Full Cost Accounting (F (FCA) Tools Community Recycling Still Makes - PowerPoint PPT Presentation

The In Integrated Solid Waste Management (I (ISWM) & Full Cost Accounting (F (FCA) Tools Community Recycling Still Makes Dollars and Sense Gary Epperson, Clark County Solid Waste Coordinator BJ Bland, Recycling & Local Assistance Branch George Partridge, Recycling & Local Assistance Branch

Goals of f Our Presentation I. To present a more positive perspective regarding the future of recycling and the importance it will make in the future of our economy considering current market conditions. II. Introduce tools developed for EPA Region 4 states to help justify and advocate for increased recycling initiatives within the context of integrated solid waste management. III. Present how our Branch has validated and demonstrated the usefulness of the EPA Region 4 tools by working with Gary Epperson, Solid Waste Coordinator to use Clark County/Winchester as a Case Study. IV. Show how those tools can help you select the approach to recycling that will best work for your county and to conduct the associated cost- benefit analysis with assistance and guidance from the Recycling and Local Assistance Branch.

The Path Forw rward Recycling & Resource Conservation for Communities FCA-Full Cost Accounting & ISWM-Integrated Solid Waste Management Where we have been and where we are today: Clark County; A Case Study

Market Modeling Predictions Organization for Economic Cooperation and Development

To use the stock market as an example!

The Path th Forw rward  Region 4 States [Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, and Tennessee] partnered with EPA to develop Integrated Solid Waste Management (ISWM) evaluation tools to help communities evaluate, justify, and advocate for increased recycling.  Tools prepared in collaboration with RRS [Resource Recycling Systems].  Two tools were developed and distributed by SERDC:  Introduction Guide and FCA EXCEL Spreadsheet to Assist with Funding and Accounting.  Recycling Program Scenario ISWM EXCEL Based Model. Resources at: https://www.serdc.org/ISWM

In Integrated Solid Waste Management What is Integrated Solid Waste Management? “Integrated Solid Waste Management (ISWM) is a comprehensive waste prevention, recycling, composting, and disposal program.” “ISWM involves evaluating local needs and conditions, and then selecting and combining the most appropriate management activities for those conditions.”

Funding and Full Cost Accounting [F [FCA] What is Full Cost Accounting? “Full Cost Accounting (FCA) is a method of identifying and reporting the costs of providing ISWM services to communities.” What are the benefits of Full Cost Accounting? I. It takes into account past and future expenditures, overhead and support services costs, and operating costs II. Provides a complete picture of the cost to manage our waste streams, including collection, composting, recycling, landfilling and waste-to- energy. III. It can be used to compare the cost of different program options, consider changes to services, establish rates and user fees that are sufficient to recover the full costs of the services provided, and clarify the costs of recycling versus the costs of landfilling.

The Path Forw rward: Using IS ISWM Model and FCA A THREE STEP PROCESS ! Run the EXCEL Based ISWM Model to Determine the Best Waste Management Scenario (Plan) that includes Recycling disposal Options Complete the FCA – Full Cost Accounting Tool to Identify, Collect, Work in progress! Track, and Analyze both Present Costs and Future Costs for the Scenario Predicted by the ISWM Model Develop Implementation Plan – Steps to take for a Bright Future in Recycling

Sin ingle or Dual Stream? Single Stream: Known as “fully commingled” or “single - sort.” A recycling system in which all paper fibers, plastics, metals, and other containers (i.e., glass) are mixed in a collection truck instead of being sorted by the waste generator (resident, etc.) into separate commodities (fiber related waste and containers, for instance). Combining all “recyclables” introduces the potential for reduced collection efficiency by the MRF and the potential for higher contamination levels received by the post-processor. Dual-Stream: Residents (waste generator) separates the wastes into more than one collection bin, segregating fibers for instance from other wastes such as containers (with a hybrid system where for instance glass related waste may be excluded or kept separate from all other wastes).

