EXCHANGE: HOW IT CAN SAVE hUMONEY Maxie L. May Southeast Waste Exchange Urban Institute The University of North Carolina at Charlotte Charlotte, North Carolina (704) 547-2307 Not everyone sends waste products to the dump. Some companies sell their industrial by- products. Other companies may be able to use these materials.. The economic cost associated with disposal of is creating a greater market for the , , and waste exchange of nonhazardous and hazardous materials. these escalating costs and stricter environmental controls, especially on the use of , have led many waste generators to look for more cost effective methods. The use of Waste Exchanges has the potential to play a major role in waste management and represents one type of waste minimization. Materials from the waste stream or surplus materials from an industry may have a reuse value and can save disposal costs and emrevenues for the generator and save raw material costs for the user. Waste exchange is a form of industrial recycling in which a company that uses a particular material-in its production processes buys waste products, surpluses or by products to meet its raw material needs. Recycling materials range from acids and alkalis to plastics, textiles, paper, solvents and oils. When recycled wastes are used in place of raw materials, the cost benefits for both generator and user and the energy savings and conservation of natural resources and environmental impact may be significant. The first waste exchange was established by the British govemment in 1942. Its primary purpose was to conserve raw materials and equipment for a war effort. The waste exchange concept did not gain popularity in mainland Europe until 1972 when VNCI Waste Exchange in the Netherlands was established. From 1972 to 1976, approximately 12 exchanges began operation in Westem Europe. The first exchanges in North America were established in 1973. The Southeast Waste Exchange is beginning it's 13th year of operation. The Exchange was originally established by the Mecklenburg County Engineering Department in 1978 to encourage reuse, and recycling in the greater Metrolina area. In 1980, when demand for this service outside of the county became apparent, sponsorship was transferred to the Urban Institute at the University of North Carolina at Charlotte. At that time the Program was called the Piedmont Waste Exchange and provided service to North and South Carolina. In 1986, with continued demand for regional service, the Exchange expanded to an eight state region including Alabama, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee and Virginia, and changed the name of the Program to the Southeast Waste Exchange to reflect that growth. The Southeast Waste Exchange is a non-profit organization, not a state funded agency. The funds to operate the program came from contracts, grants, and subscription and listing fees charged for the Waste Watc her catalog. For organizations that are concerned with reducing the economic and environmental costs of waste management programs, the Southeast Waste Exchange provides a broad variety of services, such as industry-specific workshops and conferences; preparation and distribution of educational literature; guest speakers for meetings; markets for wastes as an alternative to disposal; cheaper sources of raw materials; and research through university departments and other consultants trained to solve waste management problems. As an information clearinghouse, one of the most important services the SEWE provides is the publication of the Waste Watcher, a bimonthly catalog which lists the availability of waste management services, wastes and surpluses, as well as requests for such services and materials. This information is published by code number in the Waste Watcher, where only the waste description, quantity, availability and general location of the waste are identified. By publicizing information on the supply and demand for specific materials the SEWhelps companies recognize their wastes as potential assets. For the purchasers of recyclable materials, the benefits lie not only in lower raw material costs, but in savings on production costs. For example, using recycled goods in place of raw materials can significantly reduce energy expenditures and simplify production procedures. In addition to publishing the Waste Watc her catalog, operating the information clearinghouse involves making individual contact with potential or first time users of the exchange to answer questions and encourage the actual transfer of wastes. Often, SEWE staff have discovered that transfers were delayed because a contact person lacked knowledge of the consequences of not minimizing wastes, or simply did not know how to go about sending out a waste sample to a prospective buyer. Research is another prime responsibility of the Southeast Waste Exchange. SEWE staff identify research needs in the areas of prevention and management and then develop research teams composed of faculty, staff, students, and consultants to address a wide variety of environmental topics. Past research for North and South Carolina has illuminated concerns about waste management issues; identified generators of specific wastes and determined markets for those materials. Some of the projects conducted by the SEWE in the past include an on-site ) survey of small quantity generators in Mecklenburg and Gaston counties, and a Market Assessment of industries in North and South Carolina. The most important branch of research conducted by the Exchange on an ongoing basis is the identification of markets for wastes listed or requested in the Waste Watcher, SEWE staff members actively seek markets for listings through contact with recyclers, waste brokers, industry representatives and consultants, and potential users of the materials. This is a time- consuming but vital part of operating a waste exchange, since research shows that companies are still more willing to sell wastes through a waste exchange than they are to purchase wastes for use in their facilities. Information on uses for specific wastes andor modifications that can be made to waste streams to make them more salable are two kinds of information SEWE staff provide to participants to encourage greater reliance on industrial recycling. The SEWE has been very successful in assisting industry with markets for their surplus and byproducts materials. A material assessment is attached for the 1990 year showing a total of 183,155,704 pounds of materials transferred through referrals made by SEW, resulting in savings and earnings to industry of $8,858,353 for the year. These are conservative figures; it is very difficult to get information back on all the successful transfers of materials. Following are some examples of transfers that were made during the past year.

