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CC SR 20200616 02 - LA County Sanitation Districts Recycling Presentation CITY COUNCIL MEETING DATE: 06/16/2020 AGENDA REPORT AGENDA HEADING: Regular Business AGENDA TITLE: Consideration and possible action to receive and file a recycling presentation by the Los Angeles County Sanitation Districts. RECOMMENDED COUNCIL ACTION: (1) Receive and file a recycling presentation by the Los Angeles County Sanitation Districts. FISCAL IMPACT: None Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Lauren Ramezani, Senior Administrative Analyst REVIEWED BY: Elias Sassoon, P.E., Director of Public Works APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: A. State of Recycling PowerPoint Presentation by the Los Angeles County Sanitation District (page A-1) BACKGROUND AND DISCUSSION: The Los Angeles County Sanitation Districts (Sanitation Districts) serves an area covering approximately 850 square miles and encompassing 78 cities and unincorporated areas in the county, serving about 5.6 million people. In the 1950s, the Sanitation Districts were responsible for solid waste management (excluding trash pickup). The agency’s solid waste management system currently provides about one- fourth of the countywide solid waste disposal services through two sanitary landfills, three materials recovery/transfer facilities, and a refuse -to-energy facility. The Sanitation Districts also have two facilities that convert landfill gas into renewable energy. The Sanitation Districts also conducts the Household Hazardous Waste and Electronic Waste Collection Program, including the free annual roundup held in the City of Rancho Palos Verdes. 1 The primary function of the Sanitation Districts is solid waste management, including the transmission and processing of waste water. The agency is focused on converting waste into resources, such as recycled water, energy, and recycled materials. The agency consists of 24 independent special districts governed by a Board of Directors consisting of the mayors of each city within the districts and the Chair of the County Board of Supervisors for unincorporated county territory. Mayor Cruikshank is the City’s delegate and Councilman Bradley is the City’s alternate delegate. At the May 5, 2020 City Council meeting, Mayor Cruikshank requested a recycling presentation from the Los Angeles County Sanitation District to understand how recycled waste is processed. In response, Robert Asgian, Department Head of the Solid Waste Management Department for the Los Angeles County Sanitation Districts, confirmed his participation at tonight’s meeting to discuss the “State of Recycling” amidst the recent China ban and COVID-19. Specifically, the presentation will encompass the way recycling material is brought to the Sanitation Districts’ facilities for processing, as well as the impacts to local recycling from import bans and other restrictions on recyclables that have been implemented by China and other countries. These bans have significantly changed what can be recycled, the amount that is recycled and the cost of recycling. Mr. Asgian will discuss how the Sanitation Districts and others are responding to these changing requirements and its impacts on local jurisdictions. . 2 State of Recycling: China Ban & COVID-19 Robert Asgian rasgian@lacsd.org June 2020 A-1 Districts’ Solid Waste Facilities 2A-2 Districts’ MRFs Puente Hills Materials Recovery Facility Downey Area Recycling and Transfer Facility (DART) A-3 What happens to your recyclables? Landfill Materials Recovery Facility (MRF) Recycle Markets MRF A-4 Where Does Recycling Really Happen? Recycling vs Separation 5A-5 6 Pacific Rim Trade Imbalance A-6 Access to Export Markets 7A-7 8 U.S. PAPER & PLASTIC EXPORTS 2016 China 79% Others 21% 17.6 million tons A-8 Recycling business model broken? Public education –what is and is not recyclable. 9 2013 CSD paid hauler $60.48 per ton 2018 Hauler paid CSD $13.60 per ton Contamination in Recyclables A-9 Contamination in Recyclables 10A-10 PREVIOUS ACTIONS BY CHINA 2013: China launches Green Fence to stop poor quality recyclables from entering country. 2015: Crack down on imports and importer practices. 11A-11 2017 –NATIONAL SWORD Goals of the National Sword (AKA “China Ban”) –Reduce pollution in China by reducing importation of contaminated recyclables –Improve domestic recycling 12A-12 2017 –NATIONAL SWORD Feb. 2017 –National Sword announced July 2017 –China proposes 0.3% max contamination for paper, bans plastics Nov. 2017 –China increases allowable contamination from 0.3% to 0.5%. Mar. 2018 –China Ban officially takes effect. Other countries begin to adopt China’s 13A-13 Official and Informal Bans on Recyclables 14A-14 INDUSTRY’S RESPONSE Slower production to increase quality Increased staff for more quality control Increased disposal –Contaminated material –“Commodities” that no longer have a market Investment in processing equipment 15A-15 MIXEDPAPER –Material Selection Before 16 After A-16 CARDBOARD –Material Selection 17 Before After A-17 PLASTICS –Material Selection Before After 18A-18 19 Dramatic change in U.S. Exports of Paper & Plastics China 22% Others 78% 72% decrease in tons exported Others 21% China 79% 2016 17.6 million tons 2019 5.7 million tons A-19 RESULTS OF CHINA BAN Increased disposal Reduced revenue from commodities. Increased processing and handling costs. Uncertain future exports to China and possibly Southeast Asia. Increased costs passed on to the pubic 20A-20 COMMODITY PRICES ($/ton) $0 -$50 National Sword Announced 21A-21 PHMRF Price for Blue Bin Material 22 ($/ton) A-22 75% RECYCLING GOAL 23 AB 939 goal 0% 10% 20% 30% 40% 50% 60% 70% 80% 2010 2012 2014 2016 2018 2020 AB 341 goal of 75% Statewide recycling rate A-23 PHMRF INSTALLATION OF NEW PROCESSING EQUIPMENT 24A-24 COVID-19: Initial Uncertainties How is the virus transmitted and how can it be prevented? Supply chain for personal protective equipment (PPE) Hospital capacity 25A-25 COVID-19: Facility Responses Responses by MRF operators based on site-specific conditions and company risk factors –Some closed (including PHMRF from mid - March to mid-May) –Some remained open at reduced capacity –Some had no changes to capacity or processing 26A-26 COVID-19: What happened to recyclables? For MRFs that closed or ran at reduced capacity –Recyclables directed to other MRFs –Recyclables disposed •Some continued to be collected separately •Some were collected in the same truck with trash 27A-27 COVID-19: What is going on now? Most MRFs in the region are operational Recyclables are being processed New operational measures implemented for worker health and safety 28A-28 COVID-19: New Practices at MRFs 29 Before After A-29 COVID-19: What is going on now? Residential waste generation is up Commercial waste generation is down 30A-30 Questions? Robert Asgian rasgian@lacsd.org A-31