ISRI News: March/April 2007

March/April 2007

Metal Theft Issue Dominates ReMA Winter Board Meeting
The ReMA board of directors passed several measures at its first meeting of 2007, held in San Diego in February. At the top of its agenda, the board approved suggested legislative language regarding the records scrap recycling companies must keep on their purchase transactions. The goal is to offer lawmakers reasonable and workable solutions that can make a difference on the metal theft problem. For more information, contact Steve Hirsch at 202/662-8516 or stevehirsch@isri.org.

ReMA's board also passed a Design for Recycling® position statement regarding scrap tires. The position seeks to balance the tire manufacturing industry's focus on tire safety and performance with the need to design new tires with recycling and end-of-life management in mind. It asks tire manufacturers to give scrap tire processors advance notice of new tire products so processors can "respond to new or developing trends appropriately." It also suggests creating a working group of tire manufacturers and scrap tire processors to "encourage communication and cooperation between the two industries." For a copy of the one-page position statement, visit www.isri.org, select "About ISRI," then "ISRI Policy Statements."

In another commodity-related action, the board approved several changes to the paper stock specifications, including edits to the preamble, purchase agreement, and fulfillment sections; the renumbering of two grades of mixed paper; and the addition of a new grade. The grade changes involved renumbering No. 1, Soft Mixed Paper (SMP), to grade No. 2; renaming the previous grade No. 2, Mixed Paper, as Hard Mixed Paper (HMP), and renumbering this grade to No. 3; and adding a new grade No. 1, Residential Mixed paper (RMP). To review the revised paper specifications, visit www.isri.org and click on the "Specs & Markets" section.

The ReMA board also changed the association's bylaws regarding nominations from the Leadership Committee, allowing that group to nominate more than one candidate, when desired, for each national officer and director-at-large position. Previously, the committee could only nominate one candidate for each open position.

Another board decision granted ReMA permission to open financial accounts with the Olcott Consulting Group. This decision implements the board's previous selection, at its October 2006 meeting, of Olcott as the association's financial adviser. On another financial issue, the board approved various revisions to the association's investment policy.

In other action, the Leadership Committee submitted five nominations to fill three open director-at-large positions on the ReMA board. The nominees are Manny Bodner of Bodner Metal & Iron Corp. (Houston), Greg Dixon of Baker Iron & Metal Co. (Lexington, Ky.), Ben Harvey of E.L. Harvey & Sons Inc. (Westborough, Mass.), Richard Lerner of Cycle Systems Inc. (Lynchburg, Va.), and Brian Shine of Manitoba Corp. (Lancaster, N.Y.). ReMA invites other interested parties to compete for these three open positions, though each individual must be nominated by a current board director. The board will select the three directors-at-large at its meeting April 20 in New Orleans.

Anaheim Operations Forum Hits Record Attendance
More than 400 scrap professionals from the United States, Canada, and several other countries participated in the 2007 ReMA Operations Forum, held at the Sheraton Park Hotel in sunny Anaheim, Calif., Jan. 25-27. Boasting record-breaking attendance, the three-day forum featured workshops, discussion sessions, and tours geared toward the safe and efficient operation of scrap recycling facilities.

Forum attendees could choose among shredder, metals ID, baler/shear, or yard management education tracks. General sessions addressed scrapyard benchmarking, surviving an OSHA inspection, radiation hazards, and scrapyard safety. Between sessions and during evening networking receptions, attendees mingled in the exhibit area, which featured nearly a dozen vendor tabletop displays.

The forum also offered participants opportunities to tour the scrap recycling facilities at Anaheim-based Adams Steel and DBW Metals Recycling. Visitors viewed the operations of the Adams mega-shredder and the company's extensive array of downstream separation systems and DBW's double-ram baler, alligator shear, and other nonferrous processing equipment.

Those who attended all track sessions, general sessions, and the tour received a certificate of completion and were named at the forum's closing luncheon.

Forum sponsors included Aggregates Equipment Inc., Benlee Inc., Columbia Steel Casting Co. Inc., ESCO Corp., Harris Press & Shear, Liebherr-America Inc., Metso Texas Shredder, NASCO-OP, Quad Plus Inc., Riverside Engineering Inc., SGM Magnetics Corp., The Shredder Co. LLC, Steinert US LLC, Walker Magnetics Group, and Wendt Corp.

Forum exhibitors included American Pulverizer Co./Hustler Conveyor Co., Genesis Attachments, InterNet Inc., Ludlum Measurements Inc., Magnatech Engineering Inc., Recycling Today Media Group, Sennebogen LLC, SGM Magnetics Corp., SiCon GMBH, and 21st Century Programming.

ISRI Participates in Homeland Security Discussion on Metals Theft
ISRI staff members met recently with representatives of the telecommunications industry to discuss copper theft at the invitation of the National Communications System, part of the U.S. Department of Homeland Security. Representatives of Bell South, AT&T, Cingular, and other companies shared their recent experiences and concerns over theft of and damage to their equipment by copper thieves. ReMA provided information on its theft alert system, partnership with the National Crime Prevention Council, and recommended practices. Both the National Communications System and the telecom companies have numerous contacts with law-enforcement officials around the nation. These new contacts present an opportunity for ReMA to dramatically increase the use of the theft alert system, disseminate information on ReMA's efforts to reduce materials theft, and educate others about the scrap recycling industry.

