Return to Recycling Home PageReturn to Bureau of Waste Management
NDEP Home Page
Site Map
|
TABLE OF CONTENTS
Overview
This report was prepared by the Commission on Economic Development (CED) under contract with the Nevada Division of Environmental Protection (NDEP) Office of Solid Waste Management. Nevada Revised Statutes 444.587 (NRS 444.587) transferred the responsibility
for recycling market development activities to NDEP when the Office of
Community Services was eliminated in 1993. In addition NDEP assumed
responsibility for the submission of a report to the Legislative Counsel
Bureau by February 1 of each year. The report must include:
1) A general description of the markets for recycled materials in Nevada; andThis report will outline the status of recycling markets in Nevada in 1997, the public and private sector activities in recycling market development, and recycling activities in general. These activities are also viewed from a national and regional perspective as Nevada's recycling programs and incentives are compared to those in other states through surveys and research published in the national trade magazines, e.g. Biocycle and Resource Recycling. The passage of Assembly Bill 320 in the 1991 Nevada legislative session set the stage for Nevada's entrance to the world of recycling. As a result NRS 444A.020 established a recycling goal of at least 25 percent of the total solid waste generated within a municipality by 1995. NRS 444A established that municipalities or counties with a population greater than 100,000 are required to implement curbside recycling collection programs, provide recycling drop-off centers, and institute household hazardous waste disposal programs. Clark County and Washoe county are the only two government entities that are bound by this requirement. Counties such as Carson City and Elko, with populations of less than 100,000 but greater than 25,000 are required to provide drop-off recycling centers and household hazardous waste disposal programs. A population of less than 25,000 exempts the county from developing a recycling component of the solid waste plan, but the county is encouraged to develop recycling and household hazardous waste collection disposal programs. The State's Recycling and Waste Reduction Model Plan (September 1992) indicates that a municipality's diversion rate should include all materials collected for recycling but should not include solid waste generated outside of the municipality nor materials that would not normally be disposed of either in a landfill or disposal facility. Based on figures supplied to NDEP by the counties, Nevadans disposed of more than 2,595,000 tons of municipal solid waste during FY 1996 with an additional 467,045 tons, or 15%, diverted for recycling. Due to a change in reporting requirements 1997 figures are not available at this time. Finding markets for recyclable materials (hereafter referred to as secondary
materials) including paper, plastics, glass, and tires has been a major
concern in Nevada as well as the western United States over the past eight
years.
The modern issue of finding markets for secondary materials goes back to the early 1970s, when the Resource Conservation and Recovery Act (RCRA) was passed by the US Congress to manage the country's disposal of waste materials. At that time the US Department of Commerce was charged with developing and nurturing markets for secondary materials.It was understood that recycling is far more of a manufacturing activity than an environmental issue since, without end-markets for the collected materials, full-circle recycling cannot exist. At that time - not unlike today - it was believed that success in recycling would occur when manufacturing companies were assisted in retrofitting their processes to utilize secondary materials in place of virgin raw materials. The collection and processing of secondary materials from the urban waste streams would follow market demand for these raw materials, and it was hoped that recycling programs would thrive across the United States. In the mid 1970's the division within the Department of Commerce that was responsible for the development of recycling industries and secondary markets was eliminated. Many of the people involved with recycling were re-assigned to the Environmental Protection Agency, where the regulation of solid waste and recycling activities flourished. At the same time the United States began to realize a decline in manufacturing activity as many companies either closed their doors or moved to other countries. As the access to secondary markets decreased, the United States' waste stream grew with the population and an increasingly consumption-oriented society. The widespread collection of secondary materials from urban waste streams began in earnest in the mid 1980's. Communities realized the value that recycling brought to preserve landfill space, the potential to reduce solid waste disposal costs, and the possibility of earning money from sales of the secondary materials. With an increasing environmental awareness, recycling was also found to significantly reduce dependence upon natural resources such as trees (for paper) and oil (for plastics and rubber), as well as realizing energy savings resulting from use of already-processed secondary raw materials. The recycling markets that existed in the 1980's were overwhelmed with materials that flooded the secondary marketplace, and the value of materials declined as the supply far exceeded demand. American manufacturers have not kept pace to use the growing supply of secondary materials, as the mining of virgin raw materials is often cheaper than paying costs associated with separation, collection, processing and transportation of secondary materials from the urban waste stream. As the export market would imply, secondary materials have become an international commodity that are traded based on market demand and supply. It is not unusual for the value of old newspapers to fluctuate from $10 to $50 per ton in any given 6 month period. This volatility in the marketplace means that successful recycling programs must be flexible and able to adjust to new opportunities or closed markets. A recycling program must also be able to survive periods when it may
cost more to collect and process a secondary material than its value to
the marketplace. There are few industries that can exist under such
unstable conditions. Recycling however, also helps a community preserve
its landfill space as well as the land and financial resources that would
otherwise pay for disposal services and facilities.
