FIRST REPORT TO CONGRESS

RESOURCE RECOVERY
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SOURCE REDUCTION
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 FIRST REPORT TO CONGRESS
 RESOURCE RECOVERY
             and
  SOURCE REDUCTION
    This is the third edition of the report (SW-118) prepared
 by the OFFICE OF SOLID WASTE MANAGEMENT PROGRAMS,
as required by Section 205 of the Solid Waste Disposal Act as amended,
and was delivered February 22, 1973, to the President and the Congress.
    U.S. ENVIRONMENTAL PROTECTION AGENCY
               1974

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                           FOREWORD
     Section 205 of the Solid  Waste Disposal  Act (Public Law 89-272)  as
amended requires the U.S. Environmental Protection Agency (EPA) to under-
take an investigation and study of resource recovery.  This document, which
represents EPA's  Report to the President  and the Congress, summarizes the
Agency's investigations to date and reports on the manner in which the congres-
sional mandate is being performed.
     The findings of this report are based  on  a number of contractual efforts
and analyses by the Agency staff performed since the passage of the Resource
Recovery  Act.  Extremely valuable  assistance in  these investigations has been
provided by the Council on Environmental Quality.
     The report  is organized into  a summary, four major sections, and two
appendixes. The first section discusses the problem to which resource recovery is
the potential solution. Next, key findings related to resource recovery  are pre-
sented. A  section outlining major options follows. The report concludes with a
discussion of EPA's program activities in resource recovery.
     The appendix presents summaries of information about the status of
resource recovery, according  to material categories and lists existing resource
recovery facilities.
     Although  there have been minor editorial revisions, this publication is
essentially the same as that delivered to the Congress. A number of typographi-
cal errors that appeared in the first printing have  been corrected, the references
have been restyled, and the report has been typeset in  a conventional  style  to
improve its readability.

                                   -ARSEN J. DARNAY
                                    Deputy Assistant Administrator
                                       for Solid Waste Management
                                   m

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                         CONTENTS
                                                             page
SUMMARY	tx

1. THE PROBLEM     	1

2. KEY FINDINGS	5

3. MAJOR OPTIONS	17

4. PROGRAM ACTIVITIES	  .21

APPENDIX
   Recycling of Specific Wastes      	29
     Paper	29
     Ferrous Metals    	36
     Nonferrous Metals     	42
     Glass	51
     Plastics    	52
     Textiles    .   .   ;	54
   Resource Recovery Installations      	57

REFERENCES	59

LIST OF FIGURES
       1.  Disposal Costs For Municipally-Owned
           Resource Recovery Systems   .	14
       2.  A Plan for Resource Recovery and
           Source Reduction	  .22
       3.  Resource Recovery Policy Options	23
       4.  Source Reduction Policy Options	24
       5.  Resource Recovery and Source
           Reduction Policy Options     	25
     A-l.  Paper Trends    	30
     A-2.  Importance of Wood Pulp
           and Paper Stock in Paper      	33
     A-3.  Domestic Raw Steel Production
           and Scrap Consumption   .   .   .	37
     A-4.  Domestic Home and Purchased
           Scrap Consumption	38
    A-5.  Aluminum and Aluminum Scrap
           Consumption      	     .43
     A-6.  Copper and Copper Scrap
           Consumption      	44

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                                                                  page
    A-7.  Lead and Lead Scrap Consumption      '.   ...   .    .   .   .45
    A-8-  Zinc and Zinc Scrap Consumption	46
    A-9-  Waste Textile Utilization Flows      	56

LIST OF TABLES
       1.  Recycling of Major Materials    	3
       2.  Gullet-Dependent Environmental
            Impacts for 1,000 Tons of Glass Containers	6
       3.  Environmental Impact Comparison
            Low Grade Paper      	7
       4.  Environmental Impacts from Bleached
            Virgin Kraft Pulp and Deinked
            and Bleached Wastepaper      	8
       5.  Environmental Impact Comparison
            for Steel Product	9
       6.  Cost Comparison for Glass	10
       7.  Comparative Economics of Paper
            Manufactured from Recycled and
            Virgin Materials	10
       8.  Summary of Recycling System
            Economics     	13
       9.  Quantity and Value of Recoverable
            Resources in Mixed Waste     	15
      10.  Sensitivity  of System Economics to
            Market Value of Recovered Resources    	16
    A-l.  Wastepaper Recovery by Grade
            and Source    	31
    A-2.  Additional Wastepaper Recovery
            Potential	32
    A-3.  Technical Limits for Recycled
            Material from Paper and Paperboard	34
    A-4.  Comparative Economics of Paper
            Manufacture from Recycled and Virgin
            Material	35
    A-5.  U.S. Iron and Steel Scrap
            Consumption      	36
    A-6.  Steel Product Suitability for
            Inclusion of Low Grade Scrap     	41
    A-7.  Nonferrous Metals Recovered from
            Prompt and Obsolete Sources      	42
    A-8.  Sources of  Obsolete Aluminum Scrap	47
    A-9-  Markets for Prompt and Obsolete
            Aluminum Scrap	48
   A-10.  Sources of Obsolete Copper Scrap	48
   A-l 1.  Markets for Prompt and Obsolete
            Copper Scrap	49
   A-12.  Sources of Obsolete Lead Scrap      	49

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                                                                 page
A-l3.  Markets for Prompt and Obsolete
         Lead Scrap	   . 50
A-14.  Sources of Obsolete Zinc Scrap      	50
A-l5.  Markets for Prompt and Obsolete
         Zinc Scrap      	50
A-16.  Total and Selected Major End
         Use Markets for Consumption                ,
         of Plastics      	53
A-l7.  Resource Recovery Installations:
         Municipal Solid Waste Composting Plants     	57
A-18.  Resource Recovery Installations:
         Incinerators with Major Heat
         Recovery Operations	58
                               VII

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                                          SUMMARY
     This report explores resource recovery as a meth-
od  of solid  waste management and resource con-
servation.  Information gathered  over the past several
years is summarized,  and  the many issues raised by
the  complex  subject of  resource  recovery  are
discussed.
      The emphasis of the report is on the recovery
of materials and energy from mixed municipal wastes
and  other "postconsumer" wastes that are discarded
and  accumulate  outside   normal  waste collection
channels. Although they represent only 5 percent of
the total national solid waste load, these wastes tend
to have the most frequent, immediate, and apparent
impact  because  they  occur in  the Nation's  urban
areas. More than 50 percent of the total waste load
comes from agriculture and is usually returned to  the
soil. More  than 40 percent  of  the total burden is
mining waste, which occurs in the hinterland.
      Nearly all  major materials are  recovered to
some extent by recycling. Most recovered materials
result  from industrial  fabrication wastes.   Post-
consumer  wastes,  waste paper,  old  automobiles  are
also  recovered  to  some  extent; postconsumer
recycling has grown in an absolute  sense.  However,
the proportion of the Nation's material requirements
satisfied by  recycled  materials  has  either remained
constant or has declined in most  instances.
      The level of recycling depends almost entirely
on  economics. Recycling  takes  place to the extent
that it  is  the most efficient use of resources.  More
secondary  or recycled materials would be used if
economic  subsidies for "natural" or "virgin" mate-
rials were not provided. The economics of recycling
are also influenced by apparently inequitable freight
rates-both ocean and rail-which make  the transpor-
tation of secondary materials relatively more  costly
than the movement of virgin resources.
      Sufficient  technology has been  developed to
extract  materials and energy from  mixed municipal
  wastes. However, few full-scale recovery plants exist.
  The U.S. Environmental Protection Agency is funding
  demonstrations  of the most significant  conceptual
  alternatives.
       The costs of recovery plants are estimated to be
  relatively high,  making  recovery  by  technological
  means attractive only in areas where  high disposal
  costs prevail and  local markets for waste materials
  exist.  There is  evidence  that  recovery by separate
  collection  is  not  only  feasible  but  economically
  attractive provided  that  the collection  utilizes an
  existing  transport  system  and  markets  for  the
  collected materials exist.
       Preliminary research and analysis indicate that
  compared with  virgin material extraction and pro-
  cessing, resource recovery results in less atmospheric
  emissions,  waterbourne  wastes, mining and  solid
  wastes, and  energy consumption. There is substantial
  disagreement among experts about the extent of such
  differential effects over time, particularly as stronger
  environmental constraints on use of both virgin and
  secondary  materials  begin  to  narrow  the  current
  differentials.
       Recycling  should   become  more economical
  relative to other solid waste disposal options during
  the next several  years. Energy costs are rising, making
  energy recovery   more   attractive  and  more
'  economical.   As  pressures  to  bring  about
  environmentally sound  waste disposal  increase, dis-
  posal costs will rise, and recovery will become a more
  attractive alternative. Finally, to the  extent that air
  and water pollution  control regulations  are streng-
  thened, the  industrial incentives for using secondary
  materials will improve.  .  .
       Other  incentives for  recycling  exist  under
  present  Federal  policies.  The   General  Services
  Administration does not purchase paper unless it con-
  tains  a specified proportion  of recycled paper. The
  military  services are explor-iiTglprocurerrient policies

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to reduce waste quantities or to require the inclusion
of secondary materials. The Treasury Department has
determined that tax-exempt industrial revenue bonds
may be used to finance the construction of recycling
facilities built  by private co'ncerns to  recycle their
own wastes.
      Additional Federal incentives for recycling are
not considered desirable at this time. Studies to date
indicate  that  the effectiveness of specific incentive
mechanisms  that can be  formulated  is extremely
difficult  to predict.  New  tax incentives  may  well
distort the economics of resource utilization much as
preferential treatment  of  virgin materials distorts
them today.
     There is an obvious need to explore further, the
complex issues of material  utilization in the'United
States  in  the  context of total resource utilization.
Resource recovery is an important part, but only one
part, of the larger picture. Before additional Federal
policies are developed-aimed possibly at overcoming
institutional  and  market  imperfections  in  some
areas-a better understanding of the complex material
and energy situation must be gained.

