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Guest
Editorial
LOCAL GOVERNMENT INCENTIVES FOR ZERO WASTE
by Gary Liss
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The concept of Zero Waste
challenges communities to rethink the incentives in place to dispose
of waste quickly and cheaply, and to redesign the entire system to reward
and encourage waste prevention, reuse, recycling and composting instead.
Communities can adopt incentives at little or no cost to meet these
challenges.
Incentives could include the adoption of policies and the structuring
of the marketplace for residential and commercial generators, waste
and recycling haulers, transfer station and material recovery facility (MRF)
operators, landfill owners and operators, manufacturers and retailers. Key
policies are embodied in how communities structure their garbage collection
rates, contractor payments, franchise fees, recycling program fees, permit
fees, and business taxes.
Support for adopting these tools may be gained from the existing waste collection
and disposal industry through early and continuous dialog with all parties
of affected interests. By outlining the community's goals but being open
to how the details are worked out, communities can usually solve most specific
concerns identified by interested parties.
If communities have a long-term franchise or contract, these issues can
be addressed whenever a hauler requests a rate increase, permit, contract
change or any other help from the community. The best time to make many
of these changes is when communities renegotiate their contracts with their
haulers, or solicit competitive proposals.
OPTIONS FOR INCENTIVES
Incentives for Waste Generators
- Adopt aggressive
"Pay-As-You-Throw" residential rate structures once curbside
and yard waste recycling services are available.
Action Steps
- If someone
puts out twice as much garbage, does it cost less than the first
can, the same or more than the first can? Each additional can or
bag collected should cost at least equal to the first can or bag.
- What is the
smallest size garbage can that you offer or allow? A further discount
should be provided for less than one 32-gallon can of service proportionate
to the size of the container.
- Adopt incentives
for businesses to increase recycling.
Action Steps
- Offer "curbside"
recycling services to businesses small enough to use the same service.
- Require franchised
hauler to offer recycling services for free to businesses, or at
a discount that is not greater than 50% of the rates for waste hauling
services.
- Require franchised
haulers to provide at least an equal volume of recycling and garbage
bin, cart or can capacity to each business.
- Review commercial
garbage rate structure and eliminate "volume" discounts for large
waste generators.
- Adopt policies
for businesses to increase recycling.
Action Steps
- Require businesses
to submit 2-page form as a "Recycling Plan" with their annual submittal
of business taxes that identifies the total amount they pay for
solid waste disposal, what they do to recycle, and what are the
biggest fractions of their remaining wastes.
- Require businesses
to achieve recycling goals.
- Require businesses
to source separate designated materials and recyclers to collect
those materials.
- Join with other
cities and/or County to promote and provide more technical assistance
to businesses to help them implement those policies.
- Adopt policies
to increase recycling for remodeling and new construction
Action Steps
- Require deposits
on new construction to be refunded if recycling requirements are
met (e.g., Atherton requirement on C&D, which could be applied more
broadly than just for C&D debris).
- Require recycling
of C&D debris, use of recycled content products, provision of space
for recycling containers, and the establishment of comprehensive
recycling and composting services for new construction (e.g., Los
Angeles, CA Playa Vista project).
- Adopt permit
fees on new construction to cover the costs to the community of
implementing community-wide recycling programs for those developments.
Incentives for Franchised Haulers
- Adopt policies and incentives
to encourage more waste prevention and recycling when considering rate
reviews
Action Steps
- Request hauler to provide
recycling plan with rate review application that details what recycling
services are currently provided, the tonnages they collect, how
materials are processed and marketed, what their plans are for future
reuse, recycling and composting services, and to identify what help
is needed from the City to implement new services.
- Ask hauler to consider
providing additional recycling services (e.g., yard waste collection,
bulky goods reuse and recycling, construction & demolition debris,
food waste and food-contaminated paper) as part of annual recycling
plan.
- Plans should identify
anticipated costs for the coming year, and get City approval of
those as allowable cost items in principle, to guide the next rate
review.
- Consider as allowable
costs all reasonable waste prevention, reuse, recycling and market
development initiatives, including outreach and waste audits (visits)
to businesses in community, and financing of on-site recycling equipment
and services (e.g., composters for food waste at restaurants).
- Retain authority to
adjust franchise fees annually or as part of any rate review process,
rather than having a set rate in the contract. If set rate in current
contract, amend contract during rate review process to allow community
to change as it wishes in the future. Adopt separate franchise fees
for residential and commercial customers.
- Structure franchise
fees for exclusive and non-exclusive franchised haulers to vary
according to the overall level of waste diversion achieved (e.g.,
in Monrovia, CA, franchise fees are 16% for haulers diverting 24%
or less, 12% if they divert 25-49%, and 8% if they divert 50% or
more).
- Notify haulers that
you will not approve as "allowable costs" the disposal of construction
& demolition (C&D) at landfills or as alternative daily cover at
landfills for future rate reviews. Require franchised haulers to
take all C&D debris to mixed or source-separated C&D processing
facilities.