Nevada defines recycling as a manufacturing activity that occurs when secondary materials that have completed their useful and intended life, and that are otherwise destined for disposal, are collected and processed for re-manufacturing. The collection and processing of recyclable materials can be compared to the collection/mining of raw materials from mineral deposits, or the harvesting of trees for pulp. This distinction is important to the overall understanding of recycling markets and the development of local end-uses for the secondary materials. Recycling of secondary materials works best and realizes the greatest profit when materials are separated and processed to meet the specifications of their highest end-users. A secondary material generally gains value as it is moves through a series of processing refinements. Glass, for example, can be sorted by color to bring a higher value to each color. If all the colors are mixed together the mixture is usually sold to the companies manufacturing brown bottles, and is therefore in competition with the brown glass. Because of the overabundance of brown and mixed glass on the market, brown glass has traditionally carried the lowest value. Sort the glass by color however, and a value is added to the glass because end-users require a specific color. Crush the glass and remove the ‘dead air' space found in bottles, and the glass is worth a little more to the end user. Remove the paper and metal rings by installing a blower and shake conveyor belt and the end user will pay a slightly higher price for crushed glass without contaminants. The ability to add value to a secondary material however, usually requires a capital investment that may not realize a return on its investment for 3-5 years due to the volatility of the secondary markets. As a result many traditional lenders are unwilling to help finance the improvements that may ultimately lead to a company's ability to remain in the marketplace. NRS 444A.013 defines recyclable material as solid waste that can be processed and returned to the economic mainstream in the form of raw materials or products. Nevada Administrative Code 444A.100 lists the following examples under the definition of recyclable materials: NewspaperNAC Chapter 444.490 defines Solid waste as all putrescible and nonputrescible refuse in solid or semisolid form, including but not limited to, garbage, rubbish, junk vehicles, ashes or incinerator residue, street refuse, dead animals, demolition waste, construction waste, solid or semisolid commercial and industrial waste. The term does not include hazardous waste managed pursuant to Nevada law. Recyclable materials then, are included within Nevada's definition of ‘solid waste'. Pre-consumer Secondary Materials It is important to distinguish between post-consumer secondary materials -- such as paper, glass and plastics collected from households, offices and commercial establishments, and other pre-consumer/post-industrial scrap that is produced as a result of a manufacturing process. Post-consumer materials are generally lower in value because of contamination with other substances (food, dirt, water, etc.) while the pre-consumer/post-industrial scrap is considered high value and relatively clean material. Pre-consumer/post-industrial secondary materials are collected from many of Nevada's plastics molding companies and shipped to manufacturers located in other states. The pre-consumer recycled content plastic sheets are then transported back to Nevada where they are molded into a variety of products. Many print shops and newspaper publishers often return their paper trimmings and end rolls to the manufacturer as this material is considered pre-consumer and very clean because it contains no ink. Post-consumer Secondary Materials Post-consumer secondary materials are materials that are normally destined for disposal, but get diverted from the residential, commercial or industrial waste stream. Their useful and intended life has been completed. After collection they are processed to the specification demanded by the market, and transported to an end user where they are recycled (sometimes known as re-manufactured) into a new product. Often they must undergo a series of processing steps to prepare them for use in the manufacturing process. Paper, for example, is usually sent through a deinking and repulping process, where it may or may not be combined with virgin wood fibers and made into recycled-content paper. Glass will often be sorted by color, then crushed and remelted to burn off impurities, then blended with silica and chemicals to produce recycled glass containers. Plastics will be sorted by resin type and ground, chipped and/or re-melted to pellets. Because these secondary materials become a vital part of a manufacturing process they must meet strict quality specifications. Even small amounts of a contaminant within a shipment of these secondary materials can cause the entire load to be rejected. Typical contaminants include any foreign material, too many magazines mixed with old newspapers, metal rings attached to glass bottles, food or oil wastes on paper, or a different plastic resin mixed with one larger load of plastics. Sometimes recycling involves a simpler process and minimal reprocessing.
Old newspapers may be shredded and used for animal bedding or packaging
materials. Mixed waste paper can be pulverized and pasted to kraft
paper to produce padded envelopes, or blended with chemicals to produce
cellulose insulation. Glass can be pulverized back to a silica sand
and used in water filtration devices for pools and reservoirs, or for sandblasting.
Styrofoam can be sliced with hot wires to produce packaging ‘peanuts'.