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                      FIRST REPORT  TO CONGRESS ON
 RESOURCE RECOVERY  and SOURCE  REDUCTION

                                  1.  THE PROBLEM
        U.S. MATERIAL-USE PATTERN

     Resource recovery in its various aspects must be
seen as part of a much larger economic structure—the
total material- and energy-use patterns of the Nation.
The recovery of waste materials today supplies only a
very small part  of  the total material and' energy
requirements 'of  the U.S.  population. Moreover,
although both population and  material consumption
are increasing, the use of materials from waste sources
is declining relative to overall consumption.
     In 1971, the U.S. economy used an estimated
5.8  billion tons of materials  for its total activity,
equivalent  to 28 tons for each man, woman,  and
child.  Of this total,  approximately 10 percent came
from agriculture,  forestry, fishing, and animal hus-
bandry (food and forest products); 34 percent  was
represented  by fuels;  55  percent came  from  the
mineral industries in the form  of construction mate-
rials, metals, and other minerals.1
     Material use is growing at a rate of 4 to 5  per-
cent yearly. Per capita consumption was 22 tons in
1965, 24.7 tons in 1968, and 28 tons in 1971.' Dur-
ing  the same period, population grew at an annual
rate of 1.3 percent.
     A high rate of material and energy consumption
means a high rate of waste generation. Approximately
10 to  15 percent of the annual input to the economy
accumulates as materials in use (in structures, plants,
equipment, etc.). The  rest of the tonnage is used
consumptively, with residues discharged to the land,
water, and air, or is used to replace obsolete products
and structures, which in turn become waste.2
     Nearly all the materials and energy required in
the  United  States  come  from  virgin or natural
resources. The tonnage of fabrication and obsolete
wastes recycled is  approximately 55 to 60 million
tons, equivalent to.  less  than.. 1 percent  of  total
mineral tonnage required by the Nation.3
     If we disregard food and energy substances, the
estimated 1971  demand  for  nonfood, nonenergy
materials was 3.6 billion tons; waste recovery satisfied
1.5 to 1.7 percent of this total requirement.
   ENVIRONMENTAL  CONSEQUENCES OF
               MATERIAL USE

     All  forms  of material use have environmental
consequences. Material resources must be extracted,
purified,  upgraded,  processed,  and  fabricated into
products; in addition, transport is necessary between
most of these steps. Solid, waterborne, and airborne
wastes are generated at every point and either enter
the environment or are removed during processing at
some expense.
     The  production  of -1,000 tons  of steel, for
instance,  results in 2,800 tons of mine wastes, 121
tons of air pollutants, and 970 tons of solid wastes.4
Similar waste flows are associated with every material
flow, although the magnitude varies, depending on
the particular material. The sheer growth in per capita
material consumption indicates that more pollution
and waste is generated per capita today than was
generated in the past.
     As will be discussed, reports at this time indi-
cate that the amount of air pollution,  water pollu-
tion, and solid waste  that results from production
systems using  recycled  wastes  is lower than  the
effluents  from production systems relying on virgin

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                                                                                   RESOURCE RECOVERY
resources.  Thus, any decrease in resource recovery
relative to total consumption means an increase in the
quantity of residuals generated.
          SOLID WASTE GENERATION

      Ever-increasing per capita material consumption
necessarily means that more solid waste is generated.
This is illustrated graphically by trends  in packaging
consumption, because packaging is a short-lived pro-
duct that becomes waste immediately after use. Per
capita packaging consumption (in pounds per capita)
has been.increasing steadily as shown below:5
 1958
 404
1960
 425
1962
 450
1964
 475
1966
 525
1970
 577
      The situation in packaging is merely an illustra-
 tion of the general  phenomenon that arises because
 the  material  consumption  rate  grows  faster than
 population.
      The total quantity of waste generated in 1971
 is estimated to have been 4.45 billion tons, up  nearly
 1 billion tons from 1967. The makeup of this waste is
 shown below:
      Sources of waste
      Municipal
      Industrial
      Mineral9'1'0
      Animal11'12
          11.12
      Crop
      Total
                    Volume of waste
                    (Millions  of tons)

                         230
                         140
                        1)700
                        1,740
                         640
                        4,450
      •Municipal  wastes  include  residential,  commercial,
demolition,  street and alley sweepings, and  miscellaneous
(e.g., sludge disposal).

      The 230-million-ton municipal waste load plus
that portion of industrial waste  occurring in large
metropolitan areas  constitute  what  is normally
referred to as the "solid waste problem" in popular
discussion.
      One reason for the growing solid waste burden
is that resource recovery has declined relative to total
material consumption.  A second  reason  is the sub-
stitution of material-intensive practices (practices that
result in consumptiori'of large amounts of raw mate-
rials)  for practices that are less material demanding,
e.g., one-way containers for returnable bottles, paper
                                             towels for cloth towels, and disposable one,-time-use
                                             products of all  sorts in the home,  the  office, the
                                             hospital, etc., for products designed for reuse.
                                                  The resulting  solid waste  load is especially
                                             burdensome in  urban areas because of greater popu-
                                             lation concentrations and because  disposal in urban
                                             areas. is  particularly difficult. The urban population,
                                             for example, has grown from 64 percent of the total
                                            • population  in 1950 to 74 percent in 1970, thereby
                                             increasing the quantity of solid waste in urban areas
                                             by  a substantial  percentage.  Additionally,  urban
                                             populations  generate more  waste  than  nonurban
                                             residents-approximately  20 percent more per capi-
                                             ta.
                                               13
      Disposal in urban areas is an especially difficult
problem because waste disposal in the city is, at the
same time, an environmental, an economic, and  a
political problem. Waste collection is labor intensive;
labor costs are rising rapidly; and the productivity of
most municipal waste collection systems is  low. In
many urban areas, land suitable for waste disposal has
disappeared or is rapidly being used up. Movement of
the waste across the boundaries of the political juris-
diction  where it  is  generated  is difficult and, some-
times, impossible. When cities are required to move
their wastes over greater distances to dispose of them
or, alternatively, are  forced  to  process  them to
achieve  volume reduction, the costs of waste manage-
ment are increased. To eliminate potential  air and
water  pollution from  landfills  and  incinerators,
waste-processing facilities must be properly designed,
located, and operated, and they must include proper
pollution control devices.  This degree of control is
technologically feasible but often costly, particularly
in the case of incineration.
      Given  these  circumstances,  many cities  are
increasingly viewing resource  recovery  as both an
environmentally  and an  economically  desirable
alternative to disposal. Unfortunately, this option is
most often not available because demand  for mate-
rials from wastes is nonexistent or severely limited.
                                                         THE RECOVERY RATE

                                                 Nearly  all  major materials are recovered  to
                                            some extent  by  recycling.. The.recovery rate varies

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THE PROBLEM
 from nearly 100 percent for solid lead (50 percent for
 all lead),* 50 percent for copper, 31 percent for iron
 and steel, and 19 percent for paper and board, to 4.7
 percent for glass (Table 1).  These percentages refer to
 the proportion of total material consumption satis-
 fied from  both wastes recovered in fabrication steps
 in  industry  and  wastes   recovered  from  obsolete
 products like junk automobiles and old newspapers.
      Consumption  of  major  materials-iron  and
 steel,  paper,  nonferrous metals,  glass; textiles,  and
 rubber-took place at a rate of 190 million tons in the
 1967-68   period.  During this   period,  the  total
 recycling  tonnage  of the same  materials  was  48
 million  tons, equivalent to 25 percent of consump-
 tion of these materials.
      Historical data in this aggregated form are not
 available for  all materials.  For  most  materials- in
general, however, the portion of the total consump-
tion derived from waste sources.Has been declining.
Consumption  of these waste materials has generally
not kept pace'with total consumption.
      Paper waste consumption as a percent of total
fiber consumption has declined  from" 23.1 percent in
1960 to 17.8 percent in 1969.14
      Iron  and steel scrap consumption as a percent
of total metallics consumption declined slightly over-
all  fronr the  1959-63 to  the  1964-68 period from
50.3 to 49.9 percent. Purchased scrap consumption,*
representing the recycling of fabrication and obsolete
wastes, has been losing gound: in the 1949-53  period
it  was 44.9 percent of  total scrap; in the 1964-68
period, 40.0 percent.15
      *A substantial proportion of lead is used in gasoline as
 an antiknock additive; this lead is dispersed and is unrecover-
 able.
      *ln the iron and steel industry, distinctions are made
between "home" scrap, a process waste in furnaces and mills;
"prompt" scrap, which  occurs- m  fabrication plants; and
"obsolete"  scrap from  discarded  products or obsoleta
structures. "Purchased" scrap is the combination of the last
two categories.
                                                TABLE 1 .

                                 RECYCLING OF MAJOR MATERIALS IN 1967*
Material
Paper
Iron and steel
Aluminum
Copper
Lead
Zinc
Glass
Textiles
Rubber
Total
Total consumption
(million of tons)
53.110
105.900
4.009
2.913
1.261
1.592 .
12.820
5.672
3.943
191.220
Total recycled
(million of tons)
10.124
33.100
.733
1 .447
.625
.201
.600
.246
1,032
48.108
Recycling as percent
of consumption
19.0
31.2
18.3
49.7
49.6
12.6
4.7
• 4.3
26.2
25.2
                     'Source: Darnay, A., and W.  E. Franklin. Salvage markets for materials in solid
               wastes. Washington, U.S. Government Printing Office, 1972. p.xvii.

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                                                                                  RESOURCE RECOVERY
      Rubber reclaiming is a declining activity both
absolutely and  in relation to total rubber consump-
tion. In 1958, reclaim consumption was 19 percent of
total rubber consumption; in 1969,8.8 percent.16
      The   major  nonferrous  metals-aluminum,
copper, and lead-are reused at a composite rate of
about  35 percent  of  total  consumption, and this
percentage has remained fairly constant over time.1 7
      Historical  data  on  other  materials  are not
readily  available in aggregate form, but declining
recovery is generally the rule.
      It is reasonable  to assume that  a secondary
material, one that has already been processed, should
be a more attractive raw material to industry than a
virgin material  that must be extracted  or harvested
and processed. The secondary material is already puri-
fied  and concentrated. Scrap steel, for instance, is
nearly 100 percent steel, while  the  iron ore  from
which it is made contains large proportions of silicate
materials, which must be removed.
      The low recycling rate is the result of a number
of factors, among them the following:
      (1) The delivery price of virgin raw materials to
the manufacturer is almost  as low in many cases as
the cost of  secondary  materials, and virgin materials
are usually  qualitatively superior to  salvaged  mate-
rials.  Consequently, demand  for secondary materials
is limited.
      (2). Natural resources are  abundant,  and manu-
facturing  industries  have directed their  operations
toward  exploiting them. Plants are  generally built
near the source of virgin materials (e.g., paper plants
near pulpwood  supplies).  Technology for utilizing
virgin  materials  has  been  perfected;  because  of
adverse economics  similar  technology 'to  exploit
wastes has not been developed
      (3)  Natural resources  occur in  concentrated
form, whereas wastes occur in a dispersed manner.
Consequently, acquisition of wastes for recycling is
costly  and is particularly sensitive to  high transpor-
tation costs.
      (4) Virgin materials, even in unprocessed form,
tend to be more homogeneous  in composition  than
waste  materials,  and  sorting and upgrading mixed
wastes is costly.
      (5)  The  advent of synthetic materials made
from  hydrocarbons  and  their  combination  with
natural materials cause contamination  of the latter,
thereby limiting their recovery. The synthetics them-
selves  are  virtually  impossible  to sort  and recover
economically from mixed waste.
      (6)  There are  artificial economic barriers that
favor the use of virgin materials over secondary mate-
rials.  For example,  depletion  allowances, favorable
capital  gains  treatments, and  apparently favorable
freight rates are available to processors of virgin mate-
rials but not to secondary material processors. Also,
producers presently do not have to internalize all the
costs of environmental pollution.

