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Introduction Stephanie Glysson Republic owns and operates in Michigan: Representing Republic Services of Michigan and Michigan Waste Industries Association Republic owns and operates in Michigan: Five municipal waste landfills Six transfer stations Eight hauling companies 2

Solid Waste Industry in Michigan Responsible and responsive industry - good corporate citizens and community partners Good neighbors in the communities where we work and live At the front lines of environmental protection Provide municipal recycling services (even though recycling has not been economically viable) Recycling subsidized through landfill revenues 3

Tax Industry currently pays: Solid Waste Industry Tax Industry currently pays: Host community fees by agreement Statutory fees Local ordinance fees County fees Licensing fees Administration fees Permit fees Fund the same recycling services proposed in this bill These fees assessed upon the same ton of garbage 4

Impact of HB 6211 Places flow control taxes in a garbage bill Creating an additional burden to Michiganians primarily on Michigan businesses and industries Consumer ultimately paying the price 5

Fiscal Impact of HB 6211 Michigan generates almost 16,500,000 million tons of trash per year An increase of $3 per ton would cost Michigan an added $50 million a year 6

Failings of HB 6211 Misses increased costs of goods and services Cost to businesses would be severe Industrial and food manufacturers Travel and tourism enterprises such as amusement parks and hotels The residential and commercial construction industry Schools and hospitals Government Businesses will pass the increase along to consumers Michiganians will PAY twice. 7

Certainties of HB 6211 Bill punishes those communities and businesses already funding their own recycling Increasing tipping fees will NOT limit out-of-state waste. Ohio, Indiana and Illinois likely adjust their fees to maintain the status quo Prices for the same services rendered will increase Michigan residents and businesses will pay more for traditional waste services Waste will continue to be protected by NAFTA and the Commerce Clause of the US Constitution - prohibits state and local governments from banning or limiting its movement. 8

Needed Measures Design for recyclability Provide incentives for market development Promote accountability Close the loop.  9

Replacement for HB 6211 Cost of doing business in Michigan is high enough Raising taxes on trash is an inappropriate way to address recycling participation Will have long-term, adverse consequences on Michigan's economy Recycling must be economically viable and not subsidy dependent. 10

Issues Who pays? Who benefits? None of these funds are dedicated to waste related program costs. This levy is clearly a “trash tax” and not a “user fee”. Fails to allocate funds to critical solid waste needs. Makes key environmental programs in Michigan dependent upon waste generation. Penalizes those communities that have long stepped up to the responsibility and cost of sustainable waste management. Recycling should be economically viable. Programs will be subsidy dependent Will not deter Out-of-State Waste. Imposes no tax on Incinerators. Encourages incineration and discriminates arbitrarily against waste that is landfilled. Who pays? Who benefits? 11

HB 6211 Introduced by State Rep. Kooiman Impose a $3.00 tax on each ton of trash landfilled. Minimum of $60 million raised per year (based upon waste disposed in MI landfills for 2001). To increase recycling participation in the State To discourage out of state/out of country importation. Will create a new Waste Diversion Fund within the State Treasury. 12

Waste Diversion Fund Michigan Department of Environmental Quality expends Waste Diversion Funds as follows: $1,200,000 annually for administration of the fund… The remainder of the money would be expended as follows: One-third for recycling program grants to local units of government for new programs One-third for non-governmental/organizations recycling initiative grants to expand recycling participation One-third for recyclable market development. 13

Annual Tax Distribution New Local Recycling Grants 32% NGO Recycling Grants 33% Market Development Grants MDEQ Administration 2% 14

Trash Tax Sources Canada 10% Out of State 10% Michigan 80% 15

Tax Impact 80% of funding from inside Michigan 53% of the revenue will be generated from eleven (11) counties (out of 83) With a proposed decrease in State revenue, many municipalities can ill afford an additional tax burden. Municipal taxes will be raised. Commercial and Industrial will get hit the hardest. Cost for goods and services will increase hence raising the costs to consumers. Michiganians will pay TWICE 16

Genesee Trash Tax Annual Tax Total Residential Commercial/ Industrial $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 Annual Tax Total Residential Commercial/ Industrial 17

Ingham Trash Tax Annual Tax Total Residential Commercial/ Industrial $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 Annual Tax Total Residential Commercial/ Industrial 18

Kalamazoo Trash Tax Annual Tax Total Commercial/ Industrial $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 Total Commercial/ Industrial Residential 19

