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HomeMy WebLinkAboutStudy Session Item #1 - Supplemental Communication - AB 1826 1 INGT�� • see m • Session t REPUBLIC IW California Legislative Actions'' -)ekavethe t ' Planet Or Else Awl- i',Slyt�£ �3tt ��' 1594 Organics 6 ts„ _ x I 5/16/2017 • Largest Country • • • Waste Top 20 of courthes ew 2011 Vs.Food wastage an� m } ■111 MW Ma .•w ... .r ... REPUBLIC �, sEmnc�s YG • • • Legislation , • • Mandatory Commercial Organics Recycling (MORe) - This law requires that on and after January 1, 2016, local jurisdictions across the state implement an organic waste recycling program to divert organic waste generated by businesses, including multifamily residential dwellings of five or more units. • Organic waste means food waste, green waste, landscape and pruning waste, nonhazardous wood waste, and food-soiled paper waste that is mixed in with food waste. fR"�S^bz SeY3,;k`iY .a'S:'PYr`P1CC'a.-"ae`ZI"41i%S�iP LS934:"ai31,7£1`.a •�pg5 k �s •4s.3sxFS` `mmtsPt y ,,. - •,;w,�a;.�seatix,..ors E�ao- E � 4s`9KRM6YC'SE. +�A wti' ;w�:.p9tn DN'A�S:HYLAsia.ncirsyn FSC-0 2 5/16/2017 i i • Program s r • Local Government Requirements • Implementing Source Separated Organics Recycling Program • Enforcement, Fines & Fees for Compliance Cost Recovery • Outreach and Education Plan ✓Newsletters, Presentations to business groups: Service Clubs, Chamber, Restaurant Association, Website • Monitoring — EAR due August 2017 • Unfunded Mandate • Tier 4 Optional with SIB 605 & SIB 1383 Failsafes AprE 2a16i January 2017 January 019 Januaryp202fl 8+ cu yds:: 4+ cu yds .` 4+cu yds + cu yak organics rgarncs MS,t MS11V' 3 H - 1 s 50 H�' 3;654 HB ', qAHB -87 AB 1826 Food Waste Diversion Approach ` & Best Food Recovery Hierarchy ,` - m 3 5/16/2017 • • • - • • - • .ti g WASTE NOT 0C ;! COALITIONHEAUR 1 ftv1en©t c--' Official Partners I 4 , 11�pk i k1.i�i w S I 1 (g";.&�'W"jK'.ly ltAFtVE T p 1y41�16 IIVi!4ii��9s.l V of{.F it I NI I ! drh BAN tiu rpublic Customer • Food Waste Service Support: Waste Characterizations Source Reduction Consulting Food Recovery Support-WasteNotOC load ��i Equipment to Maximize Convenience 65 gallon organics carts 1 yard organics bins Slim Jims for efficiency ' Steam Pans for Recovery Green &Wood Waste Services -Source Separation of food waste from MSW • Material delivered to permitted ,W Food waste recyclers - CORe 4 5/16/2017 1. Source Separated 2. Organics materials organics collected by direct hauled to City of Republic Services Food Orange CORe facility Waste Route in H.B. 4. Slurry received at L.A. County Sanitation —Carson POTW for anaerobic digestion to green energy 3. Materials processed to Slurry and transferred n- s to Tanker "' 2. Organics materials " direct hauled to City of ill Orange CORe facility Commercial Organic Materials diverted from Rainbow Facility and neighborhood. v` 5 5/16/2017 Turning food waste into fuel w R, us . xcarz s v»nae ers ee f ; ` _ REPUBLIC SMES rroes e. aa��a+xecea.8eaxr%sumta. � `� f'fiY/CES mourning r000 waste into green energy Return Nutrients to _ Soil-Agromin ...a„, Chino �.