The PAYT Solution—Overview

Pay-As-You-Throw and Solid Waste Finance

October 2013

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• Focused on delivering best-in-class municipal waste reduction programs (100% customer retention rate for programs we design and manage)

• Work with approximately 800 municipalities and countless private customers across 41 states

• Designed to share in our partners’ success— contracts tie our payment to waste reduction targets

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• Supplies made in US from recycled content

About WasteZero


Pay-as-You-Throw in North Carolina

Municipalities with some form of pay-as-you-throw are nothing new in North Carolina.


The fact that garbage is an unmetered utility leads to avoidable waste of financial and environmental resources.

Solid waste is the only utility residents do not pay for per unit.

Solid Waste—The Last Unmetered Utility

Electricity Gas

Water Trash

Metered Unmetered


The PAYT Solution—Overview

Current Approach

With Bag-Based Pay-As-You-Throw

Solid waste and recycling fees or General Fund dollars

Residents purchase their own bags (~$0.30 each) for

curbside/can/cart collections

All trash bags are collected curbside or at drop-off

centers

City may reduce fees or reallocate General Fund

dollars for disposal/collection

Residents purchase municipality-specific bags

at local retail stores (typically $1-$2/bag)

Only pay-as-you-throw bags are collected

curbside or at drop-off centers

Recycling is optional, but not incentivized

Behavior changes: waste is reduced

and recycling increases

Easy Convenient Effective

http://www.google.com/url?sa=i&rct=j&q=&source=images&cd=&cad=rja&docid=FS9ukf3hFSOSfM&tbnid=s5ZzoIsCG_FRxM:&ved=0CAUQjRw&url=http://www.atlantaintownpaper.com/2012/09/mayor-announces-expansion-of-residential-recycling/&ei=fRjCUfirIZWs4AOX2IDYCA&bvm=bv.48175248,d.aWc&psig=AFQjCNGvp4grUzmJgHFCMWBvuKfFMzGUUw&ust=1371761047762095

http://www.google.com/url?sa=i&rct=j&q=&source=images&cd=&cad=rja&docid=FS9ukf3hFSOSfM&tbnid=s5ZzoIsCG_FRxM:&ved=0CAUQjRw&url=http://www.atlantaintownpaper.com/2012/09/mayor-announces-expansion-of-residential-recycling/&ei=fRjCUfirIZWs4AOX2IDYCA&bvm=bv.48175248,d.aWc&psig=AFQjCNGvp4grUzmJgHFCMWBvuKfFMzGUUw&ust=1371761047762095


The Way Things Work Now

2. Request 3. Blank Check

“Fill ‘er up!”

1. Flat Fee

Solid Waste $138.00

CITY OF ANYTOWN

ANYTOWN, USA PO BOX 1234

CITY OF ANYTOWN


ANYTOWN, USA

An unfair approach to those that recycle


The Pay-As-You-Throw Model

3. Incentivize What’s Right

Usually free

2. Pay-As-You-Throw

ANYTOWN, USA

1. Cut Fees/Costs

Solid Waste $138.00

CITY OF ANYTOWN


CITY OF ANYTOWN


ANYTOWN, USA

A variable-rate, equitable approach that incentivizes people to recycle


The Steps Municipalities Need to Take

Understand Base Solid Waste

Infrastructure Costs

1

Pass Ordinance Requiring Disposal in

Pay-As-You-Throw Bags

3

Use Existing Infrastructure

4

Design Program to Meet Municipal Goals

2


Immediate and Long-Lasting Change

A

nn

ual

PP

C

Source: 1986-2003 - City of Worcester 2004-2008 – Mass. DEP

Worcester MA Residential MSW, 1986-2008

Program Initiation


1Assuming municipality has no managed waste reduction program at inception.

Trash tonnage drops to 50% of national average and sometimes even lower. Bills for tipping fees plummet.

• Tonnage can be reduced by up to 60%1.

• Tipping fees continue to decline and recycling revenues rise accordingly.

• Residents become increasingly satisfied.

Recycling tonnage often doubles or even triples. Revenue from recycled material increases.