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                                       2.  KEY FINDINGS
      The key findings of this report can be reduced
to four major points:
:      (1) The use of recycled materials  appears to
result in a reduction in atmospheric emissions, gene-
rated waste and energy  consumption levels,  when
compared with virgin material utilization.
      (2)  The  recovery  of materials from  waste
depends largely  on economics.  The cost of manufac-
turing products  from secondary materials is generally
as high or higher than that of manufacturing products
from virgin materials: consequently, only high-quality
and  readily accessible  waste  materials  can find  a
market. Artificial economic  advantages available to
users of virgin materials (e.g.,  depletion allowances,
capital gains treatments,  and inability of the  tradi-
tional  market to internalize pollution and  resource
depletion  costs) appear to  have  been major contri-
butors to this economic situation.
•• • •   (3)   There  has  been .sufficient  technology
developed  to  allow materials to be extracted from
mixed municipal wastes. However, the  cost of extrac-
tion is high, making recovery processes attractive only
in areas where high disposal costs prevail and  favor-
able local markets exist for the materials.
      (4)  Recovery  of  materials  (as opposed  to
energy) from' mixed municipal wastes, while concept-
ually the  best  alternative  to disposal,  cannot be
instituted on a.large scale without a substantial reduc-
tion in processing costs and/or Upgrading in quality
(which is simply unattainable  given reasonable pro-
jection of technology) and/or  a major reordering in
the relative prices of virgin and secondary materials,
so  that  secondary  materials become economically
more attractive.
      A more detailed  discussion of  each of  these
findings follows:
          ENVIRONMENTAL IMPACTS

      The environmental impacts of recycling are of
major importance. Studies conducted to date indicate
that resource recovery generally results in reduced
energy and material consumption and reduced effects
of air and water pollution.
      Resource recovery  has three major environ-
mental benefits: (1) recovery and reuse of a material
conserves the natural resources from which that mate-
rial is derived; (2) recycling of materials eliminates
disposal; thus,  the  negative environmental effects of
inadequately  controlled  solid  waste  disposal are
reduced; (3) substitution of waste materials for virgin
materials  in the production  system  results in
decreased energy  requirements and less air and water
effluents (based on  studies of glass, paper, and ferrous
metals)  and  avoids other  kinds of  environmental
degradation, particularly in the extraction phase (e.g.,
strip  mining).  Data to substantiate these points are
presented next.

                       GJass                    '

      Environmental impacts occur at every step of
glass manufacturing, from the mining of raw materials
to final waste disposal. Changes in the amount of
cullet  (glass  scrap) in the raw  material batch 'are
responsible for significant  changes in  environmental
effects.
      Comparing  the environmental impact of glass
manufacturing using 15- and 60-percent cullet mixes,
it is clear that increased cullet usage results in reduced
quantities of residual discharge. Table 2 illustrates the
difference  in  impact  for  the  two cullet  mixes. A
60-percent cullet  batch  would  result  in over 50

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                                                                                 RESOURCE RECOVERY
                                              TABLE 2

                      SUMMARY OF GULLET-DEPENDENT ENVIRONMENTAL IMPACTS
                     FOR 1,000 TONS OF GLASS CONTAINERS, BY IMPACT CATEGORY*
Environmental impact
Mining wastes
Atmospheric emissions
(all sources)
15%' •
Gullet
104 tons
13.9 tons
60%
Gullet
22 tons
13 tons
§10.9 tons
Change"*"
(%)
-79
-6.*
-22 §
Water consumption
(intake minus discharge)
Energy use
Virgin raw material
consumption
Net postconsumer
200,000 gal •
16,150 X 106 Btu
1,100 tons

1 ,000 tons
100,000 gal
16,750 X 106 Btu
15,175 X 106 Btu
500 tons

450 tons
-50
. 3*
-6§
-54

-5511
                   'Source:  Midwest Research  Institute. Economic studies  in support  of policy
              formation on resource recovery. Unpublished report to the Council on Environ-
              mental Quality, 1972.
                   ^Negative number represents a decrease  in that category resulting  from  in-
              creased  recycling.
                   ^Calculated for the Black-Clawson wet recovery system for  recovery of cullet
              from municipal  waste.                          .
                   §Calculated for the Bureau of Mines incinerator residue recovery system for
              cullet recovery from  municipal 'waste.
                   HBased primarily'on surveys conducted in 1967-1969.
percent less mining  and  postconsumer waste, 50
percent less water consumption, and up to 22 percent
less atmospheric emissions. The energy requirements
either increase by 3 percent or decrease by 6 percent,
depending on the recovery system used for obtaining
the cullet.

                      Paper

     There are significant changes in environmental
impact  when  wastepaper is  substituted for  virgin
woodpulp in the production of paper products. Table
3  summarizes  the  environmental impacts  resulting
from  the  manufacture  of 1,000 tons of pulp from
recycled fiber rather than from virgin woodpulp. The
use of recycled fiber requires 61 percent less process
water and consumes 70 percent less energy.
     Although deinking  and bleaching  may be
required to  upgrade secondary  fibers for high-quality
finished  products,  recycling still  produces environ-
mental benefits in almost every category. Table 4,
which  compares  virgin pulp with recycled, deinked
pulp, indicates that  15 percent less water  and 60
percent less energy are required and that 60 percent
less air pollutants are generated. However, waterborne
wastes increase significantly. The increase in solid
wastes generated  in processing is more than offset by
the recovery of paper from municipal solid waste.

                  Ferrous Metals

      There  are  also  substantial  differences in
environmental impact  when recycled steel is utilized,
as opposed to  steel produced from iron ore. A com-
parison of the impacts of producing  1,000 tons of
steel reinforcing  bars from virgin ore and from scrap
indicates that 74 percent less energy and 41 percent
less water are used in  the recycling case. In addition,

-------
KEY FINDINGS
                                                TABLE 3

               ENVIRONMENTAL IMPACT COMPARISON FOR 1,000 TONS OF LOW GRADE PAPER*
               Environmental effect
               Virgin material
                use (oven-dry fiber)

               Process water used
               Energy consumption

               Air pollution
                effluents (trans-
                portation, manufac-
                turing, and har-
                vest ing) t

               Waterborne waste
                discharged, BOD$

               Waterborne wastes
                discharged,
                suspended solidst

               Process solid
                waste generated

               Net postconsumer
                waste generated
 Unbleached
  kraft pulp
   (virgin)
  Repulped
 wastepaper
    100%
 1,000 tons


 24 million
    gal

17 X 109 Btu

  42 tons.-,
 10 million
    gal

5X 109 Btu

  11 tons
  15 tons
   8 tons
  68 tons
 850 tons §
                     9 tons
                     6 tons
                     42 tons
-250 tons 11
Change from
recycling (%) +
  -100


   -61


   -70

   -73
                                      -44
                                      -25
                   -39
  -129
                    'Source: Midwest Research Institute.  Economic studies in. support of policy
              formation on  resource recovery.  Unpublished report to the Council on  Environ-"
              mental  Quality,  1972.                     '
                    -(-Negative number represents a decrease in, that category resulting from recy-
              cling.
                    ^(Biological  oxygen demand.)  Based  primarily on-surveys conducted  in  1968-70.
                    §This assumes  a  15  percent loss of fiber in  papermaking  and  converting
              operations.
                    HThis assumes  that 1,100  tons of wastepaper are needed  to produce 1,000
              tons  of  pulp. Therefore, 850  -  1,100  = —250  represents the net reduction of post-
              consumer waste.
air pollution effluents are reduced by 86 percent and
mining wastes, by 97 percent (Table 5).
      The  results presented in  Tables  2 through 5
were-derived  from surveys conducted from 1968 to
1970 and  represent  a  situation of relatively uncon-
trolled pollution. As air and water pollution control
legislation   and  implementing  regulations  become
more effective, some of the costs of environmental
degradation'  will. be internalized  by industry. This
might  result in  improved environmental impacts of
           virgin material utilization and might decrease the cost
           advantage of virgin versus secondary materials. EPA is
           performing further'analysis of this process, and  the
           attendant' costs and • results' will"' be presented  in
           subsequent reports to Congress.        •  '   :
                 The results  presented  indicate  that  in most
           cases  studied,  the levels  of atmospheric effluents,
           waterborne  wastes,' solid  wastes,  and energy and
           water  consumption  are  substantially  lower  for
           resource  recovery,  as compared  to  virgin material

-------
                                                                                    RESOURCE RECOVERY
                                                TABLE 4

                   ENVIRONMENTAL IMPACTS RESULTING FROM THE MANUFACTURE O'F
                     1,000 TONS OF BLEACHED.VIRGIN KRAFT PULP AND EQUIVALENT  .
                      MANUFACTURE FROM DEINKED AND BLEACHED WASTEPAPER*
Environmental effect
Virgin material
use (oven-dry fiber)
Process water used

Energy consumption
Air pollution effluents -• f ' ••
Virgin. fiber •
pulp
1,100 tons

•• '- 47 million
gal
23X109 Btu
49 tons •
Deinked
pulp
0

40 million
gal
9X 109 Btu
20 tons
• Change from
recycling (%) +
-100

-15

-60
-60
                (transportation,
                manufacturing, and
                harvesting) $

              Waterborne waste
                discharged, BQDt

              Waterborne wastes
                discharged,
                suspended solids  .