Kent Trash Tax Annual Tonnage Incinerated Total $ to Kent County The majority of Kent County’s trash is incinerated. There will be no TAX on materials incinerated. Hence, the cost to Kent County will be minimal. Incinerated Total $ to Kent County Landfilled 20

Livingston Trash Tax Annual Tax Total Residential Commercial/ $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 Total Residential Commercial/ Industrial 21

Monroe Trash Tax Annual Tax Total Residential Commercial/ Industrial $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 Annual Tax Total Residential Commercial/ Industrial 22

Macomb Trash Tax Annual Tax Total Residential Commercial/ Industrial $0 Annual Tax $500,000 $1,000,000 $1,500,000 $2,000,000 Total Residential Commercial/ Industrial 23

Oakland Trash Tax Annual Tax Total Commercial/ Industrial Residential $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 Annual Tax Total Commercial/ Industrial Residential 24

Saginaw Trash Tax Annual Tax Total Commercial/ Industrial Residential $0 Annual Tax $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 Total Commercial/ Industrial Residential 25

Washtenaw Trash Tax Annual Tax Total Commercial/ Industrial $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Annual Tax Total Commercial/ Industrial Residential 26

Wayne Trash Tax Annual Tax Total Commercial/ Industrial Residential $0 Annual Tax $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 Total Commercial/ Industrial Residential 27

Commercial/Industrial Waste Type (Tons) County Residential Commercial/Industrial Genesee 252,054 Ingham 256,635 Kalamazoo 127,392 Kent 361,715 Livingston 84,272 Macomb 436,179 Monroe 77,636 Oakland 834,501 Saginaw 101,651 Washtenaw 186,202 Wayne 1,704,039 TOTAL 4,422,275 *Year 2003 **Year 2003 Other Total 423,124 426,715** 183,446 395,765 210,605 1,052,295 128,272 84,965 719,396* 140,416** 305,021 2,031,218* 260,668 669,957 3,990,055 784,037 10,237,881 - 171,071 170,080 84,927 479,975 44,001 198,252 261,032 891,696 159,017 483,755 2,286,016 5,031,569 28

Commercial/Industrial Trash Tax County Residential Commercial/Industrial TOTAL $ 13,266,825 $ 6858048 $ 2,352,111 $30,713,643 Genesee $ 756,161 $ 513,211 $ 1,269,372 Ingham $ 769,906 $ 1,023,451 $ 1,280,146 Kalamazoo $ 382,176 $ 254,781 $ 550,338 $ 1,187,295 Kent $ 1,085,145 $ 2,463,376 $ 631,815 $ 3,156,885 Livingston $ 252,815 $ 2,595,378 $ 384,817 Macomb $ 1,308,537 $ 594,756 $ 254,895 $ 2,158,188 Monroe $ 232,907 $ 188,340 $ 421,247 Oakland $ 2,503,503 $ 2,675,088 $ 915,063 $ 6,093,654 Saginaw $ 304,953 $ 477,051 $ 782,004 Washtenaw $ 558,606 $ 1,451,265 $ 2,009,871 Wayne $ 5,112,116 $ 4,106,697 $11,970,164 - Other Total 29

Residential Waste Trash Tax $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 Annual Tax TOTAL Wayne Oakland Macomb Genesee Ingham Kalamazoo Washtenaw Livingston Monroe Saginaw 30

Industrial Trash Tax Annual Tax $8,000,000 $7,000,000 $6,000,000 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 Annual Tax TOTAL Wayne Washtenaw Genesee Ingham Macomb Oakland Livingston Monroe Saginaw Kalamazoo 31

Commercial Trash Tax Annual Tax $9,000,000 $8,000,000 $7,000,000 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 Annual Tax TOTAL Wayne Oakland Washtenaw Genesee Ingham Kalamazoo Macomb Saginaw Livingston Monroe 32

Total Trash Tax Annual Tax $35,000,000 $30,000,000 $25,000,000 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 Annual Tax TOTAL Wayne Oakland Gr. Trav Macomb Washtenaw Genesee Ingham Kalamazoo Livingston Monroe Saginaw 33

Tax Distribution Grants benefit only those not currently recycling Money will flow out of communities where waste is generated 34

Tax Benefit? Current recycling already high (20% net, 17% reported by MDEQ) Will not discourage out-of-state waste 35

Impact on Businesses and Consumers Increase waste disposal costs = higher costs Increase local taxes = higher costs Lower discretionary spending Lower consumer spending Less investment in Michigan Metro Detroit’s money will follow to Detroit 36

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