February, 1998 - Internet Version http://cwmi.css.cornell.edu/WastRed/MatlExch.html
The success of this New York City Materials Exchange Roundtable was largely due to the enthusiastic participation of the attendees who shared their knowledge and ideas. Those who came from as far as California or as near as the adjacent office in Cornell Cooperative Extension all provided perspectives that will be useful in maximizing the impact of the NYC Wa$teMatch program.
The commitment of the New York City Department of Sanitation to waste reduction and in particular the efforts of Dave Kleckner and Patty Tobin in the Bureau of Waste Prevention, Reuse and Recycling, were key to the development and implementation of this Roundtable. Ivan Braun of ITAC also provided important input. Without the assistance of EPA, Region II and the enthusiastic support of John Filippelli, the Roundtable would not have been possible.
Finally, the assistance of the staff of Cornell Cooperative Extension-NYC Programs, particularly Sol Agosto, in providing an atmosphere conducive to productive interaction and the logistical support of Karen Rollo (and Peter Borst behind the scenes in Ithaca) is much appreciated.
The Cornell Waste Management Institute (CWMI) was established in 1987. CWMI addresses the environmental and social issues associated with waste management by focusing University resources and capabilities on this pressing economic, environmental, and political issue. Through research, outreach, and teaching activities, CWMI staff and affiliated researchers and educators work to develop technical solutions to waste management problems and to address broader issues of waste generation and composition, waste reduction, risk management, environmental equity, and public decision-making. The focus for such work is on multi-disciplinary projects that integrate research and outreach. Working in collaboration with Cornell faculty and students from many departments and with cooperators in both the public and private sectors, issues ranging from management of sewage sludges to enviroshopping are the focus of on-going programs.
MOTIVATING BUSINESSES TO USE WASTE EXCHANGES
METHODS OF IDENTIFYING USERS AND GENERATORS
REALISTIC WASTE EXCHANGE RADIUS
TECHNOLOGIES USED TO ORGANIZE LISTINGS AND ASSIST MATCHMAKING
TRACKING RESULTS AND PROGRAM EVALUATION
LIABILITY, CONFIDENTIALITY AND REGULATORY ISSUES
PAYING FOR IT: REVENUE GENERATION AND SELF-SUFFICIENCY
BACKGROUND
A Plan to Phase Out The Fresh Kills
Landfill was issued by the Task Force established by New York
State Governor George Pataki and New York City Mayor Rudolph Giuliani
during November of 1996. Central to this plan are strategies intended
to maximize the amount of New York City waste that is prevented
and recycled, in order to minimize the need to export waste when
the Fresh Kills Landfill on Staten Island closes at the end of
2001.
The Fresh Kills Landfill has long been an inexpensive solid waste
disposal option for the City. However, the City's reliance on
this landfill is being dramatically reduced over the next five
years. Concurrently, New York City is increasing its reliance
on waste reduction initiatives, recycling, composting, and out-of-City
disposal.
The U.S. Environmental Protection Agency (EPA) participated in
the Task Force established by the Governor and Mayor. In the Task
Force Plan, EPA offered to fund roundtable meetings with the City
to address waste reduction issues. The Task Force recommended
and the City agreed that the roundtable meetings would include
representatives of various City, State, local, and private organizations
who have studied or implemented waste reduction strategies, and
who could share information and experiences at these meetings.
The New York City Department of Sanitation (DOS), Bureau of Waste
Prevention, Reuse and Recycling (BWPRR) proposed to EPA Region
2 that a roundtable be convened to provide a forum for materials
exchange program sponsors from throughout the nation, including
New York City program operators and interested parties. The purpose
was to discuss issues critical to the success of materials exchange
operations, that were also being tackled by the new NY Wa$teMatch
Program launched by DOS in April of 1997. NY Wa$teMatch is a materials
exchange service that facilitates transactions between participating
firms, and does not provide material storage services.
DOS provided EPA Region 2 with a proposal setting forth the respective
roles of the two agencies. EPA agreed to this arrangement, and
subsequently provided funding for the Cornell Waste Management
Institute (CWMI) to provide the needed services. These included
providing input regarding the agenda and selection of invited
participants, sending out invitations and following up as necessary
to recruit participants, providing meeting space and refreshments,
moderating the session, writing this summary report, and related
services. CWMI and DOS worked closely in developing the agenda
and selecting participants.
The Roundtable provided all participants with a networking and
learning experience to assist program development, refine and
improve materials exchange programs, and maximize program effectiveness.