IV. GENERAL FACTORS AFFECTING RECYCLING MARKETS The market conditions for secondary materials tend to be volatile and cyclical. As with all commodities, when demand for a material increases, market prices will reflect the demand, as buyers will bid up the value of a scarce resource. Collection programs will respond by increasing their efforts and materials with the hope of increasing profits. As the supply increases in response to higher prices and demand, a glut will often result, followed by a drop in prices caused by the excess supply. As the prices are dropped it may become unprofitable to continue collecting and processing the material, causing recycling programs to reduce the types and amount of secondary materials collected. This dynamic has been repeated over and over and is complicated by an increase in recycling programs throughout Europe and Asia. Fluctuations in the cost of manufacturing products from virgin raw materials will also affect demand and prices paid for secondary materials, which generally compete as substitute raw materials. Other factors that affect the marketability of secondary materials include quality, processing, and quantity. The ‘cleanliness' of a particular material - i.e. free of contamination or foreign substances - and the quality of processing - such as high or low density baling, size of shredded paper or crushed glass - will have significant influence on the price paid for the material. Higher prices, lower transportation costs, and generally greater profits per ton can be realized when a processor provides large volumes of material on a consistent delivery schedule. Reliability and trust between the processor and end-user are critical dynamics to a successful recycling program. In some cases the long term relationships with a particular end-user has more value to a processor is marketing secondary materials, than a higher price offered by another buyer. Transportation costs including fuel and labor affect the profits and
marketability of secondary materials. Although Nevada is considered
an ideal location for rail transportation, it is often unreliable.
Secondary materials processors prefer trucks because they can guarantee
delivery of the material on a specified date. Because many materials
are bought and sold on a ‘spot' market where prices can change daily if
not hourly, delivery of material on time is crucial to the profit margins
of these companies. Additionally, the Nevada Commission on Economic
Development has determined that more than 80 percent of trucks that bring
goods to Nevada, return empty. Opportunity exists for recycling companies
to save money by employing the empty ‘backhaul' of these trucks to take
secondary materials to their end markets.
V. THE VALUE OF RECYCLING TO NEVADA Recycling Times, an industry-wide market publication, published the following values for various secondary materials collected and processed to the manufacturer's specification in 1997. These prices represent an average range paid by the manufacturers or other end users on December 30, 1997. Companies that collect and/or process the secondary materials are likely to pay far less than this price to the general public since they must subtract operating and transportation expenses. Prices Paid by End Users per ton Material (West Coast)
Recycling's Contribution to Reducing the Waste Stream More than 64 companies were involved in the collection or processing of secondary materials in Nevada during 1997. An additional 13 companies utilized secondary materials as part of their manufacturing process, although only two manufacturers purchased their raw materials from companies within Nevada that process secondary materials in Nevada. Materials that were collected and processed in Nevada in 1997 for recycling include the following: Old newspapersHow much secondary material is available for recycling? The goal established by NRS 444A.020 is to recycle 25 percent of our solid waste stream. It was estimated that 15 percent of Nevada's waste stream was diverted for recycling in 1996, leaving 2,595,364 tons of material for Nevada's landfills. The following table indicates the estimated value of selected materials diverted from Nevada's waste stream in 1996. Totals of Selected Secondary Materials in Nevada (1996)
* Represents lowest combined average of green, clear and brown glass These numbers suggest impressive revenue opportunities for the recycling industry in Nevada. Using an across-the-board 25 percent diversion rate for selected materials, it is easier to understand the value of recycling to the state of Nevada, and the individual companies that collect, process and/or broker the materials. It should be noted that the estimated revenue does not reflect expenses that would have to be subtracted for labor, insurance, land, buildings, equipment, and other costs of doing business. The fact is however, that the expenses subtracted from revenues would represent a gain to the local community in terms of dollars spent directly on salaries, support services, taxes, etc. The average value of the commodity represent the value of the raw material
only. Very little effort has been made to ‘up-grade' the resource,
ie actually turn the secondary material into a product in Nevada.
The following table shows the potential for taking a raw secondary material
such as mixed office paper, and using it to manufacture a common product
such as cellulose insulation. The idea, known as ‘adding value' to
the raw material could provide local end markets for Nevada's secondary
materials while creating jobs and contributing to local economies.
Amounts listed under Investment Needs and Employment are the result of
market research and conversations with existing businesses.
Collections A variety of collection options for secondary materials are employed throughout the state and are dependent upon the local government's agreement with their franchised garbage hauler(s). In every county within Nevada the garbage collection contract assigns ownership of residential garbage to the franchisee. Under this understanding garbage/solid waste becomes the property of the collection contractor when it reaches the curbside of the residence or commercial establishment. Unless recycling services are specified within the franchise agreement,
the collector maintains control to decide whether or not to allow recycling
of selected materials. In some instances, the companies that operate
the landfill also hold contracts to collect all of the garbage as well
as collect and process secondary materials in their region.
These overlapping contracts should be carefully monitored to ensure that recycling is given full application. This is especially important when secondary markets are less profitable, and it appears that landfilling secondary materials that are collected under the recycling programs can earn more money from being landfilled. Challenges to these franchise agreements and specifically the definition of solid waste and the right to collect recyclable materials prior to discard at the curb have been made by independent collectors and processors in Reno, Sparks, Elko and Clark County. Secondary materials are also collected through a wide range of drop-off programs and buy-back centers. A drop-off center is any place such as a grocery store, gas station
or auto parts store that provides a convenient collection point for
materials but does not reimburse customers for recycling.
