What Role Does Legislation
Play?
As industry and governments work to
reduce the amount of scrap paper entering the waste stream through
recycling, many wonder if laws mandating specific goals--especially those
governing old newspapers--are the path to take.
Looking
closer at the projected 40-percent recovery rate, Franklin Associates,
Prairie Village, Kansas--an independent consulting firm commissioned by
API--has concluded that the following recovery rates, by major grade, are
needed in order to meet the overall 40-percent objective by 1995:
Old
newspapers (ONP)--52 percent, up from 35 percent in 1988;
Old
corrugated containers--66 percent, up from 52 percent in 1988;
High-grade
deinking paper--50 percent, up from 37 percent in 1988;
Mixed
paper--20 percent, up from 13 percent in 1988; and
Pulp
substitutes--remain at 100 percent.
In
the face of the reported glut of ONP in the United States, many in the
private sector are now wondering whether such rates are
obtainable--especially for ONP--unless mandated by laws. Whether laws are
the answer or not, scrap paper packers and consumers will need new
long-term strategic planning to achieve the goal. At the very least there
must be a rapid increase in paper recycling capacity. API is currently
figuring on a multibillion-dollar investment program entailing expansion
of secondary fiber usage in at least 37 facilities--including the
construction of eight new paper mills. This new capacity would be added to
the more dm 500 U.S. paper mills that API believes are already engaged in
varying degrees of scrap paper recycling.
Prompting
API's call for a national recycling goal is the enormous amount of paper
that now enters the solid waste stream. It's estimated that of the
approximately 160 million tons of municipal solid waste (MSW) generated
annually in the United States, paper and paperboard constitute more than
60 million tons--approximately 40 percent of the total weight. However,
ONP, one of the largest paper components, was landfilled last year at an
estimated rate of 8.9 million tons--valued by the Environmental Protection
Agency at $255 million.
Balancing
Goals and Markets
Increasing
scrap paper recycling rates is certainly not a new concept, nor is the
idea of setting specific goals or targets as a means to help stimulate
market enhancement and market development. In fact, in June 1988,
guidelines for federal procurement of paper and paper products containing
recovered materials were detailed by EPA. The guidelines included
recommendations on a "minimum percentage of waste paper," which
refers to specified postconsumer and other recovered materials, as well as
"minimum percentages of postconsumer recovered materials" and a
"minimum percentage of recovered materials." EPA set the minimum
percentage of recovered postconsumer materials in newsprint at 40 percent.
Before
taking a closer look at how best to accomplish greater consumption of ONP,
a few marketing facts ought to be highlighted. Note, for example, that in
the United States there are approximately 25 newsprint mills producing
approximately 6 million tons of newsprint annually and less than 10 mills
currently use ONP and/or magazines as a fiber source. Various sources put
ONP usage by newsprint manufacturers at 1.4 million tons, for a domestic
recycling rate of nearly 25 percent. However, one also must include
Canada, where there are 48 newsprint mills but only one producing recycled
newsprint. Significantly, the United States imports around 70 percent of
Canada's total output of newsprint; thus, of the more than 13.5 million
tons of newsprint actually used in the United States last year, just 10
percent of the tonnage represented recycled fiber. Furthermore, overall
U.S. and Canadian production of newsprint totaled approximately 17 million
tons in 1988 and consumed 1.5 millions tons of ONP, for an estimated North
American recycling rate of only 9 percent.
Other
domestic markets exist for recovered ONP. These include animal bedding,
insulation, grass mulch, and other paper and paperboard products. However,
at present, these markets are not large and there appears to be ample
supplies of other grades of scrap paper to meet any new demand. The key to
increasing ONP recovery, therefore, is to encourage increased consumption
of ONP by U.S. newsprint mills.
