commercial organics management options

Commercial Organics Management Options

ENGAGEMENT – OCTOBER 15 2020

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Commercial Organics Management Options

METRO VANCOUVER SOLID WASTE FACILITIES

Sarah EvanetzDIVISION MANAGER PROGRAMS AND PUBLIC

INVOLVEMENT

• Background

• Market Sounding Study Findings

• General Feedback

• Contamination

• Operational suggestions

• Possible Metro Vancouver Commercial Organics Service

• Next Steps

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Agenda

Metro Vancouver:

• Regulates facilities and

encourages organics innovation

and investment

• Provides organics services at

transfer stations:• Yard trimmings at transfer stations

• Small amounts of food scraps

• Municipal organics services upon request

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Regional Organics Management

• 64% overall recycling rate

• 68% organics recycling rate

• Greatest opportunity is recovering organics

from multi-family and commercial and

institutional sectors

• July 2019 Board Resolution:

“ Direct staff to develop a business case for the

provision of commercial organics transfer

services at Metro Vancouver transfer stations

and report back on options.”7

Opportunity – Driving Organics Recovery

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Regional Organics RecycledTo

nn

es

0

100,000

200,000

300,000

400,000

500,000

2013 2014 2015 2016 2017 2018

Sector Composted (t) Remaining in

garbage (t)

Recycling

Rate

Yard Trimmings 110,000 <100

Single-Family

Organics

215,000 50,000 80%

Multi-Family Organics 30,000 70,000 30%

Commercial Organics* 85,000 90,000 50%

Total 440,000 210,000 68%

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Organics Composted vs. in GarbageAcross the Region as of 2018

* Excludes any commercial organics that are processed outside the region

• Explored feasibility of commercial

organics transfer service at Metro

Vancouver transfer stations

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Commercial Organics Market Sounding Study

• Surveyed 54 processors,

haulers and generators

• Conducted Spring 2020

• Many were supportive of supportive of Metro Vancouver’s

consideration of commercial organics receipt at transfer stations

• Some challenges noted with current market:

• Limited drop off locations

• Costs high

• Lack of service consistency across current processors

• Difficulty for small companies to compete

• Limited processing options reduces competition

• Noted that new service in areas without a processor, such as North

Shore, would improve operational efficiency for haulers

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Study Findings – Haulers

• Most are satisfied with current organics service and

ambivalent about Metro Vancouver’s involvement in

commercial organics transfer

• Collection typically contracted out to third-party hauler and

most respondents noted that their current contracts are

reliable and convenient

• Preference that organics be used as a resource rather than

disposed or incinerated

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Study Findings – Generators

• Concerns were noted with Metro Vancouver role in transfer services

• Many stated the importance of a fair and balanced business

environment among processors and high entry cost

• Concerns were noted with organics processing out of region as

regulations are different

• Many noted that contamination as the biggest challenge with

commercial organics stream and add cost

• Several suggested new regulations are needed to address

contamination

• Several support needed for compost end markets

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Study Findings - Processors

• Contamination is key issue for the industry

• Haulers manage contamination issues through visual load

audits at point of collection

• Processors assess contamination through visual

inspections when loads enter the facility

• Majority of processors charge for contamination, some

reject loads

• Education important

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Study Findings - Contamination

• Truck wash area needed

• Preference for third-party operator

• Processing should remain in Metro Vancouver Region to

reduce carbon footprint associated with transport

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Study Findings – Operational Suggestions

Does this capture your perspective on the

market/initiative?

Anything missing?

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Discussion

• Potentially available at North Shore and replacement

Coquitlam Transfer Station

• Resilient service to ensure that all haulers have access to

organics drop-off

• Provided under contract with third party following public

procurement

• Contamination thresholds in place

• Fees and thresholds included in Tipping Fee Bylaw

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Possible Elements of Metro Vancouver Transfer Service

• Cost Components

• Indirect costs associated with the overall transfer station

operation (such as scales, disposal ban inspectors etc.)

• Direct Costs to manage and transport organics (identified

through RFP)

• Pricing Options

• Full cost recovery: direct contract costs plus indirect costs such

as land and overhead

• Direct cost only: costs directly related to processing the organics

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Cost/Pricing Options

Full Cost Recovery Partial Cost Recovery

Opportunities • Levels playing field

• Promotes innovation

/investment

• Encourages recycling over

disposal

• Promotes access for small and

large haulers

Challenges • Higher cost could

drive organics to

disposal

• Could discourage investment by

processors

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Pricing: Opportunities and Challenges

If Metro Vancouver were to implement this service, should it charge full-cost

recovery? Are these the appropriate opportunities and challenges?

• Loads with a defined contamination threshold (likely 5% by

volume based on visual inspection) would be rejected to be

treated as garbage with fees likely consistent with the

garbage tipping fee plus the disposal ban surcharge of 50%

Is 5% an appropriate threshold?

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Contamination Management

Are there any considerations around this possible service we

have missed?

Do you have any other ideas regarding the initiative to accept

source separated organics at the North Shore and Coquitlam

transfer stations to share?

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Discussion

• Additional input to share? Complete online questionnaire at

metrovancouver.org and search “commercial organics”

• Review engagement input and consider options

• Additional meetings as required

• Zero Waste Committee and Board report

• Sign up to receive solid waste notifications

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Next Steps

Thank you