As stated earlier, secondary materials must be processed to meet the demands of the end markets, or the intermediary processor. Materials are usually processed in a facility referred as a material recovery facility (often called "MRF"). Balers, crushers, densifiers, screens and conveyor belts are the standard pieces of machinery that provide at least preliminary processing of the secondary materials. Reno, Sparks, unincorporated parts of Washoe County, and Carson City utilize the MRF at RSW Recycling in Sparks; a few smaller, private processing facilities owned and operated by independent secondary material collectors are also located within the Sparks/Washoe County region. Republic Industries owns and operates a state-of-the-art MRF for Clark
County and the surrounding region; a few smaller, private processing facilities
owned and operated by independent secondary material collectors are also
located within the Clark County region. Boulder City has its own
recovery facility.
VI. MARKET OBSERVATIONS FOR SPECIFIC MATERIALS Waste Paper Waste paper markets vary by type. The pulp and paper industry lists over 80 grades of ‘wastepaper' including old newspapers, cardboard, magazines, mixed office paper and white office paper. Each grade carries a distinct value which is lowered if it is mixed with any other paper grade. It pays therefore, to separate the grades of paper to the greatest degree possible. There is currently no end-user of secondary paper in Nevada. A cellulose insulation company was located in Clark County, but this operation has not been active for the past 4-5 years. A strong market does exist for wastepaper, most notably office waste paper, with an Idaho company that currently collects paper from the Elko area and transports it to its facility in Twin Falls. For the most part old newspapers are shipped to Oregon and the Smurfit Newsprint Corporation, and to mills in California, Washington and Arizona. Corrugated cardboard is shipped to Weyerhauser facilities throughout the United States, depending on the spot market need. Plastics Although Nevada boasts 20 different plastic molders and manufacturers,
only one of them is accepting plastic wastes from local markets.
Three other companies import secondary materials that are processed to
their specifications. The remaining companies, if they are using
recycled content plastic, are importing the intermediary product that will
be shaped or molded in Nevada. Much of the industrial scrap
generated by these 20 plastic companies is bundled by the company and back-hauled
to their supplier, or processed by local recycling companies.
While secondary PET prices increased in 1997, brokers saw the value
of secondary HDPE weaken as virgin resin suppliers flooded the market.
Glass The market for recycled glass containers is primarily with container producers, none of which are located in Nevada. Nevada's disadvantage in recycling glass is the container-deposit law in California. Since the deposit program has been in operation (over 7 years) the glass market on the west coast has been flooded. New uses for secondary glass are being researched by the Clean Washington Center and a variety of private and public sector organizations. Although innovative markets exist -- such as the use of crushed glass as a water filtration device for swimming pools, and in sand-blasting -- much more public education and consumer acceptance will be required before these markets can have any significant influence on Nevada's secondary glass. Aluminum The high value of these used beverage containers has driven many local recycling programs in Nevada and throughout the country. It is not unusual for a processor to realize 45-60 cents per pound of crushed aluminum cans. Recycled aluminum markets are strong, and the material is eagerly sought by aluminum producers. Nevada's secondary aluminum markets are smelters which are located in California. In 1997 Kaiser Aluminum began operating a prototype mini-mill, located in the new Asimerov Industrial Park (Storey County) on I-80. As a condition of its property tax abatement, which was approved by the Commission on Economic Development, Kaiser has agreed to utilize aluminum ingots, at least 10% of which contain material recycled from Nevada. Ferrous Metals The major types of ferrous scrap in Nevada's waste stream are tin cans, enameled metal appliances (white goods) and steel containers. No end users are located within Nevada. The majority of scrap metals are sent to overseas markets. Tires The Market: Discarded tires continue to be a problem for Nevada as well as our neighbor states to the west, north and east. Currently tires are being landfilled whole or in chipped form. Twenty-six companies are registered in the state to collect and haul waste tires; at least three of them have approached the state over the past two years for assistance in developing processes that will recycle the tires into new products such as roadbed, asphalt, carbon black, oil (as a substitute for diesel). None of the companies have been able to raise sufficient capital to realize their operations. One company located in Southern Nevada (who wish to remain anonymous) have perfected a process to use crumb rubber in the manufacture of their products. They are currently experimenting with their process, and importing secondary materials from their parent company located in Texas. According to their spokesman, no company in Nevada is capable of producing crumb rubber to their specification at this time. Building Materials The market for building materials and demolition wastes is dominated by asphalt reclaimers and informal re-use operations. Asphalt from road projects is sometimes reused as a roadbase in new highway construction. A few firms also shred and pulverize rock, rubble and other demolition wastes to use as aggregate replacement in new building projects. These materials are generally very heavy and are more likely to be reused if disposal costs are high providing the incentive for diversion and re-use; this is not the case in Nevada. In some instances wood wastes can be shredded and burned for fuel in power boilers. Waste Oil Nevada's mining industry uses a variety of motor and hydraulic oils that are easily collected and shipped to processors in Utah and California, where they are made into bearing and other machinery greases. Oil recovered from automobiles and machines across the state can be collected or dropped off at designated stations, for re-refining by California or Washington refineries. Three Nevada companies process the waste oil for industry use as a fuel supplement. Yard Wastes Wastes from tree trimming, grass clipping and forest service operations
that clear land susceptible to fires can be collected and chipped or ground
for mixture with a variety of other materials, to produce a soil amendment.
