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CIWMB Recycling Markets Panel Discussion Presented by Chuck Schmidt, Market Area Vice President

CIWMB Recycling Markets Panel Discussion Presented by Chuck Schmidt, Market Area Vice President Waste Management Recycle America, LLC. WMRA AND THE CURRENT MARKET. The commodities will come back…. Deployment of Single Stream Technology. WM Recycle America; current market perspective.

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CIWMB Recycling Markets Panel Discussion Presented by Chuck Schmidt, Market Area Vice President

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  1. CIWMB Recycling Markets Panel Discussion Presented by Chuck Schmidt, Market Area Vice President Waste Management Recycle America, LLC.

  2. WMRA AND THE CURRENT MARKET The commodities will come back… Deployment of Single Stream Technology

  3. WM Recycle America; current market perspective. • Recent volatility is a result of a number of factors: • Overall worldwide economic downturn has reduced demand for fiber, plastics, and metals • Domestic end-use fiber mills are taking temporary extended downtime due to lack of finished-goods orders. • Reduction in the amount of material Asian mills are buying due to lack of global demand for end-product.

  4. WM Recycle America; current market perspective. • In our view the global impact has been felt in 4 core areas • Logistics • Many MRF operators are refusing to take additional material • Fixed MRF Operating Costs • Lower material value has added pressure on MRF capital investment • Added inventory burden, both on-site and at 3rd party warehouses • Added costs • Regulatory Issues • Municipal Impact • Loss of much needed rebate revenue • We have seen viable RFPs canceled • Risk loss of public trust in recycling and its impact on sustainability.

  5. WM Recycle America; current market perspective. • Rebates to customers are adjusted according to market prices • Fees for collection and recycling could be deployed. • We see this as a temporary situation • Prices will be slow to recover to 5 average • Closely monitor rebate structures with customers • Step up residue reduction efforts through public education

  6. Recommendations… • Expand market development and quality processing incentives • Increase DOC supplemental payments to operators to offset falling commodity pricing. • Relax regulatory requirements related to on-site outdoor storage • Increase intra-state post consumer recycling content requirements • The Western States should also work more closely in setting uniform minimum recycled content requirements for newsprint, glass, rigid plastic packaging containers, telephone and other directories. • We believe the Western Climate Initiative offers an excellent model for a multi-state/provincial approach that could help strengthen the regional market for recovered materials. • We recommend the board work with California retailers to encourage voluntary efforts to green their supply chains by requiring greater recycled content in both goods and packaging materials.

  7. Questions?

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