0 A transfer of post consumer plastic earned one company $2,213

0 A transfer of potassium nitrate saved one industry $1,500 in disposal costs and saved the receiving industry $16,000 on the cost of raw material.

0 A manufacturing company indicated they have saved $24,000 a quarter on the cost of raw materials by using wood (specific kinds) to manufacture their product. --) 0 A transfer of 180,000 pounds of cotton textile waste earned another industry $6,300. They also saved money in disposal costs.

0 Another indusay earned $2,300 on a uansfer of 2,000 pounds of nylon.

0 A manufacturing company is buying 12,500 square feet of sub-standard vinyl material a month, from another industry. The generator of the material is earning $12,000 annually on this transfer. The sale of 1,774,560 pounds of cardboard earned another industry $259,283.76 last year. The transfer of polyester selvage is earning a processor $35,000. A generator of phosphoric acid is earning $162,000 annually on a transfer of 1,800,000 pounds of material. The company receiving the material has saved a substantial amount on the costs of raw materials. Providing the public with a variety of educational workshops and activities related to environmental protection and safe waste management is another service of the SEW. During the past year SEWworkshops and conferences have infomid business people about new regulations, led them through the waste exchange process, identified key waste management resources and publicized altematives to disposal These educational activities lay the foundation for active participation in the Exchange. Workshops conducted during 1990 included 6 workshops on hazardous waste management for small waste producers. These workshops were held in Charlotte, Hickory and Gastonia. Topics covered included the rationale behind new regulations; a comparison of RCRA and NC regulations; procedures for waste identification, filling out material safety data sheets, manifesting, and acquiring an EPA ILl number; options for managing hazardous waste; and information on transportation, reporting spills, emergency planning and procedures, managing waste oils, underground tanks, and Community Right-to- Know. In the Spring of 1990 the Waste Exchange conducted a series of workshops on Waste Minimization: Implementing a company Waste Reduction Program. This series of workshops were held throughout the State of North Carolina. How to set up a successful recycling program; reduce the amount of waste generated at the source; and energy savings through waste exchange were some of the topics covered. Many factors are increasing the potential for industrial recycling through an Exchange. The cost of waste disposal is increasing as well as increase in cost for some raw materials. New technologies are being developed for recovering and reprocessing industrial wastes. Participation in a waste exchange program may be used to satisfy Section 3002(B) of RCRA, and also could be used as evidence of compliance with 3002(b) (2), which requires that the generator select the method of treatment, storage of disposal which minimizes the threat to human health and the environment. It is our hope that each year greater volumes of hazardous wastes will be recycled, reclaimed and reused through waste exchange programs. Achievement of this goal will go a long way toward meeting the intent of Congress regarding the disposal of hazardous waste in or on the land. The diverse base of community support received by the Southeast Waste Exchange makes it a more effective organization. Environmentalists, civic groups, regulatoy agencies, chambers of commerce, trade associations, and professional organizations all work with the SEWto bring about safer waste management. In addition to providing business and industry with cost- effective altematives to waste disposal, waste exchange is a popular concept with conservationists who seek the preservation of non-renewable natural resources and environmentalists who seek to prevent hazardous waste from entering water and soil systems. The Waste Exchange can be an important link in industrial resource recovey with more publicity to potential usen and continued cooperation with industry, governmental agencies and citizen groups.