RECYCLING AND THE ECONOMY Gerry Fishbeck Chair SC

RECYCLING AND THE ECONOMY Gerry Fishbeck, Chair SC Recycling Market Development Advisory Council (RMDAC) October 27, 2011

RECYCLING MARKET DEVELOPMENT ADVISORY COUNCIL 14 Governor-appointed members representing: • • Commerce Counties Municipalities Solid waste industry Existing recycling industry Glass industry Paper industry • • Aluminum industry Plastics industry Tire industry General public Oil industry Scrap metal recycling industry Higher education research institutions

RMDAC • Housed at SC Department of Commerce • RMDAC’s mission is to advocate opportunities to develop sustainable markets, support the growth of South Carolina’s recycling industry, and advise the state on efforts required to increase recovery of recycled materials. • Supports market development activities for recyclable commodities – paper, plastic, metals, electronics, construction and demolition materials, tires, etc.

RMDAC • Funding received annually from Department of Health and Environmental Control (DHEC) for staff support from Commerce to RMDAC and its programs • DHEC gets its funding from the Solid Waste Trust Fund from the collection of Advanced Recovery Fees on tires, batteries, oil, appliances • Commerce and DHEC partnership

ECONOMIC IMPACT • 2006 study: recycling annual economic impact of $6. 5 billion • 325 businesses that broker, haul, process and/or manufacture recovered materials • 15, 600 jobs. Jobs impact: 37, 440, For every 1 job in recycling, economic impact of 2. 4 jobs. • Annual estimated income impact of $1. 5 billion • $69 million state tax revenue • Growth in recycling businesses of 12% annually; economic impact of $11 billion in 2011

Year Total SC Recycling Investment FTE's Investment % Total Recycling % of FTE's Investment FTE's 2006 $2, 983, 739, 000 14, 398 $844, 000 850 28% 6% 2007 $4, 050, 047, 444 15, 688 $929, 000 620 23% 4% 2008 $4, 169, 751, 439 18, 993 $1, 137, 000 1, 379 27% 7% 2009 $2, 385, 521, 454 18, 012 $354, 000 1, 354 15% 8% 2010 $4, 058, 229, 439 20, 443 $438, 000 1, 130 11% 6% 87, 534 $3, 702, 000 5333 21% 6% Total TOTAL: $3. 7 billion in investments over the past four years $17, 647, 288, 776 2010 Investment: $438 million, 1130 jobs, 28 companies Recycling is growing at an annual rate of 12% which is faster than many other sectors of the economy! Source: South Carolina Department of Commerce, FTE’s - Full Time Equivalents

$ B O J Materials Buy Recycled Products Recycling Equipmen t Mfr Reusing End Users Recyclin g Collectin g Remanufacturing Processin g Brokering Exporting

Business Activity by Commodity (SC Department of Commerce Database)

Untapped SC Recycling Potential FY 10 Industrial Commercial Landfilled Recycled Residential 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000

In 2010, 500, 000 tons of paper, plastic, glass, and metal was sent for landfill disposal. More than $18 million was spent to dispose of this material. $72 million lost in potential revenues to SC Office of Solid Waste Reduction and Recycling) Net Loss = $90 million (Source: DHEC

BEYOND LOSS OF FEEDSTOCK. . WHAT ARE THE OTHER CHALLENGES?

waste is a utility similar to water & electricity – it is not free recycling = jobs, business growth & prosperity size matters in this industry there is a public and private cost for not recycling you don’t recycle? not cool vague understanding among public that recycling does something good

IF I WERE LEGISLATOR FOR THE DAY, I WOULD…. .

support policy that ensures market consistency & sustainability fix the landfill cost structure with full costs covered implement land advanced disposal fill bans on fees & producer recyclables responsibility volunteerism alone is not reliable mandate recycling implement incentives to encourage material undertake tax reform recovery

HOW RECYCLING CLUSTER FORMED… Economic Impact Study in 2006 RMDAC and New Carolina-SC’s Council on Competitiveness – drivers Cluster – think Napa Valley, Silicon Valley

Bus. environment Joint marketing Firm formation Regulations and policy Joint product branding Incubator services Infrastructure Joint region branding Spin-off promotion Joint foreign market Business services investment promotion Value chain Joint purchasing Joint logistics Intelligence Market intelligence Technical training Technical trends Management training Technical standards Joint production Supply-chain development Process/HR Joint R&D projects Education system Production processes

RECYCLING CLUSTER Recycling Industry Group (formative name) 5 committees (Value Chain, Business Environment, Firm Formation, Joint Marketing, & Cross Functional (HR, R&D, Intelligence) Policy, infrastructure, networking, markets focused

TIMELINE… Fall 2007 – held first cluster meeting Anchor company – Sonoco Chair: Ronnie Grant, Sonoco Recycling Developed RIG Action Plan Winter 2008 Held first Recycling Industry Legislative Day February 7, 2008 Recycling Industry recognized by the House and Senate through resolution Implemented Action Plan components in 2008

2009 ACCOMPLISHMENTS Business Environment: 1. SC Reduce Reuse Recycle license plate 2. SC Recycling Industry Legislative Day with CRA on April 21, 2009 – recycling incorporated into renewable energy definition • House/Senate Resolutions recognizing industry

2010 ACCOMPLISHMENTS • Raised $30 K for Strategic Plan; kicked off with CEO Roundtable Jan. 29, 2010 Plastics Provider, Inc.

2010 ACCOMPLISHMENTS • CEO Roundtable Held; Strategic Plan Delivered Aug. ‘ 10 • 2010 meetings – Jan. 12, May 11, and Sept. 14 • Special Projects §February 3, 2010 Legislative Day §Share the Load at SCTAC §Reduce Reuse Recycle Plate to general public in Jan on SC DMV

2011 ACCOMPLISHMENTS §Prioritization of Strategic Plan activities Dec 16 -17, 2010 §Share the Load kick-off April 26, 2011 §Renamed RIG to SC Recycling Council §March 2011 Legislative Day – CRA, SERDC, New Carolina partners §S 461 –ABC Recycling Bill passed out of Senate §E-Cycling legislation; ban §SC Recycling Marketing campaign kicked-off

NEXT STEPS… §SCRC affiliation w/other recycling groups § SERDC, SCRA §Brand recycling – target audiences legislators, businesses, consumers, potential members §House version of ABC recycling bill §Joint project on increasing glass recycling with DHEC, CRA, SERDC, SWANA, and RMDAC §Legislative Day February 2012

Recycling Market Development Support Staff: Advisory Council Gerry Fishbeck, Chair URRC 864 -574 -0904 gfishbeck@urrc. net SC Recycling Council Chair Ronnie Grant, Sonoco 843 -383 -7665 Department of Commerce Recycling Market Development Chantal Fryer 803 -737 -0477 cfryer@sccommerce. com