Conference Report

Developing Markets for Recyclables

The U.S. Conference of Mayors/NRRA meeting in March addressed the challenges recycling poses for solid waste management programs.

The relationship between recyclables and municipalities was the focus of "Building Confidence in Recycling: Developing Markets for Recyclables," a two-day program sponsored by the U. S. Conference of Mayors and the National Resource Recovery Association (NRRA). More than 200 mayors, local officials, and others interested in solid waste management and recycling issues attended the meetings, held in Washington, D.C., March 29-30. Also called the Ninth Annual Resource Recovery Conference, the session primarily covered recycling markets for individual commodities and some of the issues municipalities will have to face when defining their solid waste goals and objectives.

Material Separation Issues

A pre-conference briefing by the Environmental Protection Agency (EPA) on proposed regulation of municipal waste combustors (MWCs) kicked off the conference. Fred Porter of EPA's Office of Air Quality Planning & Standards presented an overview of EPA's December 20, 1989, proposed rule on emissions guidelines and new source performance standards (NSPSs) for new and existing MWCs. Scrap processing industry attendees were particularly interested in the three material separation provisions to the rule, which is to take effect by December 31, 1992:

MWCs must separate a minimum of 25 percent of their wastes for recycling prior to burning. Recycled materials for which credit will be given include paper and paperboard, ferrous and nonferrous metals, glass, plastics, and yard wastes. Annual permits would be available under the proposed rule for MWCS that separate combustible recyclables (e.g., paper and plastics) for which there are no markets. Once the permit is issued, the material may be combusted in the MWC.

The combustion of lead-acid vehicle batteries weighing more than 11 pounds is prohibited under the proposed rule.

A program must be developed to remove household batteries from the municipal solid waste (MSW) stream.

EPA anticipates that 60 million tons of waste per year could be subject to the 25 percent separation requirement. EPA expects an 80 percent reduction in ferrous and nonferrous metals and glass going to MWCs. EPA anticipates several benefits from the materials separation requirement, including fewer MWC emissions, more efficient MWC steam generation, less solid waste disposed of in MWCs and landfills due to increased source reduction and recycling, a decrease in energy requirements associated with extracting and processing virgin materials, and, says Porter, "an increase in environmental awareness and development of an environmental ethic by the general public."

EPA's Office of Solid Waste anticipates a corresponding rule by the end of the summer mandating the recycling of materials bound for landfills.

MSW Recycling Programs

J. Winston Porter set the tone for the conference by painting what he termed "Municipal Solid Waste Recycling-The Big Picture." Relying on his past experience as an EPA administrator, he reviewed the EPA proposed integrated approach to waste management, through source reduction, recycling, incineration, and landfilling, and summarized the major reasons why recycling is beneficial on both the national and local levels. He emphasized that any locality developing a recycling plan, must consider all available options and then choose the best mix of options for that specific locality and its population.

J. Winston Porter then outlined how the primary recyclables found in municipal solid waste streams have their own individual marketing, technical, and special characteristics that municipalities must recognize as they plan recycling activities. Recyclables he discussed included paper and paperboard, glass, plastics, ferrous metals, aluminum, and yard waste.

As the developer of the 25 percent national recycling goal for 1992 that EPA incorporated into its solid waste management "Agenda for Action" blueprint, he stated that "the 25 percent national goal is in the ballpark for 1992, but may well not be reached until a year or so later." He concluded by emphasizing that municipalities must plan recycling efforts in the context of an overall solid waste management plan; realize that while markets for most recyclables are developing, fluctuations do occur; develop realistic recycling goals; and recognize that business and industry are partners in a municipality's recycling efforts.

News on Commodities

William Hulligan, president, Waste Management of North America, Inc., highlighted the curbside efforts Waste Management has made through its Recycle America program. Hulligan provided specific examples of commercial and industrial recycling that are taking place across the country, commenting that "Markets for recycled materials are absolutely essential to the success of recycling. They must be found, developed, encouraged, stimulated, and even forced, when necessary." He also described Waste Management's joint venture in plastics recycling with the Du Pont Company.

