Associations address what they say are effective solutions for determining the value of recyclables and understanding material composition.

The National Waste & Recycling Association (NWRA), Washington, and the Solid Waste Association of North America (SWANA), Silver Spring, Maryland, have added two addenda to their Joint Advisory on Designing Contracts for Processing of Municipal Recyclables, which was originally issued in April 2015.

The two associations began work on the two addenda following last year’s Wastecon, which was held in Orlando.

Because members of both organizations are involved in collecting, processing and marketing residential recyclables, increasing the effectiveness and efficiency of those efforts has a direct benefit to companies and municipalities. However, achieving the goals is challenging because of variations in both the types of materials and the prices paid for the materials once processed. Cooperatively addressing both changes in the residential recycling stream and price fluctuations for recyclables are key aspects of successful recycling programs and contracts, the associations say.

“Municipalities often contract with private companies to provide some or all aspects of residential recycling collection and processing services,” says SWANA Executive Director and CEO David Biderman. “With these addenda, NWRA and SWANA intend to provide tools that will help our members better structure recycling programs to adapt to changes in material composition and market prices.”

“With these added guidelines, NWRA and SWANA have addressed the challenges and obstacles faced by public agencies and private sector contractors in designing effective residential recycling programs,” says Sharon Kneiss, president and CEO for NWRA. “Our continued development and dissemination of best practices creates a solid framework to meet the ever-evolving dynamics of the recycling market.”

The first addendum, "Understanding Material Composition," addresses variations in the types of residential recyclables recovered. The cause of the fluctuations may be as different as consumers changing their purchasing habits, producers changing packaging or a material being dropped from collection because the resale value no longer exists.

The addendum was developed to help contract parties quantify and identify material changes by auditing the content of the recyclables. The document suggests that contract parties should conduct audits before the start of a procurement process and then at regular intervals throughout the contract term. The addendum offers considerations for material composition studies as materials are delivered to processing facilities (material composition study), as they are marketed and as recyclables and/or residual materials are transported from the facilities.

The second addendum, "Methods of Determining the Value of Recyclables Handled at a Processing Facility," shares methods for determining the value of recyclables, based on the blend of materials delivered to the processing facility.

Residential recycling contracts often include steps through which a municipality and processor share some portion of the market value of the materials. SWANA and NWRA agree it is important for their members to have access to a resource describing approaches to calculating values of materials according to the composition delivered, processed and sold. The addendum discusses different approaches to calculating material value based on variable material and residue (nonrecyclable contaminant) streams.

The two addenda build on and will be attached to the original Joint Advisory on Designing Contracts for Processing of Municipal Recyclables. That advisory provided comprehensive guidelines intended to improve contracting practices for municipal recycling programs. The guidelines addressed challenges facing public agencies and private industry looking to improve the effectiveness of local residential recycling programs.

Sara Bixby, a spokeswoman for SWANA, says that while there have always been questions or concerns over pricing and quality concerns, more recently there has been a noticeable increase in the number of calls from people expressing concern over the topics.

“One thing we (SWANA and NWRA) both agree on is that recycling is a public service. It is important that people have a better understanding of what makes a good contract,” Bixby says.

As for the future, Bixby says it is likely that the two associations will tackle other issues that are important to association members.

A copy of the addenda to the Joint Advisory on Designing Contracts for Processing of Municipal Recyclables can be downloaded here.