- Let franchised garbage
haulers keep all the revenues from the sale of recyclables; just
ask haulers to report the actual revenues received in quarterly
and annual reports, so that this amount of revenue can be considered
as part of rate review processes.
- Consider restructuring
contractor's payments during rate review process to provide greater
incentives for recycling (as detailed below).
- Adopt policies and incentives
to encourage more waste prevention and recycling when considering a
new contract or contract revisions.
- Pay franchised garbage
haulers on the basis of tons recycled, rather than number of households
collected (or at least a combination of the two). Consider "capping"
the amount paid by household, to force haulers to recover part of
their costs and all of their profit from recycling services provided.
- Structure hauler payments
to be paid inversely to the amount landfilled - the more they landfill,
the less they are paid, or more costs they have to absorb (e.g.,
consider landfill disposal fees NOT to be an "allowable" cost in
future rate reviews).
- Pay a "recycling incentive
payment" to franchised garbage haulers that collect recyclables.
This could be proposed by the hauler and approved by the community,
or it could be a category of price to be proposed by competing haulers
in response to an RFP requirement.
Incentives for All Haulers
- Structure franchise fees
to encourage haulers to expand reuse and recycling services offered.
Action Steps
- Charge a differential
franchise fee to haulers, based on whether or not they have a City-approved
recycling program (e.g., In Santa Clara, all non-exclusive haulers
collecting industrial wastes must pay the city a franchise fee of
25% of their total gross billings, which is reduced to 10% if haulers
meet city adopted recycling standards).
- Exempt services to collect
source-separated recyclables and the revenues from their sales from
calculating the "gross receipts" basis for franchise fees.
- Charge fees to pay for all
community costs of implementing waste prevention, reuse, recycling,
composting, buy recycled and recycling market development programs
- Adopt recycling fees
on a strict cost recovery basis.
- Adopt "Environmental
Liability Fee" for haulers to pay only for materials landfilled,
not on recycled materials (e.g., Monterey Park, CA charges $4/ton).
- Adopt other hauler policies
to encourage them to recycle more and waste less.
- Require haulers to achieve
a waste diversion goal (e.g., Sacramento County, CA & Monterey Park,
CA).
- Require haulers to develop
recycling plans, either for their own services or for businesses
they service.
Incentives for Landfill Agreements
- Structure long-term landfill
contracts to commit to a total capacity of space, not an annual amount
or a limited time frame.
- Require landfill operators
to commit to perpetual maintenance and cleanup when they dispose of
your community's wastes (required in California facilities, but not
out-of-state).
- Do not send any wastes to
landfills that do not have dedicated funds or insurance to cover long-term
liability of perpetual maintenance and cleanup (beware future value
of corporate assets as "collateral").
Incentives for Solid Waste
Facility Operators (if solid waste facility located within your jurisdiction)
- Adopt a recycling fee or
Disposal Facility Tax on solid waste facilities. Exempt all recyclables
shipped off site. If done as a recycling fee, must be strictly cost
recovery. If done as a tax, levy it on the business, not the activity,
and treat all businesses and customers equally.
- If solid waste facility
services a countywide waste shed, have County adopt a recycling fee
on that facility for the benefit of all jurisdictions within the County,
and distribute fees collected proportionate to the amount of wastes
delivered (e.g., Santa Clara County, CA).
- Require solid waste facility
operators as a condition of land use and/or solid waste facility permits
to provide discounts for clean source-separated materials.
- Require solid waste facility
operators as a condition of land use and/or solid waste facility permits
to provide areas for reuse, salvaging, drop-off, buy-back recycling,
composting and retail sales of reused, recycled and compost products.
- Require solid waste facility
operators as a condition of land use and/or solid waste facility permits
to divert at least 50% of all incoming materials at their facilities.
- Require facilities to only
accept waste from communities that have complied with waste diversion
mandates.
Process to Implement Incentives
- Review current policies
and economics, including fees, taxes, contracts, ordinances and permits.
Identify a couple of ideas from the above menu that you think might
work in your community.
- Convene a meeting of key
stakeholders in your community to get their input and suggestions about
those ideas. Contact other communities that have implemented these programs
to find out how they worked, and what they might do differently.
- Have your attorney draft
language and circulate that widely for stakeholder review. Notify the
media of the work involved, and seek coverage to get the broadest possible
public participation.
- Build consensus by being
flexible in the details of how to implement the idea in your community.
- Draft your final proposal
for action by elected officials. Include options, pros and cons, and/or
specific issues raised during the process. Invite stakeholders to participate
in deliberations of elected officials.
Copyright 2000 by Gary Liss & Associates, 4395 Gold Trail Way, Loomis, CA 95650, 916-652-7850, gary@garyliss.com. All rights reserved. Permission to reprint for nonprofit purposes with attribution and notification to GLA is hereby given.
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