1 Organics Composting Forum: Building Infrastructure and Markets Metropolitan Washington Council of Governments Washington, CD May 21, 2009 The Metropolitan.

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Organics Composting Forum:Organics Composting Forum:Building Infrastructure and MarketsBuilding Infrastructure and Markets

Metropolitan Washington Council of GovernmentsMetropolitan Washington Council of GovernmentsWashington, CDWashington, CD

May 21, 2009May 21, 2009

The Metropolitan Washington Council of Governments Recycling The Metropolitan Washington Council of Governments Recycling CommitteeCommitteeThe Institute for Local Self-Reliance (ILSR)The Institute for Local Self-Reliance (ILSR)The Alice Ferguson FoundationThe Alice Ferguson FoundationUS Environmental Protection Agency/Region III US Environmental Protection Agency/Region III

JFConnolly & Associates Hampton, JFConnolly & Associates Hampton, NHNH


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StakeholdersStakeholders

► Who Are They ?Who Are They ?

Governmental agenciesGovernmental agencies NGO’s (Non-governmental organizations)NGO’s (Non-governmental organizations) Communities where stakeholder businesses operateCommunities where stakeholder businesses operate Industry organizationsIndustry organizations Food waste generator communityFood waste generator community Receiving facilitiesReceiving facilities Collection and transportation entitiesCollection and transportation entities Other vendors of services (supplies, business/professional Other vendors of services (supplies, business/professional

services)services) Consumers (the public)Consumers (the public) The mediaThe media Advertisers and marketersAdvertisers and marketers


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StakeholdersStakeholders

► Why Are We Here ?Why Are We Here ?

Promote environmental stewardshipPromote environmental stewardship

Support (and benefit from) governmental initiativesSupport (and benefit from) governmental initiatives

Create new marketsCreate new markets

Grow existing businessGrow existing business

Respond to customer demandsRespond to customer demands

Attract, train, motivate, and retain the best employeesAttract, train, motivate, and retain the best employees

Improve the bottom lineImprove the bottom line


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What is Sustainability ?What is Sustainability ?

► Sustainability Is:Sustainability Is:

““Business strategies and practices that promote the long-Business strategies and practices that promote the long-term well being of the environment, society, and the term well being of the environment, society, and the bottom line”bottom line”

► Food Marketing Institute, Sustainability Task Force – 2007Food Marketing Institute, Sustainability Task Force – 2007

““Meeting the needs of the present without compromising Meeting the needs of the present without compromising the ability of future generations to meet their own needs.“the ability of future generations to meet their own needs.“

► "Brundtland definition" of the 1987 Report of the World Commission "Brundtland definition" of the 1987 Report of the World Commission on Environment and Development - on Environment and Development - www.epa.gov/sustainability/basicinfo.htmwww.epa.gov/sustainability/basicinfo.htm


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Business Model SynergyBusiness Model Synergy

► Commercial Organics Diversion/Recycling and Commercial Organics Diversion/Recycling and Waste Stream Management:Waste Stream Management:

Should:Should:► Increase revenuesIncrease revenues► Decrease costsDecrease costs► Improve market shareImprove market share► Meet stakeholder goalsMeet stakeholder goals

Satisfies operational requirements of all participantsSatisfies operational requirements of all participants Makes environmental senseMakes environmental sense Is synchronous with government, industry, and community Is synchronous with government, industry, and community

initiativesinitiatives

► Program evaluation is primarily based on bottom-line resultsProgram evaluation is primarily based on bottom-line results► Typically trumps all other considerationsTypically trumps all other considerations


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Program EconomicsProgram Economics

► Economics Strategy:Economics Strategy:

Extract the financial productivity out of the landfillExtract the financial productivity out of the landfill

Lower cost to generators – net landed cost per tonLower cost to generators – net landed cost per ton► Tipping fee differentialTipping fee differential► Hauling frequency managementHauling frequency management► Improved opportunities to maximize recycling – OCC, film plastics, etc.Improved opportunities to maximize recycling – OCC, film plastics, etc.

Increased revenue to receiving facilitiesIncreased revenue to receiving facilities► Disposal fee and product sales – compost, soils, electricity, fuelDisposal fee and product sales – compost, soils, electricity, fuel

Increased revenues to organics-niche transportation Increased revenues to organics-niche transportation companiescompanies► Increased haulsIncreased hauls► Improved route densityImproved route density


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WHY ??WHY ??

► Why Would the Generator Community and Others Do Why Would the Generator Community and Others Do This?This?