Two major composting operations are currently operating in the state, a
privately-owned ranch operation, and a dairy farm, both of which receive
forest wastes from clearing operations in the Tahoe Basin as well as yard
wastes. Both facilities are in Northern Nevada. The primary
markets for composted yard wastes are from the commercial sector,
including nurseries and landscapers. Other markets include golf courses,
parks, and agriculture. The majority of Nevada's soil amendments
however, are currently imported from California.
VII. STATUS OF EXISTING MARKET DEVELOPMENT EFFORTS IN NEVADA Nevada Division of Environmental Protection Legislation passed in 1991 (AB 320) required that a fee of $1 per tire be charged for each retail tire sold in Nevada. NRS. 444.616 requires that the Solid Waste Management Account divide tire fee revenue according to the following formula: NDEP receives 44.5 percent; Clark County Health District receives 30 percent; Washoe County District Health Department receives 25 percent; and the Department of Taxation receives 0.5 percent. A summary of the tire fee revenue follows:
Nevada Recycling Coalition received $13,000 to conduct two seminars
(Reno & Las Vegas) on recycling and waste reduction, the advantages
of buying recycled content products, and improving local markets for recyclable
materials.
The CED contract allows the agency to continue work performed since October 1995 when it received a Jobs Through Recycling grant through the US Environmental Protection Agency. Work was continued under this US-EPA grant until July, 1997. The focus of the work performed was to build markets for Nevada's secondary materials through business attraction and, in the process, develop jobs in the recycling industry. Two small grants from NDEP allowed CED to produce promotional materials such as a video and two brochures used in business attraction activities. During the 18 month grant period, CED provided significant assistance to 15 companies including numerous face-to-face meetings with company principals, introductions and meeting arrangements with county and state individuals responsible for regulatory issues and business development/financing activities, and assistance in locating sites or joint venture partners. Eighty-nine companies received promotional materials, phone calls and/or site visits to highlight business development opportunities throughout the state. An additional 22 companies received simple technical assistance such as counseling in how to apply for the state's tax abatement programs or other incentive programs, or reference to existing recycling companies and regulatory agencies. Throughout Nevada, CED estimates that 111 jobs have been created in the recycling industry since 1995, and an additional 430 new jobs are anticipated within the next two years as the companies begin operations. CED also spent a large amount of time preparing and then holding public meetings to approve rules and regulations for the state's Property Tax Abatement program. This program was approved under SB 231 in 1993, and amended in 1995, to provide a 75 percent property tax abatement to companies who invest at least $15 million in the purchase of land, building and machinery that will produce recycling/remanufacturing operations in the state. The rules and regulations were approved through the hearing process and finalized by the Legislative Counsel Bureau in 1997. Kaiser Aluminum was the first (and so far only) company to receive a property tax abatement under this program although the negotiated agreement between Storey County and Kaiser provides for a 50 percent abatement over a 10 year period. A summary of Nevada's tax incentives and funding programs, some of which can be applied to recycling companies, can be found in the Appendix. Other Programs Related to Recycling Market Development The University of Nevada/Las Vegas has employed a recycling coordinator to increase UNLV's waste diversion rate and strengthen their "Buy Recycled" policies. In support of these efforts NDEP provided funds to develop a Nevada Recycling Web Page for the state. Additionally, UNLV's Office of Environmental Affairs and Community Sustainability received funds from NDEP to hire a Waste Reduction Coordinator to work with casinos and restaurants in the Las Vegas area to increase their waste diversion efforts. Both programs are recipients of funding from NDEP's grant program funded by revenues collected through the State's tire fee. During the past four years Washoe County District Health Department and NDEP have funded Environmental Leadership, a 501(c)(3) organization to operate the county's Materials Exchange program and administer the Leaders of Waste Reduction (LOWR) program. Both programs provide technical assistance to companies seeking to reduce waste and recycle or re-use unwanted materials. The Nevada Recycler's Association, located in southern Nevada, focuses on public education and outreach to increase recycling activities. Its membership is predominantly the local independent recycling collection and processing companies. The Nevada Recycling Coalition has been the statewide non-profit membership organization involved with recycling education, workshops and trainings for both public and private sectors interested in reducing wastes, buying recycled products, and recycling of secondary materials. The Manufacturer's Assistance Partnership (MAP) is an outreach partnership composed of the Nevada Manufacturers Association, Truckee Meadows Community College, the University of Nevada, Reno, and Western Nevada Community