California Integrated Waste Management Board

2004 Annual Report: Waste Prevention and Market Development

Recycling Business Loans

The Recycling Market Development Revolving Loan Program (RMDZ loans) provides loans to businesses within 40 board-designated Recycling Market Development Zones (RMDZ). It finances businesses that process or use material that would otherwise be disposed in landfills. According to RMDZ administrators, it is their most important tool in attracting, developing, and retaining recycling-based manufacturers.

These manufacturers use recycled material as feedstock to make new products, which results in the diversion of waste from landfills. This helps local jurisdictions meet and maintain their 50 percent State waste diversion mandate. Manufacturing products out of recycled materials creates double the economic benefit of simply disposing of the waste material.

The Board provided $4.1 million to four recycling businesses in 2004. Of this amount, $3.2 million was funded from the loan program sub-account (Integrated Waste Management Account) and $0.9 million from Tire Fund. The four businesses are expected to create 68 jobs and divert 26,869 tons of non-hazardous solid waste from California landfills annually. Three plastic recycling manufacturers received loans totaling $2.6 million, and one plastic/tire pallet company received a loan of $1.5 million that was partially funded from the Tire Fund.

On December 14, 2004, the Board approved the bulk sale of 50 loans for $20 million. The sale proceeds will be used to fund new loans. This will make the program more self sustainable without decreased reliance on appropriations from the IWMA account.

Recycling Market Development Zones

A total of 40 RMDZs cover almost 72,000 square miles (46 percent of California) from San Diego to the Oregon border. These zones include urban areas such as Los Angeles and San Francisco; and rural areas such as Del Norte and Humboldt Counties. More than 63 percent of the state’s population resides in these zones. RMDZs are geographic areas designated by the Board for the purpose of fueling the startup and expansion of businesses, creating jobs, and reducing waste. Businesses that use waste materials to manufacture their products within a zone may be eligible for loans, technical assistance, and free product marketing.

In 1993, the Board designated the first RMDZs for a 10-year period. These RMDZs are now making a significant contribution to solid waste diversion, business development, and job creation. As of December 2004, about three-fourths of these RMDZs have renewed their zone designations for another decade.

In applying for redesignation, each zone obtained commitments of support from participating cities and counties, as well as local partner agencies and organizations. An updated market development plan was also developed to address projected RMDZ activities and opportunities for increasing jobs and use of waste stream materials generated by the region. The RMDZ program continues to be an effective way for the Board and local governments—in partnership—to retain and strengthen local recycling-based processors and manufacturers.

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Reuse Assistance Grants

Reuse Assistance Grants provide incentives to local public agencies to promote and apply the concept of reuse to their communities. The Board has an annual Reuse Assistance Grant allocation of $250,000. The types of projects that have been funded by the Board in fiscal year 2004–05 include establishing a permanent collection and distribution system for reusing electronic equipment, implementing a material acquisition unit to collect reusable C&D materials from construction projects, and improving and promoting Habitat for Humanity ReStores.

The Board has funded other projects that established food waste donation programs and created materials exchanges. The Board anticipates another offering of Reuse Assistance Grants in late summer or early fall of 2005 using fiscal year 2005–06 funds to support the further development of reuse infrastructures at the local level.

Sustainable Building

Sustainable building is an integrated, environmentally conscientious, and cost-effective approach to siting, designing, deconstructing, constructing, renovating, operating, and maintaining State buildings. Executive Order S-20-04 articulates the State’s goals, including constructing State buildings according to the Leadership in Energy and Environmental Design (LEED™) silver standard. LEED operates under the United States Green Building Council. Other sustainable building goals include the development of high performance school guidelines, the greater use of recycled-content and environmentally preferable products, and more efficient use of construction and demolition materials.