On the paper front, Paul Schierl, chairman of the board and CEO, Fort Howard Corporation, outlined how the paper industry views the solid waste challenge, stating that "Recycling is the cornerstone of this story. In fact, it's the most discussed, most visible, fastest growing segment in the American paper industry." Schierl suggested that there is a hierarchy to managing solid waste-especially in the areas of reducing and recycling-as evidenced by the large number of legislative proposals introduced in this area. He detailed how the paper industry works, explained why there has been a steady supply of old newspapers, and discussed the voluntary measures the American paper industry has decided to pursue, such as a national goal of 40 percent paper recovery for recycling by 1995.

Concerning plastics, Geoffrey Place, vice president for research and development, Procter & Gamble, explained how many plastic recycling systems are being started across the country, and how cities are adding plastic to existing collection programs. "In my judgment," said Place, "the opportunity to recycle plastic is even greater than was true for aluminum, and I believe we can achieve a comparable level of success for plastics recycling in the next 5 years as opposed to the 20 years it has taken for aluminum." Place listed the many current or planned tests and projects for plastics, stating that "The only thing that's stopping us from moving faster is the availability of clean recycled plastic."

Cooperation Is Essential

Sen. Tim Wirth (D-Colo.), a member of the Energy and Natural Resources Committee, delivered the general address at the conference, m which he asserted that public officials are in a collision course over solid waste issues today, trying to address a very complex problem in the face of limited financial and personnel resources. He highlighted some of the legislation he has sponsored or co-sponsored, including legislation to see how the marketplace could solve some problems and a bill to have EPA set a recycled paper goal of 10 percent that would have a series of permits that could be bought or sold (similar to the permit concept under the Clean Air Act). This latter idea would allow publishers to trade permits back and forth, while the overall goal of a percentage of recycled paper in newsprint would be achieved. Wirth emphasized that recognizing differences is fundamental to markets and market development for recyclables.

Continuing the theme of cooperation, luncheon speaker William Ruckelshaus, chairman, Browning-Ferris Industries (BFI), opened his remarks by stating that reducing solid waste should be seen as an opportunity and a challenge. He reminded attendees that states have begun passing comprehensive recycling legislation and that "the private sector is beginning to gear up" for this opportunity. As evidence of private sector involvement, Ruckelshaus cited BFI's more than 1.2 million household recycling customers. Discussing what the public and private sectors need to do to improve and expand what recycling is taking place, Ruckelshaus suggested turning waste into something useful and economically beneficial, conducting a comprehensive analysis of the waste management system that includes how goods are manufactured and produced, and investigating where recycling is and is not working.

Warning against making recycling a "quick fix," Ruckelshaus argued instead that recycling "is primarily an institutional and economic reform that must be part of a comprehensive approach to handling the whole waste stream." Within this reform, governments would become serious about waste management planning and realistic recycling and waste reduction goals; localities would develop institutional relationships with private sector partners; manufacturers would stop making products that are difficult to recycle; and government would provide a "level economic playing field for recycled products through fiscal policy or preferential purchasing or selective mandated end use of recycled materials.

Understanding the Markets

In what was probably one of the most well-attended sessions of this conference, representatives of several recyclable materials explained how their respective commodity is processed and recycled.

Ronald Liesemer, vice president, technology, Council for Solid Waste Solutions, discussed plastics recycling and the growth of this effort over the past few years, emphasizing that "collection, handling, reclamation, and end-use markets are the components of a successful plastics recycling infrastructure." Liesemer said that the industry continues to search for new and innovative applications for recycled plastics, and he outlined the various projects and joint ventures that are currently under way to address the recycling of plastics. One aspect of what the council will be doing is helping communities that are "looking for help in either adding plastics to existing recycling programs or setting up programs that include plastics."

An overview of glass recycling came from Lewis Andrews, president, Glass Packaging Institute, who explained that glass is 100 percent recyclable. Andrews indicated that recycled glass makes up about 30 percent of every glass container currently produced in this country, and that a secondary market for mixed colored cutlet is emerging. He explained that the glass container industry believes that a curbside program "is the most effective manner in which to collect and process recyclables, ... and that comprehensive curbside recycling programs can reduce the waste stream by as much as 35 percent."

Rodney Edwards, vice president, American Paper Institute, stated that most of the newspapers collected from curbside programs are going directly to the mills, and he explained how there could be an oversupply of old newsprint and why some collection programs were curtailed by the end of 1989. Edwards stated that the export market had moved from the West Coast to the East Coast, resulting in an increase in exports from the Port of New York. Some municipal programs handling old newsprint are going directly to the mills or dealing directly with export brokers, bypassing waste paper dealers. He predicted that within the next five years, the greatest portion of old newspapers will be connected from curbside programs.