Experts from throughout the country participated in the session,
as well as representatives of local organizations that do not
currently provide matchmaking services. These included New York
State agency and local development corporation representatives.
They were invited in recognition of their role as potential service
providers and promoters of NY Wa$teMatch (described below). The
meeting also provided them with an opportunity to determine whether
and how they may want to tap into or promote the program, use
the database, or even establish satellite programs to augment
the Wa$teMatch service.
DOS also directed CWMI to invite observers to attend the session.
These invited guests included representatives of the Citywide
Recycling Advisory Board, Solid Waste Advisory Boards from each
Borough of the City, the Chair of the City Council's Environmental
Committee, the Mayor's Office of Operations, the Mayor's Office
of Construction, and the NYC Department of Business Services.
The Roundtable was an all day session, convened on November 14,
1997. The meeting space was provided by the Cornell Cooperative
Extension, New York City Programs.
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NY
WA$TEMATCH
NY Wa$teMatch was launched during
the spring of 1997 by the NYC Department of Sanitation, in partnership
with the City University of New York (CUNY). DOS designed, funds,
assists, and oversees implementation of NY Wa$teMatch. Matchmaking
services are provided through contracts managed by CUNY with the
Industrial Technology Assistance Corporation (ITAC), and Long
Island City Business Development Corporation (LICBDC). CUNY is
also responsible for developing the computer system/database for
the program.
NY Wa$teMatch is designed to help businesses save money by providing
a brokering service for industrial scraps, packaging, and other
items that are potentially reusable, but for which there are not
well-established recycling markets. The program is similar to
others operating throughout the country, and builds on successful
local programs in Long Island City and East Williamsburg, NY,
which save businesses money by promoting reuse of materials that
would otherwise be discarded. While reuse is the primary objective,
some transactions involve recycling when reuse outlets are not
available.
Goals and Objectives
1. Reduce DOS-Collected Waste. It is anticipated that NY Wa$teMatch will reduce
the amount of waste collected and disposed of by the Department
of Sanitation. Although the initial primary focus of the program
is on the City's industrial sector, either the source or recipient
of a listed material may be a government agency or institution
that receives DOS collection service. And, DOS expects the program
to expand over time to directly target organizations that receive
DOS collection and disposal services.
2. Increased regional waste disposal capacity. The entire
City, including the Department of Sanitation, benefits from waste
reduction, regardless of the source of the waste. As DOS moves
towards exporting a larger portion of the waste that the agency
collects, the agency will be competing for the same regional waste
disposal capacity as the private sector. Therefore, to the extent
that NY Wa$teMatch leads to a reduction in waste generated by
businesses for export by private haulers, there will be increased
capacity for waste disposal at existing facilities in the region.
This can be expected to help minimize the distance DOS will need
to transport waste that remains after waste prevention, recycling,
and composting. Furthermore, reduced competition for limited waste
disposal capacity within the region may ultimately minimize tipping
fees charged by waste disposal facilities that receive DOS collected
waste.
3. Public Awareness. The program can be expected to raise
the waste prevention and recycling awareness of the business community.
Individuals who work in businesses in New York City often live
in the City. To motivate New York City residents to minimize wasteful
behavior, we must reach out to people not only in their homes,
but where they work.
4. Sustainable businesses and self-sustaining program.
NY Wa$teMatch saves money for businesses, which the program may
be able to leverage to minimize the cost per ton of Sanitation's
investment in NY Wa$teMatch. As a solid waste management agency,
a primary waste reduction goal for DOS is to minimize the cost
per ton of programs that DOS funds.
Although NY Wa$teMatch may generate limited direct benefits for
the Department of Sanitation, it benefits the City by helping
businesses to become more competitive and sustainable. The businesses
and institutions that are directly served by the program, and
the business assistance agencies and organizations that serve
the business community and the City's institutions such as local
development corporations and business improvement districts appear
to have a vested interest in supporting the service, financially
or otherwise.
Therefore, DOS's role in the program is to serve as an initiator
of a service, but not necessarily as a funder, or at least the
primary funder, in the long-run. DOS is working to position the
program so that it will become self-sufficient in whole or in
part over time. DOS anticipates that progress toward this goal
can be achieved by demonstrating that NY Wa$teMatch is a program
that is valued and needed by the City's businesses and institutions.
To the extent that NY Wa$teMatch is successful in leveraging resources
from the business community and others through fees-for-services,
establishment of satellite services, and through outreach and
marketing efforts, it will minimize the cost per ton to the Department
of Sanitation for any financial support the agency may continue
to provide over the long-term.
