Evaluation of Lexington-Fayette Urban Evaluation of Lexington-Fayette Urban County RecyclingCounty Recycling

May 25, 2005May 25, 2005

Dr. Subodh Das, Dr. Subodh Das, Executive DirectorExecutive Director

Jason Liew, Jason Liew, Research AssociateResearch Associate

A Sloan Industry Center ProjectA Sloan Industry Center Project

Aluminum Can CouncilAluminum Can CouncilWashington D.C Washington D.C

Center for a Sustainable Aluminum IndustryCenter for a Sustainable Aluminum Industry

University of KentuckyUniversity of Kentucky

Sloan Foundation Industry CentersSloan Foundation Industry Centers

TheThe Alfred P. Sloan FoundationAlfred P. Sloan Foundation • Established in 1934 by Alfred P. Sloan, Jr.Established in 1934 by Alfred P. Sloan, Jr.

A Sampling of Sloan Industry Centers:A Sampling of Sloan Industry Centers:• Harvard Harvard

Textile and Apparel ResearchTextile and Apparel Research

• MIT MIT International Motor VehicleInternational Motor Vehicle

• Georgia Tech Georgia Tech Paper BusinessPaper Business

• Carnegie Mellon Carnegie Mellon SteelSteel

Center for a Sustainable Aluminum Center for a Sustainable Aluminum Industry (CSAI)Industry (CSAI)

Founded in Jan. 2005Founded in Jan. 2005 Funded by several sources:Funded by several sources:

• Sloan Foundation Industry Centers ProgramSloan Foundation Industry Centers Program• A consortium of Aluminum ProducersA consortium of Aluminum Producers• The Commonwealth of KentuckyThe Commonwealth of Kentucky• The University of KentuckyThe University of Kentucky

Have about $800,000 in funding for research over the next Have about $800,000 in funding for research over the next three years.three years.• Faculty in Economics, Business and Engineering are Faculty in Economics, Business and Engineering are

members of CSAImembers of CSAI

CSAI Research Area CSAI Research Area

• Finding ways to enhance recycling rates is Finding ways to enhance recycling rates is one of the major focus areas.one of the major focus areas.

• The project will study the aluminum recycling The project will study the aluminum recycling trends in Fayette County, KY.trends in Fayette County, KY.

Aluminum Companies Located within 600 miles of Kentucky(Brent Lackey, Division of Research, Kentucky Cabinet for Economic Development, “The

Aluminum Industry in Kentucky”, September 2002)

Kentucky supplies the most aluminum to US markets

Where is Fayette County?

Area: 285 square miles

Fayette County Total Population (2003): 266,798

Number of Households in Fayette County (2002): 108,288

Map and Data from US Bureau of Census

Separation Process at Fayette County Recycling Center

Recyclable CommoditiesWeight Shipped (lbs)

Price for April 2005

Revenues Generated

Composition by Weight of

Total Commodities

Shipped

Composition of Total Revenue

Generated

Ratio of Revenues

Generated to Weight Shipped

Old Newspapers (ONP) 6,514,300 $82.50per ton $268,715 53% 41% 0.78

Old Corrugated Containers (OCC) 1,795,920 $77.50

per ton $69,592 14% 11% 0.73

Mixed Plastic 302,820 $0.04 per lb $12,113 2% 2% 0.76

High Density Polyethylene (HDPE) 140,340 $0.29 per lb $40,699 1% 6% 5.47

Glass 1,752,980 $4.80per ton $4,207 14% 1% 0.05

Fiberboard 208,240 $44.10per ton $4,592 2% 1% 0.42

Aluminum Cans 181,400 $0.75 per lb $136,050 1.46% 20.72% 14.16

Steel Cans 258,980 $200.00per ton $25,898 2% 4% 1.89

Sorted Office Papers (SOP) 767,720 $105.00per ton $40,305 6% 6% 0.99

Phone Books 223,380 $49.70per ton $5,551 2% 1% 0.47

PET-2 liters 243,160 $0.20 per lb $48,632 2% 7% 3.78

Old Computers 6,360 $80.00per ton $254 0.1% 0.04% 0.76

Commodities Shipped from LFUCG Recycling Center (06/01/04 to 04/15/05, 10 months)