The evolution of aluminum recycling was described by Brian Sturgell, director, market planning, Alcan Rolled Products Company. He discussed recent expansions in this area and how "used beverage containers are now the fastest growing component of aluminum scrap" with a national recycling rate of over 60 percent in 1989. Sturgell indicated that aluminum "is still by far the most valuable material processed by municipal programs," which would account for the popularity of aluminum recycling in municipal solid waste reduction efforts. He also offered suggestions for localities that are planning recycling efforts, urging planners to understand the contribution of aluminum to recycling programs and advising that municipalities implement comprehensive recycling strategies that address all sources of recyclables and target all levels of the community.

The steel recycling rate reached 66 percent in 1988 and today, "steel mills use more scrap than ever in the steelmaking process," according to Kurt Smalberg, president, Steel Can Recycling Institute (SCRI). Smalberg explained that steel cans and steel post-consumer steel products are highly recyclable, require little preparation for recycling, and have the added advantage of being able to be sorted magnetically. He offered assurance that the steel can recycling market will remain strong and said that SCRI's regional representatives will continue working with localities to "strengthen the steel can recycling infrastructure."

[SIDEBAR]

ISRI Comments

On March 1, 1990, the Institute of Scrap Recycling Industries (ISRI) submitted comments on the proposed rule on emissions guidelines and new source performance standards for new and existing MWCS. The comments expressed to EPA the following concerns:

The designation of a fixed national recycling target ignores the effects of differences, for example, by geographical location, commodity, and time, in the demand for recyclable materials. Indeed, the concept of demand for recycled material--the key element in establishing any goal for recycling--is only minimally considered. This, in itself, is an almost fatal defect.

The role of the scrap processor in the proposed recycling scheme for municipal waste combustors is not appropriately recognized. The agency must clarify how or whether the recycling of scrap materials diverted from the municipal waste stream through the private sector will be used to determine compliance with the proposed materials separation requirements.

Any rule requiring mandatory recycling prior to waste disposal must contain the same requirement for all waste management disposal methods. Without a broad-based approach, the proposal provides too many potential loopholes to be effective.

Developing Markets for Recyclables

The U.S. Conference of Mayors/NRRA meeting in March addressed the challenges recycling poses for solid waste management programs.

The relationship between recyclables and municipalities was the focus of "Building Confidence in Recycling: Developing Markets for Recyclables," a two-day program sponsored by the U. S. Conference of Mayors and the National Resource Recovery Association (NRRA). More than 200 mayors, local officials, and others interested in solid waste management and recycling issues attended the meetings, held in Washington, D.C., March 29-30. Also called the Ninth Annual Resource Recovery Conference, the session primarily covered recycling markets for individual commodities and some of the issues municipalities will have to face when defining their solid waste goals and objectives.

Material Separation Issues

A pre-conference briefing by the Environmental Protection Agency (EPA) on proposed regulation of municipal waste combustors (MWCs) kicked off the conference. Fred Porter of EPA's Office of Air Quality Planning & Standards presented an overview of EPA's December 20, 1989, proposed rule on emissions guidelines and new source performance standards (NSPSs) for new and existing MWCs. Scrap processing industry attendees were particularly interested in the three material separation provisions to the rule, which is to take effect by December 31, 1992:

MWCs must separate a minimum of 25 percent of their wastes for recycling prior to burning. Recycled materials for which credit will be given include paper and paperboard, ferrous and nonferrous metals, glass, plastics, and yard wastes. Annual permits would be available under the proposed rule for MWCS that separate combustible recyclables (e.g., paper and plastics) for which there are no markets. Once the permit is issued, the material may be combusted in the MWC.

The combustion of lead-acid vehicle batteries weighing more than 11 pounds is prohibited under the proposed rule.

A program must be developed to remove household batteries from the municipal solid waste (MSW) stream.

EPA anticipates that 60 million tons of waste per year could be subject to the 25 percent separation requirement. EPA expects an 80 percent reduction in ferrous and nonferrous metals and glass going to MWCs. EPA anticipates several benefits from the materials separation requirement, including fewer MWC emissions, more efficient MWC steam generation, less solid waste disposed of in MWCs and landfills due to increased source reduction and recycling, a decrease in energy requirements associated with extracting and processing virgin materials, and, says Porter, "an increase in environmental awareness and development of an environmental ethic by the general public."