Governments
Embracing Reduction and Recycling
Given
that many government officials are opposed to siting new landfills and
incinerators to handle MSW, greater priority has been placed on source
reduction and recycling. As pointed out by Davis Recycling Consultants,
Flagstaff, Arizona, in order to achieve greater source reduction
awareness, taxation of newspaper, in particular, and packaging, in
general, is being considered by legislators. According to the firm's April
report, "North American Recycled Newsprint Markets," the federal
government and at least 20 states (including numerous municipalities) have
enacted, or have pending, legislation that would:
Tax
newsprint to fund disposal programs;
Tax
virgin newsprint;
Require
newsprint to contain a certain amount of recycled fiber;
Require
publishers and printers to buy a specific percentage of newsprint
containing recycled fiber;
Require
households, through voluntary and mandatory curbside programs, to
participate.
The
study pointed out that such supply-driven legislation is rapidly moving
toward requirements for newsprint producers to use 40-percent-recycled
content m half of their North American sales.
Recent
Legislative Initiatives
What
follows is a list of recent proposed federal legislation compiled by the
Institute of Scrap Recycling Industries (ISRI).
Newsprint
Recycling Incentives Act. All newsprint producers and importers would
be required to recycle their newsprint, beginning at a 10-percent level
and increasing by 2 percent a year to a cap of 30 percent. EPA would
oversee a trading scheme that would allow those that use more than their
quota of recycled newsprint to sell "credits" to those that do
not meet the standard.
HR
3737. Excise taxes would be imposed on the use of virgin materials in
the manufacture and production of any taxable product, including
newsprint.
HR
1810. Minimum recycled content standards would be set for paper and
paper products.
ISRI
also has compiled a list of recently passed laws at the state level.
California
AB 1305. Commercial consumption of recycled newsprint containing at
least 40 percent postconsumer paper must reach 25 percent by January 1,
1991, going to 50 percent by 2000. If a newspaper consumer is unable to
obtain recycled content newsprint for specified reasons, the bill would
require certification to that fact, and also would require suppliers of
newsprint to certify the amounts of recycled-content newsprint in
shipments to a newsprint consumer. Under the legislation, recycled content
newsprint means newsprint in which not less than 40 percent of its fiber
consists of postconsumer scrap paper.
Connecticut
HB 6641. This law requires all newspapers distributed in the state
with circulations greater than 40,000 to increase their use of recycled
newsprint, starting with 20 percent in 1993 and going to 90 percent by
1998.
District
of Columbia 7-226. Beginning in late 1990, homes and offices,
including the District government, have been required to separate for
collection and to provide for the recycling of all paper and newspaper
products. in addition, preference must be given to recycled paper and
recycled paper products, unless the price of the paper and paper products
is not competitive for the purposes intended. Under the law, the term I
'competitive" means a price within 10 percent of the price of items
that are manufactured or produced from virgin paper products.
Florida
SB 1192. In Section 71 of this law, a 10-cent per ton waste newsprint
disposal fee is imposed upon every producer or publisher within the state
after January 1, 1989. This fee will be collected from producers and
publishers based on the total weight of newsprint actually consumed in
their publications; a credit of 10 cents per ton may be taken by producers
and publishers for overruns or similar products not actually circulated or
delivered, as well as against the fee obligation for each ton of recycled
newsprint used in publication of products.
If
the state Department of Environmental Regulation determines on October 1,
1992, by a preponderance of evidence that newsprint sold within the state
is being recycled at a rate of 50 percent or more of the quantity sold
within the state, the product waste disposal fee on newsprint will be
rescinded. If the department determines on that date that newsprint sold
within the state is being recycled at a rate of less than 50 percent of
the quantity sold within the state, the product waste disposal fee on
newsprint will be increased to 50 cents per ton and the previously
referenced credits will be increased to 50 cents per ton.
The
producer or publisher may claim a credit of 25 cents per ton of newsprint
used in publications that have been collected for recycling.
