Evaluation of Lexington-Fayette Urban County Recycling May 25, 2005 Dr. Subodh Das, Executive Director Jason Liew, Research Associate A Sloan Industry Center Project Aluminum Can Council Washington D.C Center for a Sustainable Aluminum Industry University of Kentucky

Sloan Foundation Industry Centers The Alfred P. Sloan Foundation The Alfred P. Sloan Foundation Established in 1934 by Alfred P. Sloan, Jr.Established in 1934 by Alfred P. Sloan, Jr. A Sampling of Sloan Industry Centers: A Sampling of Sloan Industry Centers: HarvardHarvard Textile and Apparel Research Textile and Apparel Research MITMIT International Motor Vehicle International Motor Vehicle Georgia TechGeorgia Tech Paper Business Paper Business Carnegie MellonCarnegie Mellon Steel Steel

Center for a Sustainable Aluminum Industry (CSAI) Founded in Jan Founded in Jan Funded by several sources: Funded by several sources: Sloan Foundation Industry Centers ProgramSloan Foundation Industry Centers Program A consortium of Aluminum ProducersA consortium of Aluminum Producers The Commonwealth of KentuckyThe Commonwealth of Kentucky The University of KentuckyThe University of Kentucky Have about $800,000 in funding for research over the next three years. Have about $800,000 in funding for research over the next three years. Faculty in Economics, Business and Engineering are members of CSAIFaculty in Economics, Business and Engineering are members of CSAI

CSAI Research Area Finding ways to enhance recycling rates is one of the major focus areas.Finding ways to enhance recycling rates is one of the major focus areas. The project will study the aluminum recycling trends in Fayette County, KY.The project will study the aluminum recycling trends in Fayette County, KY.

Aluminum Companies Located within 600 miles of Kentucky (Brent Lackey, Division of Research, Kentucky Cabinet for Economic Development, “The Aluminum Industry in Kentucky”, September 2002) Kentucky supplies the most aluminum to US markets

Where is Fayette County? Area: 285 square miles Fayette County Total Population (2003): 266,798 Number of Households in Fayette County (2002): 108,288 Map and Data from US Bureau of Census

Separation Process at Fayette County Recycling Center

Recyclable Commodities Weight Shipped (lbs) Price for April 2005 Revenues Generated Composition by Weight of Total Commodities Shipped Composition of Total Revenue Generated Ratio of Revenues Generated to Weight Shipped Old Newspapers (ONP)6,514,300 $82.50 per ton$268,71553%41%0.78 Old Corrugated Containers (OCC)1,795,920 $77.50 per ton$69,59214%11%0.73 Mixed Plastic302,820 $0.04 per lb$12,1132% 0.76 High Density Polyethylene (HDPE)140,340 $0.29 per lb$40,6991%6%5.47 Glass1,752,980 $4.80 per ton$4,20714%1%0.05 Fiberboard208,240 $44.10 per ton$4,5922%1%0.42 Aluminum Cans 181,400 $0.75 per lb$136, %20.72%14.16 Steel Cans258,980 $ per ton$25,8982%4%1.89 Sorted Office Papers (SOP)767,720 $ per ton$40,3056% 0.99 Phone Books223,380 $49.70 per ton$5,5512%1%0.47 PET-2 liters243,160 $0.20 per lb$48,6322%7%3.78 Old Computers6,360 $80.00 per ton$2540.1%0.04%0.76 Commodities Shipped from LFUCG Recycling Center (06/01/04 to 04/15/05, 10 months) (Source: James Carter, Manager LFUCG Recycling Center)

National Aluminum Beverage Can Recycling Rate Trends. (Source Aluminum Association) 1% change in recycling rate has an economic impact of approximately $12 million

Data compiled from 14th Annual Nationwide Survey of Solid Waste Management in the US, The State of Garbage in America Bottle Bills in the works Bottle Bills State Kentucky Bottle Bills State No Legislation Bottle Bills pending Curbside Access (X1000 people) More access results in more recycling Aluminum Recovered (X 10 tons)

Observations at Fayette County Recycling Center Observations at Fayette County Recycling Center (06/01/04 to 04/15/05) Paper based commodities represent the largest group of recyclables based on weight shipped. Paper based commodities represent the largest group of recyclables based on weight shipped. Aluminum beverage cans contributed 21% of total revenues (second highest) despite being tenth in terms of weight shipped. Aluminum beverage cans contributed 21% of total revenues (second highest) despite being tenth in terms of weight shipped. Aluminum beverage can is the present “cash cow” for the center and its contribution is likely to grow with increasing recycling rate. Aluminum beverage can is the present “cash cow” for the center and its contribution is likely to grow with increasing recycling rate.

Path Forward Monitor monthly sales and collections of beverage cans and percent recovered at various facilities. Monitor monthly sales and collections of beverage cans and percent recovered at various facilities. Conduct waste composition studies of selected demographics. Conduct waste composition studies of selected demographics. Expand efforts to increase aluminum beverage can recycling rate working in conjunction with Fayette County, University of Kentucky, Baker Iron & Metals Co., Wise Alloys and Anheuser Bush. Expand efforts to increase aluminum beverage can recycling rate working in conjunction with Fayette County, University of Kentucky, Baker Iron & Metals Co., Wise Alloys and Anheuser Bush. Identify ways to quantify and increase the sorting, shipping efficiency and profitability of the Fayette County Recycling Center. Identify ways to quantify and increase the sorting, shipping efficiency and profitability of the Fayette County Recycling Center.

Demographic Study for Fayette County