In 2004 the Board completed the following activities:

  • Awarded $300,000 in sustainable building grants, which are used to advance sustainable building concepts and products. Funds were used for the development of a tire-derived sustainable building product design competition in conjunction with the 2005 California State Fair and the incorporation of waste and used tires into State agency projects.
  • Provided funding for a follow-up study to the Board-approved building materials emission study. This study will include an evaluation of the chemical emissions of tire-derived resilient flooring and recommendations for limits on chemical emissions to protect public health. One of the main goals of the study is that rubberized resilient-flooring could then be recommended for wider usage, facilitating the greater recycling of tires.
  • Worked with the Collaborative For High Performance Schools (CHPS) to improve the next generation of K-12 schools by incorporating sustainable design. Twelve school districts, including four of the largest, have adopted CHPS criteria, accounting for more than 20 percent of all new school construction in the state. Working in cooperation with CHPS, the Department of Health Services (DHS), the Los Angeles Unified School District (LAUSD), and the Carpet and Rug Institute (CRI), the Board was instrumental in the development of the CHPS Low Emitting Materials (LEM) list of interior building products for schools and the CRI Green Label Plus certification program for carpet.
  • In conjunction with CHPS developed the CHPS Roadmap and Discussion Guide, which is a tool to successfully help school districts implement the CHPS criteria districtwide.
  • Led efforts and provided funding for the CHPS Best Practices Manual/Criteria Revision to expand the recycled-content and environmentally preferable materials credits and best practices. Also coordinated the addition of credits and best practices for using the high performance school as a learning tool. This revision will lead to the use of more recycled-content and environmentally preferable products and integrate environmental education into the built environment.
  • Formed a Green Residential Environmental Action Team to develop green building guidelines for adoption by local governments. Guidelines include a construction and demolition waste diversion goal of at least 50 percent and use of recycled-content and environmentally preferable products.
  • Actively involved with a national home and gardening magazine in the planning of a high profile sustainable residential demonstration project to showcase recycled-content and environmentally preferable building products. Construction will be completed fall 2005.
  • Conducted training sessions for more than 2,200 people with the Department of General Services (DGS), other State entities, school district officials, and building professionals.
  • Building on the successful online sustainable design course developed in 2003, a memorandum of understanding with CSU Chico was signed to conduct a series of online sustainable building training courses.
  • Developed curricula in association with UC Davis on sustainable materials for the training of future design professionals.
  • The State Carpet Working Group developed environmental standards for carpet procurement that include minimum recycled-content.

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Waste Reduction Program

In 2004, the 12th cycle of the Board’s annual Waste Reduction Awards Program (WRAP) recognized 250 eligible businesses and organizations representing more than 1,403 facilities. Winners were announced in September 2004. Additionally, ten exemplary businesses were selected as “WRAP of the Year” (WOTY) winners in October. These are chosen annually from the winners-at-large based on exemplary accomplishments and innovative waste reduction programs.

The WRAP program continues to evolve, addressing priorities established in the Board’s 2001 Strategic Plan. Most notable of these is the vision to move California toward the goal of a zero-waste society. While intent on increasing the number of businesses applying for the program, WRAP focused in 2004 on enhancing the quality of information secured through the application and recognizing businesses that extend their environmental priorities beyond adopting a recycling program.

The WRAP application is open to private industry and nonprofit organizations. More than 12,280 WRAP honors have been awarded since the program’s inception in 1993. Many businesses have received the award multiple times over the years. The annual program begins its 13th cycle with the open application period on April 1, 2005.

State Agency Buy Recycled Campaign

The State Agency Buy Recycled Campaign (SABRC) was created to implement State law requiring State agencies and the Legislature to purchase products with recycled content. Each year, agencies report their recycled-content purchases to the Board. Reports for fiscal year 2003–04 show more than $168 million in total reportable purchases, of which $120 million was spent on recycled-content products (RCP). The number of State agencies reporting remains high, at 86 percent (186 out of 217) in response to the Board’s comprehensive SABRC outreach and training efforts. Because of these accomplishments, State agencies are successful in implementing recycled-content procurement practices within their day-to-day operations.

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Recycled Product Trade Show

The Fifth Annual Recycled Product Trade Show in 2004 at the Sacramento Convention Center was another huge success. This premiere event continues to attract State agency, local government, and private sector procurement personnel to learn about, and ultimately purchase, recycled content products (RCP). The show had a sustainable building theme and attracted more than 100 exhibitors and 2,000 attendees. Exhibitors indicated that more than $2 million in direct sales could be attributed to exhibiting at the trade shows.