Iowa
HF 753. The state Environmental Protection Commission must recommend
deposits, rebates, and waste abatement fees on elements of the waste
stream--including ONP--when necessary to encourage waste reduction and
recycling. The commission may not recommend a deposit, rebate, or fee on
an element that is being properly managed through a market-driven of
publicly supported recycling, recovery, or source-separation program. In
addition, there can be a recommendation to remove fees on any waste stream
element that is recycled, recovered, or properly managed.
Louisiana
HB 1199. Under this law, the state Division of Administration must
develop rules to allow up to a 5-percent differential in price for the
purchase of products with recycled content, provided that such products
are either manufactured in Louisiana or contain recovered materials
diverted or removed from the solid waste stream that would otherwise go
into a Louisiana landfill. In addition, the division must establish goals
for minimum uses by the state for paper and paper products containing
recycled content. A goal of an increase in the total state procurement
will be established and will be increased 5 percent annually, until a
minimum goal of 25 percent of total purchases is reached.
Maine
HP 1025/LD 1431. The state Office of Waste Reduction and Recycling
must initiate an incentive program to encourage end users of recycled
materials to locate or expand their operations in the state. Under this
law, the state also must direct marketing and brokering services for
materials included in the state marketing plan when municipal and regional
efforts to market these materials and the information clearinghouse are
inadequate.
In
addition, operations employing 15 or more people must implement an office
and corrugated cardboard recycling program, beginning July 1, 1991, under
the new law.
New
Jersey PL 1987. Not less than 10 percent of the dollar amount of paper
and paper products purchased by the state after July 1, 1987, must be made
from recycled paper under this legislation; this amount increased to 30
percent by July 1, 1988, and to 45 percent by July 1, 1989. Priority
purchasing must be given to products with the highest postconsumer
material content. Furthermore, recycled paper or paper products receive up
to a 10-percent price differential over virgin paper or paper products.
Pennsylvania
SB 528. At least 40 percent of the secondary scrap paper used in
recycled newsprint must be postconsumer newspaper.
Washington
HB 1671. This law requires the state Office of Waste Reduction to
conduct a study of the current use of, and potential capacity for, use of
recycled paper as feedstock to the states pulp and paper industry. The
list reveals that mandated fiber content proposals are very popular;
however, as critics point out, merely imposing arbitrary percentage
targets for recovery of ONP, plus arbitrary timetables, will not create
additional demand for ONP. On the other hand, some believe that setting a
minimum overall recycled content could be helpful in encouraging paper
mills to invest in new capacity to consume scrap paper.
Not
all of these legislative acts have been greeted with enthusiasm. An
editorial that appeared in the March 26, 1990, Baltimore
Sun took strong exception to
legislation mandating the use of recycled newsprint in Maryland. The
bill's sponsors set up a rigid timetable for achieving recycling, with
stiff penalties for those that failed. The newspaper's response was that
the bill "ignored technical and economic limitations that could make
the measure unworkable. " In short, the newspaper stated, there isn't
enough recycled newsprint currently available to meet the demand.
Meeting
ONP Recycling Goals
Exactly
how papermakers will ultimately comply with the spirit, if not the letter,
of potential legislation is subject to ongoing debate. Ironically, in
certain cases, the outcome could mean less
ONP being recycled than originally assumed.
Steven
L. Levetan, president of Resource Services, Atlanta, points out that
higher recycling rates ultimately may not be achieved when legislators
take certain goal-setting directions. For example, he says, legislation
that would force newsprint mills to consume a certain percentage of
recycled fiber for a certain percentage of the newsprint manufactured
could have a very different effect from, say, legislation that simply
requires a publisher's total annual consumption of newsprint to contain a
certain percentage of recycled fiber.
To
illustrate the point, Levetan contrasts two hypothetical states: one that
requires a publisher to use 25 percent "recycled newsprint,"
which contains 4.0-percent recycled fiber, and another that requires a
publisher's total newsprint consumption to contain a total of 25 percent
recycled fiber.
