RECYCLING AND THE ECONOMY

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

2. 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

3. 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.

4. 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

5. 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

6. TOTAL: $3.7 billion in investments over the past four years 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

7. Reusing Exporting JOB$ Brokering

8. Business Activity by Commodity(SC Department of Commerce Database)

9. Untapped SC Recycling Potential FY10

10. Net Loss = $90 million

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

12. 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 vague understanding among public that recycling does something good you don’t recycle? not cool

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

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

15. 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

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

17. 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

18. 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

19. 2009 ACCOMPLISHMENTS • Business Environment: • SC Reduce Reuse Recycle license plate • SC Recycling Industry Legislative Day with CRA on April 21, 2009 – recycling incorporated into renewable energy definition • House/Senate Resolutions recognizing industry

20. 2010 ACCOMPLISHMENTS • Raised $30K for Strategic Plan; kicked off with CEO Roundtable Jan. 29, 2010 Plastics Provider, Inc.

21. 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

22. 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

23. 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

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