(Source: James Carter, Manager LFUCG Recycling Center)

Commodities Shipped by Weight from LFUCG Recycling Center (06/01/04 to 04/15/05)

Glass, 14%

High Density Polyethylene (HDPE),

1%

Mixed Plastic, 2%

Old Corrugated Containers (OCC), 14%

Sorted Office Papers (SOP), 6%

Steel Cans, 2%

Aluminum Cans, 1%

Fiberboard, 2%

Phone Books, 2%PET-2 liters, 2%

Old Newspapers (ONP), 53%

Old Computers, 0.1%

Revenues Generated from Shipped Commodities from LFUCG Recycling Center (06/01/04 to 04/15/2005)

Old Corrugated Containers (OCC), 11%

High Density Polyethylene (HDPE),

6%

Glass, 1%

Fiberboard, 1%Aluminum Cans, 21%

Old Newspapers (ONP), 41%

Phone Books, 1%

Steel Cans, 4%

Old Computers, 0.04%

PET-2 liters, 7%

Sorted Office Papers (SOP), 6%

Mixed Plastic, 2%

Ratio of Revenues Generated to Weight for Commodities Shipped from LFUCG Recycling Center (06/01/04 to 04/15/05)

High Density Polyethylene (HDPE),

5.47

Glass, 0.05

Fiberboard, 0.42

Steel Cans, 1.89

Aluminum Cans, 14.16

Sorted Office Papers (SOP), 0.99

Phone Books, 0.47Old Computers, 0.76 PET-2 liters, 3.78

Old Newspapers (ONP), 0.78

Mixed Plastic, 0.76

Old Corrugated Containers (OCC), 0.73

National Aluminum Beverage Can Recycling Rate Trends.

(Source Aluminum Association)

The Aluminum Can Recycling Rate, 1992-2003

45

50

55

60

65

70

Year

%

1% change in recycling rate has an economic impact of approximately $12 million

Aluminum Recovered and Populations Access to Curbside Program Trend

(2002)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000N

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Pennsylv

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Wis

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Kentu

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Nebra

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Washin

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West V

irgin

ia

Ari

zona

Iow

a

Haw

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Dela

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Nort

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lina

Main

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New

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Data compiled from 14th Annual Nationwide Survey of Solid Waste Management in the US, The State of Garbage in America

Bottle Bills in the works

Bottle Bills State

Kentucky

Bottle Bills State

No Legislation

Bottle Bills pending

Curbside Access (X1000 people)

More access results in more recycling

Aluminum Recovered (X 10 tons)

Observations at Fayette County Observations at Fayette County Recycling Center Recycling Center

(06/01/04 to 04/15/05)

Paper based commodities represent the largest group of recyclables Paper based commodities represent the largest group of recyclables based on weight shipped.based on weight shipped.

Aluminum beverage cans contributed 21% of total revenues (second Aluminum beverage cans contributed 21% of total revenues (second highest) despite being tenth in terms of weight shipped.highest) despite being tenth in terms of weight shipped.

Aluminum beverage can is the present “cash cow” for the center and Aluminum beverage can is the present “cash cow” for the center and its contribution is likely to grow with increasing recycling rate.its contribution is likely to grow with increasing recycling rate.

Path ForwardPath Forward

Monitor monthly sales and collections of beverage cans and Monitor monthly sales and collections of beverage cans and percent recovered at various facilities.percent recovered at various facilities.

Conduct waste composition studies of selected demographics.Conduct waste composition studies of selected demographics.

Expand efforts to increase aluminum beverage can recycling rate Expand efforts to increase aluminum beverage can recycling rate working in conjunction with Fayette County, University of working in conjunction with Fayette County, University of Kentucky, Baker Iron & Metals Co., Wise Alloys and Anheuser Kentucky, Baker Iron & Metals Co., Wise Alloys and Anheuser Bush.Bush.

Identify ways to quantify and increase the sorting, shipping Identify ways to quantify and increase the sorting, shipping efficiency and profitability of the Fayette County Recycling Center.efficiency and profitability of the Fayette County Recycling Center.

Demographic Study for Fayette CountyDemographic Study for Fayette County