Operational Features of Pay As You Throw April 5, 2017

The Way Things Work Now 1. Taxes/Fees 2. Request 3. Blank Check CITY OF ANYTOWN ANYTOWN, USA PO BOX 1234 Solid Waste $100.00 PO BOX 1234 CITY OF ANYTOWN ANYTOWN, USA ANYTOWN, USA This system is known to encourage waste and is unfair to small generators

The Results Much of our trash isn’t… Every year, we pay to throw away millions of pounds of easily reusable, recyclable and compostable material, which is valuable. Note: Data is taken from Wheelabrator North Andover Waste Characterization Study, January 17, 2014, pages 3-3 and 3-4 for residential wastes. Only categories of materials known to be recyclable are considered.

We would never un-meter these utilities. The Cause: Perverse Incentives Solid waste is the last unmetered utility, which encourages waste and is unfair. Metered Unmetered Electricity Water These utilities existed before metering technology was invented. When we metered them, we reduced waste, lowered the cost, and increased fairness. Trash We would never un-meter these utilities.

3. Incentivize What’s Right The Pay As You Throw Model Cut Taxes 2. Pay per Bag 3. Incentivize What’s Right CITY OF ANYTOWN PO BOX 1234 ANYTOWN, USA  Solid Waste $108.00 PO BOX 1234 CITY OF ANYTOWN ANYTOWN, USA ANYTOWN, USA PAYT is “how” you pay for trash. “How much” is a completely separate decision.

What Happens if We Do It? Residents buy Town trash bags at the stores where they shop today Residents have the same “at curb” experience The trash goes out the same way it does today Residents can use as many bags – or as few – as they choose, in the size they choose The Town saves money on trash disposal As we see with other utilities, waste will plummet when trash is metered Today, the average household uses 10-12 trash bags every month When trash is metered, the average household will use 4-5 bags every month The higher price of the Town bag provides residents an incentive to put recycling where it belongs, and where it is free for them.

Town Perspective 1 The Town hires a firm to manufacture and distribute the Town’s trash bags 2 The Town’s hauler collects only the official trash bags Any improper bags are noted for enforcement Collection efficiencies may occur as trash tonnages drop The Town receives bag sales revenue every month from its contractor. The Town reconciles the account and can return the bag revenue to residents 3

Averages and Options Massachusetts Averages (2015): Belmont: 581 PPC Non-PAYT 665 pounds per capita served (PPC) Overflow w/64-68 ga. cart 660 PPC PAYT 424 PPC Belmont: 581 PPC If Belmont moved to the PAYT average, it would reduce trash by 27%. If Belmont achieved the average waste reduction of PAYT – 44% – it would produce 325 PPC. This is equivalent to Worcester but not as good as Wayland.

Where Does All That Trash Go? Not all of the trash “reduced” with PAYT ends up in the Town’s recycling bins. Today, residents recycle in ways that aren’t captured by the Town – textiles recycling, book donations, back yard composting, etc. PAYT creates incentives to do more of that. 40% of the waste reduction is new municipal recycling. 25% of the waste reduction is leaves, grass and food waste. 20% of the waste reduction is “other recycling”, such as increased electronics recycling, more donations to charity, etc. 10% of the waste reduction is source reduction. About 5% of the reduced waste is transferred to another disposal options, often to the commercial source it came from.

Notes on PAYT The Town can implement “circuit breaker” programs to assist low-income or senior citizen households. Two bag sizes are typically offered to residents; some cities offer three bag sizes. Adoption of automated collection with PAYT bags would achieve substantially similar results.

Municipal Partnerships slisauskas@wastezero.com Thank You! Stephen Lisauskas Vice President, Municipal Partnerships slisauskas@wastezero.com (c) 617.821.5933 www.wastezero.com