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Diversion RateMeasurement System

April 4, 2006

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Diversion RateMeasurement System

Diversion, Planning & Local Assistance Staff: Collect, verify and

maintain data Provide Automated Tools Review Annual Reports Conduct Biennial Reviews Provide Technical

Assistance to Jurisdictions

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Diversion Rate EstimateOne Indicator of Diversion Program

Success

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BACKGROUND INFORMATION

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Jurisdictions conducted solid waste generation studies Quantified amounts and types of both diversion &

disposal Submitted studies in Source Reduction & Recycling

Elements (SRRE) The Board reviewed, corrected and approved

studies First time generation was quantified

statewide for each jurisdiction Jurisdictions were to measure

generation again in 1995 & 2000

Diversion Rate Estimationin the Beginning (AB 939)

AB 939 (Sher), Stats. 1989, c. 1095

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For measuring achievement of 1995 and 2000 diversion mandates: Generation study data became starting point

(Base-Year) for all future measurement Required “standard” methodology

for estimating waste generation Required new disposal reporting

system (DRS)

New Role for Original Waste Generation Studies

(AB 2494)

AB 2494 (Sher), Stats. 1992, c. 1292

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THE “BIG PICTURE”

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Farmers/Grower Remove & Bale

ContractHauler/Collector

WashingFacility

Baled, FlakesRe-Pellitize

Recycler/BrokerBales or

Washs & Bales

Agricultural & Food Processing Film

Film Plastic Recovery & Recycling Flow

Re-ProcessorWashs,Flakes

Re-Pellitize

Landfill

Export Broker

ManufacturerNew Film Product

Plastic Lumber

Food Processor/Other Agricultural

“Clean Film”

“Dirty Film”.

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Three Primary Components of

Measurement System

Base Year Generation Base Data from Jurisdiction Generation

Studies Adjustment Method

To correct base data for changes over time Measurement Year Disposal

Measurement Year Data fromDisposal Reporting System

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BASE YEAR GENERATION

+DisposalDisposal DiversionDiversion

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BASE YEARBASE YEAR

The base year is the foundation for diversion rate measurement

An accurate base year is critical for accurate diversion rate estimates

Each jurisdiction (city, county, or regional agency) is required to establish a base year

Many jurisdictions have updated their base years since the original studies

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Disposal of Waste Generated within Jurisdiction Borders

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Diversion of Waste Generated within Jurisdiction Borders

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Issues withBase Year Data

More accuracy issues have beenidentified over time

Initially generation based Less generation viewed as less to divert

Limited diversion data Disposal data issues

No disposal data by jurisdiction Missed self haul disposal Missed seasonal variations in disposal

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Issues withBase Year Data (cont’d.)

Lack of scales at facilities Complex waste flows/significant

changes to waste stream over time No statutory requirement to

periodicallyestablish new base year data to reflect changes

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ADJUSTMENT METHOD

More People?More Jobs?More Sales?

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The IWMA required the Board to develop an adjustment method (AM)

The Board adopted the method developed by a working group

The adjustment method estimates changes in generation due to changes in population and the economy

without having to measure both diversion and disposal in the measurement year

Saves jurisdictions time and money

Depends on anaccurate base year

ADJUSTMENT METHODADJUSTMENT METHOD

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Adjustment Method Premise

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1990

200X

PRC 41780.1 & 41780.2

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Adjustment Method Formula

Adjustment Method Formula Steps: (1) IM = Inflation Multiplier: CPIB/CPIR (2) CTR = Corrected Reporting—Year Taxable Sales in Dollars: TR x

IM (3) NRAF = Non—Residential Adjustment Factor: (ER/EB + (CTR/TB)/2 (4) RAF = Residential Adjustment Factor: (PR/PB) + NRAF/2 (5) Estimated Reporting Year Generation: (RWGB x RAF) + (NRWGB x

NRAF)