µ �M THE REAL DIRT 777;= AGRGMIN, THE aama.e«u s hsziENVIRONMENT, � . N c INNOVATION AB 1826 Legislation • Unfunded Mandate • EAR due August 2017 QOE R Fwod RHc y Miuiwf�,y cal recycle • Council Action requested at Future Meeting • 18 month program — Tier 3 January 1 , 2019 00R7;REPUBLIC 14 SEaWOU City of Huntington Beach 6 5/16/2017 t AH i� i SERVICE COSTS: $350,000-Dedicated Food Waste Truck&Specialized Containers, Driver, Helper for Employee Safety&Public Safety, Outreach,Admin. t riK + Commingled Route—Saves HB$ 1, WASTE iVCT CC dt � SB 1383: Wholesome ' Food Recovery s Total Huntington Beach Processing Costs:$400,000 AB 1826 Costs: $751,653 Commercial Sector Wide SWAN " Spreading the costs to all commercial and residential (multi-family) customers is justified by the fact that the program will help meet the overall diversion requirements for commercial customers. Secondarily, spreading the costs to just food service customers would be over burdensome for those businesses. Commercial Sector Wide Generator Only • High Participation • Minimal Participation (enforcement& penalties) • Full Compliance • Non-Compliance • Minimizes Cost impacts • High Cost impact 7 5/16/2017 W AB 1826 Compliance Rate (Food Waste Generators) Price per Month (1 Yard MSW Total Weekly Service) Current Rates for Tier 2 Generators $80.16 AB1826 Costs offset by Generator + $83.10 Commercial Sector 3.76% AB1826 costs covered by Generatorsh Only "\ 87 15 -Republic Services Confidential Rate Comparisons - Surrounding Cities ,s. IN Fountain VAley 3.66% Huntington Beach 3.67% Los Alamitos 9.24% Westminster 11.96% Seal Beach 18.25% 'All are Draft preliminary rate proposals 8 5/16/2017 Summary AB 1826 Compliance • Highest & Best Use • WasteNotOC food recovery diversion M $ k WASTE UT CC • CORe organics recycling -r diversion • Council Action required for program\rate approval ..� ¢R 3 REPUBLIC • Thank You & Questions S€MICES Recycling Industry Challenges - Trends in Material Material no longer in circulation 18M tons in 2000-;�—214 in 2015 Lighter-weight and limited end markets HDPE-;) off-spec PET r� Lighter-weight and flexible packaging not `.> recyclable try ate* Tin can copolymer pouch 9 5/16/2017 Lightweighting of Material -*a '*W A' '46w: 40 S 4, 0 '(D p C 0 Codes, o- p I ass c b o ENNINNEEmm 1 N ffl p Pulp& aper Weekly,Ooal Board Markets,2016 3�Intemabonal Bottled Water A oaation. Retrieved from hUp://—boU1edw,ter.o,gj 19 Lower Oil Prices 1� Recycling Industry Challenges er iW.kly C.,H gCKWTI SW ft'-;06 0.11—p., V.S.Energy Wvm*]k,�AommAwW(Fb 2016) Strong U.S.Dollar rl v, b'.4 10 5/16/2017 "New Norm" for Commodities Value - 5 Years RJViocxrdoMe Ca amadRy Rre,0axs.+4twWawn,PPas#rs,d Gruartirs) nl Ew—,.O ta•.xa,wran sazo-eay;oaf.neaaK Stg> sin sty €SS^ Bt3i' xtiz atarworaaser ku�-l+�Rma a+zs xr9as»sant:acss.sw;:a+us•vaa;rrsa.ss: Sits= �ourse:R¢rnc wismr,rr.wca,fiES:.rxurcSrKnx�ss.nsR ��t♦ii77#fiiff[�}1�{??�a�� ��[r��q�r��?�9 nr t _. it!'L�tiJ.ONDtIAMIES' aim,�« .,'» .. ,,. r• .• E , a-. .; .� x 21 The Monthly Haut: Quick& 1.rty Analysis of rs Tka kkt++a R�Yt Cc Tt O"G+'x�,art twaoe wand tfw E,wew 04 tlKtk-nes.WE E:. aorta;ita 1-s .SneS 55�1,x dl:v^3'1.Mk,,dn cu^a O �vx W°ih rSt'CS'.en kf tkrotsa'r:TLCS.. 