In
the first state, to satisfy the requirement, a publisher consuming a total
of 100,000 tons per year of newsprint could purchase 25,000 tons of
40-percent recycled content newsprint, thereby creating a market for
10,000 tons of ONP (25 percent of 40 percent). In the second state, a
publisher consuming 100,000 tons could satisfy the requirement by
purchasing any combination of newsprint, such that in total 25 percent of
the fiber contained was recycled fiber--resulting in 25,000 tons of ONP
being diverted from disposal. The second state would provide a market for
2.5 times as much ONP, while providing both publishers and mills the most
flexibility in meeting the goal. Since recycled newsprint mills today use
anywhere from 40-percent to 100-percent ONP as feedstock, in the case of
the first state, Levetan believes, there would be no incentive for a null
to use 100-percent recycled furnish. Economic considerations do not
necessarily favor the use of scrap paper-especially ONP--compared with
virgin pulp sources, particularly in areas of the country with abundant
and cheap pulp wood supplies. As a result, a newsprint manufacturer
heretofore using 100-percent ONP might end up with an economic incentive
(unintended by the legislation) to actually reduce its total scrap paper
intake. This would still satisfy mandated goals since more recycled
newsprint might be produced; however, less
demand would be created for ONP.
Looking
Ahead
Trying
to guess how domestic newsprint producers intend to meet the challenge of
increased ONP usage is an impossible task. Davis Recycling Consultants has
looked at three possible scenarios: converting existing newsprint capacity
to 40 percent recycled content; building new 100-percent recycled mills;
and combining the first two. By Davis's calculations--assuming that half
of the U.S. newsprint requirement contains a minimum 40-percent recycled
content--an additional 2.5 million tons of recycled newsprint capacity
would be required.
Another
forecast, prepared by the National Solid Wastes Management Association,
calculates that by 1995, 3.8 million tons of ONP will be used in the
manufacture of newsprint: That's more than double the amount used in 1988.
The association sees the total amount of ONP recovered rising to 7.5
million short tons by 1995, an increase of 67 percent over seven years.
What Role Does Legislation
Play?
As industry and governments work to
reduce the amount of scrap paper entering the waste stream through
recycling, many wonder if laws mandating specific goals--especially those
governing old newspapers--are the path to take.
Looking
closer at the projected 40-percent recovery rate, Franklin Associates,
Prairie Village, Kansas--an independent consulting firm commissioned by
API--has concluded that the following recovery rates, by major grade, are
needed in order to meet the overall 40-percent objective by 1995:
Old
newspapers (ONP)--52 percent, up from 35 percent in 1988;
Old
corrugated containers--66 percent, up from 52 percent in 1988;
High-grade
deinking paper--50 percent, up from 37 percent in 1988;
Mixed
paper--20 percent, up from 13 percent in 1988; and
Pulp
substitutes--remain at 100 percent.
In
the face of the reported glut of ONP in the United States, many in the
private sector are now wondering whether such rates are
obtainable--especially for ONP--unless mandated by laws. Whether laws are
the answer or not, scrap paper packers and consumers will need new
long-term strategic planning to achieve the goal. At the very least there
must be a rapid increase in paper recycling capacity. API is currently
figuring on a multibillion-dollar investment program entailing expansion
of secondary fiber usage in at least 37 facilities--including the
construction of eight new paper mills. This new capacity would be added to
the more dm 500 U.S. paper mills that API believes are already engaged in
varying degrees of scrap paper recycling.
Prompting
API's call for a national recycling goal is the enormous amount of paper
that now enters the solid waste stream. It's estimated that of the
approximately 160 million tons of municipal solid waste (MSW) generated
annually in the United States, paper and paperboard constitute more than
60 million tons--approximately 40 percent of the total weight. However,
ONP, one of the largest paper components, was landfilled last year at an
estimated rate of 8.9 million tons--valued by the Environmental Protection
Agency at $255 million.
