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Fair Pricing Strategies Resources for Additional Information Pay-As-You-Throw: An Implementation Guide for Solid Waste Unit-based Pricing Programs: If you would like assistance www.mass.gov/eea/docs/dep/recycle/reduce/m-thru-x/pguide04.pdf. implementing a UBP system, contact: Rate Structure Design: Setting Rates for a Pay-As-You-Throw Program: http://archive.epa.gov/wastes/conserve/tools/payt/web/pdf/rsdhandbook.pdf Josh Kelly, ANR-DEC, Fair Pricing Strategies Solid Waste Program for Trash in the Northeast Kingdom Pay-As-You-Throw Toolkit: archive.epa.gov/wastes/conserve/tools/payt/web/html/toolkit.html (802) 522-5897 or Act 148, Vermont’s Universal Recycling Law website: www.anr.state.vt.us/dec/wastediv/solid/ [email protected] act148.htm Paul Tomasi, NEKWMD (802) 626-3532 or Vermont’s Universal Recycling Law (Act 148) requires that all municipalities and Northeast Waste Management Officials’ Association UBP website: A family that generated [email protected] private trash haulers implement a “variable rate pricing system” by July 1, 2015 www.newmoa.org/solidwaste/projects/smart 3 bags of trash a week that applies to the collection of municipal solid waste (MSW) from all resi- Massachusetts Department of Environmental Protection Pay-As-You-Throw website: dences in Vermont. Unit-based Pricing (UBP) is another name for a variable rate found they could easily www.mass.gov/eea/agencies/massdep/recycle/reduce/pay-as-you-throw-payt.html pricing system.1 This document describes how UBP works and the experiences of recycle a lot of what they Connecticut Department of Energy and Environmental Protection SMART website: communities in the Northeast Kingdom that have already adopted it. www.ct.gov/deep/cwp/view.asp?a=2714&q=324920&deepNav_GID=1645 buy and now have only Many towns use property taxes and/or a flat fee to fund the management of US Environmental Protection Agency Pay-As-You-Throw website: 1 bag of trash a week waste generated by their residents. UBP programs are different; they charge http://archive.epa.gov/wastes/conserve/tools/payt/web/html/index.html residents for waste disposal based on the amount they throw away. UBP is a Canaan, Vermont case study: www.newmoa.org/solidwaste/ system that is: projects/smart/Canaan_Case_ Fair: residents pay only for as much trash service as they need, and Study.pdf those that produce less are not subsidizing those that produce more. This document was developed by the Northeast Waste Management Officials’ Association (NEWMOA) “We went to a PAYT as part of its “Promoting ‘Save Money and Reduce Trash’ (SMART) Strategies to Increase Recycling of Solid Economical: communities can structure the program to be cost-neutral, Waste in Rural Communities” project. More information is at: www.newmoa.org/solidwaste/projects/smart. [pay-as-you-throw with revenues off-setting costs, so trash services are no longer a cost in Project Partners include: system] because it a town’s budget. Northeast Kingdom Waste Management District (NEKWMD) - Vermont includes everyone and Incentive-based: towns maximize waste reduction and increase recycling Upper Valley Lake Sunapee Regional Planning District – (UVLSRPC) – New Hampshire everyone has an interest by the most effective means available. Windham Solid Waste Management District (WSWMD) - Vermont in increasing recycling New Hampshire Department of Environmental Services (NH DES) Vermont Department of Environmental Conservation (VT DEC) and reducing waste “When you compare our UBP ALSO: management costs. This last budget with the old Holds the line on tax increases: Gives residents control over their is the only system that system and our current eliminates or significantly reduces the costs - disposal costs can be rewards individuals for budget, it is clear as cost of waste services in a town’s budget, reduced by: enabling them to reduce their tax rate or their efforts to reduce night and day PAYT is allocate the savings to other areas. – Reusing and recycling as much as possible, their costs by recycling the way to go. Every Removes free-riders: eliminates the and composting.” town can adopt a PAYT incentive for non-residents to “smuggle” – Composting kitchen scraps and their trash into town to take advantage of yard waste, and 224 Church Street Gregory Noyes, Selectman, system that fits their “free” disposal and therefore, residents Mail to: PO Box 1075 Town of Canaan town. We had to make – Purchasing goods in recyclable Lyndonville, VT 05851 are no longer paying to manage trash from packaging. adjustments along the non-residents. NEWMOA is a non-profit, non-partisan interstate (802) 626-3532 or (800)-734-4602 Improves the environment and association whose membership is composed of way. We would never go Provides freedom of choice: no one has public health: less waste goes to the state environmental agency directors of the www.nekwmd.org to change their waste habits, but many landfills and valuable resources are hazardous