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Changing the Payment Model: Pay-as-You-Throw and Financial Efficiency
1.
Changing the Payment
Model: Pay-as-You-Throw and Financial Efficiency Mark Dancy Sept. 10, 2015
2.
Copyright © 2015
WasteZero 2 An Outdated Payment Model The key to effective waste diversion is in moving away from the flawed flat-fee or no-fee payment model. Nearly all of the problems associated with trash stem from the fact that it is not priced effectively. Waste disposal has changed… …but the payment model has not.
3.
Copyright © 2015
WasteZero 3 Lack of Utility Pricing Request2Flat Fee or No Fee1 Solid Waste $25.00 CITY OF ANYTOWN ANYTOWN, USA PO BOX 1234 CITY OF ANYTOWN ANYTOWN, USA PO BOX 1234 ANYTOWN, USA Blank Check3 The flat-fee or no-fee payment model creates inefficiencies, wasting financial, operational, and environmental resources. Electricity Gas Water Residents pay for most utilities based on how much they use. Trash is different: In most places, trash is the last unmetered utility.
4.
Copyright © 2015
WasteZero 4 The Solution: Pay-As-You-Throw PAYT realigns the solid waste payment model to allow people to pay for trash based on how much they generate. This creates strong economic incentives to reduce waste, saving money and resources for residents and municipalities. Benefits of Changing the Solid Waste Payment Model: Solid waste is reduced Recycling increases Collection and disposal costs drop The environment is improved Landfill life is extended
5.
Copyright © 2015
WasteZero 5 Cash Residents pay a set fee in cash for each bag they dispose of at a convenience or transfer station. Variable-Rate Carts Residents choose from among different sizes of carts, paying more for the larger carts and less for the smaller ones. Overflow Residents pay a flat fee that covers everything they can fit into a certain size cart, and then pay extra (usually by the bag) to dispose of anything that does not fit into that cart. Stickers/Tags Residents pay by the bag by affixing a pre-paid tag or sticker to each bag of trash. Bags Residents dispose of their waste in specialized bags approved by the municipality and clearly marked with the municipal seal or other unique instructions or information. Types of PAYT PAYT programs can take many different forms: In WasteZero’s experience, bag-based pay-as-you-throw systems are the most effective.
6.
Copyright © 2015
WasteZero 6 The Bag-Based PAYT Model • Fairest to residents • Easiest to implement • Most effective Pay per Bag for Trash Less MSW, More Recycling Cut Fees (when possible) Bag-based PAYT is the most effective available means of reducing municipal solid waste. 1 2 3 • No direct cost to municipalities • Works with any collection method, automated or manual
7.
Copyright © 2015
WasteZero 7 The Most Effective Intervention 1,100 lbs. 900 lbs. 440 lbs. 0 250 500 750 1000 1250 1970s—Before the Recycling Revolution National Average, After 40 Years of Recycling Education Average in Cities With WasteZero Trash Metering Annual Pounds per Capita of US Household Solid Waste Disposed 40 Years 3 Months
8.
Copyright © 2015
WasteZero 8 Pay-as-You-Throw Results: MSW Reduction WATERVILLE, MAINE 54% DECLINE IN MSW IN 1 YEAR MALDEN, MASS. 52% DECLINE IN MSW OVER 5 YEARS SANFORD, MAINE 41% DECLINE IN MSW IN 3 MONTHS WORCESTER, MASS. 55% DECLINE IN MSW OVER 21 YEARS
9.
Copyright © 2015
WasteZero 9 Pay-as-You-Throw Results: Financial Impact Program Revenue: $46.8 Million Net Financial Impact: $94.5 Million Total Average $4.5 Million per Year
10.
Copyright © 2015
WasteZero 10 Compatibility Automated Trash Collection Single-Stream Recycling Household Organics Collection Bag-based pay-as-you-throw programs work well across the range of existing collection models. … as well as with any other form of existing programs municipalities consider successful.
11.
Copyright © 2015
WasteZero 11 Thank You! Mark Dancy President, WasteZero mdancy@wastezero.com 843-655-6674 www.wastezero.com
Notes de l'éditeur
STORY: Here’s a little bit about us, our focus, and our commitment.
STORY: Here’s a little bit about us, our focus, and our commitment.
STORY: Here’s a little bit about us, our focus, and our commitment.
STORY: Here’s a little bit about us, our focus, and our commitment.
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