Glossary of Terminology: RWGB=Base-Year Residential Waste Generation in Tons NRWGB=Base-Year Non-Residential Waste Generation in Tons PR=Reporting-Year Population in Persons PB=Base-Year Population in Persons ERLF=Reporting-Year Labor Force Employment in Jobs ERIN=Reporting-Year Industry Employment in Jobs EBLF=Base-Year Labor Force Employment in Jobs EBIN=Base-Year Industry Employment in Jobs TR=Reporting-Year Taxable Sales in Dollars TB=Base-Year Taxable Sales in Dollars CPIR=Reporting-Year Consumer Price Index CPIB=Base-Year Consumer Price Index

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Residential vs. Non-Residential

Measurement year residential and non-residential generation amounts are estimated separately Affected differently by changes in population

and the economy. Population is used only with the residential

estimate. The residential and non-residential

estimates are added to find total measurement year generation tonnage.

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Population-(CA Department of Finance)

Employment-(CA Employment Development Department)

Taxable Sales-(CA Board of Equalization)

Inflation Index-(provided on another slide)

Adjustment Factors(and Sources)

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Adjustment Factor Trends

This graph shows percent change in population, employment, inflation-adjusted taxable sales, and waste disposal for California, 1991-2004 (base year = 1990). 

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Taxable Sales Inflation Adjustment Factors (and sources)

Inflation Adjustment Factor adjusts taxable sales amounts for inflation

Consumer Price Index (CPI) -(CA Department of Industrial Relations)

Taxable Sales Deflator Index (TSDI)-(CA State Board of Equalization)

Note: Board Item in September 2005authorized future use as alternative factor

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Comparison of Inflation Indexes: CPI vs. TSDICalifornia Consumer Price Index (CPI) vs. Taxable Sales Deflator

Index (TSDI), 1985-2004 (1985=100)

100.0

110.0

120.0

130.0

140.0

150.0

160.0

170.0

180.0

190.0

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Year

Ind

ex

CPI TSDI

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Web Tools Perform Adjustment Method Calculations

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Jurisdictions are Diverse

2004 PopulationSmallest: 95

Middle: 38,597Largest:

4,684,951

2004 Taxable Sales(x$1,000)

Smallest: 105Middle: 464,571

Largest: 45,664,110

% ResidentialMinimum: 0%

Middle: 37%Maximum: 97%

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Review of the Adjustment Method

The Board reviewed the AM during SB2202 An AM Review Working Group also met

in 2004-2005 Taxable Sales Deflator Index recommended

Multiple reviews with many participants indicated there is no alternative method for the current diversion rate measurement system that Uses readily available data for all jurisdictions And is more accurate

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Issues with the Adjustment Method Seldom well understood Data from other agencies not

available until December of the following year

Long delay in diversion rate estimates May not work well for:

Small jurisdictions Fast growing jurisdictions Industrial jurisdictions

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DISPOSAL REPORTING SYSTEM

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All sources of solid waste Residential, commercial, industrial, self-

haul, construction & demolition, military, institutional, marine, etc.

From all types of haulers Franchised, public and private,

commercial, self-haulers, etc. Disposed anywhere

Within same county or in other counties, states or nations

Export is not disposal reduction

DisposalIncludes:

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Disposal Reporting System (DRS)

Uniform system to determine where waste is from

Extensive stakeholder input in the development of regulations

System requires tracking of information on an ongoing basis

Reported information is summary data based on the tracked information

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Who Reports in the Disposal Reporting System

(Tracks tons by Jurisdiction-of-Origin)

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END OF QUARTERLY PERIOD3/31, 6/30, 9/30, 12/31

FRANCHISED/CONTRACTED HAULER REPORTS ARE DUE TO

FACILITY OPERATORS4/15, 7/15 10/15, 1/15

TRANSFER/PROCESSING STATION REPORTS ARE DUE TO OTHER

TRANSFER STATION FACILITIES(IF APPLICABLE)