              Process solid waste
                generated

              Net postconsumer. •
                waste disposal  .  ..
 23 tons  •:.
1 24 tons
 112 tons
850 tons §
                     20 tons
                     77 tons
                    224 tons
-550 tons 11 •
                                      .-•13..-;
                                      222
                                      100
-165 .
                    'Source: Midwest. Research Institute.  Economic studies in support of policy
              formation  on  resource  recovery.  Unpublished report to the Council on  Environ-
              mental Quality,  1972.  >  ' ••  •-..!.'  ••'•••'.
                    +Negative number represents a decrease in that category resulting from .
              recycling.    	•
             	teased  on surveys-conducted'in  1968-70.:        •.''..'     .   .'
                    §This assumes a  15  percent-loss : of  fiber  in papermaking and converting .
              operations.
                    HThis assumes that  1',400'-tons of wastepaper are needed to produce 1,000
             . tpns'.of pulp. Therefore, 850 -_1,400;=.—550.represents the net reduction of post- ;•
              consumer solid waste.     ....    	
utilization.  However,  the'full environmental;.impact    analysis .are needed to evaluate the overall-environ-'
of  these  results  is difficult  to assess  completely-.    mental-impact of the different mixes and locations of
Residuals and wastes produce different degrees of    emissions due to increased levels of recycling.
environmental damage,  depending  both  upon  their     • ;  •" ••••"                -   ••      •' '  '          •  • '
composition and where  they are released. Emissions      -  :          '     ECONOMICS
in areas with high  populations could affect .public     •     ' •••  •         .        •                 :••••  .-•
health :and welfare, whereas in-rural'
-------
KEY FINDINGS
                                                TABLE 5

                ENVIRONMENTAL IMPACT COMPARISON FOR 1,000 TONS OF STEEL PRODUCT*
Environmental effect
Virgin material use
Water use

Energy consumption
Air pollution
Effluents
Virgin material
use
2,278 tons
16.6 million
gal
23,347 X 106 Btu
121 tons
!
100% waste Change from
use recycling (%) +
250 tons
9.9 million
gal
6,089 X 106 Btu
1 7 tons

-90
-40

-74
-86

               Water pollution

               Consumer wastes
                generated

               Mining wastes
 67.5 tons

 967 tons


2£28 tons
16.5 tons

-60 tons


 63 tons
-76

-105


-97
                     •Source:  Midwest  Research Institute.  Economic studies in support of policy
               formation on resource recovery.  Unpublished report to the Council  on Environmental
               Quality,  1972.
                    +Negative number represents a decrease" in  that category resulting from re-
               cycling.
decline of  resource  recovery.  All  of these can be
translated into the factor of relatively high total costs
for waste  recovery,  compared with  virgin material
processing. Secondary materials derived from munici-
pal waste have a higher cost to the material user in
almost every instance than do virgin materials.
      Again glass, paper, and ferrous metals provide
illustrations.

                       Glass

      Cost comparisons of glass manufacture  from
either waste glass (cullet) or  virgin  raw  materials
depend primarily on the delivered cost to the plant of
each.raw  material. Glass can  be made  from cullet in
existing  plants  with  only minor  and inexpensive
changes in process.  Production costs are  essentially
the same  with either raw material.  Similarly, a new
plant  designed to use cullet would be very similar to a
plant  based  on^virgin materials and would be no more
costly to construct.  .   .
                 Table 6 compares costs when virgin raw mate-
           rials are .used with the costs of using cullet. The lower
           end of the cullet price range reflects a transportation
           distance of 25 miles or less. As distance from the glass
           plant increases,  the  price  obviously  rises. Because
           most recovered glass would need to move more than
           25 miles, the.upper end of the range provides the best
           estimate.
                 Glass manufacturers are not likely to make even
           the minor process changes required to increase cullet
           consumption in cases where the cost of using virgin
           materials from well-established  sources, with predic-
           table supplies and prices, is equal  to or less than that
           of bringing in an unfamiliar, possibly contaminated
           substitute.

             '     .•;•   -   .        Paper                •,   ,.

                 The  comparative  economics  of  using  supple-
           mental .wastepaper in existing mills for manufacturing
           certain paper  products are  shown  in Table 7. These

-------
10
           RESOURCE RECOVERY
                                               TABLE 6

                                    COST COMPARISON FOR GLASS*
Cost component
Raw materials delivered
Gullet delivered
Fusion loss
Virgin materials
($/ton)
15.48 •
0
2.95
Gullet
(waste glass)
($/ton)
0
17.77-22.77
0
              Incremental handling costs
                at glass plant
              Total
0.50-1.00
                                                  18.43
                                                                     18.27-23.77
                    •Source:  Midwest Research  Institute. Economic studies in support of policy
              formation on resource recovery. Unpublished report to the Council  on  Environ-
              mental Quality, 1972.


                                               TABLE?

                          COMPARATIVE ECONOMICS OF PAPER MANUFACTURED
                               FROM RECYCLED AND VIRGIN MATERIALS*
Product
Baseline case
(recycled fiber
content) (%)
Baseline average
operating cost
($/ton)
Supplemental fiber
use (recycled fiber
content) (%)
Operating cost with
increased use of
recycled fiber
($/ton)
Net cost of
increased
recycled fiber
usage ($/ton)
„ . Printing/
Linerboard C™tin9 ^ Newsprint
medium
paper
0 15 0 0
78.50 79.50 80-120 125
25 40 100 100
82.25 82.00 100-150 98
3.75 2.50 20-30 27
                    •Source:  Midwest Research  Institute. Economic studies in support of  policy
              formation on resource recovery. Unpublished report to the Council on  Environ-
              mental Quality, 1972.

-------
KEY FINDINGS
                                                                                                      11
examples are by no means exhaustive of the many
paper industry products, but these cases, which repre-
sent three products with different-economic charac-
teristics,  support  what  would  seem to  be obvious
from the  industry's  current  orientation. The cost
"penalty" for. increasing the  use of paper  stock is
$2.50 per ton for corrugating medium, $3.75 per ton
for linerboard (corrugating medium and  linerboard
are the materials used to  make corrugated boxes), and
$20 to  $30 per ton for printing/writing  paper. The
latter cost  differential results from the  substantial
upgrading of wastepaper that would be required to
produce  a  product of  the high quality presently
required in the printing/writing grade of paper. The
cost of newsprint manufacture, however,  is lowered
by using  100 percent  recycled  fiber (deinked news-
print). This has been the only major new market for
wastepaper in recent years.
      The economics of  constructing new mills based
on either virgin or secondary fibers also show why the
industry has preferred to build plants  utilizing virgin
fiber. An analysis of folding boxboard (combination
board made from secondary fiber versus  solid wood
pulpboard made from virgin pulp) found that the
return on investment for the virgin-based plant was
8.1 percent whereas that for a plant based on waste-
paper  (combination board) was  only 4.5  percent.
Under  such  circumstances,  construction  of  new
combination board mills  is highly unlikely.
         **                    .,:;••
                  Ferrous Metals   '•

      The costs to an integrated steel producer of
using scrap versus ore are difficult to determine. The
steel industry does not maintain, or  at least does not
report, such figures. Estimates have been made, how-
ever, which indicate that the cost  of using high-grade
scrap is higher than the cost of using ore.18
      The point of equivalency of scrap  and ore in
          fee??
the production process is the point where either hot
molten, pig iron or melted scrap is used to charge a
basic oxygen  furnace.  The total cost of scrap at this
point was estimated to be $44.00 per ton, including
$33.50  purchase  price of the scrap,  $6.00 melting
cost, $3.50  for  scrap   handling,  and  $1.00  for
increased refractory wear caused by  scrap usage. The
cost of molten pig iron (which competes directly with
scrap) was  estimated at $37.50 per  ton,  including
$28.50 for  the ore and  associated  raw materials and
$9.00 for melting cost. Thus, the cost of scrap ready
for charging a basic  oxygen furnace is about $6.50
per ton greater than that of the hot metal derived
from  ore at the same point.  Thus, without a reduc-
tion in scrap cost of at least $6.00 to $7.00 per ton, it
is unlikely  that the  utilization of scrap  by existing
steel  mills in basic oxygen furnace steel  production
will substantially increase.
      Nonintegrated steel mills using electric furnaces
(which operate  on  a  virtually  100-percent scrap
charge), of  course, find the use of  scrap economical.
These scattered mills are usually located near metro-
politan areas, and transport  cost  of  scrap is not a
major expense.
      The  above  cases  illustrate  the fundamental
economic barriers to  the increased  utilization of
secondary   materials.  The economics of  recovery
today result in the recovery of all waste materials that
are of high  quality and that can be obtained from
reasonably concentrated sources. Extraction of mate-
rials from solid waste is limited both by the relatively
low quality  of such wastes, due to contamination and
admixture with foreign  materials,  and by the rela-
tively greater effort  required to acquire  such mate-
rials.
           ECONOMIC DISINCENTIVES

      A part of the. cost differential between secon-
dary  and virgin raw materials is, in  fact,  artificially
created by public policy actions.  Virgin materials
enjoy depletion allowances and other subsidies such
as favorable  capital gains treatments. For example,
because of the 15-percent depletion allowance on iron
ore, the ore producer could lower his selling price by
13.5  percent without  reducing his profit margin.
Publicly  controlled freight rates appear to discrimi-
nate against the movement of scrap  materials.  To a
large  extent, virgin material prices do not reflect the
full costs of environmerftal degradation that the mate-
rials create. Furthermore,  the fuels required for the
energy to extract and process the virgin materials-
which are high energy consumers-are also subsidized
by depletion allowances.

