Recycling Contingencies for Extraordinary Events. Report to

Transcription

1 Recycling Contingencies for Extraordinary Events Report to 27 th January, 2017 Submitted by: KELLEHER ENVIRONMENTAL REPORT TO METRO VANCOUVER PAGE 1 27 TH JANUARY,

2 Table of Contents 1. Background and Objectives Approach Extraordinary Events in Recycling Responses and Lessons Learned Vulnerability of Metro Vancouver to Extraordinary Events in Recycling Policy and Strategy Options... 4 PAGE 1 27 TH JANUARY,

3 1. Background and Objectives Kelleher Environmental was contracted by Metro Vancouver Solid Waste Department in October 2016 to conduct a research study of extraordinary events in recycling. Recent events related to disruptions in mattress and drywall recycling as well as on-going challenges with organics processing have uncovered points of vulnerability in the region s recycling infrastructure, and have highlighted the need to understand how these unusual, unanticipated, or random events affect recycling stakeholders and how these impacts can be minimized. The objectives of this study are therefore two-fold: first, to improve awareness and understanding of recycling market disrupting events, and second, to improve awareness and understanding of policies and actions that might mitigate the impacts of recycling market disrupting events. The study focussed on two categories of materials, organics and demolition and land clearing (DLC) waste. These materials were selected as the focus of this study because they are generated in large volumes and are banned from landfill, and to date no extended producer responsibility (EPR) program has been put in place. Materials where single processing options are available (gypsum, mattresses to some extent) were also of interest, but the volumes are significantly lower. Materials covered by EPR programs were less critical to the study, as it is the producers of those products that are responsible for finding alternative end-of-life management options should a business disruption occur. 2. Approach The study approach included desktop research and a literature review, interviews with processors and local/provincial/state governments in Canada and the US, a screening process to focus on highest priority materials, and a vulnerability analysis. 3. Extraordinary Events in Recycling The study identified several examples of extraordinary events that have impacted the continuity of the recycling industry in Metro Vancouver and elsewhere. These include: The global economic collapse of 2008/2009, which significantly reduced the demand for recycled materials; The 2010 drop in oil prices, which impacted markets for plastics, asphalt, and in some cases wood as paper mills move from wood to oil for heat; The establishment of China s Green Fence initiative in 2012, which imposed stringent quality standards on recyclable materials (especially paper and plastics) exported to China; A 2015 port strike on the west coast of the United States, which caused major delays in overseas cargo shipments, including those carrying recycled materials; Increasing closures of paper mills in BC and the Western U.S., which has gradually constricted market options for recycled paper; In the US, paper mills shifting from wood to oil as a fuel source, because of EPA air emissions and regulation changes. This has impacted wood markets; The bankruptcy of Hanjin, a large shipping company which recyclers depended on for trans Pacific shipments of recyclables; and PAGE 1 27 TH JANUARY,

4 A current apple maggot infestation in Washington State, which prevented the movement of green bin material to a composting facility located within the quarantined area. Landfilling and EFW options were being considered for the collected green bin materials The following are examples of extraordinary events that have disrupted local recycling markets in Metro Vancouver specifically: A fire at a Vancouver mattress recycling facility in May 2015; WorkSafeBC s temporary closure of New West Gypsum (in 2015) due to worker safety concerns related to asbestos in old drywall mud. This temporary closure resulted in gypsum being stockpiled at Metro Vancouver transfer stations until the facility re-opened 2 weeks later, but with significantly more restrictive requirements. The closure of New West Gypsum also created risks with respect to illegal dumping and mixing of gypsum with regular garbage; Metro Vancouver s closure of six drywall collection sites in 2015, due to asbestos-related safety concerns, which caused a significant backlog for contractors (these collection sites re-opened after 2 weeks); A shipping strike in Surrey ports in 2014, which caused delays in shipments of recycled materials overseas; and Current odour issues at Harvest Power, the largest composting site in the region processing about 200,000 tonnes/year of organics from municipal green bin programs and other sources. This has led to the site not accepting any additional organic material. 4. Responses and Lessons Learned Study research identified a number of common themes related to risk management and contingency planning. Options are different for food waste which cannot be stored and stockpiled prior to processing. Responses to Organics Challenges Stop accepting additional material for processing; Invoke contractual conditions and financial instruments; Send materials to other processors; Use multiple processing sites and service providers in the longer term; and Use higher technology processes which better control odour from food waste processing (e.g. anaerobic digestion). Responses to DLC Material and Dry Material Events Storage and stockpiling: Most processors stockpile materials such as processed wood, finished compost and recyclables such as paper and metal, etc., in the event of a business or market disruption. When the available storage capacity is full, materials are sold at a discount in order to move the material; Set up business in a new location or re-establish the business at the existing location (with some service disruptions); Stop accepting additional material for processing; Sell material for lower revenue or at a loss; PAGE 2 27 TH JANUARY,

