Recycling FundingAccessing Funds That Make It Happen

Developing the Funding

The Basics

Grants

Partnerships

Direction and Future

Revenues

The Basics before we start…

Time for a little background…

What is a Grant?

Grants are non-repayable funds disbursed by one party (grant makers), often a government department, corporation, foundation or trust, to a recipient, often (but not always) a nonprofit entity, educational institution, business or an individual.

Benefits of Grants• Reliable investment funding• Appropriate to organization’s mission• Credibility to organization and mission• Gives influence• Infrastructure creation• Resources of granting agency• Free press coverage for organization’s mission• Mission promotion

Types of Grants

Research

Curriculum

Demonstration

Training

Unique

Equipment

Fellowships

Federal Laboratory Research

Pilot Projects

Who Gives Money, Why?

• FEDERAL AGENCIES

• STATE AGENCIES

• PRIVATE FOUNDATIONS

• CORPORATIONS

Types of FundingGRANT - ASSISTANCE

Purpose is to transfer money, property, services, or anything of value to recipient in order to accomplish a public purpose

No substantial involvement is anticipated between the sponsor and the recipient

COOPERATIVE AGREEMENT - ASSISTANCESubstantial involvement between sponsor and recipient

CONTRACT - PROCUREMENTAcquire property or services for direct benefit or use of the funding source

PartnershipsMoving towards a common goal…

What is a Partnership?

Partnerships take many forms:Solid Waste Region

Part 9 Authority (Public Solid Waste Corporation)

County – County

County – Municipality

Local Government – Private Sector

Private Company – Private Company

Multi Region

Cooperative marketing

Forms of Partnership

Specialized Efforts

Eliminate Empty Return Loads

Leverages the strengths of each partner

Marketing

Cost sharing

Promotion

Essentially creates a “Win-Win” situation for participants

New Focus - Hub and Spoke Partnerships

• A special partnership defined as– A central processing “hub”– Two or more collection “spokes”

• Hubs (center of the wheel) primary function is to achieve the economy of scale and process material

• Spokes primary function is collection

• By specializing in function, economy of scale can be achieved.

• Economic partnerships as opposed to a statutory partnership (Region)

Benefits of Hub and Spoke…• Cost Effective• Economics – Higher Load Value• Focused Approach – Collection or Processing• Economy of Scale • Avoid Duplication of Equipment• Leverages Resources of Participants• Transportation Savings

TN Hub and Spoke Systems

Example of The End Goal

Moving to the Future• Increase inter-government participation• Increase solid waste planning and coordination

– Solid Waste Region/Part 9 Authority Board– Annual Progress Report (Thinking ahead)– Resolutions laying out participation (not support)

• Stressing the basic commodities– Paper/Fiber, Plastics, Metals, Glass

• Goal oriented – Increased Production, Expansion, Capture Rate Improvements

SWM Grant ProgramThe Future and Direction …

ECONOMIC DEVELOPMENT IMPACT PER 10,000 TONS OF ADDITIONAL DIVERSION – SINGLE STREAM

Collection trucks: 10 @ $225,000 each = $2.25 million. Initial investment amortized over 8 years.

Carts: @ $50/95 gallon cart, estimated 50,000 carts needed per 10,000 tons, amortized over 5 years.

MRF Infrastructure: Building amortized over 20 years, equipment over 10.

Avoided Disposal: Residential disposal cost estimate based on $38.71/ton tipping fee.

Material Value: total value based on % of material mix for 10,000 tons, based on % composition from material value chart.

Jobs data from Institute for Local Self Reliance (jobs per 10,000 TPY) – based on single stream mix.

Collection Trucks Carts

MRF Infrastructure

$281,250$500,000$400,000

$1,181,250

CAPITAL INVESTMENT

Avoided DisposalMaterial Value

$350,000$1,510,200$1,860,200

MARKET EFFICIENCIES

Material CollectionMRF Operations

Plastic ManufacturingGlass Manufacturing

Paper MillsRecycling-Based Manufacturers

1010

94

102568

JOBS

TDEC SWM Grants and Rebates

Old Closed Landfills

Recycling Equipment

Recycling Hub and Spoke

Recycling Rebate

Tire Recycling Grants

Unpermitted Tire Sites Clean-up

Used Oil

It’s Not enough to meet the need…Where then?

Revenues Paying it forward

Revenues

Disposal Gold Mine

• Disposal in TN 2012 - 7,036,427 tons• Class I 5,606,465 tons• Class III/IV 1,429,962 tons

• Average Disposal Costs - $38.71/ton– Est. Statewide Disposal Cost- $217,023,260

• Missed Opportunity Value on MSW– Estimated Dollar Value ($100/ton) - $420,484,875– Job Value (1.68 Jobs/1,000 tons) – 7,064

– Tax Value ($3,160/1,000 tons) $13,287,326– Personal Income Value ($77,000/1,000 tons) - $323,773,450

Recycling• Total Tons Recycled - 2,297,697 tons • C & D Recycling 137,661 tons• Value of Recyclables

– Estimated Dollar Value ($100/ton) - $229,669,700– Job Value (1.68 Jobs/1,000 tons) – 3,858 – Tax Value ($3,160/1,000 tons) - $7,257,572– Personal Income Value ($77,000/1,000 tons) - $176,845,900– Costs Avoided - $88,905,140

Other Agency Grants• Federal Grants –

– Environmental Protection Agency– Department of Energy– USDA Rural Development Grants

• State Grants– Economic and Community Development– TN Department of Transportation

• Private Agency Grants– Industry specific grants

Two Quotes to Leave You With:

Pollution <Garbage> is nothing but the resources we are not harvesting. We allow them to disperse because we've been ignorant of their value. -- R. Buckminster Fuller

We are not to throw away those things which can benefit our neighbor. Goods are called good because they can be used for good: they are instruments for good, in the hands of those who use them properly. -- Clement of Alexandria (150?-220?)

Contact Information

Larry Christley, Program Manager Tennessee Department of Environment and ConservationDivision of Solid Waste ManagementPlanning and Financial AssistanceWilliam R. Snodgrass Tennessee Tower312 Rosa L. Parks Avenue, 14th FloorNashville, Tennessee 37243Phone: 615-532-0074

Larry.Christley@tn.govhttp://www.tn.gov/recycle