waste, solid waste, waste site cleanup, back to the old system.” people may decide they would rather and pollution prevention programs in Connecticut, This material is based on work supported by the Utilities Program, United States Department of Agriculture. conserved through reuse, recycling, Any opinions, findings, and conclusions or recommendations expressed in this material are solely the Gregory Noyes, Selectman, recycle than pay for disposal. and composting. Maine, Massachusetts, New Hampshire, New responsibility of the authors and do not necessarily represent the view of the Utilities Program. Town of Canaan Jersey, New York, Rhode Island, and Vermont The views expressed in this document do not necessarily reflect those of NEWMOA, USDA, the Project (www.newmoa.org). 1. Unit-based pricing systems are known by other names, including: Save Money and Partners, or the NEWMOA member-states. Reduce Trash (SMART), pay-as-you-throw (PAYT), pay-per-bag, and pay-per-throw. NEWMOA is an equal opportunity provider and employer. Containers that residents use for trash Advice from Experienced Require residents to buy a punch-card disposal. Under this option, each house- instead of bags/stickers, with each hold is allowed to put out one container Communities space on the punch-card representing per week of a certain size at a base Communities that have implemented UBP one bag of a specified size. Under this price and then pay more for larger or suggest the following to municipalities approach, the transfer station attendant additional containers. Some consider- that are new to the program: cancels one space on the punch-card ations with this approach include: for each bag that is dropped-off. Try to avoid collection of cash by Most applicable to curbside pick-up transfer station attendants unless there How Does UBP Work? locations. Involves some and most efficient when standardized is a mechanism to ensure that all fees administrative costs and oversight to containers are provided to residents. are collected properly and equitably, UBP is flexible, with many manage the bags/stickers. Experts recommend the base and turned into the town. This could variations implemented by container size be no larger than 35 include using a computerized cash communities around the US. Can eliminate the need for transfer gallons and that the fee for a larger register that provides receipts. Or Towns can design a system that station personnel to handle cash. Canaan, Vermont cart (e.g. 64 gallons) is double the towns can contract out operation of the works best for their situation. Stickers allow residents to use their base fee. transfer station with the collected fees Population 972 Overall, there are two main ways own disposable bags, but do not as the only payment covering the costs In 2008, the Town switched from a tax-payer supported curbside pick-up to implement UBP: Involves administrative costs to bill always adhere well, particularly in (including managing recycling and system to a transfer station-based “pay-as-you-throw” (PAYT) system. For residents each month or quarter for Special bags or stickers that very hot, cold, or wet weather, and disposal). years the cost of trash and recycling management kept increasing, but was some residents can abuse a sticker their container size and collect households must purchase and Set fees to enable the town to save for hidden because it was funded by income from property taxes. The Town paid system more easily than a special bag payments. use for all their trash. Some future capital expenses, such as a for waste disposal and recycling for both businesses and households. In 2006, system. considerations with this approach Requires hauler to keep track of compactor or curbside pick-up vehicle. Canaan formed a Solid Waste Review Committee to study waste management include: Curbside pick-up staff can be additional volumes left at the curb issues and make recommendations. The Committee learned that towns with and to ensure that the charges are Advise businesses and others with a transfer station and PAYT system had the lowest overall costs and the Town Can work with both transfer reluctant to leave trash without the added to the bill for that resident. commercial dumpsters to restrict adopted that system based on the Committee’s recommendations. station and curbside pick-up proper bag/sticker at the curb given Another option for additional volumes access to minimize potential abuse. systems. the pressure to do a good job and All households use the transfer station and recycling drop-off is free. Local is to require residents to purchase a leave the pick-up route clean. Would Set fees to be comparable with (or businesses can bring their recyclables to the transfer station, but must Requires bags/stickers to be special bag/sticker for the waste not be helpful if there was an educational higher than) neighboring towns in order contract on their own for waste management.
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