US EPA – goal to double organics diversionUS EPA – goal to double organics diversion► From 3% now to 6% tomorrow - potential upside is significantFrom 3% now to 6% tomorrow - potential upside is significant

““Green” or “Sustainability” movement – consumers, society, Green” or “Sustainability” movement – consumers, society, businessesbusinesses► Focus on the environment and the future – sustainabilityFocus on the environment and the future – sustainability► Companies responding to customer demandsCompanies responding to customer demands

Business development and learning opportunitiesBusiness development and learning opportunities► Cost-reduction initiativesCost-reduction initiatives – supplies, services purchased, energy – supplies, services purchased, energy► Source-separation to composting – immediate opportunitiesSource-separation to composting – immediate opportunities► Long-term waste-to-energy solutions – AD; biofuels from food Long-term waste-to-energy solutions – AD; biofuels from food

scrapsscraps


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Challenges TodayChallenges Today

► Receiving Facilities, Transportation, GeneratorsReceiving Facilities, Transportation, Generators

Composting/receiving capacity today – how much and Composting/receiving capacity today – how much and wherewhere► Facilities capable of working with varied generator baseFacilities capable of working with varied generator base

Understand organizational dynamics; define Understand organizational dynamics; define operational/economic modelsoperational/economic models► Generators, composters, vendors, communities, regulatory & Generators, composters, vendors, communities, regulatory &

support agenciessupport agencies

Transportation infrastructure for organicsTransportation infrastructure for organics► Cost-effective organic-niche transportation solutionsCost-effective organic-niche transportation solutions

Limited generator knowledgeLimited generator knowledge► How to I do this ? Where do I send It ? What will it cost ?How to I do this ? Where do I send It ? What will it cost ?► Fear of the unknown – cost, odors, storage space, vendor Fear of the unknown – cost, odors, storage space, vendor

relationships, customer awarenessrelationships, customer awareness


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Strategic InitiativesStrategic Initiatives

► Concurrent EffortsConcurrent Efforts

Solidify and grow the receiving infrastructureSolidify and grow the receiving infrastructure

Leverage synergistic business partnershipsLeverage synergistic business partnerships► Generators – communication, education, analysisGenerators – communication, education, analysis► Receiving facilities – food waste permitted facilitiesReceiving facilities – food waste permitted facilities► Transportation – organics-niche hauling companiesTransportation – organics-niche hauling companies► Supplies vendors – product quality and costSupplies vendors – product quality and cost

Leverage complementary effortsLeverage complementary efforts► Government goals & initiatives – grant fundingGovernment goals & initiatives – grant funding► Industry sustainability efforts – public, private, grass-rootsIndustry sustainability efforts – public, private, grass-roots► Marketing and public/community relationsMarketing and public/community relations► Communication – WasteWise, BioCycle, USCC, ILSR, COGS, Communication – WasteWise, BioCycle, USCC, ILSR, COGS,

Alice Ferguson Foundation, trade associationsAlice Ferguson Foundation, trade associations


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Organics Recycling – the FutureOrganics Recycling – the Future► Strategic Process Capable of Growing at a Reasonable Strategic Process Capable of Growing at a Reasonable

PacePace

Expanding list of generatorsExpanding list of generators

Known and planned receiving and hauling capacities/solutionsKnown and planned receiving and hauling capacities/solutions► Integrate existing and new receiving capacity into the regional Integrate existing and new receiving capacity into the regional

strategystrategy► Cost-effective organic-niche transportation solutionsCost-effective organic-niche transportation solutions

Financially responsible cost structureFinancially responsible cost structure► Positive economics for all business partners and stakeholdersPositive economics for all business partners and stakeholders

Public relations initiativesPublic relations initiatives► Active promotion of program progress and successActive promotion of program progress and success

Business partners – generators, receiving facilities, haulersBusiness partners – generators, receiving facilities, haulers US EPA, WasteWise, industry associations, (BioCycle, USCC, BPI), US EPA, WasteWise, industry associations, (BioCycle, USCC, BPI),

ILSR, GOGs, AFF, trade publicationsILSR, GOGs, AFF, trade publications

1 Organics Composting Forum: Building Infrastructure and Markets Metropolitan Washington Council of Governments Washington, CD May 21, 2009 The Metropolitan.

Documents

governmental agenciesngos

sustainability task

double organics diversionfrom

landed cost

facilitiesdisposal fee

recycling occ

landfilllower cost

customer demandsattract