5 Ship materials through alternative routes or service providers; Invoke contractual conditions and financial instruments; and Send materials to other processors. Key lessons learned from extraordinary events in recycling are: Ensure geographic diversity of processors: Use multiple processing facilities, and spread the material to be processed among facilities spread geographically. Processor diversity: Examples were found of municipalities who depended on one large facility for processing. While this may cost less because of economies of scale, it is better in the long run to reduce risk by having more than one facility, even when this leads to higher costs, because economies of scale are lost to some extent;. Develop local markets for recycled materials: Local markets (e.g. local paper mills or local plastics processors where they exist) are considered less vulnerable to global disruptions which are out of the control of regional governments. Sudden situations can lead to illegal dumping: Haulers need to have clear options regarding where to take materials in a timely manner when a stoppage or facility closure occurs; otherwise illegal dumping is likely to result. 5. Vulnerability of Metro Vancouver to Extraordinary Events in Recycling The following conclusions can be drawn from the recycling system vulnerability analysis carried out for Metro Vancouver: Organics pose the greatest vulnerability to Metro Vancouver due to the large tonnage, reliance on a small number of processors and current operational challenges at the Harvest Power site. However it should be noted that a significant new processing facility will provide new geographic and operator diversity early in 2017, and significant actions are being taken by Harvest Power to address odour issues; Mattresses pose a significant challenge due to the limited number of processors (2) and the challenge of disposal. However, regulating mattresses under an EPR program could resolve the vulnerability of this material by transferring risk to producers over the medium to long term. Should an extraordinary event occur in the short term, disposal would be required; Gypsum wall board (drywall) with asbestos-containing mud continues to pose a challenge in the region. In addition, the lack of multiple processors for this material creates potential for processor disruptions; and Mixed DLC (demolition and land clearing) waste is currently separated and sent to different end markets. However, relatively few end users could represent vulnerability for materials such as clean wood. PAGE 3 27 TH JANUARY,

6 6. Policy and Strategy Options Based on the analysis of recycling contingencies in this study, the following options should be considered by Metro Vancouver and other organizations/agencies of government: 1 Continue to advocate for expanded EPR programs, focusing on materials with insecure recycling markets: For example, mattresses could be designated under EPR regulations so that producers are responsible for resolving processing challenges due to extraordinary events. It could require a lead time of 18 to 36 months from the time the regulation is released to the requirement to have an EPR system in place. In the interim period, mattresses are somewhat vulnerable to extraordinary events as there are only two companies who currently recycle mattresses. Similarly, furniture and some construction and demolition materials may be viable items for future EPR. 2 Consider options to increase and diversify organics processing options within and near the Region: Metro Vancouver continues to monitor the growth in organics processing within or near the region, in order to secure sufficient processing capacity (as well as contingency capacity in the event of operational problems at any one facility) for the source separated organics generated as a result of the organics disposal ban. Local and senior governments can aid in this by continuing to ensure the enforceability of disposal bans by managing the flow of wastes to the degree possible, and increasing economic stability through longer term contracts where possible. 3 Continue to support local market development for DLC materials through staff training, pilot projects and awareness building: One of the barriers to absorbing recycled DLC materials in construction projects is a reported lack of confidence by design engineers in performance over the long term, and a limited awareness of the equipment needed to effectively incorporate recycled materials. Industry education programs to raise awareness of the proven successful performance of recycled materials in construction projects, pilot projects to test the performance of recycled materials in real life applications in the region, and demonstration projects are all potential methods to raise awareness of this option. 4 Continue to support procurement which absorbs compost and recycled DLC materials with other local/provincial governments: While markets for compost and recycled DLC materials are reportedly stable, it is best to ensure local market demand for finished compost and recycled DLC materials by incorporating them into construction specifications where possible. 5 DLC Management: Continue working to expand DLC processing capacity and to expand markets for DLC materials, particularly wood. 6 Regulatory Options. As part of future updates to Metro Vancouver s regulatory framework for private recycling facilities, consider opportunities to relax licensing requirements in emergency conditions, and consider new requirements for business continuity plans. 7 Gypsum Management. Continue to work on processes to encourage safe and effective management of used gypsum. PAGE 4 27 TH JANUARY,