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WELCOMING
REMARKS
(See Appendix A for list of attendees
and Roundtable agenda.)
The session began with brief welcoming remarks from the co-sponsors
and organizers of the Materials Exchanges Roundtable: John Filippelli,
U.S. EPA Region 2; Dave Kleckner, New York City Department of
Sanitation, Bureau of Waste Prevention, Reuse and Recycling; and
Ellen Harrison, Director of the Waste Management Institute at
Cornell University.
Deputy Commissioner Martha K. Hirst of the NYC Department of Sanitation
welcomed the participants on behalf of DOS Commissioner John J.
Doherty, and highlighted the importance of waste prevention and
recycling as components of the City's Plan to Phase Out the Fresh
Kills Landfill. Deputy Commissioner Hirst noted that the continued
success of DOS's programs rely on working closely with federal,
state, and local policy makers; recycling advocates; the business
community; and the City's residents. She added that DOS recognizes
that there is much that jurisdictions can learn from each other,
including those represented at the Roundtable.
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PROGRAM
DESCRIPTIONS
The Roundtable proceeded with representatives
of materials exchange programs from throughout the country presenting
the following program descriptions:
California Materials Exchange Program (CALMAX) - Kevin Taylor
CALMAX is a service provided by the
California Integrated Waste Management Board (CIWMB), designed
to help businesses and other organizations reduce the amount of
waste materials discarded, and to meet the 1989 state mandated
goals of reducing the amount of waste going to the landfill by
25 percent by 1995 and 50 percent by the year 2000. The main target
of the CALMAX program is California's businesses, but surrounding
areas such as Oregon, Nevada, and Northern Mexico are invited
to use the program. Listings from other areas of the U.S., as
well as Canada and Mexico, are accepted if they may be beneficial
to California. CALMAX does not accept most hazardous materials
or hazardous wastes. Some exceptions (e.g., fluorescent lights)
may be permitted on a case-by-case basis. CALMAX has designated
construction/demolition, organics, and electronics waste types/industries
as priorities. Promotion is through a quarterly catalogue and
the Internet (http://www.ciwmb.ca.gov/mrt/calmax/calmax.htm). The catalogue is the primary mechanism used
by CALMAX for disseminating listings, and also serves a promotional
function. Printing and mailing costs are approximately $20,000.
A challenge is to get more people to use the Internet. Progress
is being made. In the past year, approximately 350 queries/week
were made on the database through the Web site. (CALMAX estimates
that approximately 1100 listings were completed last year; annual
budget, $200,000-$250,000; staff = 2 full-time equivalent employees
(FTEs), 1 part-time student, contractor for catalogue.)
Iowa Waste Exchange (via conference call) - Jennifer Drenner
The Iowa Waste Exchange is a cooperative
effort of Iowa community colleges and councils of governments,
solid waste agencies, the Iowa Waste Reduction Center at the University
of Northern Iowa, the Iowa Department of Natural Resources, the
Iowa Department of Economic Development and the Recycle Iowa Program.
There are 11 regional offices throughout the state with eight
FTEs. Information about the program is disseminated through a
Web listing, (http://www.recycleiowa.org/tech/bawss.html); and a pull-out section in a quarterly newsletter,
"The Closed Loop," that contains "hot" (newest
listings, and "hard-to-place" materials) listings. Exchange
transactions are made through direct contact with regional representatives.
Long Island City Business Development Corporation (LICBDC) - John
Okun
LICBDC, a NY Wa$teMatch subcontractor,
operates the Industrial Waste Recycling and Prevention Program
(INWRAP), which includes a nonhazardous materials exchange, serving
primarily Long Island City, western Queens, and Greenpoint. The
program is targeted mainly to small and medium-sized industrial
businesses. INWRAP provides ambitious technical assistance in
recruiting users and listings, and performs significant tracking,
invoicing, and analysis of cost savings. Approximately 30-35 percent
of funding dollars comes from revenues generated by INWRAP through
shared savings payments from participating companies (contracts
are executed between the companies and INWRAP) and membership
dues from vendors and recipients. Additional funding comes from
grants from Empire State Development and EPA, and sponsorships
for special events.
A new program initiative utilizes a credit network specializing
in cash and trade credits offered by the worldwide Chadwick Financial
Corporation in exchange for non-performing assets such as unwanted
equipment and surplus inventory. For specific information on how
INWRAP uses the credit network, contact John Okun; general information
about the Chadwick Financial Corporation is available on the Web
(http://www.inkindgift.com/boutchad.htm). INWRAP makes use of interns through a partnership
with the NY Institute of Technology and LaGuardia Community College.