4/30, 7/31, 10/31, 1/31

TRANSFER/PROCESSING STATION REPORTS ARE DUE TO LANDFILL/

TRANSFORMATION FACILITIES5/15, 8/15, 11/15, 2/15

FACILITY OPERATOR REPORTS ARE DUE TO HOST AGENCY (AND AFFECTED JURISDICTIONS UPON

REQUEST)6/15, 9/15, 12/15, 3/15

AGENCY REPORTS ARE DUE TO THE BOARD AND TO AFFECTED

JURISDICTIONS7/15, 10/15, 1/15, 4/15

ANNUAL REVISIONS TO PRIOR YEAR ARE DUE BY 5/15

INVESTIGATE, RECONCILE, INPUT DRS DATA FOR JURISDICTION

ANNUAL REPORTS

2 weeks

2 weeks

2 weeks

4 weeks

4 weeks

Summer/Fall

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Issues with Disposal

2004 Disposal (Tons)Smallest: 486Middle: 43,617

Largest: 4,747,081

Self-Haul Sector – More difficult to track by jurisdiction

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Waste Flows Beyond Boundaries

Los Angeles County: Waste Outflow to Landfills in 2003

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Revisions to Disposal ReportingRegulations (Effective 1/1/06)

Based on SB2202 recommendations and public input process

Revised regulatory requirements: Scales & weighing Training of staff Origin survey frequency Methods for determining jurisdiction of origin Tracking/reporting tons & origin Records & access to records

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PUTTING IT ALL TOGETHER

BASE YEARBASE YEAR

ADJUSTMENT METHODADJUSTMENT METHOD

DISPOSAL REPORTINGDISPOSAL REPORTING

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Jurisdiction Base Year DataStandard Diversion Rate Calculation

80 Tons Base Year Generation

Disposal: All Landfilledand Transformed Waste

20 TonsDiverted

60 TonsDisposal

Base Year Generation

Diversion: All Source Reduction, Recycling, & Composting

=

+

BASE YEAR

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Adjusting Base-Year to Estimate Measurement Year

Generation = 80 Tons

Adjusted Generation = 100 Tons

MEASURED IN BASE MEASURED IN BASE YEARYEAR

ESTIMATED IN MEASUREMENT ESTIMATED IN MEASUREMENT YEARYEAR

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Jurisdiction MeasurementYear Disposal Data

e.g., Documented: -disaster waste -allocation errors

200X200X

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Estimating MeasurementYear Disposal Rate

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Estimating the Measurement-Year Diversion Rate

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Transformation and Biomass Diversion Credits

Jurisdictions are allowed to claim two types of diversion credits (transformation or biomass) that modify the measurements.

If a jurisdiction claims one of these types of diversion credit, it may not claim the other type of credit.

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Biomass Diversion Credit Biomass Credit Limit—10% of Generation

If the estimated measurement-year generation (without biomass) is 100 Tons

And the tonnage sent to the biomass facility is 20 Tons (20%) of measurement-year generation

And the diversion rate without biomass is 40%

Then the biomass credits allotted are 10% (max.)

And the biomass-adjusted diversion rate is 50%

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Optional Transformation Diversion Credit

Waste sent to permitted transformation facilities counts as disposal

Transformation is also called waste-to-energy 3 permitted transformation facilities in California

Starting in 2000, a portion of waste sent to transformation may count as diversion

Up to 10% of a city’s waste generation that is sent to transformation may count as diversion each year

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Landfilled = Disposal

Transformed = Disposal

Source Reduced, Recycled, or Composted = Diversion

Estimated 200X Generation

Traditional Diversion

Disposal

100 Tons Generated – 50 Tons Disposed =

50 Tons Diverted

40 Tons

100 Tons

50 Tons

Transformed = Diversion

200X DIVERSION RATE:Up to 10% Transformation Credit

Transformation Credit 10 Tons

10%Credit Limit

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Diversion Rates are Indicators

The estimated diversion rates are only one indicator of jurisdiction’s compliance with AB 939

Diversion rates cannot be calculated until all adjustment factor data is available

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2004

2005

20062004 Report Year

Population (May 2004)

CPI(March 2005)

Employment (June 2005)

Taxable Sales (December 2005)

Statute Due Date: August 1, 2005

Disposal Data Available

(September 2005)

Extended Due Date: March 1, 2006

2003/04 Biennial Reviews Begin:

September, 2006

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Statewide Diversion Rate Estimate

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SYSTEM REVIEW & IMPROVEMENTS

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System Review & Improvements Background

Diversion rate measurement accuracy and compliance have been issues since early 1990’s

Diversion rate measurement system is complex

Several Board efforts over time to improve measurement accuracy and impact on compliance All involved extensive stakeholder input

Statutory and regulatory revisions have been made to improve accuracy

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Current Efforts Fall 2004 -- started public process to identify

options for an alternative system Issues with existing system:

Measurement system is complex Some data needed to calculate diversion rates

(adjustment factors) not available until 1 year after measurement year

About ½ of jurisdictions have 1990 base years (used in calculations) that may no longer be accurate

Disposal data more accurate for larger areas with fewer boundaries rather than individual jurisdictions

Small, rural jurisdiction disposal data has large annual fluctuations

Addressing accuracy issues is time consuming

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Current Efforts (cont’d.) Stakeholders wanted:

Timely measurement Flexible system Accountability Simple system Cost-effective system Use measurement as indicator and focus

on diversion program implementation

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Option for Alternative Compliance System

Staff developed option to meet criteria Option distributed to stakeholders, discussed at

public workshops Option built on existing system

Legislature will set new goal/requirement Relies on countywide disposal data as indicator

Consistent with statutory intent to reduce waste disposal and Board’s zero waste goal

More accurate disposal data with newly revised regulations Focus on diversion programs – they reduce waste

disposed Reduce time spent on measurement issues and progress

reports to Board Keep Board’s existing Biennial Review framework for

reviewing jurisdiction progress with some changes

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Comparison of SystemsExisting System Jurisdiction adopts plan

to achieve 50% diversion

Jurisdiction implements diversion plan

Jurisdiction submits annual progress report

Diversion rate Adjustment method

accounts for growth Diversion program

implementation

Board Option Jurisdiction adopts plan

to achieve new disposal requirement

Jurisdiction implements diversion plan

Jurisdiction submits biennial progress report

Countywide disposal as indicator

Describe growth Diversion program

implementation

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Comparison (cont’d.)Existing System

Biennial Review (cont’d.) Allows “good faith

effort” if diversion programs fully implemented, but diversion rate is not met

Compliance order based on diversion program implementation

Board Option

Biennial Review (cont’d.) Allows “good faith

effort,” including consideration of growth, if diversion programs fully implemented, but countywide disposal requirement is not met

Compliance order based on diversion program implementation

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Comparison of Systems (cont’d.)Existing System Board reviews

jurisdiction progress every two years (Biennial Review)

Diversion rate

Evaluate diversion program implementation

Increased scrutiny of diversion program implementation if diversion rate not met

Board Option Board reviews jurisdiction

progress every two years (Biennial Review)

Countywide disposal as indicator

Evaluate diversion program implementation

Increased scrutiny of diversion program implementation if countywide disposal requirement is not met

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Statewide Diversion Rate Estimate

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Status of Alternative Compliance System

Board directed staff to submit option for an alternative compliance system to Legislature

Board and stakeholders will have opportunity to participate in development of any legislation dealing with the option and the new disposal goal/requirement

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“WRAP-UP” SUMMARY

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Summary of Key Points

Diversion rate estimate is an indicator Jurisdiction progress is based on

Diversion rate estimate, AND Program implementation

Several adjustment method reviews concluded there is no alternative method that: Uses readily available data for all jurisdictions And is more accurate

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Summary of Key Points (Cont.)

Many diversion rate estimate problems relate to base year data accuracy 192 jurisdictions (45%) have

1997-2003 base-years 232 jurisdictions (55%) have

1989-1996 base-years

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Summary of Key Points (Cont.)

DRS accuracy should improve beginning with 2006 data

Board will be reviewing jurisdiction progress in upcoming biennial reviews starting September 2006

Legislative discussions will be starting on an alternative compliance system that addresses many issues

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Questions?

For more information on the diversion rate measurement system, see www.ciwmb.ca.gov/LGCentral/sitemap.htm