1. RECYCLING AND THE ECONOMY Gerry Fishbeck, Chair SC Recycling Market Development Advisory Council (RMDAC) October 27, 2011

2. Commerce Counties Municipalities Solid waste industry Existing recycling industry Glass industry Paper industry RECYCLING MARKET DEVELOPMENT ADVISORY COUNCIL 14 Governor-appointed members representing: Aluminum industry Plastics industry Tire industry General public Oil industry Scrap metal recycling industry Higher education research institutions

3. Housed at SC Department of Commerce RMDAC’s mission is to advocate opportunities to develop sustainable markets, support the growth of South Carolina’s recycling industry, and advise the state on efforts required to increase recovery of recycled materials. Supports market development activities for recyclable commodities – paper, plastic, metals, electronics, construction and demolition materials, tires, etc. RMDAC

4. Funding received annually from Department of Health and Environmental Control (DHEC) for staff support from Commerce to RMDAC and its programs DHEC gets its funding from the Solid Waste Trust Fund from the collection of Advanced Recovery Fees on tires, batteries, oil, appliances Commerce and DHEC partnership RMDAC

5. 2006 study: recycling annual economic impact of $6.5 billion 325 businesses that broker, haul, process and/or manufacture recovered materials 15,600 jobs. Jobs impact: 37,440, For every 1 job in recycling, economic impact of 2.4 jobs. Annual estimated income impact of $1.5 billion $69 million state tax revenue Growth in recycling businesses of 12% annually; economic impact of $11 billion in 2011 ECONOMIC IMPACT

6. Source: South Carolina Department of Commerce, FTE’s - Full Time Equivalents TOTAL: $3.7 billion in investments over the past four years 2010 Investment: $438 million, 1130 jobs, 28 companies Recycling is growing at an annual rate of 12% which is faster than many other sectors of the economy! Year Total SC Investment Total SC FTE's Total Recycling Investment Total FTE's % Recycling Investment % of FTE's 2006$2,983,739,00014,398$844,000,00085028%6% 2007$4,050,047,44415,688$929,000,00062023%4% 2008$4,169,751,43918,993$1,137,000,0001,37927%7% 2009$2,385,521,45418,012$354,000,0001,35415%8% 2010$4,058,229,43920,443$438,000,0001,13011%6% Total$17,647,288,77687,534$3,702,000,000533321%6%

7. Exporting Brokering Reusing

8. Business Activity by Commodity (SC Department of Commerce Database)

9. Untapped SC Recycling Potential FY10

10. $72 million lost in potential revenues to SC (Source: DHEC Office of Solid Waste Reduction and Recycling) More than $18 million was spent to dispose of this material. In 2010, 500,000 tons of paper, plastic, glass, and metal was sent for landfill disposal.

11. BEYOND LOSS OF FEEDSTOCK.. WHAT ARE THE OTHER CHALLENGES?

12. waste is a utility similar to water & electricity – it is not free there is a public and private cost for not recycling size matters in this industry recycling = jobs, business growth & prosperity you don’t recycle? not cool  vague understanding among public that recycling does something good

13. IF I WERE LEGISLATOR FOR THE DAY, I WOULD…..

14. support policy that ensures market consistency & sustainability fix the landfill cost structure with full costs covered implement land fill bans on recyclables undertake tax reform advanced disposal fees & producer responsibility implement incentives to encourage material recovery volunteerism alone is not reliable - mandate recycling

15. HOW RECYCLING CLUSTER FORMED… Economic Impact Study in 2006 RMDAC and New Carolina-SC’s Council on Competitiveness – drivers Cluster – think Napa Valley, Silicon Valley

16. Value chain Joint purchasing Joint logistics Joint production Supply-chain development Joint marketing Joint product branding Joint region branding Joint foreign market promotion Intelligence Market intelligence Technical trends Joint R&D Joint R&D projects Firm formation Incubator services Spin-off promotion Business services Bus. environment Regulations and policy Infrastructure investment Process/HR Technical training Management training Technical standards Education system Production processes

17. RECYCLING CLUSTER Recycling Industry Group (formative name) 5 committees (Value Chain, Business Environment, Firm Formation, Joint Marketing, & Cross Functional (HR, R&D, Intelligence) Policy, infrastructure, networking, markets focused

18. TIMELINE… Fall 2007 – held first cluster meeting Anchor company – Sonoco Chair: Ronnie Grant, Sonoco Recycling Developed RIG Action Plan Winter 2008 Held first Recycling Industry Legislative Day February 7, 2008 Recycling Industry recognized by the House and Senate through resolution Implemented Action Plan components in 2008

19. 2009 ACCOMPLISHMENTS Business Environment: 1.SC Reduce Reuse Recycle license plate 2.SC Recycling Industry Legislative Day with CRA on April 21, 2009 – recycling incorporated into renewable energy definition House/Senate Resolutions recognizing industry

20. 2010 ACCOMPLISHMENTS Raised $30K for Strategic Plan; kicked off with CEO Roundtable Jan. 29, 2010 Plastics Provider, Inc. Plastics Provider, Inc.

21. 2010 ACCOMPLISHMENTS CEO Roundtable Held; Strategic Plan Delivered Aug. ‘10 2010 meetings – Jan. 12, May 11, and Sept.14 Special Projects  February 3, 2010 Legislative Day  Share the Load at SCTAC  Reduce Reuse Recycle Plate to general public in Jan on SC DMV

22. 2011 ACCOMPLISHMENTS  Prioritization of Strategic Plan activities Dec 16-17, 2010  Share the Load kick-off April 26, 2011  Renamed RIG to SC Recycling Council  March 2011 Legislative Day – CRA, SERDC, New Carolina partners  S 461 –ABC Recycling Bill passed out of Senate  E-Cycling legislation; ban  SC Recycling Marketing campaign kicked-off

23. NEXT STEPS…  SCRC affiliation w/other recycling groups  SERDC, SCRA  Brand recycling – target audiences legislators, businesses, consumers, potential members  House version of ABC recycling bill  Joint project on increasing glass recycling with DHEC, CRA, SERDC, SWANA, and RMDAC  Legislative Day February 2012

24. Recycling Market Development Advisory Council Gerry Fishbeck, Chair URRC 864-574-0904 gfishbeck@urrc.net SC Recycling Council Ronnie Grant, Chair Sonoco 843-383-7665 ronnie.grant@sonoco.com ronnie.grant@sonoco.com Support Staff: Department of Commerce Recycling Market Development Chantal Fryer 803-737-0477 cfryer@sccommerce.com