Balancing
Goals and Markets
Increasing
scrap paper recycling rates is certainly not a new concept, nor is the
idea of setting specific goals or targets as a means to help stimulate
market enhancement and market development. In fact, in June 1988,
guidelines for federal procurement of paper and paper products containing
recovered materials were detailed by EPA. The guidelines included
recommendations on a "minimum percentage of waste paper," which
refers to specified postconsumer and other recovered materials, as well as
"minimum percentages of postconsumer recovered materials" and a
"minimum percentage of recovered materials." EPA set the minimum
percentage of recovered postconsumer materials in newsprint at 40 percent.
Before
taking a closer look at how best to accomplish greater consumption of ONP,
a few marketing facts ought to be highlighted. Note, for example, that in
the United States there are approximately 25 newsprint mills producing
approximately 6 million tons of newsprint annually and less than 10 mills
currently use ONP and/or magazines as a fiber source. Various sources put
ONP usage by newsprint manufacturers at 1.4 million tons, for a domestic
recycling rate of nearly 25 percent. However, one also must include
Canada, where there are 48 newsprint mills but only one producing recycled
newsprint. Significantly, the United States imports around 70 percent of
Canada's total output of newsprint; thus, of the more than 13.5 million
tons of newsprint actually used in the United States last year, just 10
percent of the tonnage represented recycled fiber. Furthermore, overall
U.S. and Canadian production of newsprint totaled approximately 17 million
tons in 1988 and consumed 1.5 millions tons of ONP, for an estimated North
American recycling rate of only 9 percent.
Other
domestic markets exist for recovered ONP. These include animal bedding,
insulation, grass mulch, and other paper and paperboard products. However,
at present, these markets are not large and there appears to be ample
supplies of other grades of scrap paper to meet any new demand. The key to
increasing ONP recovery, therefore, is to encourage increased consumption
of ONP by U.S. newsprint mills.
Governments
Embracing Reduction and Recycling
Given
that many government officials are opposed to siting new landfills and
incinerators to handle MSW, greater priority has been placed on source
reduction and recycling. As pointed out by Davis Recycling Consultants,
Flagstaff, Arizona, in order to achieve greater source reduction
awareness, taxation of newspaper, in particular, and packaging, in
general, is being considered by legislators. According to the firm's April
report, "North American Recycled Newsprint Markets," the federal
government and at least 20 states (including numerous municipalities) have
enacted, or have pending, legislation that would:
Tax
newsprint to fund disposal programs;
Tax
virgin newsprint;
Require
newsprint to contain a certain amount of recycled fiber;
Require
publishers and printers to buy a specific percentage of newsprint
containing recycled fiber;
Require
households, through voluntary and mandatory curbside programs, to
participate.
The
study pointed out that such supply-driven legislation is rapidly moving
toward requirements for newsprint producers to use 40-percent-recycled
content m half of their North American sales.
Recent
Legislative Initiatives
What
follows is a list of recent proposed federal legislation compiled by the
Institute of Scrap Recycling Industries (ISRI).
Newsprint
Recycling Incentives Act. All newsprint producers and importers would
be required to recycle their newsprint, beginning at a 10-percent level
and increasing by 2 percent a year to a cap of 30 percent. EPA would
oversee a trading scheme that would allow those that use more than their
quota of recycled newsprint to sell "credits" to those that do
not meet the standard.
HR
3737. Excise taxes would be imposed on the use of virgin materials in
the manufacture and production of any taxable product, including
newsprint.
HR
1810. Minimum recycled content standards would be set for paper and
paper products.
ISRI
also has compiled a list of recently passed laws at the state level.
California
AB 1305. Commercial consumption of recycled newsprint containing at
least 40 percent postconsumer paper must reach 25 percent by January 1,
1991, going to 50 percent by 2000. If a newspaper consumer is unable to
obtain recycled content newsprint for specified reasons, the bill would
require certification to that fact, and also would require suppliers of
newsprint to certify the amounts of recycled-content newsprint in
shipments to a newsprint consumer. Under the legislation, recycled content
newsprint means newsprint in which not less than 40 percent of its fiber
consists of postconsumer scrap paper.