Within 90 days:

Long Term (Years 2-10):

Immediate and Long-Lasting Change


Success Stories

DARTMOUTH, MA

400 lbs. (55% better than national)

MALDEN, MA


DECATUR, GA


TIVERTON, RI


WORCESTER, MA



BACKGROUND

While the City of Decatur already offered a recycling program, to meet state requirements to reduce landfill deposits, in 1997 it recognized a need to step up its waste management efforts.

The city rolled out its new PAYT system to residents in 1998.

— Mail and outreach – Public hearings and neighborhood meetings

— Local media – Three sizes and colors of WasteZero customized plastic trash bags

Residents citywide purchase WasteZero Trash Metering™ trash bags in grocery stores, hardware stores, and municipal offices.

As a result, the city saves more than $150,000 annually and applies that savings to fund local recycling events, raise awareness, and increase recycling rates even further.

DECATUR RESULTS WITH WASTEZERO: 1998 TO PRESENT

– 42% reduction in solid waste tonnage

– 79% increase in amount of recycling tonnage

– 33% increase in compost tonnage

– 100% increase in recycling rate (from 10.7% to 22%)

– More than $150,000 saved in disposal costs in their first year and each year since

Case Study—Decatur, GA


1Net of program services and supplies

Program Net Financial Impact 1 Year 5 Years 10 Years

Program Net Revenue1 $66K $333K $718K

Disposal Savings $15K $111K $304K

Incremental Recycling Revenue TBD TBD TBD

Operational Cost Savings TBD TBD TBD

Total Program Net Impact $81K $444K $1.0M

Program Environmental Impact 1 Year 5 Years 10 Years

Tons of Waste Diverted or Reduced 325 2,250 5,800

Tons of Additional Recycling 130 900 2,300

PAYT in a Small North Carolina Town

1,500 eligible households



Program Net Financial Impact 1 Year 5 Years 10 Years

Program Net Revenue1 $1.2M $5.9M $11.6M

Disposal Savings $219K $1.6M $4.1M

Incremental Recycling Revenue TBD TBD TBD


Total Program Net Impact $1.5M $7.5M $15.7M

Program Environmental Impact 1 Year 5 Years 10 Years

Tons of Waste Diverted or Reduced 4,500 31,000 75,000

Tons of Additional Recycling 1,800 12,500 30,000

Metric Tons of CO2 Reduced 8,500 59,000 141,000

Millions of BTUs Conserved 71,500 494,000 1,200,000

PAYT in a Mid-Size North Carolina City



PAYT in a Large North Carolina City

Program Benefits and Savings 1 Year 5 Years 10 Years

Program Net Revenue1 $11M $55M $114M

Disposal Savings $750K $5M $13M

Incremental Recycling Revenue $250K $2M $5M


Total Program Net Impact $12M $62M $132M

Tons of Waste Diverted or Reduced 20,000 125,000 300,000

Tons of Additional Recycling 8,600 56,000 135,000


Average Annual Environmental Impact

Natural Resources Diverted 13,500 Incremental tons of recycling/year

Greenhouse Gas Emissions Reduced 50,950 Metric tons of CO2 equivalent/year

Energy Saved 478,500 Million BTUs/year

Landfill Life Expectancy Increase TBD Incremental years



Best Practices for Implementation

The most successful pay-as-you-throw programs are those that are implemented with the understanding that the municipality is conducting smart change management.

Resident Engagement

• Proactive outreach • Education campaigns

Sound Program Design

• Based on current and desired infrastructure and technology

• Easy to understand and adopt

Appropriate Pricing Model

• Understanding starting point General Fund, Enterprise Fund

or blend? Visible or hidden fee?

• True costs vs. required revenues • Residential impact

Implementation

• Dedicating effort to the few weeks before and immediately after program commencement

Positive Feedback Loop

• Media and community outreach at milestone points, heralding success of program

In the aggregate, planning thoughtfully for pay-as-you-throw is itself a best management practice.


Questions & Conversation

Documents

The PAYT Solution—Overview