-------
12
                                                                                 RESOURCRRECOVERY
 .,.   Environmental regulations will tend to inter-
nalize pollution  costs and  may  partiajly close the
relative cost gap  between use of .virgin^ and recycled
materials. However, the overall timing and impact of
these  measures is  difficult  to predict.  Under the
present market conditions, pollution regulations may
in some cases work to the detriment of recycling. For
example,  in the  paper industry,  many combination
board mills (the.major users of.secondary paper) are
_already economically  marginal operations and  will
find it difficult to absorb, additional, pollution control
expenditures.  Also,  many types  of environmental
degradation resulting from virgin material use (e.g.,
strip mining) are not currently subject,to .controls.
     RESOURCE RECOVERY TECHNOLOGY

      Technology to process mixed municipal wastes
for recovering materials, commodities, and energy has
been, and  is being, developed by  private  industry,
generally without Federal support.
      EPA's  resource  recovery  demonstration pro-
gram, carried out.under  Section  208 of the Solid
Waste Disposal Act, is designed to demonstrate the
major technologies that have been  developed in areas
where  both  economic and market  conditions  for
successful demonstration can be found.
      The major  technical options  being considered
are the following: (1) material separation into salable
components; (2) composting of waste and production
of soil modifiers; (3) waste heat recovery in conven-
tional incineration; (4) waste heat, recovery in high-
temperature incineration; (5) direct firing of prepared
waste as fuel; (6) pyrolysis of waste to generate steam
or gaseous, liquid, or solid fuel. Of these options, a
number have already been or are now being demon-
strated.
     Wet-material  separation  employing a  system
developed by the Black-Clawson Company has been
demonstrated  at Franklin,  Ohio, with EPA support.
Metals,  glass,  and  salable  pulp are separated after
shredding.
     A number of composting plants have been built
and have been operated successfully from a technical
point of view (See Appendix). The majority have
failed,  however, because  markets  for the compost
products did not materialize. The rather high cost of
producing .compost is not  sufficiently  offset  by
income from its sale.
      Waste heat recovery in conventional incinera-
tion has been demonstrated both here and abroad;
this is also  a well-known  practice (See Appendix).
               • • '       •    -it-   •  • '''•
      Direct firing of prepared waste as fuel, is now
being demonstrated in St.  Louis, Missouri. Waste is
shredded; ferrous metals are removed  by  a magnet;
and the remaining waste, including nonferrous metals
and broken  glass, is introduced into a utility  boiler
where it is burned with coal to generate steam for the
utility's turbines.
    < Partial  separation of. incinerator residues, i.e.,
the extraction of steel cans by magnets,  has been
demonstrated at  a number of locations.
      Major  technical options or variants that have
not yet been demonstrated include the following.
      Total  incinerator  residue separation,  as
developed by the Bureau  of Mines, recovers glass,
nonferrous metals, and some fractions of the minerals
in residues, in addition to iron and steel. A pilot plant
has been operated by the Bureau of Mines.
      Dry mechanical waste separation components,
such as shredders, magnets, grinders, and conveyors,
are commercially available.  An  air separator that
performs a gross division of wastes  into combustible
and noncombustible fractions has been employed as
part of an  EPA contract  with  Combustion  Power
Equipment  Company  in  Los Angeles, California.
Material separators  have been widely used in other
industries such as mining and agriculture: To date, the
application  of  these  technologies  to  solid  waste
separation has not been fully exploited by industry
because secure markets for output  products do not
exist.
      Waste  heat recovery  techniques using high-
temperature incinerators have been developed; all of
these incinerators operate in a similar manner.
      Pyrolysis systems have been developed by high-
technology companies  (Monsanto, Hercules, Garrett,
Union Carbide). Like high-temperature incinerators,
these are also very similar in  operation. They can be
designed to yield outputs of fuel gas, oil, and char, or
they can be utilized  directly to generate steam.
      Economic data on  the  investment  costs,
operating  costs,  and  revenues  of  major resource

-------
KEY FINDINGS
                                                                                                       13
recovery system options have been developed by Mid-
west Research Institute under contract with EPA and
the Council  on Environmental Quality. All of the
major  systems examined show a net cost of opera-
tion: revenues are not sufficient to cover all operating
costs.  In  a  municipally owned plant with an  input
capacity of 1,000 tons per day, net costs will range
from  a low  of  $2.70 per ton for fuel recovery by
direct  waste firing to a  high  of $8.97 per  ton  for
incineration  with  electrical  generation  (Table  8).
Whereas the  costs indicate that resource recovery by
processing is not a profitable venture, in those com-
munities where disposal costs are high, the lower cost
resource recovery  options offer a means of reducing
disposal costs.
                     Figure 1 shows that recovery system economics
               improve with  size. These data are based on current
               prices for secondary materials (Table 9). The results
               show that recovery by processing could be attractive
               in large cities generating large quantities of waste if
               the increased quantities of recovered materials do not
               drive secondary material prices down. Table 10 shows
               the sensitivity  of system  economics  to the market
               price of recovered materials.  It can be seen that if
               higher prices are obtained, which may be the case if
               incentives for use  of  secondary  materials are insti-
               tuted, system economics are significantly improved.
               Using the case of material recovery as an example, a
               50-percent increase in  prices results in a reduction of
               net costs  from  $4.77 per ton to $2.56 per ton. A
                                                TABLE 8

                             SUMMARY OF  RECYCLING SYSTEM  ECONOMICS"4"

System concept


Material
recovery
Residue recovery
Primary
type of
recovery


Material
Material
Capital
investment
(thousands of
dollars)

11,568
10,676
Total annual
cost
(thousands of
dollars)

2,759
2,689
Resource
value
(thousands of
dollars)

1.328
535
Net annual
cost
(thousands of
dollars)

1,431
2,154
Net cost
per input
ton ($)•


4.77
7.18
    after incineration

 Incineration and          Energy
    steam recovery

 Incineration and          Energy
    electrical
    generation

 Pyrolysis                Energy

 Composting             Energy
    (material/
    energy)

 Fuel use                 Energy
    (supplementary)
 Incineration
                        Disposal
11,607


17,717



12,334

17,100



 7,577


 9,299
3,116


3392



3,287

2,987



1,731


2,303
1,000


1,200



1,661

1,103



 920
2,116


2,692



1,626

1,884



 881


2,303
7.05


8.97



5.42

6.28



2.70


7.68
      •Source: Midwest Research  Institute. Resource recovery from mixed municipal solid wastes. Unpublished data,
 1972.
      +Based on municipally owned, 1,000-ton per day plant with a 20-year economic life, operating 300,days per
 year, and interest at 5 percent.

-------
14
                                                                                RESOURCE RECOVERY
    14.00
    12.00
   10.00
2
O

<2  8.00


-------
'KEY FINDINGS'
                                                                                                       15
                                                TABLE 9
                          QUANTITY AND VALUE OF RECOVERABLE RESOURCES
                                           IN MIXED WASTE *+

Resource
Paper
Glass
Ferrous
metalsH
Nonferrous
metals

Yield *
(%)
45
70
90
67

Recovered
quantity
available§
45,000 tons
16,800 tons
20,400 tons
1,200 tons

Estimated unit
Value FOB plant
($/unit)
15.00
10.00
12.00
200.00

Total annual
revenues
($)
675,000
168,000
244,000
240,000

Oil
Fuel (as a
coal sub-
stitute)
Steam
Electric
energy
Humus
100 1 ,440,000 MBtu
100 2,700,000 MBtu
100 2,000,000 M Ib
100 200,000,000 kW-hr
75,000 tons
.70
.25
.50
.006
6.00
1,008,000
675,000
1 ,000,000
1 ,200,000
450,000
                     "Source:  Midwest  Research Institute.  Resource recovery from mixed  municipal
               solid  wastes. Unpublished data, 1972.
                    +Not all  of  these values are additive.  For  example, if paper is reclaimed as
               fiber, it cannot also be  recovered as  oil or  fuel.
                     $Yield equals the  percent of the material or energy in the  waste that can
               actually be recovered.  In general, losses and  technical limitations make this Mess than
               100 percent.          .
                     §Assumes a  1,000-ton/day  plant operating  300 days/year  or 300,000 tons  of
               waste. Also  assumes recovery rates based  on  technology assessment of available systems.
                    ..HThis assumes recovery from mixed waste.  If recovery is from incinerator
               residue, the value is assumed to drop to  $10/ton, and only  12,700 tons are recover-
               able.
material price  decrease  of the same  amount would
raise net costs to $6.98.
      The costs presented in Tables 8 and 10 suggest
that source  recovery, is a  more  economical  option
than incineration. The fact that there is no apparent
move to install resource recovery  systems is partially
explained by the fact that the markets for recovered
commodities  are   uncertain.  Cities  are  unable  to
obtain purchase contracts with local buyers  of waste
materials at fixed  prices. The failure rate of compost
plants, due to lack of markets, has  solidified feelings
of market uncertainty. Finally, traditional municipal
reluctance  to  undertake  large-scale  capital
investment-particularly where there is an element of
risk-and other  institutional problems have also con-
tributed  to the  failure to move to resource  recovery
systems.
      In  summary,  technology is,  in most  cases,
available for  implementing resource recovery through
the processing  of mixed municipal wastes. The tech-
nical processing route  is  costly, but in some of the
technical options, costs approximate those  of other
means of disposal. Although technological  improve-
ments would result in some cost reductions, techno-

-------
16
                                          RESOURCE RECOVERY
                                             TABLE 10

                        SENSITIVITY OF SYSTEM ECONOMICS TO MARKET VALUE
                                    OF RECOVERED RESOURCES*




System concept
Material recovery
Incineration and
residue recovery
Incineration and
steam recovery

selling

150
percent
2.56
6.29

5.39

Net cost based on
prices as a percent

100
percent
' 4.77
7.18

7.05

resource
of base value

50
percent
6.98
8.08

8.72


($/ton)
No
resource value
recovered
9.20
8.96

10.38

              Incineration and
                electrical generation
6.98
8.97
10.98
                                         12.98
Pyrolysis

Composting
Fuel recovery
2.65

4.44
1.17
5.42
1
6.28
2.70
8.18

8.12
4.24
10.96

9.95
' 5.77
                    •Source:  Midwest Research Institute.  Resource recovery from mixed municipal
              solid wastes. Unpublished data, 1972.
 logy is not likely to improve dramatically the market-
 ability of products. If incentives for secondary mate-
 rial  consumption were instituted  and if improved
 prices for waste-based commodities were established,
 further technology development by the private sector
 could be expected. .

 RECOVERY FROM  MIXED MUNICIPAL WASTE

      To  recover materials from mixed municipal
 waste,  economics must  be favorable at two  key
 points.  The municipality must find  the  cost of
 resource recovery competitive with disposal. Second,
 the user of the  materials from these systems must
 find the cost of these secondary materials competitive
 with virgin material substitutes. Recovery of materials
 from mixed municipal waste requires processing. With
 the exception of some  20 very large cities, disposal
 costs of most communities are lower ($2 and $3 per
 ton)  than  the   resource  recovery  alternative.  As
 shown, recovery  processing costs tend  to exceed
 revenues from the sale of products, and the resulting
               net cost is higher in most places than current disposal
               costs.
                    Even in areas where disposal costs are already
               high-in excess  of $5 per ton-resource recovery is
               limited because no markets can be guaranteed  for
               recovery plant outputs at the tonnage levels at which
               they  can be produced.
                    From the  standpoint of the municipality, then,
               two  changes that would  bring  about larger scale
               recovery of mixed municipal waste are higher prices
               for recovery plant outputs or,  alternatively, reduced
               recovery  plant  production  costs and,  second,  an
               increase in demand for waste-based raw materials.
                    These requirements, however, are somewhat at
               odds  with the requirements of the user who must
               purchase  the outputs of such plants. As has been
               shown, the  economics  of virgin material use are
               already more favorable than the economics of secon-
               dary  material use.  Lower waste prices  are needed to
               change this situation. To insure a demand for secon-
               dary  materials, either they must decrease  in price or
               their  use must.be subsidized.