Connecticut
HB 6641. This law requires all newspapers distributed in the state
with circulations greater than 40,000 to increase their use of recycled
newsprint, starting with 20 percent in 1993 and going to 90 percent by
1998.
District
of Columbia 7-226. Beginning in late 1990, homes and offices,
including the District government, have been required to separate for
collection and to provide for the recycling of all paper and newspaper
products. in addition, preference must be given to recycled paper and
recycled paper products, unless the price of the paper and paper products
is not competitive for the purposes intended. Under the law, the term I
'competitive" means a price within 10 percent of the price of items
that are manufactured or produced from virgin paper products.
Florida
SB 1192. In Section 71 of this law, a 10-cent per ton waste newsprint
disposal fee is imposed upon every producer or publisher within the state
after January 1, 1989. This fee will be collected from producers and
publishers based on the total weight of newsprint actually consumed in
their publications; a credit of 10 cents per ton may be taken by producers
and publishers for overruns or similar products not actually circulated or
delivered, as well as against the fee obligation for each ton of recycled
newsprint used in publication of products.
If
the state Department of Environmental Regulation determines on October 1,
1992, by a preponderance of evidence that newsprint sold within the state
is being recycled at a rate of 50 percent or more of the quantity sold
within the state, the product waste disposal fee on newsprint will be
rescinded. If the department determines on that date that newsprint sold
within the state is being recycled at a rate of less than 50 percent of
the quantity sold within the state, the product waste disposal fee on
newsprint will be increased to 50 cents per ton and the previously
referenced credits will be increased to 50 cents per ton.
The
producer or publisher may claim a credit of 25 cents per ton of newsprint
used in publications that have been collected for recycling.
Iowa
HF 753. The state Environmental Protection Commission must recommend
deposits, rebates, and waste abatement fees on elements of the waste
stream--including ONP--when necessary to encourage waste reduction and
recycling. The commission may not recommend a deposit, rebate, or fee on
an element that is being properly managed through a market-driven of
publicly supported recycling, recovery, or source-separation program. In
addition, there can be a recommendation to remove fees on any waste stream
element that is recycled, recovered, or properly managed.
Louisiana
HB 1199. Under this law, the state Division of Administration must
develop rules to allow up to a 5-percent differential in price for the
purchase of products with recycled content, provided that such products
are either manufactured in Louisiana or contain recovered materials
diverted or removed from the solid waste stream that would otherwise go
into a Louisiana landfill. In addition, the division must establish goals
for minimum uses by the state for paper and paper products containing
recycled content. A goal of an increase in the total state procurement
will be established and will be increased 5 percent annually, until a
minimum goal of 25 percent of total purchases is reached.
Maine
HP 1025/LD 1431. The state Office of Waste Reduction and Recycling
must initiate an incentive program to encourage end users of recycled
materials to locate or expand their operations in the state. Under this
law, the state also must direct marketing and brokering services for
materials included in the state marketing plan when municipal and regional
efforts to market these materials and the information clearinghouse are
inadequate.
In
addition, operations employing 15 or more people must implement an office
and corrugated cardboard recycling program, beginning July 1, 1991, under
the new law.
New
Jersey PL 1987. Not less than 10 percent of the dollar amount of paper
and paper products purchased by the state after July 1, 1987, must be made
from recycled paper under this legislation; this amount increased to 30
percent by July 1, 1988, and to 45 percent by July 1, 1989. Priority
purchasing must be given to products with the highest postconsumer
material content. Furthermore, recycled paper or paper products receive up
to a 10-percent price differential over virgin paper or paper products.
Pennsylvania
SB 528. At least 40 percent of the secondary scrap paper used in
recycled newsprint must be postconsumer newspaper.