The Board is currently working to ensure that the Sixth Annual Environmentally Preferable and Recycled Product Trade Show will be equally successful. The show will be held April 6–7, 2005, at the Ontario Convention Center in Ontario, California. The Board has modified the name to reflect the expansion beyond mainstream RCP suppliers into the broader world of EPPs. The sixth show has a transportation products and services theme.

The trade show is intended to link the power of public agency purchasing programs to RCP suppliers. The show can increase RCP procurement and help strengthen markets for secondary materials diverted in California and beyond.

Recycled-Content Product Database

The recycled-content product (RCP) database provides free access to information on thousands of RCPs as well as the manufacturers, distributors, reprocessors, mills, and converters that manufacture or supply them. Companies and their representatives are located around the globe, making this truly an internationally recognized tool.

Board staff made major modifications to the database in 2004. In addition to improvements to the organization, taxonomy, and search capabilities, database managers established a SABRC-compliant portal. Accessing the database through this mechanism provides the user with search results that include only SABRC-compliant products. This tool provides State agencies with products that, when purchased, will count towards fulfillment of the SABRC mandates for RCP procurement. That capability will save time and effort by both the State agencies and the product suppliers, and it will increase sales of SABRC-compliant products by making them more accessible.

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Environmentally Preferred Purchasing

In partnership with the Department of General Services (DGS) and other State agency stakeholders, the Board has established a program to provide State agencies with information and assistance regarding environmentally preferred purchasing (EPP). As a member of the multiagency EPP task force, the Board will assist in the development of EPP best practices manual and training for State purchasing employees.

Implementation of Chapter 575, Statutes of 2002 (AB 498, Chan) requires State agencies to procure goods and services that have a reduced effect on human health and the environment rather than competing goods or services that serve the same purpose. Increased emphasis on EPP requires that the Board-DGS partnership evaluate all environmental aspects of the State’s purchasing programs to ensure they are consistent with achieving preferred purchasing goals.

The Board continues to coordinate EPP efforts with other federal and State agencies, institutions of higher education, industry, and public health and environmental organizations interested in EPP. In conjunction with the EPP and Sustainable Building Task Forces, staff has completed development of a Green Carpet Environmental Specification Standard and completed an EPP copier paper pilot project.

As part of the Board’s effort to advance EPP, staff is actively participating in an effort led by the Department of General Services (DGS): the California Strategic Sourcing Initiative (CSSI). This major initiative will consolidate State purchases to save money. CSSI is moving at a very fast pace and will impact State purchases for years to come. Board staff is providing comments for consideration in contract documents and specifications. The Board is seeking expertise from other agencies to make EPP integral to “best value” purchasing. Staff intends to establish a cooperative, long-term working relationship with DGS procurement to better advance EPP.

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California Green Lodging

The Board’s California Green Lodging Program was initiated in 2004 to provide traveling State employees and others with information on environmentally responsible hotel/motel properties. The Board uses seven major criteria to evaluate whether a hotel can be considered “green”: waste minimization/recycling/reuse, energy efficiency, conservation and management, waste water management, management of freshwater resources, hazardous substances and waste management, and environmentally and socially sensitive purchasing.

Two levels of recognition for green lodging are available. The first is the entry participation level, in which the property’s operations practice at least five of the criteria. The Board allows up to three years for the property to improve and expand its program. The second is the leadership level, in which a property has shown its operations to meet all seven criteria. The Board also looks to these properties to show continuous improvement in their programs.

In September 2004, the Board inaugurated this new program with a successful media event at the San Francisco Triton Hotel. This event received considerable press coverage both locally and nationally. The program began with 30 charter hotels in the San Francisco Bay Area and in the Los Angeles area. Staff continues to add additional hotels to the DGS travel website. Staff is currently working on adding large corporate chain hotels and is working with several architects to design and construct green hotels. This will result in the addition of new listings.