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                                     3.   MAJOR OPTIONS
      EPA's studies have progressed to the point that.
the major available options for bringing about an
increased  rate  of resource  recovery—where such
action can be justified on environmental and conser-
vation grounds-are generally identifiable.  The
fundamental requirement is to create a situation in
which  users  of industrial  materials substitute
secondary materials for virgin materials to the extent
that this  results  in more efficient use of resources.
This situation could be brought about by three types
of activities: (1) actions to inhibit the use of virgin
materials;  (2) actions to create a demand for secon-
dary  materials;  (3) actions  to  create a supply  of
secondary materials of such quality and at  such  a
price  that they would appropriately  satisfy the new
demand.
      Inhibitory mechanisms, aimed at restricting the
consumption of virgin materials, would normally take
the  form  of  disincentives  or   regulatory actions.
Actions to create demand or supply would normally
require the  provision of  positive  incentives.  An
analysis of each of the major options follows.
 .   INHIBITION OF VIRGIN MATERIAL USE

      If the supplies of virgin materials available to
industry were denied or restricted, the cost of the
remaining  available  portion  would  rise as  a conse-
quence  of  continuing demand.  In  relation  to
secondary  materials,  then/  virgin  materials would
become more expensive, and more  secondary mate-
rials would be Used.  Similarly, if the costs of virgin
materials were artifically raised (by taxation, removal
of depletion allowances, capital  gains treatment, or
other means),  the same consequence would result. .
      The  desirability  of  major intervention into
 irgin material use  to increase  recycling is question-
 ble on the grounds that a very large  material tonnage
(5.8 billion tons) may have to be affected to increase
a small portion (55 to 60 million tons).
      Several "natural"  events are likely to cause the
cost of virgin materials to rise without any form of
government  intervention.  These events include  (1)
tighter  pollution  control  regulations  and  enforce-
ment, resulting in higher pollution-control costs; (2)
increasing energy costs, which  will proportionately
affect virgin  materials  more because they are more
energy intensive than secondary materials; (3) deple-
tion of high-quality domestic reserves and the need to
exploit lean ore deposits of high-quality or to import
raw materials across greater distances; (4) potentially
adverse  foreign trade policies. The timing and impact
of these market correctives are difficult to predict  but
are expected to be significant.
      "Artificial"  intervention  is  possible  through
instituting taxes on virgin materials and/or removing
or modifying the favorable  tax treatment  of  virgin
materials  and  energy  substances, regulating  virgin
materials  available from  Federal  land,  denying
markets to virgin materials through Federal procure-
ment  policies, changing transportation costs through
Federal regulation  of  rail and  ocean  freight  rates,
changing  federally  mandated   labeling regulations,
and, at the  extreme,  instituting national  materials
standards  that would limit  the  use of major  virgin
materials to  some  percentile below that now com-
mon.
      The costs, benefits, and probable effectiveness
of each major action listed above are being analyzed.
Based  on initial  findings,  EPA  sees justification  for
more aggressive Federal procurement policies to limit
the use of virgin materials in products (with all  the
implied consequences of such a leadership  posture),
actions  to remove freight rate disparities that appear
to  favor virgin materials, and  removal of labeling
regulations that discourage  consumer purchasing of
products that contain "waste" materials.
                                                   17

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18
                             RESOURCE RECOVERY
      An example of  Federal  procurement  changes
already exists. The  changes  introduced in 76  paper
product  specifications  by  the  General   Services
Administration, under orders from the President, are
already  having some  impact  on  paper  and  board
production. Intensification of such actions is certain
to have beneficial impacts on resource recovery.
      Fiscal measures (e.g., taxes to discourage virgin
use) could  be addressed  to  the artificial economic
benefits that  now  favor virgin material use. Such
measures,  however,  would have a variety of  other
.impacts as well, which- are being evaluated to  deter-
mine whether fiscal measures  to inhibit the use of
virgin materials are cost effective. In light of a series
of natural events-esp'ecially rising energy costs-that
will  increase virgin material costs, fiscal intervention
may appear neither necessary nor desirable.
      Regulatory actions are viable alternatives for
increasing  resource  recovery but  relative to  virgin
material resource use,  such actions need  further
evaluation to  determine their side effects, which may
be adverse.

              DEMAND CREATION

      EPA's investigations to date lead to the conclu-
sion  that  positive  economic  incentives may  be
desirable  to arrest  the  relative  decline  of material
recovery  and  to  increase the  proportion  of total
national material needs satisfied by waste-based raw
materials.
      There  is evidence that energy recovery from
mixed municipal waste will become a very real option
to both private- and public-sector waste management
organizations  without  incentives of any sort and that
limited materials   recovery-steel,  aluminum,. and
glass-will accompany  such energy recovery activities.
      The  most  efficient  incentive for   material
recovery would be one that  results in new industrial
demands for secondary materials, such .as some .form
of tax incentive or subsidy payment to users of secon-
dary materials. If an incentive results in a "demand
pull" by industry,  such demand will automatically
result in changes in the way wastes are stored,  col-
lected,  and processed.  The key to increased recovery
is the waste-commodity buyer rather than the com-
modity supplier. Only if the  buyer finds waste mate-
rials  a  more  economical  alternative than virgin
materials will greater quantities be utilized. Incentives
provided directly to the buyer are most likely to have
the most dramatic effect on his actions.
      Demand-creation incentives can take a variety
of forms. The particular form that the incentive takes
is important from the administrative and legal points
of view. Also, different types of incentives have dif-
ferent efficiencies (cost-effectiveness). Regardless of
mechanism  used, the  important point  is that the
material producer (steel mill,  papermill, glass plant,
etc.) should find himself in a situation where the use
of secondary material  is to his economic advantage.
      Potentially, several types of incentive measures
satisfy this criterion: investment tax credits for using
secondary materials, subsidy payments or'bounties,
subsidy of  plant and  equipment for processing or
using secondary  materials,  etc.  If  the incentive  is
made available directly to the material consumer, a
demand for waste materials will result.
      Functionally, the incentive must be high
enough so that at the point of material consumption,
the cost of the secondary material to the  buyer is at
least the same, i.e., in  the same quality range, as the
cost  of the  virgin   material.  Investigations  are
underway to identify  the level of necessary incen-
tives. As shown in a previous section, it appears  that
the incentive  required to "equalize" the costs of
virgin  and  secondary  materials  would range from
$2.50 to $30.00 per ton of material recovered. These
values are based on a limited number of comparisons
and  should  be viewed as somewhat tentative. It is
estimated that an'across-the-board incentive sufficient
for a substantial increases in resource recovery would
range from $3 to $5 per ton of material recovered. A
subsidy of this magnitude should be largely offset by
savings  in  disposal cost because recycled materials
would be removed  from the waste  stream and, thus,
would not incur the cost of landfill or incineration. In
addition, there  would be important environmental
benefits from increased recycling.

               SUPPLY CREATION

      Incentives  for demand creation are viewed as
sufficient  inducement  to  bring • about resource
recovery at an accelerated  rate. -Such incentives, if

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MAJOR OPTIONS
                                                19
 appropriately  designed,  should  spur  private  and
 public  investment  in resource recovery plants  and
 systems that would deliver to industry the types and
 quantities of secondary materials it might demand.
      As incentives bring about consumer demand for
 increased  quantities  of  secondary  materials,  the
 demand will reverberate down the chain of suppliers
 and will bring about some changes in supply patterns.
 It is likely, for example, that increased  "skimming,"
 or  removal  from wastes .before discard,  of accessible
 wastes, such as newspapers,  corrugated boxes,  and
 office papers, would occur at municipal and commer-
 cial sources and that  such recovery would take place
 at lower overall costs than technological sorting.
      Most of the solid waste  materials that would be-
 demanded by industry now pass through the hands of
 municipal solid waste management organizations  that
 collect waste in mixed forms.. To sell  all proportions
 of  waste now collected, these organizations face  two
 alternatives:  to collect waste  fractions separately or
 to process mixed wastes into separate fractions.
      Both, alternatives  have  drawbacks.  Separate
 collection  of different waste fractions, while once
 widely practiced, has virtually disappeared. Combined
 waste collection, using the more efficient compactor
 truck,  has. become  standard  in  residential,  institu-
 tional,  and  commercial  waste  collection practice.
 Reinstituting  separate  collection  would   require
 changes in practices and equipment.,  ..
      The processing option is.capital intensive.  The
 economics of processing require large plant sizes to
 take advantage  of  economics of scale.  For  the
 economics to be attractive, plant sizes of 1,000 tons
 per day of input or higher are'required. There are few
 communities with such high generation rates.
      If demand incentives result in higher secondary
 material prices^ public and private waste management
 organizations would be able to justify the processing
 of  municipal wastes for recovery in lieu of processing
 for disposal. Higher  prices  for  waste-based com-
 modities will also permit the  use  of smaller capacity
 plants; the higher prices  will  compensate  for  the
 higher processing costs of small plants.
      In smaller  communities, where  recovery  by
 processing is not likely to be economical, providing
 supplies via separate  collections is a possibility.  The
 separate collection option, which was  once practiced
 extensively, will require technical, institutional, and
 social changes to become a part of today's society. At
 this point, enough knowledge has been gained to see
 that  citizen  enthusiasm  for resource  recovery,  as
 expressed in the thousands of neighborhood recycling
 centers, holds the potential  for new and innovative
 options for solid  waste collection. Furthermore, the
 successful experience of Madison, Wisconsin-where
 city  crews  collect newspapers  separated from other
 wastes by the citizenry-indicates that alternatives  to
 large-scale recovery plants do  indeed exist.
      Such  approaches  to supply creation are still
 being analyzed as part of EPA's resource  recovery
 studies program.
                 OTHER OPTIONS

