PAPER RECYCLING SUPPLEMENT - A Curbed Appetite

The accounting scandals that exposed the profits of companies such as Enron and Worldcom as being dubiously calculated shows that creativity and mathematics can indeed go hand-in-hand.

Weilding a calculator with a pre-determined goal in mind can result in the "fuzzy math" decried by George W. Bush in the 2000 presidential debates. Such a technique can also provide ammunition for two different sides of an argument, as often happens when curbside recycling is the subject of a debate.

Ultimately, city and county officials must determine if recycling programs are in the interests of taxpayers, and calculating the short-term and long-term fiscal effects of recycling is an important part of that process.

AN OPEN DEBATE. A packed room of attendees at the 2001 WasteExpo in Chicago enjoyed an event billed as, "The Great Debate: Is Recycling Garbage?" The debate featured writer John Tierney, whose New York Times Magazine article "Recycling is Garbage" in 1996 elicited more reader responses than any previous piece in the magazine.

Tierney, who questions the fiscal wisdom of tax-supported recycling programs, debated environmentalist Allen Hershkowitz of the Natural Resource Defense Council, New York.

The crux of Tierney’s argument was that recycling "makes sense for some materials at some times, but not [for] household waste." Support for curbside programs arose based on two mistaken assumptions, he said: that we are running out of commodities and that landfill space is scarce.

Tierney called copper "more expendable than ever" and said energy, despite recent price rises, is still "cheaper than at any time in history." The labor-intensive collection and processing of recyclables is the greater waste, according to Tierney, who remarked, "the only resource that gets scarcer and more expensive is human labor or time."

Hershkowitz countered that while mineral resources have not depleted as quickly as once projected, they are still finite. "A criticism of government is that it fails to pay attention to the long term. Now we are, and we’re being criticized."

The environmentalist also pointed to the hidden government support the timber and mining industries receive from the federal government as opposed to the shifting and uneven support offered to recycling.

During the rebuttal stages of the debate, Tierney referred again to the labor-intensive nature of recycling. "All of this hand sorting . . . is where the waste is," he remarked.

A recycling advocate would probably hope that Tierney was able to walk the floor of WasteExpo to see the displays of mechanical screening, sorting and separating companies offering equipment to address the same issue.

REGIONAL REFLECTIONS. Since this staged debate between two New Yorkers, that city has played tug-of-war with its own curbside recycling program

In an effort to revive New York’s recycling program and obtain additional material, Hugo Neu Schnitzer East (HNSE) has offered to pay nearly $20 per ton less for metal, plastic and glass collected by the city’s Sanitation Commission.

The city had stopped collecting plastic and glass as it coped with a budget crisis. Sanitation Commissioner John Doherty has stated that even with the improved bid from Hugo Neu Schnitzer East, the city will need state dollars to continue collecting plastic and glass containers.

Officers of HNSE said that bids structured like theirs provide a way for recycling to remain a habit for New Yorkers. Their 2003 bid asked the city for a $51-per-ton tip fee for metal, plastic and glass collected by the recycling program, down from an earlier bid of $70 per ton.

"We took a very hard look at our numbers and revised our bid for the recycling of metal, plastic and glass so that the city could restore recycling completely," says Robert Kelman, general manager of HNSE. "With this revised bid, we are confident that the city can bring back recycling at a cost that is considerably less than the cost of exporting the recyclable materials [out of state] as garbage."

According to HNSE, the city had previously been paying an estimated $110 per ton for the transportation and disposal of plastic and glass in the solid waste stream.

"Recycling can work for New York City, from both an environmental and an economic standpoint," says John Neu, chairman of Hugo Neu Corp., one of the two joint venture owners of HNSE. "We firmly believe this, and with this revised bid, we think we’ve proven it."

HNSE has previously recycled metal collected by the city, which amounts to an average of 6,500 tons per month. The company’s original bid offered to pay $5.10 per ton for metals and plastics, leaving out glass. The next two bids have resulted in the city paying a tipping fee in order for HNSE to accept the glass.

Kelman says what is good in the long-term for the city is clear: Establishing a recycling infrastructure makes sense compared to relying on out-of-state landfills.

"Over the course of 15 to 20 years, the savings to the city would grow substantially," says Kelman. "With a long-term commitment, a private company like HNSE can develop markets for recycled materials and make the types of investment in technology and infrastructure that would provide enormous returns for the city—not just in cost savings, but in environmental benefits and the creation of jobs and opportunity for New York City residents."

The interest in the municipal program by the traditional scrap company is presented by Kelman as a long-term one. "Our revised bid will bring investment, opportunity and cost savings to New York City. This is the way recycling can work, and we are confident the city will accept this bid as the right move: for the environment, for the economy and for New York City’s future," he states.

SINGLE-STREAM VALUE. For some, the hottest curbside issue remains single-stream collection and processing.

Addressing attendees of the Paper Recycling Conference & Trade Show in Chicago in June, Brian Fielkow with Recycle America Alliance LLC cited six trends that are affecting the way his company—perhaps America’s largest handler of scrap paper—deals in the recovered fiber markets. Those trends include:

• A consolidated paper mill demand base in the U.S.;

• Weak supply currently because of a soft economy, more efficient printing production processes and subdued public interest in recycling;

• Strong scrap paper export demand;

• A fragmented supplier base of generators and packers that is likely to consolidate similarly to the way mill production has;

• Municipalities and hauling companies scrutinizing the economics of municipal recycling; and

• Several factors that influence the mill paperstock supplier relationship.

What hasn’t changed, said Fielkow, are mill demands for consistent quality and the long-term security of their fiber supplies. Single-stream techniques used by Recycle America Alliance (a subsidiary of Waste Management Inc., Houston) fulfills the steady supply desire, but has been criticized by some as falling short on quality.

Fielkow told attendees that in order for curbside materials to be collected and marketed at all, the single-stream system may be necessary. "The question has to be asked: Is curbside recycling economically viable? Only if it makes economic sense versus landfilling," answered Fielkow.

He added that Recycle America Alliance was continuing to explore improvements to the single-stream process, including using optical sorting to separate glass and plastic and increasing public education to keep contaminants out of the stream.

"Single-stream will make curbside [programs] more economically sustainable," he stated.

The author is editor of Recycling Today and can be contacted via e-mail at btaylor@RecyclingToday.com.