EPA's Office of Solid Waste anticipates a corresponding rule by the end of the summer mandating the recycling of materials bound for landfills.

MSW Recycling Programs

J. Winston Porter set the tone for the conference by painting what he termed "Municipal Solid Waste Recycling-The Big Picture." Relying on his past experience as an EPA administrator, he reviewed the EPA proposed integrated approach to waste management, through source reduction, recycling, incineration, and landfilling, and summarized the major reasons why recycling is beneficial on both the national and local levels. He emphasized that any locality developing a recycling plan, must consider all available options and then choose the best mix of options for that specific locality and its population.

J. Winston Porter then outlined how the primary recyclables found in municipal solid waste streams have their own individual marketing, technical, and special characteristics that municipalities must recognize as they plan recycling activities. Recyclables he discussed included paper and paperboard, glass, plastics, ferrous metals, aluminum, and yard waste.

As the developer of the 25 percent national recycling goal for 1992 that EPA incorporated into its solid waste management "Agenda for Action" blueprint, he stated that "the 25 percent national goal is in the ballpark for 1992, but may well not be reached until a year or so later." He concluded by emphasizing that municipalities must plan recycling efforts in the context of an overall solid waste management plan; realize that while markets for most recyclables are developing, fluctuations do occur; develop realistic recycling goals; and recognize that business and industry are partners in a municipality's recycling efforts.

News on Commodities

William Hulligan, president, Waste Management of North America, Inc., highlighted the curbside efforts Waste Management has made through its Recycle America program. Hulligan provided specific examples of commercial and industrial recycling that are taking place across the country, commenting that "Markets for recycled materials are absolutely essential to the success of recycling. They must be found, developed, encouraged, stimulated, and even forced, when necessary." He also described Waste Management's joint venture in plastics recycling with the Du Pont Company.

On the paper front, Paul Schierl, chairman of the board and CEO, Fort Howard Corporation, outlined how the paper industry views the solid waste challenge, stating that "Recycling is the cornerstone of this story. In fact, it's the most discussed, most visible, fastest growing segment in the American paper industry." Schierl suggested that there is a hierarchy to managing solid waste-especially in the areas of reducing and recycling-as evidenced by the large number of legislative proposals introduced in this area. He detailed how the paper industry works, explained why there has been a steady supply of old newspapers, and discussed the voluntary measures the American paper industry has decided to pursue, such as a national goal of 40 percent paper recovery for recycling by 1995.

Concerning plastics, Geoffrey Place, vice president for research and development, Procter & Gamble, explained how many plastic recycling systems are being started across the country, and how cities are adding plastic to existing collection programs. "In my judgment," said Place, "the opportunity to recycle plastic is even greater than was true for aluminum, and I believe we can achieve a comparable level of success for plastics recycling in the next 5 years as opposed to the 20 years it has taken for aluminum." Place listed the many current or planned tests and projects for plastics, stating that "The only thing that's stopping us from moving faster is the availability of clean recycled plastic."

Cooperation Is Essential

Sen. Tim Wirth (D-Colo.), a member of the Energy and Natural Resources Committee, delivered the general address at the conference, m which he asserted that public officials are in a collision course over solid waste issues today, trying to address a very complex problem in the face of limited financial and personnel resources. He highlighted some of the legislation he has sponsored or co-sponsored, including legislation to see how the marketplace could solve some problems and a bill to have EPA set a recycled paper goal of 10 percent that would have a series of permits that could be bought or sold (similar to the permit concept under the Clean Air Act). This latter idea would allow publishers to trade permits back and forth, while the overall goal of a percentage of recycled paper in newsprint would be achieved. Wirth emphasized that recognizing differences is fundamental to markets and market development for recyclables.

Continuing the theme of cooperation, luncheon speaker William Ruckelshaus, chairman, Browning-Ferris Industries (BFI), opened his remarks by stating that reducing solid waste should be seen as an opportunity and a challenge. He reminded attendees that states have begun passing comprehensive recycling legislation and that "the private sector is beginning to gear up" for this opportunity. As evidence of private sector involvement, Ruckelshaus cited BFI's more than 1.2 million household recycling customers. Discussing what the public and private sectors need to do to improve and expand what recycling is taking place, Ruckelshaus suggested turning waste into something useful and economically beneficial, conducting a comprehensive analysis of the waste management system that includes how goods are manufactured and produced, and investigating where recycling is and is not working.