       In addition to action programs that would have
 a direct  impact on resource recovery,  a number  of
 related activities are also under consideration whose
 consequences  would be  to  attack  the • broader
 problem  of "excessive material consumption" in the
 United  States,  rather than one  aspect  of  that
 problem, low resource recovery rates.
       Source reduction proposals are usually aimed at
 a particular product, such as beverage containers, or a
 class of products like packaging or appliances.
       Source reduction options fall into four cate-
 gories: (1) bans or other disincentives applied to a
 product  or class of products; (2) setting of perfor-
' mance ' standards  that  will  result  in  longer lived
 products,  whereby  more  "use"  or  "service"  is
 obtained from a given quantity of materials than is
 the  case if rapid obsolescence  is promoted;  (3)
 substitution of production processes with low waste
 yields for waste-intensive processes, for instance, dry
 papermaking in place of wet pulping* (4) substitution
 pf products with low material requirements for those
 with  high  material requirements,  for instance, elec-
 tronic calculators  for 'the more material-intensive
 mechanical calculators or  substitution  of electronic
 communications media for media that require paper.
       EPA's'  investigation  of  source  reduction
 concepts is currently aimed at packaging and  other
 disposables, products  that are particularly significant
 in their  contribution to solid  waste quantities and

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20
                                                                                 RESOURCE RECOVERY
whose consumption has been growing rapidly. An
EPA study is underway to examine alternate taxing
and regulatory  measures for reducing the quantities
of packaging materials consumed.
      Such measures  might be successful in either
reducing consumption of packaging and other dispos-
ables; stimulating designs of more recyclable pack-
aging  or products; or providing funds for defraying
the litter  cleanup,  collection,  and  disposal  costs
presently associated with these materials. The secon-
dary  effects  of these measures, such as economic
dislocations and  employment  disruptions,  are  also
being  examined.
      Of the  various  major  options  available for
increasing the rate  of recovery,  intensified Federal
procurement  of waste-based  products and  further
exploration  of positive  demand  incentives appear
most  desirable  in the long term,  accompanied by
activities to bring into line freight rates of virgin and
secondary  materials.  More  information  is  needed
about the necessity for and the effects, fairness, and
workability of  both source reduction and  resource
recovery incentive concepts before such measures are
implemented.
      Demand  creation  would  be achieved  most
efficiently by the direct route of rewarding the waste
 consumer for  using  secondary materials. Incentives
 for demand creation, if properly designed, may bring
 about resource recovery at an accelerated rate and
 would probably spur private and public investment in
 resource recovery plants and systems to supply secon-
 dary materials., Certain changes  in supply  patterns
 may emerge that will result in the circumvention of
 the  recovery  plants  by  some waste materials.
 "Skimming"  of accessible wastes like,  newspapers,
 corrugated, boxes, and office papers is such a change.
 For  smaller  communities  where  recovery  by
 processing is not likely to be economical,  provision of
 supplies via separate collection is a potential solution.
      Actions  aimed  at removing certain  artificial
.barriers  are under serious, consideration  by  EPA,
 especially Federal procurement policies  to increase
 the  use  of secondary  materials  in  products  and
 actions to remove freight rate disparities  that appear
 to favor virgin materials.
      Taxes and regulations to reduce the consump-
 tion  of certain product categories, such as packaging,
 and thereby reduce the load on the solid waste stream
 are  presently  under  investigation.  Stimulation of
 more recyclable  package  designs and provision of
 funds for litter cleanup are secondary benefits of such
 actions.

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                                 4.  PROGRAM ACTIVITIES
      The  foregoing  presentation  and  preliminary
conclusion,  as  well as the data, information, and
discussions  of ..specific  materials  included  in the
Appendix,  are  based  on  EPA resource recovery
program activities, carried out both by in-house staff  .
efforts and contract research in support of the  inter-
nal analysis.
      An overview of the basic plan for carrying out
the congressional mandate is shown in Figure 2. The
problem is defined in terms of the adverse environ-
mental effects of material processing and disposal and
efficiency of resource utilization. The broad solutions
identified for the  problem are  increased resource
recovery and source reduction activities. A number of
policy options  available to  achieve the solution are
shown. Next, specific program activities to implement
the policy option are  shown arranged into "primary"
and   "secondary"  priority  categories.  Finally,  an
evaluation  procedure,  by 'which  specific  action
programs will be selected for recommendation, is out-
lined.
      Figure 3 shows the various alternatives available
for reaching the objective of increased waste utiliza-
tion;  Figure 4 illustrates the alternatives available to
obtain the  objective  of source  reduction; Figure 5
illustrates the  points in the  material cycle where the
various  action program alternatives would have their
impacts.
      For purposes  of  discussion, EPA's program
efforts can be classified into three types of activities:
(1) background  studies  that  provide  for  under-
standing the subject of resource recovery in its many
facets; (2) studies to  formulate and  analyze action
programs; (3)  studies to evaluate the impacts and
effectiveness of action programs that appear to have
merit. In what follows, the various past, ongoing, and
projected  activities of EPA will be discussed under
these headings.
            BACKGROUND STUDIES

      Background  investigations' include data collec-
tion,  survey,  and  information  classification  to
establish the status and trends of recycling and to
identify  problems, barriers, and  opportunities for
increased waste use. A number of background investi-
gations have been completed to date and are nearing
publication. The following is  a list of  completed
studies:
(1) An  analysis of Federal programs affecting solid
      waste management  and  recycling,  SCS Engi-
      neers, 1971.
(2) Catalog of resource recovery systems  for mixed
      municipal  waste,  Midwest Research Institute
      and  Council  on Environmental Quality > 1971.
(3) Identification  of opportunities  for  increased
      recycling of   ferrous solid waste,  Battelle
     Memorial  Institute and Institute of Secondary
      Iron and Steel,  1971.
(4) Recovery  and  utilization  of municipal  'solid
      wastes, Battelle Memorial Institute, 1971.
(5). Salvage markets  for commodities entering the
      solid waste stream-an economic study,  Mid-
     west Research Institute, 1971.
(6) Studies to  identify opportunities for increased
     solid waste utilization (Studies  completed for
      aluminum, lead, copper,  zinc, nickel, stainless
      steel,  precious  metals,  paper,  and textiles),
      Battelle   Memorial   Institute  and National
      Association of Secondary Materials  Industries,
      1971.
      Review of this  information is underway; data
     and information gaps  have been  identified, and
      the need for further  background investigations
      has  been  established.
                                                  21

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PROBLEM
DEFINITION


SOLUTION
DEFINITION


IDENTIFICATION
OF POLICY
OPTIONS


PRIORITY OF
POLICY OPTIONS
AND PROGRAM
ACTIVITIES


EVALUATION
PROCEDURE
• Environmental
effects of material
processing and
disposal

• Efficiency of
resource utiliza-
tion
• Resource recovery

• Source reduction
• Resource recovery
   Inhibit virgin
   material use   ,
   Create demand for
   waste materials
   Create reliable
   supply of waste
   material

• Source reduction
   Product design
   Process efficiency

• Disposal regulation
• Primary
   Demand creation
   through incentives
   Source separation
   and diversion
   Waste generation
   and disposal
   disincentives

• Secondary
   Virgin and waste
   material regulation
   Grants and loans
   R&D for waste
   uses, system design,
   and product design
i Goals            ;
  Baseline projec-
  tion
  Wastes recovered
  or reduced
  Resources saved
  Environmental  impacts
  Savings
  Implementation
  requirements
  Other
                                        Figure 2. Overview of a p.lan for resource recovery and source reduction.
                                                                                                                                                            73
                                                                                                                                                            m
                                                                                                                                                            C/3
                                                                                                                                                            O
                                                                                                                                                            C
                                                                                                                                                            PI
                                                                                                                                                            o
                                                                                                                                                            O
                                                                                                                                                            w

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PROGRAM ACTIVITIES
                                                                  23
                            OBJECTIVE: TO INCREASE UTILIZATION OF WASTE
  INHIBIT THE USE OF VIRGIN MATERIALS
                                                              PROMOTE THE USE OF WASTE MATERIALS
Regulate virgin
material supply
                                   \
                             Create economic disincentives
                              for virgin
                              material use
         CREATE A RELIABLE SUPPLY
            OF WASTE MATERIALS
  CREATE A DEMAND
FOR WASTE MATERIALS
                       Discourage virgin
                         material use
        Regulate virgin material use
                             Create economic
                       incentive for the use
                         of waste materials
                                                      Encourage use of waste
                                                            materials

                                                      Regulate waste material use
                                                             V
           Develop new uses
           for waste
           materials
                                               Guarantee purchase
                                               of waste materials
OBTAINING WASTE MATERIALS
        COLLECTION OF
SOURCE-SEPARATED MATERIALS
                                                                           UPGRADING WASTE MATERIALS
                                                               \
                                                            Create disincentive  for
                                                              or regulate disposal
DIVERSION OF MATERIALS    EXTRACTION OF MATERIALS
BEFORE ENTERING WASTE            FROM WASTE
                 T
            Create economic
            incentive for source
            separation
      Regulate source separation
               Create incentive for collection    I  Create economic incentive
               of source-separated materials    I  for waste upgrading systems
 Create disincentive for
  or regulate disposal
                                                      UPGRADING PRODUCTS THAT PRODUCE WASTE
                                Carry out R&D for
                                resource recovery system
                Create economic incentive
                for resource recovery systems
                          Regulate
                          product design
                                                                                   Create economic incentive
                                                                                      for produce redesign
Encourage source separation
                                            Encourage new product
                                               design
                                     Carry out R&D
                                     for new product design
                                    Figure 3.  Resource recovery policy options.

