Recycling Market Development

1
Recycling Market Development

• Christopher Fritz, PADEP
• Northeast Regional Municipal
• Waste Planning and Recycling
• Coordinator
• 570-826-2424

2
1999 Market Summit

• Oct 25-26, 1999
• Organized by PRC, PROP and DEP
• Over 80 participants, state and national experts
  in recycling and recycling markets

3
Participants included

• For-profit and not-for-profit entities
• Collectors
• Processors
• End users
• National experts

4
Key Outcome

• The Summit resulted in the collection of
  information needed to plan the creation of an
  independent entity that will coordinate recycling
  market development within Pennsylvania.

5
Results of Summit

• Streamlined the recycling grants process
• Hired a Compost Coordinator
• Expanded scope of 904 grants to include food
  scraps
• Created the Recycling Markets Section with 4
  staff positions
• Enhanced markets website and databases

6
Continue to implement new initiatives

• Recycling Markets Studies with RW Beck
• Recycling Markets Infrastructure Development
  Grant Program
• Compost Infrastructure Development Grants
• Waste/Recycling Composition Studies
• MOUs with PENNDOT, General Services, DOA,
  Education, Corrections, DCNR

7
Continue to implement new Initiatives

• Electronics Recycling
• Comprehensive composting database now on-line
• General permit for source-separated food scrap
  composting developed
• Visited and compiled information on all
  Recyclable Materials Processing Facilities

8
Continue to implement new Initiatives

• Issued an RFP for the Recycling Markets Center in
  2004
• Evaluated and selected Parent Organization Penn
  State University
• Began work on the Center in Oct 2004 with the
  first Steering Committee meeting
• Selected Board in December 2004
• YOURE HERE TODAY!

9
Why do we need Market Development?

• Act 101 materials disposed annually
• 129,923 tons of clear glass (29/ton)
• 104,705 tons of colored glass
• 155,683 tons of plastics (.13-.20/lb.)
• 48,844 tons of aluminum (.57/lb.)
• 102,532 tons of steel and bimetallic cans
• (135/ton)

10
Why do we need Market Development?

• Act 101 materials disposed annually (cont.)
• 341,975 tons of high grade office paper
  (138/ton)
• 389,263 tons of newsprint (54-83/ton)
• 785,032 tons of corrugated (74/ton)

11
Why Market Development?

• Increase the recycling rate
• Decrease waste generation/increase diversion
• Assure sufficient quality and quantity of
  recyclable materials
• Assure sufficient capacity for processing of
  materials

12
Why Market Development? Continued

• Assure sufficient manufacturing capacity for
  recycled products
• Assure competitive prices for recycled
  commodities
• Provide demand-pull to support supply-push
  investment

13
Why Market Development (cont.)

• Create Jobs
• Keep PA collected recyclables in PA

14
Recycling Economics

• US Recycling Economic Information Study
• Northeast States (2000)--Delaware,,
  Massachusetts,, New Jersey, New York,
  Pennsylvania, and Vermontstudy was coordinated
  by NERC
• Nationwide 12 states were surveyed

15
Recycling Economics

• 3,247 recycling and reuse establishments in
  Pennsylvania
• employs 81,322 people
• annual payroll of nearly 2.9 billion
• annual revenues of more than 18.4 billion
• Contribute 305 million to our tax base
• About 3.5 of PA jobs

16
Recycling Markets Center Mission

• Expand and develop more secure and robust markets
  for recyclable materials by
• Enhancing the capacity of public and private
  organizations in PA to be more effective in
  recyclable materials marketing, end use, and
  market development
• Undertaking efforts that remove market
  barriers (export as well as in-state)

17
Market Development Barriers

• Imperfect flow of information regarding
  materials, pricing, and end products
• Uncertainty about future market conditions
• Mispricing of materials and products due to
  undervaluing public benefits/ costs

18
Market Development Barriers

• Inability of manufacturers to reach economies of
  scale
• High transaction costs for converting feedstock
  or creating new products using secondary
  materials
• Unrestricted nature of technical information that
  discourages research and development

19
Recycling Markets Center Focus

• Primary focus of these efforts
• to increase the use of recyclable materials by
  existing, start-up, and recruited Pennsylvania
  businesses,
• pursue opportunities for export of
  Pennsylvania-generated secondary materials that
  cannot be cost-effectively consumed in state.

20
Role of the Recycling Markets Center

• Point organization for recycling market
  development
• Establisher of vision and priorities
• Expert/clearinghouse on market information
• Facilitator among Commonwealth players
• Leader/coordinator of RMD service providers and
  broker of RMD services
• Distributor of funds for RMD work
• RMD advocate
• Monitor/evaluator of RMD efforts

21
ACT 175 Goals

• Act 175 Modifies Act 101 in that it requires the
  Department to develop a plan for the future of
  recycling and establishes four specific goals
  under Section 1513, which are
• 1. Establishing a Market Development Program
  to be funded by the Commonwealths Recycling
  Fund.

22
Act 175 Goals

• 2. Addressing the extent to which the Municipal
  Recycling Program under Act 101 can be sustained
  by restructuring recycling grants.
• 3. Including recommendations to county recycling
  coordinators designed to encourage market
  development.
• 4. Identifying specific means that DEP intends to
  use to assist municipalities in making their
  programs self-sufficient.

23
Restructure Grants Programs

• Ensure Act 101 Recycling Performance Grants are
  reinvested in local recycling programs.
• Expand the materials covered under Act 101
  Recycling Grants.
• Modify Act 101 County Recycling Coordinator
  grants to allow limited local government
  participation

24
Restructure Grants Programs

• Base County Recycling Coordinator grants on the
  performance of the coordinators.
• Offer pre-approved Act 101 Planning grants for
  economic assessment of county and municipal
  recycling programs.

25
Legislative Recommendations

• Require Recycling Performance Grant funds to be
  invested in recycling programs.
• Seek opportunities to increase use of recycled
  feedstocks and the substitution of recycled
  materials for virgin feedstocks.
• Consider developing financial incentives and tax
  credits for using recycled feedstocks for
  industry.
• Consider state-wide Buy Recycled goal of 25
• Add new materials to Act 101 Section 1501 list.

26
THE END

• QUESTIONS?