Warning against making recycling a "quick fix," Ruckelshaus argued instead that recycling "is primarily an institutional and economic reform that must be part of a comprehensive approach to handling the whole waste stream." Within this reform, governments would become serious about waste management planning and realistic recycling and waste reduction goals; localities would develop institutional relationships with private sector partners; manufacturers would stop making products that are difficult to recycle; and government would provide a "level economic playing field for recycled products through fiscal policy or preferential purchasing or selective mandated end use of recycled materials.

Understanding the Markets

In what was probably one of the most well-attended sessions of this conference, representatives of several recyclable materials explained how their respective commodity is processed and recycled.

Ronald Liesemer, vice president, technology, Council for Solid Waste Solutions, discussed plastics recycling and the growth of this effort over the past few years, emphasizing that "collection, handling, reclamation, and end-use markets are the components of a successful plastics recycling infrastructure." Liesemer said that the industry continues to search for new and innovative applications for recycled plastics, and he outlined the various projects and joint ventures that are currently under way to address the recycling of plastics. One aspect of what the council will be doing is helping communities that are "looking for help in either adding plastics to existing recycling programs or setting up programs that include plastics."

An overview of glass recycling came from Lewis Andrews, president, Glass Packaging Institute, who explained that glass is 100 percent recyclable. Andrews indicated that recycled glass makes up about 30 percent of every glass container currently produced in this country, and that a secondary market for mixed colored cutlet is emerging. He explained that the glass container industry believes that a curbside program "is the most effective manner in which to collect and process recyclables, ... and that comprehensive curbside recycling programs can reduce the waste stream by as much as 35 percent."

Rodney Edwards, vice president, American Paper Institute, stated that most of the newspapers collected from curbside programs are going directly to the mills, and he explained how there could be an oversupply of old newsprint and why some collection programs were curtailed by the end of 1989. Edwards stated that the export market had moved from the West Coast to the East Coast, resulting in an increase in exports from the Port of New York. Some municipal programs handling old newsprint are going directly to the mills or dealing directly with export brokers, bypassing waste paper dealers. He predicted that within the next five years, the greatest portion of old newspapers will be connected from curbside programs.

The evolution of aluminum recycling was described by Brian Sturgell, director, market planning, Alcan Rolled Products Company. He discussed recent expansions in this area and how "used beverage containers are now the fastest growing component of aluminum scrap" with a national recycling rate of over 60 percent in 1989. Sturgell indicated that aluminum "is still by far the most valuable material processed by municipal programs," which would account for the popularity of aluminum recycling in municipal solid waste reduction efforts. He also offered suggestions for localities that are planning recycling efforts, urging planners to understand the contribution of aluminum to recycling programs and advising that municipalities implement comprehensive recycling strategies that address all sources of recyclables and target all levels of the community.

The steel recycling rate reached 66 percent in 1988 and today, "steel mills use more scrap than ever in the steelmaking process," according to Kurt Smalberg, president, Steel Can Recycling Institute (SCRI). Smalberg explained that steel cans and steel post-consumer steel products are highly recyclable, require little preparation for recycling, and have the added advantage of being able to be sorted magnetically. He offered assurance that the steel can recycling market will remain strong and said that SCRI's regional representatives will continue working with localities to "strengthen the steel can recycling infrastructure."

[SIDEBAR]

ISRI Comments

On March 1, 1990, the Institute of Scrap Recycling Industries (ISRI) submitted comments on the proposed rule on emissions guidelines and new source performance standards for new and existing MWCS. The comments expressed to EPA the following concerns:

The designation of a fixed national recycling target ignores the effects of differences, for example, by geographical location, commodity, and time, in the demand for recyclable materials. Indeed, the concept of demand for recycled material--the key element in establishing any goal for recycling--is only minimally considered. This, in itself, is an almost fatal defect.

The role of the scrap processor in the proposed recycling scheme for municipal waste combustors is not appropriately recognized. The agency must clarify how or whether the recycling of scrap materials diverted from the municipal waste stream through the private sector will be used to determine compliance with the proposed materials separation requirements.

Any rule requiring mandatory recycling prior to waste disposal must contain the same requirement for all waste management disposal methods. Without a broad-based approach, the proposal provides too many potential loopholes to be effective.