College. Their goal is to provide Nevada manufacturers with information and access to technology, research and services of the University system. While MAP does not focus on recycling they are prepared to assist manufacturers to identify processes and when necessary, retrofit existing operations to accommodate the use of secondary materials as substitutes for virgin raw materials. Selected Nevada Companies That Use Secondary Materials Some of the companies actively involved with using secondary materials from Nevada's waste stream include: Itronics Metallurgical, Inc., based in Reno, extracts and recycles silver from photowaste and also produces a commercial lawn fertilizer as another by-product. Kaiser Micromills in McCarran, NV (near Tracy Power Plant, east of Reno) converts recycled-content aluminum ingots into sheet aluminum, which is then sold to mills for pressing into beverage containers. Ingots are currently imported from a California smelter however Kaiser is working to ensure that a percentage of the ingots contain aluminum collected from Nevada. Milky Way Farms receive green wastes from trees, bushes and grasses and composts them with dairy or other agricultural wastes, selling the product in bulk to area farmers and landscapers. In Southern Nevada material produced from Hidden Valley Dairy in Moapa, and Ponderosa Dairy in Amargosa is bagged, marketed and sold by Nevada Soils. Cantex, Inc. in Reno produces PVC pipe and plastic, and will buy local and clean industrial re-ground plastics from local suppliers. Northern Nevada Tool & Die produces custom injection molding of plastic parts. They buy industrial scrap/secondary materials from local sources. Rastra Las Vegas makes pre-form building systems from polystyrene, cement/concrete aggregate blend. They will buy local secondary materials processed to their specifications. Xylan/Xymax of North Las Vegas currently markets composite lumber made
from post-consumer plastic and agricultural wastes. They are seeking
assistance to start up their manufacturing operations in Nevada, and use
locally produced secondary materials.
VIII. SOLID WASTE AND RECYCLING ACTIVITIES WITHIN NEVADA In the unincorporated parts of Washoe County (with the exception of Incline Village, which has entered into a separate garbage collection contract) an exclusive franchise has been granted to Independent Sanitation (IS) since 1982 (and continuing to the year 2002) to collect and dispose of all solid waste within the county. IS is a wholly-owned subsidiary of Disposal Services, Inc., which also operates Reno Disposal, Capital Sanitation, and RSW Recycling. By agreement, "solid waste" includes "all putrescible and nonputrescible refuse in solid or semi solid form." Under further definition, every residential disposal material conceivable - including recyclables but excluding hazardous wastes - from residences and commercial establishments has been sold to IS. Commercial collection within Washoe County is also guaranteed to IS as the franchise holder, but the rates are negotiated between IS and the commercial establishment. Although NRS444A.020 established a recycling goal of 25 percent and the franchise agreement requires IS to offer curbside recycling to residents, it provides no target rate for recycling or diversion activities, nor incentive for increasing the collection or processing of secondary materials. All unrecycled materials generated within Washoe County are dumped at the Lockwood Landfill, a 1,550 acre permitted facility which is owned and operated by Refuse, Inc. The landfill is technically located within the boundaries of Storey County but is regulated by Washoe County under a Memorandum of Agreement. Company sources state that the landfill has over 100 years of life remaining, given current fill rates. The landfill also accepts wastes from Storey, Pershing, and Churchill counties as well as northern California. The franchise agreement requires IS to provide curbside recycling for its 86,000 residential customers. The materials selected are agreed upon by both the county and IS, and appropriate containers are provided by IS for collection. Customers are charged a recycling fee that is separate from their garbage collection fees. The recycling fee is reviewed periodically and established after revenues received from sale of the materials are applied to offset the cost of providing the service. The monthly recycling fee for Washoe County in 1997 was $1.25. It is estimated that approximately 43,000 households participated in recycling in 1997. IS is not required to pay into the state's industrial insurance coverage (SIIS) program, but is enabled to provide its own insurance for every employee, owner, partner and subcontractor. This is an important factor for smaller recycling companies who may compete against IS in collecting and processing recyclable materials since it has been shown that SIIS fees are among the most expensive costs of doing business within Washoe County. In fiscal year 1996 Lockwood Landfill received 449,139 tons of municipal solid waste from Washoe County. The County claimed a recycling rate of 96,020 tons, or 17 %. The material recovery facility (usually referred to as a "MRF") operated by RSW Recycling, which provides processing for materials collected throughout the county, was developed with the assistance of an Industrial Revenue Bond issued by Washoe County. The City of Reno's waste collection is managed by Reno Disposal Company through an exclusive franchise agreement. Reno Disposal handles all residential solid waste within the city