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Copyright ©2015 WasteZero The Financial Power of Zero-Waste Programs: A Pay-as-You-Throw Case Study From Worcester, Mass. Mark Dancy—President, WasteZero Bob Moylan—Commissioner of Public Works and Parks (retired), Worcester
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The Financial Powerof Zero-Waste Programs: A Pay-as-You-Throw Case StudyFrom Worcester, Mass. 

Jul 27, 2015

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Page 1: The Financial Powerof Zero-Waste Programs: A Pay-as-You-Throw Case StudyFrom Worcester, Mass. 

Copyright ©2015 WasteZero

The Financial Powerof Zero-Waste Programs:

A Pay-as-You-Throw Case StudyFrom Worcester, Mass.

Mark Dancy—President, WasteZeroBob Moylan—Commissioner of Public Works and Parks (retired), Worcester

Page 3: The Financial Powerof Zero-Waste Programs: A Pay-as-You-Throw Case StudyFrom Worcester, Mass. 

Copyright ©2015 WasteZero

Not All Waste Reduction Plans Are Created Equal

Mandatory Recycling↓ Low Cost↓ Low Effectiveness

Variable-Rate Carts↑ High Cost↓ Low Effectiveness

Single-Stream Recycling↑ High Cost↓ Low Effectiveness

Automated/Larger Recycling Carts↑ High Cost↓ Low Effectiveness

Recycling Education↓ Low Cost↓ Low Effectiveness

Pay-as-You-Throw

↓ Low Cost

↑ High Effectiveness

↑ High Revenue-Generation

Page 4: The Financial Powerof Zero-Waste Programs: A Pay-as-You-Throw Case StudyFrom Worcester, Mass. 

Copyright ©2015 WasteZero

Trash Is America’s $384 Billion Problem

TOTAL: $384 Billion per Year

MSW Management Expenses$100 Billion

Energy Opportunity Cost

$100 Billion

+

$200 Billion

Avoidable Costs

Recycling Jobs Payroll

$34 Billion

Remanufacturing Revenue

$100 Billion+

+

Value of Materials

$50 Billion

Unrealized Revenue

$184 Billion

Page 5: The Financial Powerof Zero-Waste Programs: A Pay-as-You-Throw Case StudyFrom Worcester, Mass. 

Copyright ©2015 WasteZero

Solid Waste Is a UtilitySolid waste is the last unmetered utility, which encourages waste and is unfair.

Electricity Gas

WaterTrash

Metered Unmetered

Communities should be metering their trash just like they meter their other utilities.

Page 6: The Financial Powerof Zero-Waste Programs: A Pay-as-You-Throw Case StudyFrom Worcester, Mass. 

Copyright ©2015 WasteZero

The Way Things Work Now2. Request 3. Blank Check1. Flat Fee or No Fee

Solid Waste $138.00

CITY OF ANYTOWN

ANYTOWN, USAPO BOX 1234

CITY OF ANYTOWN

ANYTOWN, USAPO BOX 1234

ANYTOWN, USA

Encourages waste; unfair to those who throw away less

Page 7: The Financial Powerof Zero-Waste Programs: A Pay-as-You-Throw Case StudyFrom Worcester, Mass. 

Copyright ©2015 WasteZero

The Pay-as-You-Throw Solution2. Pay per Bag 3. Incentivize

What’s Right1. Cut Fees

(when possible)

Provides incentives to reduce, reuse, recycle, and compost; equitable

Page 8: The Financial Powerof Zero-Waste Programs: A Pay-as-You-Throw Case StudyFrom Worcester, Mass. 

Copyright ©2015 WasteZero

Pay-as-You-Throw ResultsResults That Are Immediate… and Long-Term

Trash tonnage drops to 50% of national average and sometimes even lower. Disposal spending plummets.

Within 90 days: Long Term (Years 2-10):• Tonnage can be reduced by up to

60%.• Tipping fees continue to decline, and

recycling revenues rise.• Resident satisfaction increases.