Washington
HB 1671. This law requires the state Office of Waste Reduction to
conduct a study of the current use of, and potential capacity for, use of
recycled paper as feedstock to the states pulp and paper industry. The
list reveals that mandated fiber content proposals are very popular;
however, as critics point out, merely imposing arbitrary percentage
targets for recovery of ONP, plus arbitrary timetables, will not create
additional demand for ONP. On the other hand, some believe that setting a
minimum overall recycled content could be helpful in encouraging paper
mills to invest in new capacity to consume scrap paper.
Not
all of these legislative acts have been greeted with enthusiasm. An
editorial that appeared in the March 26, 1990, Baltimore
Sun took strong exception to
legislation mandating the use of recycled newsprint in Maryland. The
bill's sponsors set up a rigid timetable for achieving recycling, with
stiff penalties for those that failed. The newspaper's response was that
the bill "ignored technical and economic limitations that could make
the measure unworkable. " In short, the newspaper stated, there isn't
enough recycled newsprint currently available to meet the demand.
Meeting
ONP Recycling Goals
Exactly
how papermakers will ultimately comply with the spirit, if not the letter,
of potential legislation is subject to ongoing debate. Ironically, in
certain cases, the outcome could mean less
ONP being recycled than originally assumed.
Steven
L. Levetan, president of Resource Services, Atlanta, points out that
higher recycling rates ultimately may not be achieved when legislators
take certain goal-setting directions. For example, he says, legislation
that would force newsprint mills to consume a certain percentage of
recycled fiber for a certain percentage of the newsprint manufactured
could have a very different effect from, say, legislation that simply
requires a publisher's total annual consumption of newsprint to contain a
certain percentage of recycled fiber.
To
illustrate the point, Levetan contrasts two hypothetical states: one that
requires a publisher to use 25 percent "recycled newsprint,"
which contains 4.0-percent recycled fiber, and another that requires a
publisher's total newsprint consumption to contain a total of 25 percent
recycled fiber.
In
the first state, to satisfy the requirement, a publisher consuming a total
of 100,000 tons per year of newsprint could purchase 25,000 tons of
40-percent recycled content newsprint, thereby creating a market for
10,000 tons of ONP (25 percent of 40 percent). In the second state, a
publisher consuming 100,000 tons could satisfy the requirement by
purchasing any combination of newsprint, such that in total 25 percent of
the fiber contained was recycled fiber--resulting in 25,000 tons of ONP
being diverted from disposal. The second state would provide a market for
2.5 times as much ONP, while providing both publishers and mills the most
flexibility in meeting the goal. Since recycled newsprint mills today use
anywhere from 40-percent to 100-percent ONP as feedstock, in the case of
the first state, Levetan believes, there would be no incentive for a null
to use 100-percent recycled furnish. Economic considerations do not
necessarily favor the use of scrap paper-especially ONP--compared with
virgin pulp sources, particularly in areas of the country with abundant
and cheap pulp wood supplies. As a result, a newsprint manufacturer
heretofore using 100-percent ONP might end up with an economic incentive
(unintended by the legislation) to actually reduce its total scrap paper
intake. This would still satisfy mandated goals since more recycled
newsprint might be produced; however, less
demand would be created for ONP.
Looking
Ahead
Trying
to guess how domestic newsprint producers intend to meet the challenge of
increased ONP usage is an impossible task. Davis Recycling Consultants has
looked at three possible scenarios: converting existing newsprint capacity
to 40 percent recycled content; building new 100-percent recycled mills;
and combining the first two. By Davis's calculations--assuming that half
of the U.S. newsprint requirement contains a minimum 40-percent recycled
content--an additional 2.5 million tons of recycled newsprint capacity
would be required.
Another
forecast, prepared by the National Solid Wastes Management Association,
calculates that by 1995, 3.8 million tons of ONP will be used in the
manufacture of newsprint: That's more than double the amount used in 1988.
The association sees the total amount of ONP recovered rising to 7.5
million short tons by 1995, an increase of 67 percent over seven years.