1. CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com 1 Bob Cappadona Vice President Casella November 5, 2015 Casella Waste Systems NYSAR3 Conference R is for Residue CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com

2. CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com 2 Casella Company Overview: o Founded in 1975 with one truck o 1,900 employees serving over 170,000 customers o Traded on NASDAQ as CWST o Over $500M in annual revenue o Operating in ME, MA, NH, NY, PA, and VT o Vertically integrated collection, transfer, disposal and recycling operations o Recovering over 600,000 tons of recycling and over 400,000 tons of organics for beneficial use each year o Strategy to help our customers reduce waste utilizing our expertise, services, and assets

3. CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com 3 Hauling Facilities Recycling Facilities Organics Facilities Landfills Landfill Gas-to-Energy Transfer Stations Our Customers Casella Footprint

4. CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com 4 Recycling The Casella Recycling Arm o 12 Recycling Operations o 6 Single Stream Recycling Operations o Processes and markets over 600,000 tons/yr o Boston, MA MRF – 7th largest in the U.S. (210,000 tons processed in 2015)

5. CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com 5 Recycling The Evolution of The Recycling Stream – Facts Source Separated Recycling Sorted at the curb Very little contamination Only a baler needed 90% of the total stream = newspaper and cardboard But how do we capture more material and keep trucks off the street??

6. CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com 6 Recycling Technology of processing equipment has evolved to align with ease of hauling Little bit more contamination but average still below 5% at the MRF MSW stream still contains 50% recycling material – how do we capture more?? The Evolution of The Recycling Stream – Facts Dual Stream Recycling

7. CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com 7 Recycling Convenience for the consumer & larger container Evolving product mix MRF technology advancement Automated pickup Un-intended consequences Average residual rate at U.S MRF’s = 15% The Evolution of The Recycling Stream – Facts Single Stream Recycling

8. CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com 8 Recycling MRF Contamination - Film o Wraps around separation equipment (Newspaper and OCC screens) o Creates ineffectiveness of screens o Must clean screens once per shift o Safety issue during maintenance

9. CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com 9 Recycling MRF Contamination – Scrap Metal o Causes damage to processing equipment o Small scrap metal contaminates the finished glass stream for our end users o Safety issue (propane, etc)

10. CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com 10 Recycling MRF Contamination - Textiles o “Jams” Screens. o “Blinds” Optical Sorters and Magnets o Causes considerable downtime o Downtime = increased operational costs

11. CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com 11 Recycling MRF Contamination – “Wrapping Items” o Considerable damage to screens o Lengthy maintenance items o Safety issue

12. CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com 12 Recycling MRF Contamination – Food Waste o Odors o Usually a “full load rejection”

13. CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com 13 Recycling MRF Contamination – Weather o Overall adjustments needed to process o Ice damages equipment o Impact to quality

14. CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com 14 Recycling Understanding the Costs Customers Competitors Stakeholders Culture Technology Government Economy Industry Hours of Operation The Market MSW Tip Transportation Employees Equipment Baling? Utilities YOU

15. CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com 15 Recycling How Contamination Impacts the Economics of Recycling Example: Single Stream Material Mix MaterialPercentage ONP#833.0% OCC16.00% Mixed Paper19.0% Glass23.00% PET2.70% HDPE-Natural0.60% HDPE-Colored0.50% Plastic- Mix0.40% Plastic- Bulky0.70% LDPE- B0.40% Aluminum0.50% Aluminum-Foil0.00% Steel/Tin1.50% Scrap Metal0.70% Residue15.00% Totals100.0%

16. CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com 16 Recycling There’s often an assumption that recycling should be free; however, the same number of steps are involved for both trash and recycling! Whether trash or recycling, there are still costs involved to collect, transport, and process the materials. Though the market value of recyclables once covered these costs, this is no longer true. Why do we charge a sustainability/ recycling adjustment?

17. CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com 17 Recycling We Must Continue to Educate

18. CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com 18 Recycling We are in it together !! Teamwork

19. CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com 19 Bob Cappadona Vice President Casella November 5, 2015 Bob.Cappadona@Casella.com Casella Waste Systems NYSAR3 Conference R is for Residue Questions?? CASELLA RESOURCE SOLUTIONS ZERO-SORT® RECYCLING COLLECTION ORGANICS ENERGY LANDFILLS casella.com