Incentive Programs for Local Government Recycling and Waste Reduction

Overview

Local governments define the economics of solid waste in their areas. Through their policies, laws, regulations, rate structures, fees, and taxes, local governments can have a tremendous impact on what is "economic" to do in their community. The California Integrated Waste Management Act of 1989 (AB 939, Sher, Chapter 1095, Statutes of 1989) challenges local governments to rethink incentives in place for one-way disposal, and to redesign the system to reward and encourage waste prevention, reuse, recycling, and composting.

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 materials recovery facility (MRF) operators, landfill owners and operators, manufacturers, and retailers.

Local governments can influence the economics of the marketplace by the way they structures their garbage collection rates, franchise fees, AB 939 fees, permit fees, and business 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 incentives.

Table of Contents

• Overview
• Program Characteristics
• Recycling and Waste Prevention Incentives: 
      Generator Incentives
      Franchise Hauler Incentives
      Other Hauler Incentives
      Transfer Station, MRF, and Landfill Incentives
      Manufacturer and Retailer Incentives
• Impact of Proposition 218
• Case Studies:
     Santa Clara
      San Jose
• Local Government Challenges and Opportunities
• Tips for Replication
• References: Publications and Contacts
• Credits and Disclaimer

Credits and Disclaimer

Gary Liss & Associates researched and wrote this case study for the California Integrated Waste Management Board under the Board’s contract with the University of California at Santa Cruz (Contract No. IWM-C8028). The Board would like to acknowledge the following individuals who assisted in the preparation of this document:

• Rick Mauck, City of Santa Clara
• Margaret Rands, County of Santa Clara
• Louis Ippolito, Americlean
• Lisa Skumatz, Skumatz Economic Research Associates

The statements and conclusions in this case study are those of the contractor and not necessarily those of the California Integrated Waste Management Board, its employees, or the State of California. In addition, the data in this report was provided by local sources but not independently verified. The State and its contractors make no warranty, express or implied, and assume no liability for the information contained in this text. Any mention of commercial products, companies or processes shall not be construed as an endorsement of such products or processed.

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Last updated: November 01, 2007