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Resource Management Contracts: Innovative Solid Waste Management Method

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Resource Management Contracts: Innovative Solid Waste Management Method Julia Wolfe MassDEP Commercial Waste Reduction Coordinator 617-292-5987 or – PowerPoint PPT presentation

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Title: Resource Management Contracts: Innovative Solid Waste Management Method


1
Resource Management Contracts Innovative Solid
Waste Management Method
  • Julia Wolfe
  • MassDEP
  • Commercial Waste Reduction Coordinator
  • 617-292-5987 or
  • julia.wolfe_at_state.ma.us

2
Resource Management (RM) Contracts
  • What is RM
  • Overview of MassDEP project and results
  • How can hospitals benefit?

3
Solid Waste Contracts
  • Contracts primary vehicle for solid waste
    service
  • two-thirds or more of the U.S. municipal solid
    waste stream is managed through contracts.
  • Many contract managers dont understand waste
    issues.
  • Solid waste is usually not a large part of the
    budget.
  • Solid waste costs rising and recovered materials
    markets are strong.
  • Facility managers not taking advantage of cost
    cutting opportunities.

4
  • THERE ARE NO WASTE STREAMS, ONLY WASTED
    RESOURCES
  • Raj Mishra, General Motors Corporation, 1999

5
What is RM?
  • Tool or method using contractual relationship to
    emphasize/reward resource efficiency through
    waste prevention, reuse, recycling, composting.
  • Cap disposal costs
  • Include a cost sharing component on resource
    efficiency
  • Contractors will pursue resource efficiency when
    offered proper financial incentives
  • Changes the more waste more money
  • Allows generator to concentrate resources on core
    activities and resource manager to concentrate
    on waste.

6
How can a resource manager help?
  • A resource manager can help with both external
    and internal waste management activities that
    affect waste generation.

7
Assess RM Potential in MA Project Partners
  • One Beacon Street
  • Stop Shop
  • Texas Instruments
  • Harvard University
  • Fitchburg State College
  • Verizon
  • Acushnet Company
  • Shattuck Hospital
  • General Dynamics

8
MA RM Assessment Project Results
  • For the 9 organizations
  • Potential to divert additional 5,000 tons/year
  • Net cost savings of roughly 500,000
  • 14 - 48 savings as a percent of affected base
    service cost

9
Results MA RM Assessment Project
  • Some Results
  • Establish baseline
  • Upper management support
  • Not using contracts to reduce waste
  • Trash contractors have no incentive or ability to
    optimize or limit hauling or disposal services
  • Factors Limiting Adoption
  • Lack of knowledge, visibility, and understanding
  • Hauling and disposal is cheap compared to other
    organizational costs
  • Lack of profit incentives for companies to
    provide RM services

10
Massachusetts Pilots
  • Hospital Lemuel Shattuck Hospital
  • Defense Contractor Raytheon Corporation
  • Hotel Saunders Hotel Group
  • Property Management One Beacon Street
  • WasteWise RM Workshop for Hospitals

11
RM In Action at Lemuel Shattuck Hospital
  • In FY04 Shattuck saved 11,000 and diverted 44
    tons of material to recycling. Fact Sheet
    www.mass.gov/dep/recycle/files/rm/rmcontr.htmrsd
  • Excellent relationship between contractor and
    hospital.
  • Chose a recycler that subcontracts its trash
    disposal.
  • RM provider will be compensated about 10,000.

12
RM In Action at Lemuel Shattuck Hospital
  • Replaced 35 yd. compactor with 40 yd. compactor.
    Service level reduced 3x - 2x/wk. 400/month
    savings.
  • Eliminated 40 yd. dumpster for bulk debris.
    Savings from dumpster rental (approximately
    100/month), hauling and disposal costs.
    Temporary dumpster rented if needed.
  • New recycling cardboard, organics, scrap metal,
    pallets and electronics
  • Reduced administrative overhead one contract as
    opposed to many.

13
Conclusion
  • Upfront work can pay off
  • Brings in waste expert to focus on waste issues.
  • Provides incentives to reduce waste
  • Provides ability to work up the supply chain to
    reduce waste.

14
Additional Resources
There are lots of resources at your fingertips!
  • Massachusetts Case Studies MA DEPs Resource
    Management Website http//www.mass.gov/dep/r
    ecycle/files/rm/rmcontr.htm
  • Resource Management Contracting Manual
    www.epa.gov/wastewise/wrr/rm.htmmanual
  • Join the MA WasteWise Program
    www.epa.gov/wastewise
  • Earth 911 or Cleanup.org
  • www.cleanup.org

15
Contact
  • Julia Wolfe
  • Commercial Waste Reduction Coordinator
  • MassDEP
  • 617-292-5987
  • or
  • julia.wolfe_at_state.ma.us
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