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Recycling? We Can’t Afford ^ To!
Recycling Symposium
November 15, 2012




By PresenterMedia.com
Out and about…
…You hear the following from some local governments
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?)
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
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
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)
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
May the Garbage Rest in Peace
It was a short life…




      Collection          Landfilling   Post Closure
(Actual Green Box Site)
Road To Economic Growth
Recycling - A New Life




                         Material Recovery   Manufacturing
   Collection                Facilities
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%
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….
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
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
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%)
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
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
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
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.
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/
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
Positive Public Opinion ?
We want a landfill in our backyard!?
Recycle and Save
Save our resources for our future
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
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
Are we burying the golden egg?
How can we afford not to recycle?
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

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Recycling Can\'t Afford Not To

  • 1. Recycling? We Can’t Afford ^ To! Recycling Symposium November 15, 2012 By PresenterMedia.com
  • 2. Out and about… …You hear the following from some local governments
  • 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
  • 21. Positive Public Opinion ? We want a landfill in our backyard!?
  • 22. Recycle and Save Save our resources for our future
  • 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