Incentive Programs for Local Government Recycling and Waste Reduction

Generator Incentives

Residential: Pay-As-You-Throw (PAYT). One of the best examples of an incentive that has proven its tremendous value over the past decade is the restructuring of residential garbage rates. The U.S.EPA, CIWMB and many others have documented that "pay-as-you-throw" programs can have a major impact on decreasing wastes. In a comprehensive study for the Solid Waste Association of North America, Skumatz Economic Research Associates found that such "variable rate" programs can lead to an additional 8 to13 percentage points of diversion, even if communities already have mandatory curbside recycling and diversion programs.

Commercial Incentives. The larger the costs for waste collection and disposal, the higher the interest level for businesses in waste prevention, reuse, recycling, and composting. This is particularly true if the businesses can benefit from recycling by decreasing their waste collection and disposal services, both in number and size of bins and decreasing the frequency of pickups.

Many communities now offer "free" collection of recyclable materials from small businesses, if the amount of materials collected is comparable to that from residents. Other communities require their franchised haulers to provide discounts for recycling services. Haulers may be required to charge businesses for recycling services offered at rates that are at least 50 to 80 percent of the costs of disposing of those materials to provide an incentive to the businesses to reduce their wastes at the source or recycle.

Haulers may also be creative in their encouragement of recycling. One hauler requires that a recycling bin of equal size and frequency of pickup accompany every commercial waste bin requested for service. This clearly communicates to the generators that they should be able to reduce their wastes by 50 percent if they use the companion recycling bins.

For construction and demolition (C&D) debris, some cities are now requiring deposits when residents, businesses, or contractors seek permits for C&D activities. In Atherton, California, they require a $50 per ton deposit for all waste estimated to be produced by that project. Contractors must show that they have recycled at least 50 percent of the waste generated or the town keeps $50 for each ton below their 50 percent goal that was not recycled.

The City of Cotati requires posting of a $200 deposit that is refunded after proof of reuse, recycling, or attempts thereof. In a model ordinance prepared by the Alameda County Waste Management Authority, a deposit is required that is the smaller of three percent of the total project cost or $10,000.

The City of San Jose is working on adopting a C&D deposit for diversion (CDDD). The city proposes to collect a deposit when a building permit is issued for construction, demolition, and remodeling projects. These deposits will be set at a level sufficient to pay for the gate fees at certified recycling facilities. To have their deposits returned, contractors will have to provide receipts showing that the project's C&D waste has been accepted by a city-certified recycling facility.

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Last updated: October 26, 2007