Incentive Programs for Local Government Recycling and Waste Reduction

Program Characteristics

Incentive programs are designed to use economic and policy tools to harness the forces of the marketplace to accomplish adopted public policy goals. Many of the economic tools highlighted below are designed to reward those who decrease the amount of waste they produce, or those who reuse, recycle or compost it. Conversely, for those who continue to waste, these tools are designed to increase their costs. People can Reduce–Reuse–Recycle, or they can pay for the privilege of wasting.

Strategic Recycling

In her landmark book, Strategic Recycling, Kay Martin highlights the difference between past "linear systems" and the opportunity for local governments to move toward "cyclical systems" of managing solid waste and fostering recycling and waste prevention.

Major characteristics of linear systems are:

• Government rules by command and control systems.
• Major budget items for government are for waste collection and disposal (either directly provided or indirectly contracted through franchise agreements).
• Prohibits diversity and competition and requires all generators of waste to use system provided by government.
• Recycling costs are added on top of existing waste collection and disposal system; materials are pushed into an uncertain marketplace.
• Little funding for public education or waste prevention.

By contrast, a cyclical system "redefines the role of local government as the system regulator, manager, educator, intervener and facilitator" working to develop a locally sustainable recycling economy.

Major characteristics of a cyclical system:

• Government accomplishes its purposes through its leadership in adopting policies and incentives to reward those who are achieving its goals.
• Government helps to structure the marketplace and set minimum standards for operations and reporting.
• Government influences pricing of services to reflect public policy goals.
• Government encourages diversity, competition, and innovation.
• The private sector assumes actual investments, debt service, and risk.

In fact, AB 939 recognized that local governments could accomplish their responsibilities under that law in a wide variety of ways:

"...programs funded or operated by a jurisdiction as franchise or contract conditions, rate or fee schedules, zoning or land use decisions, disposal facility permit conditions, or activities by a waste hauler, recycler, or disposal facility operator acting on behalf of a city, county, regional agency or local governing body, or other action by the local governing body." (Title 14, California Code of Regulations [CCR], Section 18730.)

An incentive-based approach to meeting the challenges of AB 939 would include the adoption of policies and the structuring of the marketplace for residential and commercial generators, waste and recycling haulers, transfer station and MRF operators, landfill owners and operators, manufacturers, and retailers.

Local governments can adopt policies in a wide variety of instruments, including:

• Ordinances
• Contracts or franchises
• Land use permits
• Solid waste facility permits
• Zoning regulations
• General plans
• Financing agreements

Local governments can also influence the economics of the marketplace by the way they structure their:

• Garbage collection rates
• Franchise fees
• AB 939 fees
• Permit fees
• Facility taxes

One of the most powerful incentives is tax, fee, or cost avoidance. Local governments at little or no cost may adopt many of these tools. The primary cost may be in the preparation and adoption of these tools and subsequent monitoring of their outcomes. Monitoring costs can be minimized if proper reporting and evaluation requirements are included in the design and adoption of the particular tool.

The greatest difficulty in adopting these tools may be in gaining support from the existing waste collection and disposal industry. Problems with these industries can be resolved through early and continuous dialog with all parties of affected interests. By outlining the city’s goals and keeping an open mind about the details, local governments can usually solve most of the specific concerns identified by existing waste haulers and other interested parties.

Next> Generator Incentives

Table of Contents | Innovations Home | Library Home

Last updated: October 26, 2007