(4-500 listings/year; staff - 1.5 FTE and 3 part-time interns.)
New Hampshire Materials Exchange (NHME) - Mark Toussaint
NHME is a service of WasteCap of
New Hampshire, a proactive not-for-profit waste reduction organization
operated by the Business & Industry Association (BIA) of New
Hampshire. Mark Toussaint is the sole staff member; funding for
the program (approximately $18,000 annually) comes from community
sponsors; grants (EPA and the American Plastics Council); and
fund-raising events tied to specific projects. Materials exchange
information is disseminated in four ways: 1) through the World
Wide Web (http://www.wastecapnh.org) with e-mail links to listers when possible,
links to other materials exchanges nationwide, and information
about Wastecap's free, confidential waste reduction services;
2) a printed catalogue published quarterly; 3) an e-mail list
serve whereby users sign up to receive current information on
exchange opportunities (to register for the list, e-mail nhmex@aol.com);
and 4) an automatic fax on new listings for those who have fax
machines, but no access to e-mail.
Contact information is provided in the catalogue and Web site
allowing direct contact between generators and users. Approximately
one-half of NHME's listings this quarter came through the Web
access. Recycler's World has a link to the NHME site which generates
a fair number of visitors. (Approximately 200 listings/year; staff
= .5 FTE; office space is donated.)
Northeast Industrial Waste Exchange, Inc. (NIWE); The Millennium
Exchange, Ltd. - Bill Sloan
NIWE provides buyers' and sellers'
listings for a 13 state area. Funding is currently provided by
grants/contracts from sources in New York State, Baltimore, and
Pennsylvania, which support one full time employee. The Millennium
Exchange, is a private, investor-owned company, which is anticipated
to provide active custom match-ups through the Web, e-mail, and
fax. (1-2,000 listings/year; staff = 1.5 FTE and 1 temporary.)
Southeast Minnesota Recyclers' Exchange (SEMREX) - Anne Morse
Minnesota has developed a statewide
materials exchange network. Five regional materials exchange programs
function in partnership as the Minnesota Materials Exchange Alliance
with the Minnesota Office of Environmental Assistance (OEA) which
coordinates the regional efforts, and the Minnesota Technical
Assistance Program which publishes the statewide catalogue. One
of the five regional exchanges, SEMREX is an organization of counties
in the Southeast corner of Minnesota. SEMREX has developed an
interactive Materials Exchange database that links businesses
that have a usable waste material with others that can use that
material as a resource. SEMREX also provides Cooperative Marketing
services to its businesses to overcome the obstacles rural recyclers
face, such as smaller volumes and dispersed populations, higher
transportation costs, and budgetary and storage constraints.
Through free waste evaluations, SEMREX assists businesses in identifying
which waste materials can potentially be reused by others, and
which are recyclable through the marketing program. State funds
provide for the operation of the clearinghouse for listings from
the exchange programs in Minnesota and other states, and a semiannual
publication of a "Materials Listing Catalogue." Regional
exchanges are required to be self-financing, and SEMREX is working
to achieve this through a ten percent surcharge on materials cooperatively
marketed, and the use of volunteer and AmeriCorps*VISTA workers
(see Appendix D). (Approximately 1500 listings/year; staff = 5
regional offices with one staff each.)
Southern Waste Information Exchange (SWIX) - Gene Jones
SWIX is a service of Keep Florida
Beautiful, Inc. and Florida State University (FSU). Originally
instituted as FWIX (Florida Waste Information Exchange) in 1981,
it expanded its service area in 1982 to the southern region of
the U.S. in order to improve waste recycling, use, and reuse opportunities
for Florida waste generators, as well as to more effectively respond
to the many inquiries about Florida's materials from potential
clients outside of Florida. The program started with hazardous
wastes listings, but since 1993 the shift has been to nonhazardous
wastes. All areas of waste exchange are targeted, but the focus
is on 12 standard categories of "materials available"
and "materials wanted" acids, alkalis, other inorganic
chemicals, solvents, other organic chemicals, oils and waxes,
plastics and rubber, textiles and leather, wood and paper, metal
and metal sludges, construction/building materials, and equipment.
Promotion of exchanges is accomplished through: 1) a catalogue
published three times annually; 2) an Internet home page (http://www.enviroworld.com/SWIX/) with links to other exchanges and environmental
agencies, and 3) a toll-free 800 number (1-800-441-7949). SWIX
received 5,000 requests for information last year.
