1. THE BENEFITS OF SINGLE-STREAM RECYCLING California Integrated Waste Management Board California Roundtable Single-Stream Recycling May 23, 2005 Sacramento, CA

2. Today’s Topics  Diversion is King  Safety as a Key Driver  Efficiencies and Economic Benefits  Processing Challenges

3. WM/RAA in California  WM/RAA is California’s largest recycler of MSW  WM/RAA operates approximately 24 Recycling facilities in California  Of those 11 do Single Stream processing  RAA Markets over 500,000 tons per year from California not including glass  WM/RAA has invested over $25 Million in SS technology in California  A vast majority of our residential recycling customers are serviced with single stream collection

4. Where We Process SS Edmonton, Alberta (9/01) Cleveland, OH (1/01) Dayton, OH (9/02) York, PA (2/02) Lake County, IL (3/03) Minneapolis, MN (2/02) Birmingham, AL (2/02) Tucson, AZ (10/02) Santa Maria, CA (6/03) San Leandro, CA (1998) Raleigh, NC (1/03) Visalia, CA (prior 2000) Napa, CA (2003) Carson, CA Pico Rivera, CA Los Angeles, CA Gardena, CA Phoenix, AZ (1/97) Santa Rosa, CA (9/01) Lodi, CA (7/02) Castroville, CA (8/02) Binghamton, NY (9/02) Liverpool, NY (12/02) Columbus, OH (10/02) Woodinville, WA (7/03) Chicago, IL (7/04) Orlando, FL (planned) Salt Lake City, UT (4/03) Jackson, MS (2/04) Rogers, AR (7/95)

5. Since Passage of AB 939 Diversion is King Residential  Historic - 25% recycling / 75% disposal  Current Goals - 75% recycling / 25% disposal Commercial  Historic - Grade Specific (OCC, SWL, SOP)  Current - Grade Indifferent – Commercial Single Stream Processing

6. Diversion is King  Higher participation rates (participation rates) – convenience – simplicity (potentially fewer restricted materials)  Higher recovery rates (lbs/hh/mo) – higher participation – more materials in programs – reduced scavenging

7. Diversion is King What do our numbers show?  Based on a survey of California managers we estimate 20-30% increase in volume after switching to SS  Northwest USA - Tons collected in Skagit and Snomish County (125,000 HH’s) show tonnage increases of between 7 and 36% after converting to SS

8. Diversion is King What do others numbers show?  Dallas, Tx (pilot program) - 6 lbs/HH/Mo vs 54 lbs/HH/Mo - 25% participation vs 74% participation  Brooklyn Park & Hennepin Recycling Group (41,000 HH) - BP 40 lbs/HH/Mo vs 49 lbs/HH/Mo - BP 46% participation vs 72% participation - HRG 36 lbs/HH/Mo vs 47 lbs/HH/Mo - HRG 50% participation vs 71% participation

9. Safety is Key Driver  Key Concerns – Safety of our workers – MSW workers – third deadliest occupation in Florida (1993-1997) – Almost 50% of all MSW workers might expect to suffer muscoskeletal or dermal injuries each year

10. Safety is Key Driver  Reduced collection safety risks (twisting, sprains, cuts, etc.)  +  Reduced MRF safety risks (cuts, etc.)  +  Reduced TRIR (both collection and processing)  +  Reduced employee turnover  =  Lower workmen’s comp costs

11. Efficiencies and Economies  Optimize fleet utility —Increase payloads —Reduce drive-times  Improve safety  Increase opportunities —Commercial Single Stream —Multi-family

12. Efficiencies and Economies MRF Equipment  Capital intensive ($1MM to $6MM for equip)  Increase production (30 – 40 tph throughput)  Auto-assist separation (screening, optical ) MRF Operation  Improve safety (TRIR reduction)  Improve presentation of material for sorters  Improve flexibility & market access

13. Processing Challenges  Increased residue levels Typical 2-stream MRF has about 4% residue (blended value of fiber and container residue) Typical single stream MRF has 6-8% residue What we are doing: can reduce to less than 4 % with no sort glass and no sort plastic technologies  Glass breakage Typical commingled containers has 50-60% glass breakage Typical single stream has 60-90% depending on vehicle and compaction ratios What we are doing: can minimize effect with optical sorting and better screening  Quality control of collected materials in fully automated routes What we are doing: Use manual or semi-automated routes and using route checkers

14. Processing Challenges “The quality of the product going to market. We’ve got to make sure that what’s going into the bales is meeting the specs of the mills.” RAA President Pat DeRueda at Waste Expo commenting on the biggest challenges recycling faces.

15. Summary of Benefits  Increased diversion through improved participation & lbs. per set-out  Reduce unit costs (time per stop, trucks on street, & processing costs per ton)  Greater employee safety  Improve aesthetics & convenience  Making residential recycling economical and sustainable  “Securing” and growing the residential fiber stream

16. Questions & Answers