2000 Annual Report: Market Development

Market Development Topics

Introduction RMDZ RMDZ Loan Program Jobs Through Recycling Private Buy Recycled Priority Materials  Organics  Construction & Demolition  Paper Minimum Content Programs State Agency Responsibility

State Agency Responsibility

Local jurisdictions are not the only group responsible for diverting and reducing waste. Each State agency is responsible for establishing recycling programs and for procuring recycled-content products. The IWMB is responsible for monitoring the progress of State agencies as well as for providing program establishment assistance. There are two IWMB programs to accomplish this: Project Recycle, which oversees the establishment of State agency recycling programs; and State Agency Buy Recycled Campaign, which monitors agencies’ progress in procurement.

During discussions of the 1998-99 and 1999-00 State Budgets, the Legislative Analyst’s Office raised various issues about the poor performance of State agencies in the waste diversion and buy recycled areas. Supplemental report language to the budget required the IWMB to prepare a report on the Project Recycle program identifying program activities and barriers to State agency waste diversion efforts, and recommending improvements to program effectiveness. In October 1999, AB 75 (Strom-Martin, Chapter 764, Statutes of 1999) was signed into law requiring State government to reduce its waste by 50 percent by 2004, and for the IWMB to approve plans submitted by each agency that describe how they will meet the 50 percent goal.

Project Recycle
Project Recycle is the State’s waste reduction and recycling program administered by the IWMB. Project Recycle is designed to assist State agencies in decreasing the amount of waste they generate and dispose in landfills through waste diversion activities. Specifically, the IWMB manages State recycling contracts, provides waste prevention training and technical assistance, purchases recycling and source separation equipment, and tracks waste diversion and revenue data.

Originally, Project Recycle primarily operated as a white paper recycling program in the Department of General Service (DGS). After the passage of AB 939 and AB 4 (Eastin, Chapter 1094, Statutes of 1989)-the law requiring State agencies to develop recycling programs-Project Recycle administration was transferred to the IWMB. The IWMB adopted program goals to increase recycling statewide.

AB 75 requires each State agency and large State facility, including California State universities, community colleges, and prisons, “to divert at least 25 percent of the solid waste generated by January 1, 2002, and at least 50 percent by January 1, 2004.” With the enactment of this law, each State agency and large State facility must develop an integrated waste management plan (IWMP) that addresses the recovery and diversion of white office paper and other materials. The law also requires that each State agency submit an annual report by April 1st of each year starting in 2002, “summarizing its progress in reducing solid waste” and noting their progress in implementing their IWMP.

• Under AB 75, State agencies are now required to develop and prepare an integrated waste management plan (IWMP) and submit the plan to the IWMB by July 15, 2000 for review and approval. IWMB staff conducted a series of six workshops statewide to train and assist State agencies prepare their IWMP. Staff developed a model plan that agencies could use and provided technical assistance and written materials that would assist them in this process. Over 400 individuals participated in these workshops.
• IWMB is currently reviewing plans submitted by more than 450 State entities. Once the reviews have been completed, staff will be focusing on a greater level of outreach service to State entities by providing technical assistance to help them meet the 25 percent and 50 percent mandated goals. 
• IWMB continues to implement and monitor master contracts that assist large state agencies and offices recycle their office paper. Master contracts serve as an incentive since they provide an expedient way for State agencies to participate in the State’s overall recycling and waste diversion efforts.

New Initiatives. The IWMB is developing an awards program as required under AB 75 to recognize State agencies for their efforts in meeting the requirements of AB 75. The program is envisioned to be very similar to the IWMB’s existing Trash Cutters awards program.

State Agency Buy Recycled
All State agencies must report to the Department of General Services (DGS) and the IWMB on their progress in meeting recycled-content product procurement goals. The IWMB markets the program to State agency procurement officers and tracks agency progress toward achieving the procurement goals annually. Reporting for each of the four fiscal years for which the IWMB has received reports has not changed dramatically. The percentage of recycled-content product purchases has historically been approximately 50 percent of the total reported purchases. The total dollars reported and the total recycled product purchases have also remained fairly steady. A significant increase in both total reported purchases and in RCP purchases is expected for fiscal year 1998-99; however, the increases will primarily be due to increased reporting of steel product purchases.

