from) Reductions may occur from a variety of reasons, including: More recycling and yard waste diversion More donation of items (furniture, etc.) Reductions in illegal use of current program Backyard composting Other forms of waste and materials diversion

PAYT Administration Is Easy! Bag vendors have taken over most of the work They warehouse the cases of bags They ship to retailers They track the sales They bill the retailers They provide the Town a monthly report and a CHECK!

Retailers Like Selling The Bags Where Do I Buy Bags? Local grocery, hardware and convenience stores. Retailers do not charge a mark-up; they enjoy the “traffic” Can I still use my barrel? Yes, if you want to use it to put your official bag inside Yes, you can use it for recyclables Bottles, cans, and plastics

This chart shows that almost all of the recent PAYT program, within the last 10 years or so, are bag programs. In the earlier days of PAYT, in the 90’s, there was more variety, but bag programs have proven to be more effective.

Explain map. Provide handouts. Shows the effectiveness of PAYT in MA.\

Common Concerns Illegal dumping Impact on large families and low income residents Perception that PAYT is a new tax Leveling the playing field with private haulers Start with next slide on Illegal Dumping

No Illegal Dumping Prevented by having comprehensive recycling options Think about what you see illegally dumped! It is usually a TV, couch or other difficult to dispose of item. Stopped by early enforcement action + publicity about enforcement. Enlist police in tracing any illegally dumped trash by looking at the mail inside. Most people don’t plan ahead! Word gets around and no one wants to get caught!

Impact on large families and low income residents Large families MAY have to pay more, IF they dispose more. But, much of what they buy can be recycled and donated Milk and juice cartons, Cereal boxes Outgrown clothing And, children are often the best recyclers! For low income residents, Towns can offer free or reduced priced sets of bags to those who qualify for other subsidies. Free or reduced lunch programs or Tax abatement programs

Perception of “Tax” Note that more than half of the Municipalities in MA do not pay for trash out of property taxes. You are competing with them and they have more property taxes to pay for school and public safety as a result of their trash fees and PAYT programs. Set fees transparently, to cover the actual costs of the program, this shouldn’t be an issue. However, if bag fees are priced to be an additional revenue source for the town, you may have justifiable run into this criticism. Consider an Separate Enterprise Fund Note that using property taxes to pay for residential service (but not business service) is in essence a subsidy from businesses to households

Not a Tax: If You Don’t Have Money to Burn, Recycle! Residents are in control! They determine how much they want to spend on trash disposal!

Private Haulers New template available from DEP for Health Depts to use to regulate private haulers. No private haulers should be permitted to collect just solid waste from residential customers without separately collecting recyclables. One can assume that recyclables are thrown into the trash which is a violation of the Waste Bans. Many Health Depts are updating their regulations now to: Make recycling mandatory for all (as do the Waste Bans) Require haulers to collect both trash and recycling and Require haulers to educate their customers about the Waste Bans.

Best Practices for Advocates Develop the “why”! Many communities have had the advantage of a “crisis” such as dramatic increases in tipping fees, landfills closing, or very high annual fees More challenging to extract SW from the property taxes. Does your community have “money to burn”? Doubtful! Make the case that you are in a shrinking minority of towns still paying for trash out of property taxes! Remind people that things that are “free” are almost always overused. Who doesn’t overeat at an “all you can eat buffet”? Work with the local officials Get the leadership to agree that they will adopt PAYT if you can “sell” it. Agree with the DPW on a plan and include enough details to answer everyone’s questions. (Bulky waste items, other fees?) Plan a political campaign Plan events, go to clubs/groups/organizations that will host a speaker, talk to PTOs and Senior Centers, explain the benefits and ask for their support. Treat it like a political campaign with calls, signs, flyers, slogans. Get commitments from people to attend the meeting or to vote because those “against” will always come out!

Getting the Details Right Work with the spreadsheet to determine the right prices, fees, number of free items, or whatever. Figure out the other details to tell residents what to do with : Bulky Waste Branches, brush and leaves, christmas trees Other items that are collected at the curb Develop a flyer to send to all residents

Save As You Throw Pay As You Throw It is up to You! Results – Residents reduce their waste; the Town pays less for disposal; the State generates less trash Responsibility – Residents actions determine how much they pay Right Messaging – It aligns the financial incentives with actual costs, reflecting savings from recycling, waste reduction, donations, and composting

Municipal Assistance Coordinator Questions? Carolyn Dann Municipal Assistance Coordinator MassDEP CDann@BedfordMA.gov (781) 271-1391