Requests for information through the Internet are increasing,
from 10 to 33 percent in the past year, but the bulk are received
by phone (54%). The budget for SWIX is approximately $100,000
annually, and FSU donates some in-house costs, i.e., office space
and equipment. In addition, FSU faculty and students provide assistance
in identifying potential uses of materials and pollution prevention
opportunities. Additional revenues are raised by catalogue subscriptions,
fees for materials available and waste management services listings,
and sponsors. (2-300 listings/year; staff = 1 FTE, 1 part-time
student.)
Following the presentations from the materials exchange representatives,
all participants of the Roundtable introduced themselves/affiliations
and briefly outlined their reasons for participating. The discussion
then moved on to how to effectively recruit listings and facilitate
transactions.
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MOTIVATING
BUSINESSES TO USE WASTE EXCHANGES
The motivation for companies to participate
in waste exchange includes reduced waste handling costs, savings
in purchasing costs, increased storage space that can be used
for other purposes, tax deductions and civic pride from reusable
materials that may be donated to not-for profit organizations,
concern for the environment, and other considerations. However,
for many companies, the focus is on revenue generated by their
normal business activities, with less regard for pursuing cost
reduction initiatives, which is an obstacle to generating interest
and participation in materials exchange programs. In some instances,
"doing the right thing," (e.g., environmental responsibility)
is cited as a prime motivation for participation in waste exchanges.
The group discussed some ideas for encouraging more participation
in materials exchange programs
Demonstrate to businesses that although maximizing revenue from
their operations is likely their primary focus, they can enhance
their profitability by replacing raw materials or reducing waste
disposal costs through reusable material transactions.
Change the mindset of those responsible for purchasing, i.e.,
from "where do I get virgin materials" to "where
can I get cost-effective, used materials."
Tax deductions may be available, when materials are donated to
nonprofit organizations.
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METHODS
OF IDENTIFYING USERS AND GENERATORS
Transactions do not always involve
"buyers" and "sellers." Money may not always
exchange hands (e.g., barter and donations are possible). This
might entail efforts to find a specific match for a specific waste,
or efforts to link generators with possible users with whom they
can work in the future. Finding and developing new markets for
potential waste streams and identifying new companies to bring
into the reuse and recycling markets is an on-going activity.
Following are some methods suggested by Roundtable participants
for identifying users and/or generators:
Use SIC (Standard Industrial Classification) Codes to target similar
businesses who may have similar needs/wastes and to identify materials
used by those businesses.
Use Thomas' Register of Business & Industry, Harris Directory,
and Yellow Pages (available on the Web) to identify area businesses;
focus on local commodities.
Use Internet listing of businesses who specialize in "green
materials."
Work with recycling coordinators and economic development experts
(including Empire State Development, ORMD in NYS); they are often
aware of what is being disposed of and what materials may have
other uses.
Work with local economic development, business, and trade organizations
such as Local Development Corporations, Chambers of Commerce,
and with Manufacturing Extension Partnerships (MEPs).
Consider linking with the NY State Department of Environmental
Conservation's beneficial use determination (BUD) program.
Use referrals from successful exchanges, helping participants
to network with peers.
Promote success storiespublicize through trade association newsletters.
Target repeat services.
Target specific individual within a company (i.e., John Doe in
purchasing, who is interested in the "bottom line").
Use vendors who travel between companies (e.g., computer service
providers) and repeat customers to build an informal network to
promote the materials exchange concept.
Inventory purchased inputs as well as wastes when conducting business
audits.
Look at new businesses prior to start-up, design for minimum waste;
identify opportunities to use exchange materials as inputs and
opportunities for reusable and recyclable outputs.
Work with manufacturers within an industry, or related industries,
to discuss possibilities of targeting waste products.
Convince generators to target their waste to users, modifying
it to meet user's needs.
Provide information (and possibly samples) at trade shows and
similar events (may not need to rent a booth, but simply show
up and distribute catalogues).
Provide samples of materials at trade shows, fairs, on-site visits,
and consider contests for "how to reuse these materials"
(though some Roundtable participants do not make use of samples
in order to avoid liability of representing that the material
available is exactly the same as the sample).
Target hospitals as possible sources or users of reusable materials.
Target schools as possible recipients of reusable materials.
Work with waste haulers.
Seek contacts in construction as possible sources of reusable
materials.