However, many purchases are not being tracked and reported each year. Agencies have not yet established accurate or comprehensive procurement tracking systems. Therefore, many procurements, whether typical commodity purchases, or products, goods, materials, and supplies obtained through service contracts and public works projects, are not being captured. The IWMB estimates that less than 10 percent of all reportable procurements are being tracked and reported each year.

This includes the purchase of lead-acid batteries. PRC section 42443 requires DGS to report annually to the IWMB on the number of lead-acid batteries it purchased within the last year. DGS reported to the IWMB that the current contract allows 15,110 recycled lead-acid batteries to be purchased. DGS had requested an actual usage report from the contractor, but was not provided this information.

For some commodities, such as retreaded passenger tires, no purchases have been reported by DGS. The IWMB has identified the following obstacles to their purchase:

• Worldwide overcapacity of tire production; both domestic and foreign producers are offering new tires at discount prices.
• Consumer perception that retreaded tires are unsafe and inferior to new tires.
• Limited availability of retreaded tires; most national tire companies no longer allow their outlets to carry retreads.
• Unsuitability of many tires for retreading.
• Limited profits for dealers offering retreads; marginal cost of stocking retreads is not offset by higher profit.

Of note is DGS’s renewed commitment to support the buy recycled program. A senior-level staff person was hired to oversee department procurement activities and to spearhead a buy recycled products taskforce aimed at increasing State agency participation.

On May 10, 2000, the IWMB and the Department of General Services (DGS) sponsored the First Annual Recycled Product Trade Show at the Sacramento Convention Center. The show was attended by more than 1,300 State and local government staff that were able to view products and services from over 125 exhibitors. The show was a great success on all fronts-exhibitors, attendees, the contract managers, and convention center staff were all very pleased with the outcome.

The trade show is the single most important market development effort aimed at promoting the purchasing of recycled-content products by State agencies. At this one event, buyers, management, and a multitude of staff from all State and local government agencies throughout the state can meet and discuss recycled product procurement issues directly with the suppliers and manufacturers.

The downtown move to the newly constructed Cal/EPA building prompted a redesign of business cards for all Cal/EPA and board/department/office (BDO) staff. The goal was to develop a card that was environmentally friendly. IWMB staff worked with Cal/EPA to design and develop cards using 100 percent postconsumer content paper, soy inks, and made use of both sides of the card, saving paper. One side reflects the mission and logo of EPA and the other is the personalized department card. In addition, staff worked with the Office of State Publishing to establish an online ordering process for business cards, maximizing efficiency and minimizing paper.

Used Oil
In 1995, staff from IWMB and the Caltrans headquarters equipment service center met with members of the DGS procurement office to present extensive research findings concerning current rerefined oil quality and technology. As a result, in August 1995, DGS modified its existing two-year 1994 lubricant contract to purchase re-refined lubricants. For the 1996 two-year lubricant contract, DGS expanded the number of re-refined oil grades and amounts, and for the 1999 two-year contract, continued to expand by purchasing even more re-refined oil grades. To date, DGS, Caltrans headquarters equipment service center and the IWMB have not experienced any adverse quality or performance problems associated with the use of re-refined oil.

Rubberized Asphalt Concrete
SB 827 (Sher, Chapter 816, Statutes of 1999) requires the Director of Transportation to make a determination of the cost-effectiveness of using recycled versus virgin paving materials. In doing so, the director must consider the life span, durability, and maintenance cost of the pavement containing recycled materials. Because rubberized asphalt concrete (RAC) has been demonstrated to exceed conventional asphalt concrete in these areas, its use should be increased.

The use of RAC by Caltrans has fluctuated over the last 10 years. From 1989-92 Caltrans' RAC use grew, peaking at 550,000 tons in 1992. In 1993-94 RAC use decreased to 260,000 tons, then increased to 460,000 tons in 1996. In 1997 usage declined again to 270,000 tons, then increased to 300,000 tons in 1998, and 472,300 tons in 1999.

The IWMB has funded two research-based interagency agreements with Caltrans totaling $1 million. The first agreement was to investigate the material properties of RAC. The second agreement was to field-test various strategies to maintain highways. The IWMB has worked over the last eight years to assist Caltrans in carrying out its RAC program and is currently partnering with Caltrans and RAC industry representatives to resolve issues that are hindering the increased use of RAC by Caltrans. In June 2000 the IWMB awarded two grants for $235,000 to complete badly needed roadway repairs and improvements in Kings and Los Angeles counties using RAC.