'n-<"u k.4i Rr°aSY:4na3r'sas�. Tce«aryru er{.rf.s irs z.F raEntry,iVastw R4+s'>agena.ne,e3rsxe+i 21 re'-yrG.xg�<i€rtare:r. TiS{S7bR s+r6artm�a�ro,rsrt•txertm nnr+e im 3tt7A ac.iro«r..",rmm�rtity vaagr.ors vrrt,Fa r.s}sras�vt¢aCitmr_YSAtAs waste€ueMs scsk is r+ase�atafts ravcter;:e+raaxu is rmlt Jc+vs talc er.,ssc�atai wlt;+r bca p,SEc3,ek6 k ht:eX x rswRstxar prosav rr.'��^.uarraarery tA:.stx^wrm in ra:tydirg wraes. 'he 6 Sia4.H�3r+9'emeng&K✓•tt tc se yctK#�a Krwsr 4z�mxIIp'i vak�s m:�sti;tsr scm€Sow va3are r<t�c#gbk�Ivke }to t.1t 3'rdEdt.to i,we 6Niq rrx#arr=an m ttt 4ntiSR tlaq karsa vars!at xa 24i.7 Aretx�g ro^r:rPA,Mtas H:ry nr;two�.zr�:i..y w:rtr�ami:?rtt 3 ray�,w-..:s ts'.,r..starzrw.e� a^ta. x�rx ur,>e,wta8 w,rt>stsssragx s uec;:su a si'.5�.C4t'<'e�.2^a am 1,S:+f dt'tagmg xectsirrst�.ss is�5.4 at:J55!-a:n.6A;w s:.;Gl:,T,�s new v�6 b;a ism9e-t9sm. bcneB%b kncfRi ownera T+a�la.�aifltc carry rte kis}esz^ar�y�ra. Y.�ra7,kYward,�ans�r fax-e,:y�'i-+,p rats_w i�"�b,wx 6a7itsm maesKpa artt6 arle tttsesa!aus xs k&t?Astaf saps�rzasRst a:t,-metl;tdta,tr steenrttdtt nit Recycling Brims Shuttering Facilities and Driving Wore Volurne to Landfills snr 1c ycaag Fsrati=r,was er rroe a r«s t+Rcwks taomesurTcacyyrM«u vawnes Famrg t:r,. ssrs. :s r aassa wsv sFa o�•a aas ',,' tYf FFS itt SA1+ � « x`+ rx9r. ;tYa _*irp' aag. sr.• -:a i;piwyr Yb[a.E=.x: wmi-.>t.s. f-s++*+r��.e tniaryry aoa-a�-->asxew - •wwauy ssr qr Mec. . '% "T�$�+'. h t"y'.iev5aaia'J Y.kttSNa .:R1� YAbi.&6fiACi+:-z�W."'i#a"aF}a.•_S Keyeanc '4t�7 PoSia[-gq Capda(ItiarMrts lrm.ytdenber nVSfi�FYBaAy BMC March2dl6 1 11 5/16/2017 Effects on Current Recycling Businesses Collection Prices do not cover costs • Unable to subsidize from commodity sales - Down 50% in 5 year Trend (New Norm) 2011 Rainbow $212 ton price 2016 Rainbow- $107 ton price City of LA Contract Award Withdrawal Light-weighting leads to more items per load • We have more material to process per ton III Contamination drives additional 2011 2015 costs • Processing + Disposal costs from residual Tons Collected Net Revenue EM 23 Which is Better From a Life Cycle Perspective? fNc e:UseFhaS-not1f&jdecy clirree Vackaije 'PIU1Ut;!-1a- CO; imuy "CO2 act '"ElriamiI —ROLVi doe _MSw Packaging wt- PaicPaging nsumption Emissions! Useot Space postconsumer Waste t��cv� Ratia Pd-��++final 115ox P�Fva•as,• Ganarated sfesage aid {F6s1700,U�0 IIarts301LAMI oz of Prod�xa} -4 oz 2.1 4.21 033 no yes 1,305 V3 0,- EA 518 017 nn gyres 847 -0.4 oz_ 20:1 1.14 0.04 yes no 176 24 12 5/16/2017 Recycling Sustainability • Participation rates - Higher participation, while the goal, drives more costs • Commodity mix - changes in the stream can impact processing costs - lightweighting • Residual/contamination - drives additional direct costs o . • Commodity value - direct impact on any returns • Statewide Zero Waste Initiatives • Republic is committed to HB P V 2006 Franchise Agreement - Investments Year Investment in HB Investment 2007 Residential Carts $12.Om 2008 AB 939 - Single $ 9.Om Stream MRF 2009 AB 32 - CNG Fleet $ 9.5m Maintenance Shop 2013 AB 341 - MCR $ 3.5m 2014 CNG Clean Air Fleet $35.Om 2017 Facility Enclosure $22.Om Total $91.Om Future AB 1826, 1594; SB ???? 605, SB 1383 26 13