3. Centuries of wisdom…
We are not to throw away those things which can benefit our
neighbor. Goods are called good because they can be used for
good: they are instruments for good, in the hands of those who
use them properly.
-- Clement of Alexandria (150?-220?)
4. We have two choices before us…
Recycling or Disposal
There is a common misperception
that disposal is cheaper than Cost
Recycling Disposal
recycling…. Effective.
In many ways the costs are the same
5. Is Disposal Cheaper?
Let’s look closer and see…
RECYCLING DISPOSAL
Collection (Curbside or Drop-Off) Collection (Curbside or Drop-Off)
Haul to Facility Haul to Facility
Material Recover Facility Transfer Station
Haul to Facility Haul to Facility
Pre Mill Processor Landfill
End User Mill 30+ years Post Closure.
Manufacturer
Distribution Center
Box Store
6. It’s Ultimately About a Label
RECYCLING OR GARBAGE?
The material that is collected
at the curbside or at our
convenience centers is the
same.
• We can choose to label it
Garbage… (A Liability)
OR
• We can choose to label it a
Commodity… (An Asset)
7. Garbage or Recycling?
Choose either a Liability or an Asset
30 Years + Post Closure Care
• Pay$37/ton buys you 30 years plus in post
closure care
Feedstock
• Receive
$100/ton that feeds industries that
employ thousands in Tennessee
8. May the Garbage Rest in Peace
It was a short life…
Collection Landfilling Post Closure
(Actual Green Box Site)
9. Road To Economic Growth
Recycling - A New Life
Material Recovery Manufacturing
Collection Facilities
10. Financial Burdens
The Economics Impacting Industries
The Canadian Federation Rank Concern Percentage
of Independent Businesses 1 Fuel, energy costs * 64%
has compiled a list of the 2 Tax, regulatory costs * 63%
top 10 financial burdens
3 Insurance costs * 49%
facing entrepreneurs in
4 Wage costs 47%
2011.
5 Bank account and processing fees 43%
— The January 2011 findings are based on 6 Occupancy costs 23%
967 responses, collected from a stratified
random sample of CFIB members, to a 7 Product input costs * 23%
controlled-access web survey. Findings are
statistically accurate to +/- 3.2 per cent 19 8 Borrowing costs * 22%
times in 20.
9 Capital equipment, technology costs * 21%
10 Foreign currencies * 11%
11. NEW MESSAGE - THE ECONOMICS
Jobs – Creates and sustains
Why Do We Recycle? Economics – Saves money, avoids
Let’s look closer and see… costs
Revenues – Increases tax base
PREVIOUS MESSAGE WHY WE RECYCLE
Material – Less expensive than virgin
Mandated material
Save the environment Energy – Significantly less expensive
Expected by people than virgin material extraction
Right thing to do… Resource Management – Feedstock
National Security –
Energy, economics, jobs….
12. An Economic Snippet
Just Four Industry Areas Recycling Touches
The secondary materials market
provides feedstock to many industries Material Sales Jobs
at a much reduced rate.
Aluminum $2,024,700,000 1,992
Aluminum
Paper Paper 1,085,600,000 1,889
Plastics
Plastic 646,930,000 1,700
Steel
Glass
Steel 556,500,000 946
… And Many More
TOTALS 4,313,730,000 6,527
Extrapolated Source: http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ASM_2011_31AS101&prodType=table
13. More On This Economic Snippet
Recycling “Top 4”
If the "Top 4" commodities generated in
Tennessee were recycled at today's
market rates, assuming a 75% potential
recovery rate, revenues of $882 million
could be realized by local governments
and business.
January 2011
14. Another Snippet to Consider…
Tourism and Recycling Industries
RECYCLING TOURISM
• On average every 1,000 tons of • On average, every $86,400 spent in
material recycled in Tennessee Tennessee by domestic and
supports 1.68 jobs international travelers supported
one job in the state in 2011.
• Tax revenue generated by 1,000
• Tax revenue generated by domestic
tons of material recycled in travel for federal, state, and local
Tennessee generates $3,687 revenue governments totaled $3.0 billion, up
or $7,275,963 4.2 percent from 2010.
• $1.5 billion in personal income • $9.2 billion in personal income
across Tennessee added by Tourism to Tennesseans
-Based on 1.9 Million Tons Recycled
(Average capture rate below 10%)
15. Energy Savings
RECYCLING OR GARBAGE?
With the cost of energy
going up, can we afford to
not conserve energy when
we have the opportunity?
Energy Savings by Recycling
Aluminum 95%
Paper 64%
Plastic 50%
Steel 75%
Glass 50%
Graph Source: http://www.eia.gov/FTPROOT/presentations/ieo2000/sld002.htm
16. Materials Come From Two Places
Extracting or Reclaiming
Mining Virgin Materials
• Cost of extraction is exorbitant
Reclaiming Secondary Materials
• Costis only a fraction of the original
extraction process
17. Dirty Word…Idle Capacity
Industries need material to produce
Material
Industries need material to produce
the products they are in business to
sell.
Industries do not put on extra shifts
unless they have: Capacity
•Demand for their product
•Materials to make their product People Equipment
•People to produce their product
•Or the money to create their
product
18. What happens when this happens?
Middle Tennessee Industry
•Needed materials: However…
14,000,000 pounds
of PET
•Tennessee
currently yields far
less than this
across the state.
19. Strategic Concerns…
Military or Commerce
A significant amount of primary
materials come from areas of
concern.
-Middle East
-China
-Former USSR States
-Indo China
-Arethese the stable regions in
the world?
-Is
this a practice we can
continue for years to come?
Graph Source: http://www.materialflows.net/trends/analyses-1980-2008/global-resource-extraction-by-material-category-1980-2008/
20. Can We Afford This?
Gross Domestic Product (G.D.P.) Purchasing Power
China and India have billions of people
with new buying power in their
growing middle class.
Should we take advantage of this and
produce the products to sell to them
or should we allow them to capture all
the secondary materials and produce
the products there and sell to us.
Graph Source: http://photos.mongabay.com/09/forecast_gdp_line.jpg
23. Recycling, We Can’t Afford ^ To!
Reasons we need to recycle… Reason for not Recycling
-Jobs creation -Wrong Label
-Revenue generation -Not understanding the
-Tax base enhancement economics of recycling
-Personal income growth
-Manufacturing feedstock
-Manufacturing capacity
-Energy cost savings
-Strategic value
-Extraction cost
avoidance
-Environmental
protection
-Avoid landfill costs
-Avoid Long term
liabilities
-Avoid new landfills
permitting
-Airspace protection
24. It’s Ultimately About Labels
RECYCLING OR GARBAGE
Commodity or waste
Feedstock or residue
Revenue or expenditure
Asset or liability
Security or uncertainty
Independence or reliance
Renewable or exhaustible
25. Are we burying the golden egg?
How can we afford not to recycle?
26. Larry Christley, RSM
Program Manager
Planning and Financial Assistance
Division of Solid Waste Management
Tennessee Department of Environment and Conservation
401 Church Street, 5th Floor
Nashville, TN 37243-1535
Larry.Christley@tn.gov
615-532-0744
www.tn.gov/recycle