The Financial Power of Zero-Waste Programs: A Pay-as-You-Throw Case Study From Worcester, Mass.
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A presentation on the significant financial impact of pay-as-you-throw on Worcester, Mass., presented by WasteZero and Worcester's former Public Works director at the Solid Waste Association of North America's annual conference in March 2015.
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The Financial Power of Zero-Waste Programs: A Pay-as-You-Throw Case Study From Worcester, Mass.
- 1. Copyright ©2015 WasteZero The Financial Power of Zero-Waste Programs: A Pay-as-You-Throw Case Study From Worcester, Mass. Mark Dancy—President, WasteZero Bob Moylan—Commissioner of Public Works and Parks (retired), Worcester
- 2. Copyright ©2015 WasteZero Not All Waste Reduction Plans Are Created Equal Mandatory Recycling ↓ Low Cost ↓ Low Effectiveness Variable-Rate Carts ↑ High Cost ↓ Low Effectiveness Single-Stream Recycling ↑ High Cost ↓ Low Effectiveness Automated/Larger Recycling Carts ↑ High Cost ↓ Low Effectiveness Recycling Education ↓ Low Cost ↓ Low Effectiveness
- 3. Copyright ©2015 WasteZero Not All Waste Reduction Plans Are Created Equal Mandatory Recycling ↓ Low Cost ↓ Low Effectiveness Variable-Rate Carts ↑ High Cost ↓ Low Effectiveness Single-Stream Recycling ↑ High Cost ↓ Low Effectiveness Automated/Larger Recycling Carts ↑ High Cost ↓ Low Effectiveness Recycling Education ↓ Low Cost ↓ Low Effectiveness Pay-as-You-Throw ↓ Low Cost ↑ High Effectiveness ↑ High Revenue-Generation
- 4. Copyright ©2015 WasteZero Trash Is America’s $384 Billion Problem TOTAL: $384 Billion per Year MSW Management Expenses $100 Billion Energy Opportunity Cost $100 Billion + $200 Billion Avoidable Costs Recycling Jobs Payroll $34 Billion Remanufacturing Revenue $100 Billion + + Value of Materials $50 Billion Unrealized Revenue $184 Billion
- 5. Copyright ©2015 WasteZero Solid Waste Is a Utility Solid waste is the last unmetered utility, which encourages waste and is unfair. Electricity Gas Water Trash Metered Unmetered Communities should be metering their trash just like they meter their other utilities.
- 6. Copyright ©2015 WasteZero The Way Things Work Now 2. Request 3. Blank Check1. Flat Fee or No Fee Solid Waste $138.00 CITY OF ANYTOWN ANYTOWN, USA PO BOX 1234 CITY OF ANYTOWN ANYTOWN, USA PO BOX 1234 ANYTOWN, USA Encourages waste; unfair to those who throw away less
- 7. Copyright ©2015 WasteZero The Pay-as-You-Throw Solution 2. Pay per Bag 3. Incentivize What’s Right 1. Cut Fees (when possible) Provides incentives to reduce, reuse, recycle, and compost; equitable
- 8. Copyright ©2015 WasteZero Pay-as-You-Throw Results Results That Are Immediate… and Long-Term Trash tonnage drops to 50% of national average and sometimes even lower. Disposal spending plummets. Within 90 days: Long Term (Years 2-10): • Tonnage can be reduced by up to 60%. • Tipping fees continue to decline, and recycling revenues rise. • Resident satisfaction increases. Recycling rates often double or even triple. Revenue from recycled material increases.
- 9. Copyright ©2015 WasteZero Pay-as-You-Throw Results WATERVILLE, MAINE 53% DECLINE IN SOLID WASTE IN 5 MONTHS MALDEN, MASS. 52% DECLINE IN SOLID WASTE OVER 5 YEARS FALL RIVER, MASS. 43% DECLINE IN SOLID WASTE IN 6 MONTHS SANFORD, MAINE 41% DECLINE IN SOLID WASTE IN 3 MONTHS
- 10. Copyright ©2015 WasteZero PAYT in Worcester—Background • In 1993, the Worcester, Mass., Public Works & Parks Department faced a significant budget shortfall. • We faced a choice: cut staff and services, or institute pay-as-you- throw. • After intense debate across the city, we started our PAYT program in November 1993.
- 11. Copyright ©2015 WasteZero PAYT in Worcester—Details on Program • Dispose of trash in official yellow bags available at retailers throughout the city – 30-gal. bag: $1.50 – 15-gal. bag: $0.75 • Curbside garbage and recycling collection • Approximately 52,000 households • Average household uses 1.2 30-gal. bags per week • Compliance near 100%
- 12. Copyright ©2015 WasteZero PAYT in Worcester—An Overnight Success
- 13. Copyright ©2015 WasteZero PAYT in Worcester—Powerful Waste Reduction MSW Down 55% 447,000 Tons Diverted
- 14. Copyright ©2015 WasteZero PAYT in Worcester—Financial Results Program Revenue: $46.8 Million
- 15. Copyright ©2015 WasteZero PAYT in Worcester—Financial Results Program Revenue: $46.8 Million
- 16. Copyright ©2015 WasteZero PAYT in Worcester—Financial Results Program Revenue: $46.8 Million
- 17. Copyright ©2015 WasteZero PAYT in Worcester—Financial Results Program Revenue: $46.8 Million Net Financial Impact: $94.5 Million Total
- 18. Copyright ©2015 WasteZero PAYT in Worcester—Financial Results Program Revenue: $46.8 Million Net Financial Impact: $94.5 Million Total Average $4.5 Million per Year