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OPEN
VERSUS CLOSED LISTINGS
Open listings (listings that fully
disclose information about the listing, including the identity
of the listing entity, whereby transactions can be facilitated
without the direct assistance or knowledge of the materials exchange
program sponsor) do not provide opportunities for tracking and
measuring outcome, for charging based on exchanges, or for providing
as much service assistance to companies. However, they save time
and money and thus allow for facilitating more exchanges. Confidentiality
is not generally an issue except for hazardous materials. Materials
exchange representatives described their policies:
SEMREX requires users to go through a registration process to
obtain information. Registration can take place either over the
telephone or via the Web. Once registered, users can list materials
directly on the Web site (with e-mail automatically going to SEMREX
so information can be verified), or access contact information
on materials listed. SEMREX also obtains names within companies
to establish client relationships.
CALMAX maintains open listings with all contact information unless
confidentiality is specifically requested.
SWIX and NHME use a listing code in order to track numbers of
inquiries, target like companies, and gather information for documenting
successful exchanges.
NY Wa$teMatch uses closed listings in order to enable tracking,
charging for transactions, and to provide middle-man service for
companies, but may consider open listings on a limited basis where
confidentiality is not requested.
Iowa maintains "closed listings and complete confidentiality."
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REALISTIC
WASTE EXCHANGE RADIUS
Transportation costs usually define
exchange geographical boundaries. While acceptable transport distances
will vary with the value of the material as well as disposal costs,
generally 250 miles is a practical radius.
TECHNOLOGIES
USED TO ORGANIZE LISTINGS
AND ASSIST MATCHMAKING
Print materials (e.g., catalogues) - Materials exchange operators find catalogues
useful for several reasons. Businesses may not yet be accustomed
to accessing information on the Internet, which makes hard copy
useful. Catalogues are considered useful promotional tools: they
serve as a good desk reference and may also be passed on to others.
However, they are costly to assemble and publish. Alternative
forms of visual "advertising" such as incorporating
a section into existing newsletters may provide some of the benefits
without the major costs.
Internet - Use of the Internet is increasing rapidly and
Web listings provide the opportunity to link with other exchanges,
but several representatives feel it is a challenge to get businesses
to fully utilize this new technology. There was some comment from
NYC participants that NYC businesses and even potential partners
(such as LDCs) may not have Internet access; some nonprofit agencies
do not have access to the Internet; and/or some small businesses
simply did not have time to fully utilize new technologies. In
addition, using the Web requires businesses to seek out the information
rather than having it "delivered."
Computer databases for storing and organizing listings -
Computer databases are essential for recordkeeping, monthly
reports, tracking, invoicing, and program evaluation. When designing
an interactive database, it is important to make sure all databases
are compatible. This applies not only within the organization,
but also to the use of the database by partners and potentially
by clients. CALMAX maintains three databases: a list of contacts,
a list of materials available and wanted, and a list of successful
exchanges. Entering information is the time consuming aspect.
Automated entry by the contractor is being used by SEMREX and
CALMAX with the use of pull down "pick lists" to help
ensure consistent listings. Records within the databases need
to be linked so that a change of address, for example, can be
automatically applied to all relevant categories. There are a
variety of programs that can be used.
SEMREX's "interactive real time database" located on
the Web (http://www.wwwwis.com/semrex) also keeps track of regional
activities. Members of the public can post listings of items they
have available, and browsers can access listing and contact information
(SEMREX terms these referrals) on items in the on-line catalogue
they are interested in. Regional program operators will also use
this on-line catalogue as their primary method of listing and
tracking materials. SEMREX expects associated employee training
requirements for the program to be minimal, as the program is
very "user friendly." Highlights of the SEMREX database
program include the ability to track users via registration data,
ticklers which prompt referral follow-up, drop-down menus with
editing procedures and conversion charts, extensive search capabilities,
e-mail contact linked to the tickler system, and fields for avoided
disposal and acquisition costs. This on-line database will also
function as the database for the twice/year paper catalogue.
Anne Morse (507-457-6468, fax: 507-457-6469; e-mail: amorse@ntl.co.winona.mn.us)
will supply any of the Roundtable participants with a simple password
in order to access the office applications that are not readily
apparent when just visiting the Web site. Moreover, since they
are in the process of completing the program, any suggestions
other exchange operators have as to additional fields or reporting
features would be very useful. SEMREX is also willing to share
its software program with other exchange programs for a small
portion of the development costs.
Faxing - There are two fax techniques. One involves use
of a computer to automatically fax new listings to specified potential
users or persons identified in categories in a database. The second,
an automatic fax-back service, sends a fax back with contact information
about a listing in response to the receipt of a faxed inquiry.
