Beating Contamination

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1 Beating Contamination DEACS Introduction Sandy Skolochenko Matt James Division of Environmental Assistance and Customer Service North Carolina Department of Environmental Quality

2 DEACS Overview Provide technical and financial assistance to public and private sector technical assistance grant making data analysis market development Staff includes: technical assistance specialists outreach coordinator organics diversion expert

3 China 2017: China announces efforts to clean up the country. Files with WTO Unprocessed plastics are BANNED effective January 2018 Mixed paper is BANNED effective January 2018 Other recovered paper and plastic must not exceed 0.5% contamination effective March 2018 Other southeast Asian countries following suit

4 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 $/ton NC Fiber Pricing 5 years Newsprint Cardboard Office Paper Mixed Paper

5 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 $/pound NC Container Pricing 5 years Aluminum PET HDPE - Natural HDPE - Color

6 Net Processing Revenue/ Fee Commodity Sales Processing Cost Residual Cost How is this impacting MRFs?

7 Value of a commingled ton $200 $180 $160 $140 $120 NC MRF Blended Values (not including residue costs) China announces plan for import restrictions Import restrictions take effect $100 $80 $60 $40 $20 $-

8 Material % of 1 MRF ton Price/ton Value Fiber Materials ONP 13.0% $ $ Mixed Paper 29.8% $ 6.67 $ 1.98 OCC 19.1% $ $ Fiber Sub-total 61.9% $ Value of a commingled ton Container Materials Glass 25.8% $ (23.00) $ (5.93) Aluminum Cans 1.3% $ 1, $ Steel Cans 2.7% $ $ 3.48 PET 4.5% $ $ HDPE (colored prices) 2.6% $ $ 8.26 Mixed Plastics 1.3% $ - $ - Cartons/aseptics 0.0% $ - Container Sub-total 38.2% $ TOTAL 100.0% TOTAL $ 68.87

9 Material % of 1 MRF ton Price/ton Value Fiber Materials ONP 13.0% $ $ Mixed Paper 29.8% $ 6.67 $ 1.98 OCC 19.1% $ $ Fiber Sub-total 61.9% $ Value of a commingled ton Container Materials Glass 25.8% $ (23.00) $ (5.93) Aluminum Cans 1.3% $ 1, $ Steel Cans 2.7% $ $ 3.48 PET 4.5% $ $ HDPE (colored prices) 2.6% $ $ 8.26 Mixed Plastics 1.3% $ - $ - Cartons/aseptics 0.0% $ - Container Sub-total 38.2% $ TOTAL 100.0% TOTAL $ Are we forgetting anything?

10 Material % of 1 MRF ton Price/ton Value Fiber Materials ONP 13.0% $ $ Mixed Paper 29.8% $ 6.67 $ 1.98 OCC 19.1% $ $ Fiber Sub-total 61.9% $ Value of a commingled ton Container Materials Glass 25.8% $ (23.00) $ (5.93) Aluminum Cans 1.3% $ 1, $ Steel Cans 2.7% $ $ 3.48 PET 4.5% $ $ HDPE (colored prices) 2.6% $ $ 8.26 Mixed Plastics 1.3% $ - $ - Cartons/aseptics 0.0% $ - Container Sub-total 38.2% $ TOTAL 100.0% TOTAL $ Marketable commodities 90% $ $ Residue 10% $ (70.00) $ (7.00) Value of incoming ton to MRF $ 54.98

11 Material % of 1 MRF ton Price/ton Value Fiber Materials ONP 13.0% $ $ Mixed Paper 29.8% $ 6.67 $ 1.98 OCC 19.1% $ $ Fiber Sub-total 61.9% $ Value of a commingled ton Container Materials Glass 25.8% $ (23.00) $ (5.93) Aluminum Cans 1.3% $ 1, $ Steel Cans 2.7% $ $ 3.48 PET 4.5% $ $ HDPE (colored prices) 2.6% $ $ 8.26 Mixed Plastics 1.3% $ - $ - Cartons/aseptics 0.0% $ - Container Sub-total 38.2% $ TOTAL 100.0% TOTAL $ Marketable commodities 80% $ $ Residue 20% $ (70.00) $ (14.00) Value of incoming ton to MRF $ 41.09

12 Survey says Mini Poll Value of commingled ton: $55 Processing cost: $70 Residue rate: 14% Bottom line: cost of processing exceeds value of material

13 There is good news Residents want to recycle NC has strong public curbside infrastructure Recyclers are investing in facilities and equipment Southeast has domestic markets that rely on residential recycling programs for feedstock We can improve quality 350 Local Government Curbside Recycling Programs

14 Equipment, infrastructure, or outreach Suitable Grant Projects Improve quantity of recyclables Or improve quality of recyclables

15 Community Waste Reduction & Recycling Grant 20% match $20,000 for standard projects $30,000 for priority projects

16 Standard Projects Curbside Carts Convenience center equipment Away-from-home bins Food scrap compost School recycling Multi-family recycling HHW collection and management

17 Priority Projects Contamination reduction Hub-and-Spoke model

18 Market connections Technical Assistance Operational assistance Contract administration

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