Contact Chuck Carr at chuckcarr@isri.org or 202/662-8527 or Steve Hirsch at stevehirsch@isri.org or 202/662-8516.

Scrap Is Not Waste, ReMA Tells Senator
ISRI delivered a letter in December 2006 to Sen. Ron Wyden (D-Ore.), who sponsored electronics recycling legislation in the last Congress, asking him not to use the term "electronic waste" in any future legislation.

The letter explained to Wyden that the term "electronic waste" is detrimental to electronics recycling and the recycling industry in the United States. It described the negative consequences for the scrap recycling industry of the use of the term "waste" in previous legislation, including unnecessary and burdensome regulations at the federal, state, and local levels. Sen. Wyden responded immediately, expressing his desire to work with ReMA to address this issue. ReMA welcomes this opportunity to work with Wyden, a Senate Recycling Caucus member, on future proposed electronics legislation that will properly differentiate between scrap recycling and waste disposal.

Contact Eric Harris at ericharris@isri.org or 202/662-8514.

Advocating Equipment-Related Tax Breaks
From the first full week of the 110th Congress, ReMA has renewed its efforts with U.S. Senate staff to encourage and promote recycling through tax incentives for the purchase of recycling equipment. Both parties are strongly engaged in this effort, leading ReMA to believe that this tax package has good prospects for becoming law this Congress.

Senate staff members have brought forth serious concerns about the budget scoring of tax credits, especially in light of the "Pay As You Go" budget restrictions. Instead, they favor ReMA's proposal for accelerated depreciation as a more attractive—and cost-effective—method to encourage equipment purchases by recyclers.

Moreover, in these discussions ReMA has been able to explain the differences between scrap and waste, promote ReMA's Design for Recycling initiative, and help Senate staffers distinguish between municipal recycling and scrap recycling, giving them a better understanding of ReMA's concerns with legislative proposals many electronics manufacturers support. The ReMA staff will continue to advance a tax provision that makes accelerated depreciation the primary means for encouraging recycling equipment purchases.

TSCA Reporting Deadline Extended
In late December, the U.S. EPA extended the final deadline for submitting initial Toxic Substances Control Act inventory update reports from Dec. 23, 2006, to March 23, 2007. A 2003 amendment to the TSCA Inventory Update Reporting Rule and subsequent minor rule changes created the requirement that businesses report on inorganic substances related to qualifying manufacturing activity during 2005. The requirement is triggered when a business "manufactures" 25,000 pounds or more of a reportable substance (one that's listed in the EPA's TSCA Chemical Substances Inventory) at any single site during the reporting year. "Manufacture" in this instance means to manufacture, produce, or import for commercial purposes; however, as the U.S. EPA previously stated, "with respect to certain 'remanufacturing activities' due to recycling efforts, these are often considered by the Agency to be processing rather than manufacturing activities."

Based on these considerations, ReMA believes that scrap material imported during 2005 that contained at least 25,000 pounds of a reportable substance needs to be reported; however, scrap material processed in any amount during 2005 does not need to be reported. Those who are reporting data should use the EPA's 2006 Form U and submit their completed forms by March 23. Contact David Wagger at 202/662-8533 or davidwagger@isri.org.

Promoting Global Markets for Scrap
In early February, Billy Johnson, ReMA's director of political affairs, described the fundamentals behind the expanding global markets for scrap materials to a joint meeting of the Tennessee Recycling Coalition and the Southeastern Recycling Coalition, a conference of state and local recycling organizations and government agencies. Johnson explained how ReMA's integrated recycling industry operating standards (RIOS) and materials specifications are important tools that help facilitate domestic and global markets for scrap materials; showcased ReMA's two trade missions, to China and India, as successful examples of trade promotion; and proposed additional trade missions to countries such as Brazil and Vietnam next year. Johnson also communicated ReMA's priorities, such as improving worker safety, preventing material theft, and urging manufacturers to design their products for end-of-life recycling. This conference enabled ReMA to directly communicate the significant economic and environmental benefits of the scrap recycling industry and explain how domestic and global markets operate and are affected by a wide variety of factors, including manufacturing demand, expanding uses for recycled materials, and investment speculation.

Contact Billy Johnson at billyjohnson@isri.org or 202/662-8548.

Carving Exceptions for Spare Change
In mid-January, ReMA submitted comments in response to a rule recently promulgated by the U.S. Mint prohibiting the exportation, melting, and treatment of U.S. nickels and pennies. ReMA is concerned that members could inadvertently run afoul of this rule, for example, by exporting or sending to a steel mill scrap material from automobiles in which a few coins were left. Accordingly, ReMA recommended that the U.S. Mint include an exception for nickels and pennies exported, melted, or treated incidental to the recycling of other materials.

Contact Steve Hirsch at stevehirsch@isri.org or 202/662-8516.

ISRI Builds Ties With Russia
In February, ReMA staff members spoke with Sergey Terashkevich, the deputy trade representative of the Russian Federation, about the state of tire recycling in Russia. This introductory session allowed ReMA to discuss its role in exposing members to trade opportunities in other countries and learn about tire recycling in Russia. ReMA invited Terashkevich to attend the association's convention in April as well as the annual Scrap Tire Business Summit in Chicago this September.