Such a system can be costly (anywhere from $10-$50,000).
E-mail Listserves - An emerging technology is to have e-mail
messages delivered automatically to a listserve as new listings
are entered. Thus any potential user of some class of materials
would be notified when a listing of the materials was received
or conversely, information on a new "materials wanted"
listing could be distributed automatically to a relevant subset
of material generators. This is similar to a fax system in practice
in some exchanges. A concern about tying up the computer too much
in sending such messages can be addressed by having the messages
sent at night. Sophisticated e-mailing of diagrams and pictures
is also emerging. There is currently a listserve for Material
Exchange Operators only; for instructions on subscribing, contact
CWMI or e-mail Gene Jones at <gjones@mailer.fus.edu>.
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TRACKING
RESULTS AND PROGRAM EVALUATION
There are several indicators of success
which programs have tried to use. The number of successful exchanges
is one quantifiable indicator of a materials exchange program's
effectiveness. The amount of material moved and the monetary value
of the exchanges are other measures. Data on the types and quantities
of materials exchanged can be used to estimate costs savings and
other benefits derived by the sponsor and other stakeholders,
but Roundtable participants agreed that calculating costs is very
problematic.
The main methods used to document successful exchanges are calls
to listing companies, mailing follow-up surveys requesting information,
and obtaining information through personal contacts. Materials
exchange representatives discussed some of their experiences with
tracking and evaluation, and outlined some methods used to document
successful exchanges:
It has been CALMAX's experience that follow-up letters to targeted
listings are usually not answered; when there are responses, most
people are just guessing at the numbers in regard to dollars saved.
In 1997, staff conducted follow-up phone calls to every listing.
The effort was extremely time consuming. They have recently implemented
a new system that requires companies to specify the duration of
a listing (3 months, 6 months, 1 year) and CALMAX calls 1-2 months
prior to termination to ask if an exchange has been made or if
the listing should be extended. This equals about 50 calls/month.
A database of successful matches is being kept.
SEMREX verifies each listing before a catalogue is published,
thereby finding out if a match has been made.
New Hampshire follows up on every exchange it can through mail
and telephone. Successful exchanges are reported in terms of tonnages
diverted; measurements (weight and volume) are easier to validate
than dollars saved. There are various ways of reaching dollar
amounts in evaluating exchanges avoided disposal costs plus material
value includes depreciation, transport costs, landfill costs.
Life cycle assessment information currently available on the Internet
may be of some use.
SWIX enters every inquiry/generator into a database. A generic
follow-up letter (See Appendix B) has had a 20 percent rate of
return; the returned responses are then followed up with phone
calls for verification and/or more information. Phone inquiries
are not tracked.
Fax-back systems do not provide for automatic tracking information.
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LIABILITY,
CONFIDENTIALITY AND REGULATORY ISSUES
None of the participating exchanges
have had any liability problems. In general, most exchanges only
arrange for contact between users and generators, and do not take
possession of a material, or transport or arrange for transportation
which thus minimizes liability exposure. The group felt that a
subscription fee for participation and for listing is unlikely
to generate liability. If an exchange takes physical charge of
a material or charges for the transaction, the liability question
is less clear. Materials exchange representatives described precautions
taken to protect themselves against liability:
California state lawyers have determined there is no liability
to CALMAX, but catalogue and Web listings carry a disclaimer statement.
New Hampshire has a disclaimer "NHME does not broker materials,
provides information only."
SEMREX - The Minnesota Materials Exchange Alliance's statewide
catalogue carries a disclaimer, and the Internet access to the
SEMREX database requires users to affirm that they have read the
disclaimer before they can receive contact information.
INWRAP carries professional liability insurance; and also has
a one page contract (any longer than one page seems to deter business
participation) to release INWRAP from liability (See Appendix
C ).
ITAC carries insurance which does not have an environmental exclusion.
As part of a Manufacturing Extension Partnership (MEP), they have
determined that their liability in providing engineering assistance
exceeds their liability for environmental risk. No MEP has ever
been sued.
See sample liability article, and other "liability reference
materials" listed in Appendix C.
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PAYING
FOR IT REVENUE GENERATION AND SELF-SUFFICIENCY
General agreement was that complete
self-sufficiency through fees-for-savings charged to generators
and recipients of materials is an unrealistic expectation for
a materials exchange:
Bill Sloan indicated that he believes that if a program focuses
on low-value materials, it cannot be self-sustaining. However,
he also indicated that self-sustainability may be possible by
limiting the focus of a program to a limited number of high-value
materials.