Recycling rates often double or even triple. Revenue from recycled material increases.

Page 9: The Financial Powerof Zero-Waste Programs: A Pay-as-You-Throw Case StudyFrom Worcester, Mass. 

Copyright ©2015 WasteZero

Pay-as-You-Throw Results

WATERVILLE, MAINE53% DECLINE IN SOLID WASTE IN 5

MONTHS

MALDEN, MASS.52% DECLINE IN SOLID WASTE OVER 5

YEARS

FALL RIVER, MASS.43% DECLINE IN SOLID WASTE IN 6

MONTHS

SANFORD, MAINE41% DECLINE IN SOLID WASTE IN 3

MONTHS

Page 10: The Financial Powerof Zero-Waste Programs: A Pay-as-You-Throw Case StudyFrom Worcester, Mass. 

Copyright ©2015 WasteZero

PAYT in Worcester—Background

• In 1993, the Worcester, Mass., Public Works & Parks Department faced a significant budget shortfall.

• We faced a choice: cut staff and services, or institute pay-as-you-throw.

• After intense debate across the city, we started our PAYT program in November 1993.

Page 11: The Financial Powerof Zero-Waste Programs: A Pay-as-You-Throw Case StudyFrom Worcester, Mass. 

Copyright ©2015 WasteZero

PAYT in Worcester—Details on Program

• Dispose of trash in official yellow bags available at retailers throughout the city

– 30-gal. bag: $1.50

– 15-gal. bag: $0.75

• Curbside garbage and recycling collection

• Approximately 52,000 households

• Average household uses 1.2 30-gal. bags per week

• Compliance near 100%

Page 12: The Financial Powerof Zero-Waste Programs: A Pay-as-You-Throw Case StudyFrom Worcester, Mass. 

Copyright ©2015 WasteZero

PAYT in Worcester—An Overnight Success

Page 13: The Financial Powerof Zero-Waste Programs: A Pay-as-You-Throw Case StudyFrom Worcester, Mass. 

Copyright ©2015 WasteZero

PAYT in Worcester—Powerful Waste Reduction

MSWDown55%

447,000TonsDiverted

Page 14: The Financial Powerof Zero-Waste Programs: A Pay-as-You-Throw Case StudyFrom Worcester, Mass. 

Copyright ©2015 WasteZero

PAYT in Worcester—Financial Results

Program Revenue:$46.8 Million

Page 15: The Financial Powerof Zero-Waste Programs: A Pay-as-You-Throw Case StudyFrom Worcester, Mass. 

Copyright ©2015 WasteZero

PAYT in Worcester—Financial Results

Program Revenue:$46.8 Million

Operational Savings: $26.3 Million

Page 16: The Financial Powerof Zero-Waste Programs: A Pay-as-You-Throw Case StudyFrom Worcester, Mass. 

Copyright ©2015 WasteZero

PAYT in Worcester—Financial Results

Program Revenue:$46.8 Million

Operational Savings: $26.3 Million

Disposal Savings: $21.4 Million

Page 17: The Financial Powerof Zero-Waste Programs: A Pay-as-You-Throw Case StudyFrom Worcester, Mass. 

Copyright ©2015 WasteZero

PAYT in Worcester—Financial Results

Program Revenue:$46.8 Million

Operational Savings: $26.3 Million

Disposal Savings: $21.4 Million

Net Financial Impact:

$94.5 Million Total

Page 18: The Financial Powerof Zero-Waste Programs: A Pay-as-You-Throw Case StudyFrom Worcester, Mass. 

Copyright ©2015 WasteZero

PAYT in Worcester—Financial Results

Program Revenue:$46.8 Million

Operational Savings: $26.3 Million

Disposal Savings: $21.4 Million

Net Financial Impact:

$94.5 Million Total

Average $4.5Million per Year