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SOLUTIONS Diversion of Waste The Business Case for Going Green By Michael Younie Improving its organics diversion program helped the District of Mission, British Columbia, control storm water control and extend landfill life, among other benefits. This article originally ran in Volume 12, Issue 2, of the GFOA’s Canadian Finance Matters newsletter. the region determined that composting was far less costly than other disposal options. T DIVERSION PROGRAMS he District of Mission, British Columbia, recently took steps to improve its comprehensive organics diversion program. The results have had a positive economic and environmental impact, including extended landfill life, storm water control, and even, somewhat unexpectedly, better meal planning. Organic materials received at a typical municipal solid waste landfill include wood waste, yard waste, and food waste. Approximately 50 percent of residential waste collected at the curb is organic in nature — typically food waste scraps, but also food-contaminated cardboard, napkins, paper towels, etc. Organic material degrades in the landfill, in the absence of oxygen, to produce methane and other gases. Methane is a greenhouse gas that is approximately 21 times as potent as carbon dioxide generated by burning fossil fuels and is also a byproduct of composting. Recently, the Region of Niagara, Ontario, commissioned a comprehensive study to determine the true cost of managing organic waste materials. The study undertook a full-cost accounting review of food waste and leaf-andyard waste composting throughout the region, as compared to other waste management options such as landfill and waste-to-energy (WTE). Ultimately, The District of Mission had been diverting yard waste and food waste for many years, but it was not in a position to aggressively promote diversion of food waste because the receiving compost facility, in a neighboring community, was not able to receive large amounts of material. To address this issue, the district provided every residence within the curbside collection area with a 48-liter (12.7 gallon) food waste bin that was of durable construction, had a secure locking lid, and was designed to be easy to keep clean. At the same time, in June 2011, a private company was retained to start processing compost at the districtowned landfill site. As a result, the district has realized savings in terms of transport costs to the previous composting company and expects to see further savings in curbside collection, as all trucks collecting organics, recycling, and garbage can now go to one location. The results to date are impressive, with approximately 50 percent of the food waste being diverted from the landfill. It is hoped that, with continued education and incentives, the amount of food waste within the curbside garbage that is buried at the landfill will be negligible. This strategy also allows staff to begin working with local businesses, August 2012 | Government Finance Review 65 giving them the ability to reduce their garbage disposal costs by diverting organic materials. Government Finance Officers Association 2 IT’S AS EASY AS 3 GFOA YIELDADVANTAGE ® The •Fast • Efficient • Transparent Way to Streamline the Investment Process With GFOA YieldAdvantage® you can save time, save effort, and invest efficiently — with complete transparency. Log in and state the terms of your solicitation 2 Watch as banks and broker/ dealers submit quotes 3 Choose the quote(s) you want to accept and exchange settlement instructions For more information visit http://www.gfoayield.com/ 66 Government Finance Review | August 2012 The district has also started diverting wood waste at its landfill. Clean wood waste can be composted, while contaminated wood waste such as plywood and painted wood can be chipped and mixed with soil to reduce the amount of clean gravel required to cover garbage in the landfill. Wood waste can account for as much as 40 percent of a landfill’s total tonnage, and simply grinding the wood can reduce the volume of required landfill air space by 40 percent without any diversion of the material. It is also likely that a market will soon be identified to accept some of the contaminated wood waste for bioenergy production. REAPING BENEFITS Mission’s organics diversion program has extended the life of its landfill by 15 years, according to a recent business case evaluation. There are other benefits, as well. The district receives some of the finished compost at no charge and uses it for park landscaping and to provide residents with free compost at various times of the year to promote environmental awareness. The business case also determined that diverting organics will keep the district below the regulatory limit for methane emissions, thereby averting a requirement to install an expensive landfill gas collection system. Remaining below the regulatory limit would also allow the district to sell any carbon credits associated with landfill gas collection for a much longer time, if gas collection were to make economic sense. Another point to consider is landfill leachate treatment. Given that the Mission area receives close to 2 meters (6.56 feet) of rainfall every year, treating leachate, or the liquid that drains from the landfill, is a significant issue that must be managed. Degrading organics in a landfill are responsible for increasing the toxicity of this liquid, so it is hoped that diverting a significant portion of the organics will make it easier to treat the leachate over time. A proposed change to the district’s subdivision control bylaw will require all new urban developments to apply 30cm (11.8 inches) of amended soil — a mix of sand and compost — to lots. This is widely recognized as an important measure to reduce storm water generation, irrigation requirements, and the need for fertilizers and herbicides. The need for amended soils has the important benefit of generating an additional market for finished compost. Mission’s food waste bin was branded as the “Rot-Pot,” which turned out to be an important component of resident recognition of the program. Residents have let staff know that composting has made them become more aware of how much food is wasted, and better meal planning has been one of the unexpected benefits of the program. CONCLUSIONS From storm water control to improved landfill leachate quality and extended landfill life, the environmental benefits of a comprehensive organics diversion program are obvious. Recognizing and accounting for the many economic benefits may allow your municipality to save green on two accounts. y MICHAEL YOUNIE is director of develop- ment services for the District of Mission, British Columbia.