limits, while commercial and industrial waste is handled by Independent Sanitation, Rizzoli Trash Hauling and B&L Disposal. TMS Recycling collects secondary materials from business accounts throughout Washoe County, including Reno and Sparks. The RSW recycling facility provides processing for materials collected throughout Reno and Sparks. Sparks is serviced by Sparks Sanitation Company through an exclusive franchise agreement. The agreement empowers Sparks Sanitation to perform all garbage and recycling collection services to residential and commercial customers. TMS Recycling collects secondary materials from business accounts throughout Washoe County, including Reno and Sparks. The RSW recycling facility provides processing for materials collected throughout Reno and Sparks. With a population of almost 1,116,000 in 1996 (and growing by approximately 5,000/month), and an estimated annual visitor population exceeding 29.5 million in 1996, Clark County generated 1,862,667 tons of municipal solid waste in calendar year 1996. Clark County's recycling rate in 1996 was approximately 340,032 tons, or 15 percent of its waste stream. In October 1993 Clark County entered into an exclusive franchise agreement until October 2020 with Silver State Disposal (SSD) for collection, and Disposal Urban Maintenance Processing Co. Inc. (DUMPCO) for landfill management of all waste generated within Clark County. In July, 1997 Silver State Disposal was purchased by Republic Industries Inc. (Republic) which assumed the collection and processing franchises. All of the County's unrecycled waste is disposed at the Apex Landfill, which is contained within 2560 acres of land with an expected life of another 50-60 years at current disposal rates. Republic handles all municipal waste collection throughout the Las Vegas Valley area. This service consists of twice weekly pickup for an unlimited volume at a monthly fee of $9.70 per household. This fee includes bi-weekly curbside collection of secondary materials. Commercial and industrial wastes are also collected by Republic under separate agreements between Republic and the customer. Under terms of the agreement, DUMPCO pays the County a license fee of four percent (4%) of the gross monthly revenue derived from the disposal of solid waste into the Apex Landfill. This revenue does not include revenue collected by DUMPCO from Republic under solid waste collection franchises with the County, Henderson, Las Vegas and North Las Vegas. Under terms of the same franchise agreement Republic pays a franchise license fee to the County of five percent (5%) of gross receipts derived from the collection of solid waste, including curbside recycling. An April, 1993 (until October, 2010) franchise agreement between Republic and Clark County empowers the company to collect all solid waste from public and private buildings and residences within unincorporated Clark County. The agreement allows Republic the sole right to collect recyclable materials as well as household hazardous wastes from the curbside of residential and multi-family customers. Under both of these agreements it appears that the County has little incentive to encourage recycling of materials generated outside of its franchise agreement, or risk reducing the revenue paid as a percentage of material disposed at the landfill or secondary materials collected by the franchisee. Although NRS 444A.020 established a recycling goal of 25 percent and the franchise agreement requires Republic to offer curbside recycling to residents, it provides no target rate for recycling or diversion activities, nor incentive for increasing the collection or processing of secondary materials. Residential curbside collection of secondary materials is a voluntary participation program. The collected materials are transferred to Republic's recycling center located at 333 W. Gowan Road. A voluntary recycling program for businesses who are Republic customers is also underway. In addition to the recycling service provided by Republic, a number of independent recycling businesses contract with several of the larger businesses and casinos to provide for collection of food materials and other recyclable materials. A number of independent recyclers also pay cash generated from sales of secondary materials, to individuals or companies who choose their services for collection of secondary materials. Additionally, construction debris consisting of excavated soils, concrete blocks, and asphalt have been processed and recycled into new fill material or road construction material for ongoing construction projects. Boulder City, Bunkerville, and Mesquite Boulder City, the Town of Bunkerville, and the city of Mesquite have entered into their own collection and disposal agreements. Bunkerville's contract is a short-term, non-exclusive franchise agreement with Virgin Valley Disposal Service, Inc. In February, 1990 Boulder City entered into an eight year exclusive
franchise agreement with Boulder City Disposal to collect and dispose of
all garbage and recyclable materials within the city limits. Under
terms of this agreement, Boulder City provided a $10,000 advance to Boulder
Disposal Recycling for the purchase of recyclable materials from customers,
allowing the company time to generate cash flow. The City agreed
to purchase the conveyor, processor and baler, and promote recycling to
the public. Net profits realized from the sale of recyclables are
distributed 50 percent to Boulder Disposal Recycling, 25 percent to Boulder
City Disposal, and 25 percent to the City of Boulder City.