General Points on IS ISWM Collection Model Comprehensive Drop-Off Implementing a Single Stream Residential Curbside Program Using 65 Gallon Carts Implementing Dual Stream Program Using 65 Gallon Carts Collection Frequency Implementing Dual Stream Program Using 18 Gallon Bins Weekly Every Other Week

Five IS ISWM Model Scenarios I. Comprehensive Recycling Drop-Off Program  Single-Stream  Minimum of Three Roll-Off Containers Dual Stream  Serviced on a Regular Schedule  Collected materials taken to an existing regional MRF that is within 15 minutes of the location. II. Dual-Stream Program Using Bins Collection: Weekly or Every Other Week  Split-Bodied Manual Real Load Trucks  Two 18-Gallon Open-Topped Containers Provided  One container collects fibers: cardboard, paperboard, newspapers, and magazines.  Second container collects metals, plastics & glass: tin and steel cans, plastic jugs and tubs, and glass bottles Collection: Weekly or Every Other Week III. Dual-Stream Program Using Carts  Two 65 Gallon Lidded and Wheeled Carts  Full Automated Side Loading Trucks IV. Single-Stream Curbside Program Using Carts

IS ISWM Mode Scenarios V. Development of Hub-and-Spoke Program  Direct haul of recyclable materials to a processor.  Developing a new Spoke (Transfer Station)  Developing a new Hub (Dual Stream MRF)  Develop a new Hub (Single Stream MRF) Transfer stations are the “Spokes” of the wheel and the MRFs are the “Hubs.”

Le Lexi xington Recycle le Ce Center r Data https://www.lexingtonky.gov/recycling Co Cost Be Benefi fits for r Recyclin ling

General Points on IS ISWM Hub & Spoke Model Develop of a New Hub (MRF) 10,500 tons/year minimum for Dual Stream 22,500 tons/year for Single Stream Transfer Stations Sizes Considered in Model Small: Design capacity of 2,500 tons per year Medium: Design capacity of 10,000 tons per year Large: Design capacity of 52,000 tons per year Direct Haul of Recyclables to Materials Processor

IS ISWM Model In Inputs Answer Eleven (11) Questions in an ECCEL Spreadsheet Model 1. Community name. KEY POINT: 11 Inputs from 2. State – select Kentucky. Annual Report Data 3. Number of households in your community. 4. Estimate of the level of participation in your recycling program. 5. Community type: Rural → Suburban → Urban (one of three choices). 6. Will glass be included? (Default is to include glass!) 7. Participation by residents (Low → Medium → High); High implies residents fill their containers to between 75 % and 100 % of capacity. 8. Landfill tip fee? Default value is state average for EPA Region 4 States. 9. Recycling processor gate fee or revenue? Default is state average. 10. Distance municipality is to transfer station, MRF or recyclables processor. Default distance is 15 miles. 11. Distance to the MRF (Materials Recovery Facility) one uses or would use to process recyclable materials if a transfer station was built. Default distance is 75 miles.

IS ISWM Collection Model Outp tputs 1. Tons of Recycling Per Year: The total tons recycled in the community per year. This does not include large multi-family, commercial or industrial sectors. Note: Contamination in the stream is accounted for in the Hub and Spoke outputs. 2. Pounds of Recycling Per Household Per Year: The total number of pounds recycled in the community per year, divided by the total number of households. Total Collection Costs 3. Annual Net Cost (Total): The total annual cost to run the program. The breakdown of the cost considered are shown in the next slide.

IS ISWM Collection Model: Annual Net Cost Breakdown  Purchase of containers, assembly, delivery, inventory, change outs, maintenance, and replacement for carts or bins.  Purchase of vehicles, operations, insurance and fees, fuel, maintenance, and mileage (collection, support, and back-up vehicles).  Collection staff including outreach activities.  Contingency for capital and operations expenses.  Cost of serving loans (7 year payback period at 3.00 % interest).  Savings at the landfill achieved from not landfilling recyclables (landfill diversion)

IS ISWM Collection Model Outp tputs (C (Continued) 4. Annual Net Cost (Operations & Maintenance only): Removes the purchase and loan servicing costs of all capital equipment (vehicles and containers) from the Annual Net Cost (Total). 5. Cost per Household per Year: The Annual Net Cost (Total) divided by the total number of households in the community. 6. Costs per Ton Recycled: The Annual Net Cost (Total) divided by the total tons recycled per year. This allows comparison of the cost per ton for each program option! 7. Capital Cost (Total): The total cost for all equipment. 8. Total Number of Vehicles: Includes collection (spit bodied read load or fully automated side load), back-up vehicles, and manager and support vehicles for cart delivery and maintenance.