John Okun indicated that charging a fee is important because it
enhances program credibility. When businesses are charged for
the services they receive, they treat the service provider as
a business in a professional manner.
CALMAX's program is focused on the goal of maximizing the amount
of waste diverted by the program for reuse, rather than in generating
funds to support program operation.
Gene Jones estimates that he spends about one-third of his time
on fundraising.
Staffing Options
Because most waste exchanges operate
with very limited budgets, almost all rely partially on the use
of volunteers or low-cost employees to help with the workload.
Following are some sources:
Mayor's Volunteer Action Center, NYC, is a source of retired engineers
for INWRAP;
Americorps* VISTA (See Appendix D);
Interns from technical institutes, community college co-op programs,
college environmental programs;
Students - off campus work-study programs;
University studies, i.e., Cooper Union; research studies.
Potential Sources of Support
The materials exchanges represented
are largely dependent on budget support from federal, state, and/or
local governments, and seek to defray expenses through fees for
catalogues, listing fees, grants, or other mechanisms. The Roundtable
participants discussed other stakeholders and program beneficiaries
that might provide support or assistance to NY Wa$teMatch:
Environmental agencies; State Economic Development Agencies;
City Agencies;
Board of Education - School Materials Exchanges can foster after
school programs; student waste audits, high school projects;
Trade and business associations such as Chambers of Commerce (both
Florida and Minnesota programs started with the help of local
chambers);
Private investors - i.e., the Millennium Exchange.
Potential Funding Sources
Some possible methods for obtaining
funds and other assistance:
Grants from agencies including Economic Development, Environmental
Conservation (several representatives felt that diverse waste
stream exchanges were most likely to get government support);
grants from foundations; grants from trade groups such as American
Plastics Council;
Membership dues/subscription fees; revenues from advertising in
exchange catalogues;
Sponsorships for special events;
Cooperative marketing of recyclable/reusable materials; (10% fee
generates revenue for SEMREX);
Landfill tipping fees or other surcharge on waste transport or
disposal;
Fees for services such as percent of transaction value (cost savings
or revenues). Issues with this include difficulty of accurate
cost assessment, potential to discourage trades and thus undermining
goal. INWRAP uses a sliding scale for transaction charges. They
believe charging helps businesses take INWRAP seriously as a business.
Communicating Benefits to Garner Support
Some suggestions for communicating
benefits to stakeholders to facilitate support:
Calculate savings to make your case; use case study information
to recruit similar businesses.
Show a dollar return on savings to businesses as the best means
of obtaining funding (from state/federal agencies).
Change mind set from "generating revenue" to "cost
savings."
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TIME
FRAME FOR RESULTS IN NEW YORK CITY
What NYC can realistically expect
to happen and what else needs to be done to get the program fully
up and running includes:
Expect a slow beginning the first database and the first catalogue
are the hardest to produce.
General public information campaign; probably a multimedia approach
would be most successful for NYC at this time for generating interest
in the program.
Promote same concept to workers that they buy into at home i.e.,
reduce, reuse, recycle so that PR for materials exchange links
to the reuse concept.
Place an ad in a trade journal, the more specific, the better.
For example, an article in the New York Times in July generated
approximately 200 calls to INWRAP that led to 75-80 listings.
The extra time and effort devoted to the program in the beginning
will help to ensure future success.
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POTENTIAL
FOLLOW UP MEETING IN NEW YORK CITY
A follow-up meeting for potential
participants and stakeholders in New York City and the vicinity
to discuss ways to effectively implement Wa$teMatch may be needed.
The following topics were identified:
What opportunities are there to identify generators and users
through various permit systems?
What opportunities are there to target wastes generated by city
agencies and materials they might use?
How to maximize the effectiveness of partnerships with LDCs and
others?
Database consistency and sharing, i.e., if listings are generated
by a number of players (partners, businesses), how can they be
verified and consistent?
There is an upcoming Materials Exchange Conference in Florida.
For more information or to get on listserve, e-mail: gjones@mailer.fsu.edu
Appendixes in Original Report:
Appendix A - List of Roundtable Participants
Roundtable Agenda
Appendix B - Generic Survey Follow-Up Letter
Appendix C - Sample Waiver, Release and Fee Agreement (INWRAP)
Reference List of Liability Articles
"Liability Associated with Waste Exchanges"
Appendix D - AmeriCorps*VISTA
List of Web Sites contained in Report
Materials Exchanges on the Web