CalRIN Business Plan

1
CalRIN Business Plan

• Presented by
• Bruce Olszewski, DirectorCenter for Development
  of RecyclingSan Jose State University

2
Industry

• Broadly categorized as recycling and reusing
• Subcategorized into collecting, processing and
  remanufacturing
• Supports 3.1 of jobs in the US
• 2.7 of the US gross domestic product (GDP)

Source REI study
3
California Overall Trends
Source REI study
4
California Waste Diversion

• Diversion economic impact is 17 to 20 percent
  higher than disposal
• 1999 data for both disposal and diversion
• Total output impact of 21.20 billion
• Value-added impact of 10.74 billion
• Created 179,300 jobs.

Source REI study
5
Market Needs

• US waste generation increased from 247 million
  tons in 1990 to 409 million Tons in 2001
• California generates 76 million Tons of waste
  each year
• Diversion has net positive impact on Economy
• Laws and regulations
• IWM Act Requires California diversion rate to
  exceed 50
• Electronic Waste Recycling Act of 2003 (SB 20)
• February 8, 2006, all batteries in California
  must be recycled
• And more
• Bottle-recycling rate has dropped from 70 to 52
  in last 11 years.
• Land-filling creates environmental stress on air,
  water and land.
• Changes in consumer attitudes about recycling
• Local and State governments have limited
  resources.

6
CalRIN What is it?

• California diversion rate is less than 50
• No Statewide localized information network
• CalRIN addresses this need
• CalRIN - concept and a proposal for
• One-stop source for localized recycling
  information
• Cooperate with local government/coordinate
  regional efforts
• Unbiased, current/comprehensive information
• People staffed phones/statewide web service/city
  publication sharecenter
• Non profit statusAllows government to focus
• Head office will coordinate several regional
  centers
• Modeled after CDR at San Jose State Univ., Dept
  of Environmental Studies
• Located in state university/community college
  campuses

7
Services Provided by CalRIN

• Provide Diversion Information via an online,
  searchable database, phone and fax using a
  statewide toll free number.
• Provide Information
• Searchable Database Specific to Material
• Maps
• Readymade Recycling and Reuse Guides
• City/County Program Information
• State Program Links/CalMax/FreeStuff
• Events and Programs/School Outreach
• Business Resources Commercial Services
  Outreach/Guides
• Promote Reducing, Recycling Reusing Awareness
• State freebies

8
SWOT Analysis
9
Competitive Analysis

• County government organizations
• Alameda County (http//www.stopwaste.org/)
• City government organizations
• Nonprofit organizations BANKRUPT FILED
• Earth911 (www.earth911.org)
• Commercial Organizations
• http//www.enviroyellowpages.com
• Industry Specific Organizations
• www.bottlesandcans.com
• Statewide government agencies
• DOR
• IWMB

10
Operating Expenses
11
Monthly Cash Out
12
CalRIN Financials

• Draw funding from California beverage container
  recycling fund
• Estimated initial startup expenditure is 250,000
  based on ten RICs
• After the start up phase
• Estimated Yearly Operating Cost
  1,345,729-2,700,000 (less than 1 )
• Estimated Monthly Burn Rate 110,000
• First year Advertising Cost 200,000
• reduce to 100,000 after initial positive boost

13
Potential for Benefits

• CalRIN seeks to benefit at no cost
• Consumers
• Businesses
• Local and State Government
• Recycling, Reuse industries

14
Tangible Benefits Analysis

• Linked to economic value of diversion, and the
  lift due to information provided by CalRIN
• Cost Savings to business and consumers
• More materials available to recycling, reuse
  industry
• Increase sales receipts in recycling, reuse
  industry
• Job Growth
• Increase in state revenues

15
Economic impact of diversion

• Difficult to measure and quantify
• Varies by type diversion and material
• Recycling has more impact than reuse
• Steel and Plastics have high impact
• Rubber and Paper have low impact
• Assessment of relative impact by material /
  diversion type varies in different studies for
  same time period

16
Economic impact of diversion
Source California Recycling Economic
Information Study, Jul 2001
17
Diversion net impact
Source Economic Impact of Waste Disposal and
Diversion in California, Apr 2001
18
Break Even Analysis
19
Intangible Benefits Analysis

• Encourage recycling and reuse
• Provide service-learning for college students.
• Facilitate local governments in meeting their
  diversion goals.
• Improve quality of environment and life in
  California.
• Preserve natural resources.

20
Marketing

• Generate awareness and enhance perceived value
• Greater emphasis at outset, then reminders
• PR rep to build relationships
• Advertising
• County Fairs

21
Advertising

• Flyers
• Include in garbage bills
• Send to property managers
• Distribute at schools
• Newspapers
• Local city and schools
• Radio
• Public radio

22
Operations Plan

• Phase 1.
• Plan sites and infrastructure during year 1
• Meet with local, state govt., university
  officials, students
• Phase 2.
• Establish sites, purchase infrastructure, hire
  students
• Phase 3
• PMs, Evaluate, Optimize processes

23
CalRIN Keys to Success

• Endorsement and sponsorship from top levels of
  state and local governments and university
  system.
• Legislation enacted to release redemption funds.
• Legislation enacted to create CalRIN network.
• Customer service and ease of use.

24
Balanced Scorecard

• Mission Increase diversion rates in CA by
  advocating recycling and reuse
• Strategy Educate the public, provide directory
  service, research and disseminate information
• Priority is on satisfying customer needs since it
  is a non-profit.

25
CalRINs Balanced Scorecard
26
Lost Recycling Funds

• 9 billion CRV tossed 385 Million (DOR
  estimates www.bottlesandcans/news.org)
• Wheres the money?
• From 2003? 2004? 2005? 2006?
• 1 billion in lost recycling funds?
• Address the Recycling Funds Issue! CalRIN does.
• 2007? 2008? 2009? 2010 and on and on?
• Plus oil funds, Plus tire funds, Plus
  electronics!
• See RES 32 Governors California Performance
  Review!