Rigid Plastic Packaging Containers

The Rigid Plastic Packaging Container (RPPC) law has had a positive effect on the use of postconsumer resins in the production of RPPCs intended for sale in California. As a result of the three compliance certifications the Board conducted between 1996 and 2001, approximately 1,500 product manufacturers have been certified throughout the United States. The requests for compliance certifications resulted in improved awareness of the law and, in most cases, compliance with the law.

The RPPC law underwent revisions in Chapter 561, Statutes of 2004 (SB 1729, Chesbro) that repealed the requirement that the Board annually publish recycling rates for “all RPPC” and “PET” containers. The revisions, which increased the effectiveness of the RPPC law, were also the result of changes in the availability of necessary data, cost, and relevance to regulated containers.

Previously, product manufacturers could use these published rates to demonstrate compliance if one of the rates was above its respective threshold value of 25 or 50 percent.

In years when this happened, the Board did not conduct certification. Nonetheless, product manufacturers have always been required to be in compliance with the law at all times, specifically through one or more of the source reduction, recycled-content, or reusable/refillable options. Because the recycling rates are no longer available as compliance options to regulated product manufacturers, the Board made a policy decision in 2004 to conduct annual certifications of up to 100 companies.

In addition, the Board revised its regulations to specify penalties for violation of the RPPC program requirements. For companies that fail to demonstrate compliance in a certification, Board staff will seek to negotiate settlement agreements, based on identified violations, before referring the matter to an administrative law judge for adjudication. Staff is currently developing settlement agreements for companies being audited from the 2000 certification. Companies out of compliance in the 2001 certification will also be included in the agreements.

Staff estimates that since the program’s inception, regulated companies have used more than 300,000 tons of postconsumer resin and reduced total resin usage by 800,000 tons. With the recent changes in the law, the Board is confident that the program will do much more than support demand for postconsumer plastic. Other factors include the Board’s policy decision to conduct annual certifications and greater education and outreach efforts to increase awareness of the requirements of the law.

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Plastics Market Development

Building on the comprehensive review of plastics and possible policy options contained in the Plastics White Paper, the Board directed staff members to focus their efforts on key areas. These areas include increasing the recovery and recycling of agricultural and commercial film plastic, biodegradable plastics, litter prevention, and other topics.

The Board continues to collaborate with representatives from the plastics industry, the environmental community, and others to analyze plastics generation, collection, and recycling. Specifically, Board staff has formed working groups that are examining plastic film collection and recycling. These working groups will help the Board to identify and focus on actions to increase the collection of film plastic from residential, commercial, and agricultural sources.

Implementation of education and outreach efforts and demonstration projects is expected to increase the collection and use of recovered plastics and improve California’s environmental quality. In addition, Board staff is participating in a working group established by the California Coastal Commission to develop an anti-litter campaign.

Plastic Trash Bags

Under the Plastic Trash Bag (PTB) law, every manufacturer of plastic trash bags sold in California is required to certify to the Board that the bags contain at least 10 percent postconsumer resin. The Board can grant an exemption if staff concurs that a sufficient quantity of postconsumer material is unavailable. Wholesalers are required to certify the purchase and sale of trash bags. Manufacturers and wholesalers who do not comply with the postconsumer use and reporting requirements are prohibited from contracting with State agencies for the delivery of goods and services.

While this law has achieved modest success in supporting markets for postconsumer resin, the Board wanted to move toward a more comprehensive approach to divert film plastic in California. Through stakeholder involvement from industry, environmental groups, and local government, Board staff developed a legislative report. The report recommends that the PTB law be repealed if the Board is successful in negotiating memoranda of understanding (MOU) with stakeholders to significantly increase the collection and recycling of film plastic in California.

Board staff envisions that MOUs would be implemented in a phased approach, with the first MOUS to target plastic bags, transport packaging, and agricultural film. The first MOUs would be signed by the end of 2006, implemented throughout 2007 and 2008, and evaluated in 2009.

If voluntary compliance is unsuccessful, the report also recommends that the Legislature consider statutory changes to the program, including the possibility of a mil fee on noncompliant film plastic products. Revenues could then be used to develop the collection and processing infrastructure necessary for significantly increasing plastic film diversion in California. Board staff anticipates that the report will be presented to the Board for its consideration in early 2005.

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Last updated: November 1, 2005
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