IX. NEVADA'S BUY RECYCLED EFFORTS The success of recycling is directly tied to sales of recycled content products and consumer satisfaction with the quality and selection of these products. As with any product the manufacturing marketplace will accommodate consumer demand and in this case the increased demand drives the engines of the secondary materials collection and processing systems. Nevada has several policies that encourage purchase of recycled content products. Local and state government agencies are allowed to spend 5 percent more for recycled products, and 10 percent more if the product is manufactured in Nevada. Although they are permitted to pay more for the recycled content product it seems that not many are willing to do so. Washoe County School District has implemented a Buy Recycled policy that includes recycled content papers and use of re-refined motor oil in their vehicles. A Buy Recycled policy has also been approved by the Incline Village General Improvement District board, including purchase of recycled printing and writing paper, re-refined oil, retread tires, insulation and cement that includes ash from burning fuel. Under a Jobs Through Recycling grant from the US Environmental Protection Agency, CED produced and has made available for distribution the guide "Where to Buy Recycling Services and Recycled Content Products in Nevada." This guide is being updated and expanded with funding from NDEP and will be available to attendees of the state's second Buy Recycled Conference in February (Reno) and March (Las Vegas) of 1998. The staff at NDEP have taken a proactive approach to identifying and
promoting the use of recycled content products, although much education
and outreach needs to be done. During 1997 NDEP developed a display
including photos of recycling activities and samples of recycled content
products which was featured at the Earth Day celebration at Rancho San
Rafael park in Reno. NDEP also participated in the first ‘America
Recycles Day', with a booth and the display at Patagonia's warehouse in
Sparks. The event drew a lot of local publicity for recycling and
recycled content products. Additionally, Carson City Environmental
Control received a grant from NDEP to purchase recycled plastic lumber
benches to place in each elementary school in Carson City. This will
provide a positive example of the product to other potential end users.
X. CONCLUSIONS AND RECOMMENDATIONS In preparing this report a number of recycling business owners, public officials, recycling market professionals and recycling advocates from within and outside of Nevada were consulted. Although Nevada has reached a 15 percent diversion rate which is comparable to other Great Basin rural states with similar demographics, it has not reached the 25 percent recycling goal established in NRS 444A.020. The lack of clear definition between the words ‘garbage', ‘solid waste'
and ‘recyclable material'
Given the demographics and the rural nature of Nevada, there are three
suggested ways to develop recycling markets in Nevada. The first
is to improve the collection and processing of secondary materials.
Providing high quality materials to the manufacturers' specification, at
a consistent high volume and at regular intervals helps to guarantee the
highest price for a material. Existing businesses however, would
have to invest much more capital to purchase specialized equipment to process
a secondary material to a higher level. Whether the investment would
realize a reasonable return given the market volatility is a concern for
the business and the lender.
A third means of developing recycling markets in Nevada is to encourage the development of local (in-state) end uses. This can be done by helping existing companies to retrofit manufacturing processes to substitute secondary materials for the virgin raw materials. End users can also be recruited to the state. In either case the collection and processing system within the state needs to provide sufficient quantity and quality of the secondary material which would be used as feedstock, to meet the demand of the end user. It also means that the end product must be marketable within the region. It should be noted that a state's efforts in recycling, demonstrated through legislation that requires recycling by local communities, commitment to buying recycled content products, tipping fees, incentives, grant and loan programs are often evaluated by businesses to measure a government's interest in and commitment to successful recycling. In trying to recruit recycling and re-manufacturing businesses (or assist
local companies to expand) CED has found that the most frequently asked
questions are:
With limited incentives to encourage recycling, and without consequences for not reaching the recycling goal set under NRS444A.020 there appears to be little motivation for recycling programs in Nevada. As a result re-manufacturing companies do not view Nevada as serious about recycling or the reduction of waste. The following recommendations are outlined by categories established under NRS 444.587 (2), and based on observations of conditions within Nevada, and review of successful recycling market development programs in other states. A. Increasing the demand for recycled materials (secondary materials) and developing markets 1) Identify and assign responsibility for building a strategy for market development. Expanding the marketability of Nevada's secondary materials takes commitment from all levels of government, private industry, funding sources, non-profit organizations, the K-12 educational system, the University system, and research institutions. Each of these entities has a specific skill, resource, capability or legislated designation to contribute to the discussion. An appropriate designation from the Governor's office would help to clarify the roles and responsibilities among the different entities.B. Development of state and local policies to encourage purchase of recycled content materials 1) Study the 25 items most often purchased by quantity and frequency, by all state and county departments. Once identified establish minimum recycled content requirements for each item. Work with the State Procurement Office to develop training schedules and educational/information materials for individuals responsible for placing orders.C. Financial assistance and incentives to encourage the use of recycled materials in Nevada 1) Implement a solid waste tip fee to be assessed at all transfer stations and landfills within Nevada. The assessment of the fee provides a positive incentive for individuals and commercial establishments to reduce their solid waste tonnage by diverting materials for a positive end use. The fee can provide revenue for use in the following activities:a) Grants for research and development of systems for collecting, hauling and processing secondary materials, and for the re-use or re-manufacturing of these materials into useful products.2) Reduce the investment required for property tax abatement for recycling companies, from $15 million to $5 million. |
Return to Recycling Home Page