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                                                      OBJECTIVE: TO DECREASE GENERATION OF WASTES
                                                                       Subsidize more efficient
                                                                    material utilization processes
                    CHANGE PRODUCTS THAT BECOME WASTES
Encourage new
product decision
                                                                                                         Create economic disincentive
                                                                                                         for or regulate disposal
Carry out R&D for
new product design
                   Regulate product
                       design
                              Create incentive
                              for product redesign
                                            Figure 4.  Source reduction policy option
                                                                                                       B

                                                                                                       I
                                                                                                       r>
                                                                                                       n
                                                                                                       n
                                                                                                       8

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• Regulate virgin
I  material supply
              • Subsidize more
              I efficient material
              I processes
                                                           • Encourage new product design
                                                              • Regulate product design
                                                                • Carry out R&D for new product design
                                                                  • Create incentive for product redesign
                                                                      Create economic disincentive for virgin material use
                                                                       • Create economic incentive for waste material use
                                                                         • Regulate virgin material and waste material use
                                                                            f Develop new uses for waste material
                                                             • Guarantee purchase of
                                                             I  waste material
   VIRGIN
  MATERIAL
ACQUISITION
MATERIAL
  VIRGIN
 MATERIAL
PROCESSING
                               MATERIAL
                   WASTE
                                          WASTE
                                                                                                                                                      •a
                                                                                                                                                      §
                                                                                                                                                      O
                                                                                                                                     B
                                                                                                                                     en
                                             PRODUCTION
                                                             PRODUCT
                                                                          CONSUMPTION
                                                                                              WASTE
                                                                               WASTE
                                                               -• WASTE
                                                               'MATERIAL
                                                             .PROCESSING
                                                             MATERIAL
                                                                 WASTE
                                                              MATERIAL
                                                             ACQUISITION
                                                              • Subsidize waste
                                                               material processing
• Create disincentive
  If or or regulate
  disposal
                                                                                                            DISPOSAL
                                                                                      • Carry out R&D for resource
                                                                                       recovery systems
                                                                                   • Create incentive for collection of
                                                                                    source-separated materials
                                                                                • Create economic incentive for
                                                                                  resource recovery systems •
                                                                             • Encourage, require, or create an economic
                                                                              incentive for source separation
                                   Figure 5. Application of resource recovery and source reduction policy options.

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 26
                                                                                  RESOURCE' RECOVERY
                     Baseline

      To assess an incentive mechanism designed to
 increase waste recovery, it is first necessary to project
 the amount of future recycling likely to occur in the
 absence of the proposed incentive. Factors that could
 influence this baseline are  (1)  rising  municipal
 disposal  costs; (2)  environmental  legislation; (3)
 recovery technology development; (4) rising energy
 prices;  (5) change in labor productivity; (6) private
 sector and local government actions. An investigation
 is being  performed to forecast  this baseline in the
 absence of Federal activity.

               Recycling Possibilities

      It is also important  to  estimate the practical
 upper limits on recovery, to assess the effectiveness of
 proposed recycling measures. It is  not feasible to
 recover all solid waste generated. The amount avail-
 able for recycling is determined by factors such as (1)
 losses  in processing, collection,  and handling; (2)
 amounts generated in remote  areas;  (3) self-disposal
 activities; (4) materials dispersed in trace quantities;
 (5) materials concealed or mixed in products.  The
 practical limits on recycling  are being projected to
 serve as a guide for evaluating recycling activities.

                   Freight  Rates

      Transport rates may have an unfavorable effect
 on the prices of secondary materials as compared to
 virgin materials. However, differences that exist may
 be justified by cost to the carrier. An investigation of
 the basis and structure  of transport rates  is being
.performed  in an attempt to (1) compare actual
 freight rates for secondary  and primary materials; (2)
 compare carrier  costs of   shipping  and  factors
 affecting this cost; (3) establish the effect of rates on
 the relative prices of virgin and waste materials.

          Source Separation and Collection

      To analyze incentives and policies that promote
 increased recycling, the reliability and costs of obtain-
 ing wastes from  different  sources must be  known.
 There  are three  source separation  techniques  cur-
 rently  employed  to  collect  wastes  segregated  at
 households  or  business  establishments:  (1)  com-
 munity recycling centers; (2) separate collections (by
 volunteer organizations, municipal or private collec-
 tors, and  secondary material dealers); (3)'separation
 of wastes during regular  household collections. An
 example  of the latter type of operation exists  in
 Madison, Wisconsin, where segregated newspapers are
 collected with other household wastes and.placed in a
 separate bin hung below the collection vehicle.
      To provide the background information needed
 to evaluate  these techniques, studies will be carried .
 out to  assess (1) consumer attitudes to source separa-
 tion techniques; (2) costs involved in collecting segre-
 gated materials  and transporting them to users; (3)
 amounts  of material that can feasibly  be recycled
 through these channels
     FORMULATION OF ACTION PROGRAMS

      Work  in this area  involves identifying  and
 formulating means of increasing  recycling through
 demand  creation, supply  creation,  and  inhibiting
 virgin material use. The following list contains studies   •
 of incentive alternatives  that have been completed
 but are not released:
 (1) An Analysis of the Abandoned Automobile Pro-..
      blem, Booz-Allen Hamilton, 1972.  ...
 (2) An Analysis of the Beverage Container Problem,
      with Recommendations for Government Policy,
      Research Triangle Institute, 1972.
 (3) The Economics of the Plastics Industry, Arthur D.
      Little, 1972.
 (4) Strategies to Increase  Recovery of Resources from
      Combustible  Solid   Wastes,  International
      Research and Technology,  1972.
 (5) Incentives for  Tire Recycling and Reuse, Interna-
      tional Research and Technology.
    The studies are.presently under  internal  review,
    and where appropriate, recommendations  will be
    forthcoming. The contract reports will be avail-'
    able for public distribution'when'the review is .
    complete.
      Program plans  being developed  for incentive
. and regulatory measures will  be analyzed  and evalu-
 ated in the next year. Economic incentives include (1)

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PROGRAM ACTIVITIES
                                                                                                   27
recycling  tax credit or subsidy for the use of post-
consumer waste; (2) investment credit or subsidy for
recovery  equipment;  (3)  virgin material tax  to
increase cost of virgin material use; (4) waste genera-
tion tax to reduce the amount of waste produced;.(5)
government procurement to create a  demand for
waste materials; (6) depletion allowance adjustment
to  increase costs  of  virgin materials.  Regulatory
measures  include  (1) transport  rate adjustment to
equalize  freight rates;  (2) material standards speci-
fying waste use  in certain products;  (3)  virgin
resource  control on Federal lands; (4) regulation of
waste and virgin material imports and exports.
                  EVALUATION ,

      Evaluation  of  the programs for economic
incentives and regulatory measures consists of deter-
mining  (1) wastes recycled; (2) resources conserved;
(3) environmental impacts; (4) costs and savings; (5)
implementation  requirements; (6) other impacts such
as employment, foreign trade, 'and industrial disloca-
tion.
      Work  in this area  involves, first,  developing a
methodology for performing  the  evaluation of the
different aspects and, second,  applying the methodo-
logy  to the  specific  incentive  and  regulatory
measures. Environmental impact analysis for paper,
ferrous  metals, and glass has been started (Economic
and Environmental Analysis;  studies completed for
paper, ferrous metals, and glass/ Midwest Research
Institute and Council  on  Environmental Quality,
1971) and a preliminary cost-effectiveness study has
been  performed for  one  type of incentive,  the
recycling tax credit (Preliminary Report on a FederaJ
Tax Credit  Incentive for'Recycling Post Consumer
Waste Materials,  Resource Planning Associates, 1972).
      As will be discussed, additional work is required
in the  areas of predicting waste recycling and of
estimating resource requirements and environmental
impacts. The costs and savings follow directly from
these  measures.  The implementation requirements
and other impacts must be evaluated  on an individual
basis  for  each  particular  incentive  or  regulatory
mechanism.

                Predicted Recycling

      To predict the amount of waste material that
 would  be recycled as a result of 'an incentive  or
 regulation, it is necessary to estimate the elasticity of
 supply and demand as they affect prices for wastes
 and competitive virgin  materials.  This requires  an
 analysis of historical price-quantity data;  financial
 analyses to determine the effect on profit, return, and
 investment  decisions; and  an  analysis of material
 processing costs. Work aimed at recycling through the
 major  waste-using  industries,  such  as wastepaper,
 scrap steel, and glass, is underway.

  Environmental Impacts and Resource Consumption

      Work in  this area involves laying out the entire
.waste  material use  system  from  acquisition  to
 disposal.  At each stage of the system, the air and
 water pollution  produced are  calculated along with
 the energy, water, and materials consumed. Compari-
 sons are made with and without recycling, and the
 net environmental  impact  is determined. The work
 completed for  paper, ferrous metals, and glass will  be
 expanded to include calculation of the cost savings of
 pollution  abatement  due  to recycling.  Similar
 analyses will be carried out for aluminum, rubber,
 textiles, and plastics.
      In summary, evaluating regulatory mechanisms
 and incentives  involves (1) determining the effective-
 ness of the proposed measures; (2)  comparing this to
 the recycling baseline and practical upper limit; (3)
 estimating costs and benefits; (4) making an informed
 judgment as to the value of the  measure.
      The program activities described are aimed  at
 providing  the  information necessary  to formulate
 meaningful resource recovery policy. In the last half
 of the fiscal year ending June 30, 1973, recommenda-
 tions will be made for measures to accomplish the
 goal of increased resource  recovery  on an environ-
 mentally,  economically,  and  socially sound basis.
 These  measures will  be described in the  Second
 Annual Report to Congress.

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                                          APPENDIX

                             Recycling of Specific Wastes
                                               PAPER
                Status and Trends

     Paper is one of the major manufactured mate-
rials consumed in the United States and the largest
single component-35  to 45  percent by weight-of
collected  municipal  waste.  In  1969,  the  Nation
consumed 58.5 million tons of paper, and by 1980,
this is projected  to increase  to about 85.0  million
tons (Figure  A-l). Paper, paperboard, and construc-
tion paper and board  are  the  three major paper
categories and accounted for 51.5, 40.8, and  7.7
percent,  respectively, of the  1969  paper consump-
tion.
      Only 17.8  percent (10.4 million  tons) of the
paper consumed in  1969 was recovered for recycling,
compared  with  23.1 percent in  1960  and  27.4
percent  in   1950.14  Most  of the remainder  was
discarded as  waste  (put in landfills or dumps, incin-
erated,  or littered),  and  a  portion was  diverted,
obscured, or  retained in other products. Trends in
disposal  and  recycling (Figure A-l) show that the
proportion of paper recycled after  consumption has
been steadily decreasing. This downward trend in
recovery ratio, coupled with an increase in consump-
tion, has resulted in an accelerated rate of wastepaper
disposal.  Between  1956  and  1967,  wastepaper
disposal increased nearly 60 percent, from 22 million
tons per year to 35 million tons per year.19

                 Sources of Waste

      Wastepaper can be classified  into four major
grades:  mixed,  news, corrugated,  and  high  grades,
accounting for 27.4, 19.8, 32.6, and 20.2  percent,
respectively,  of the wastepaper recovered  in 1967.
This wastepaper comes from residential, commercial,
and conversion sources, which account for 16.6, 43.6,
and 39.8 percent,  respectively, of the 1967 paper
recovery.  Table A-l shows the relationships between
the waste grades and sources. The recovery pattern of
paper wastes follows directly from the characteristics
of each wastepaper source.
      Wastepaper generated in conversion operations,
where paper  and board are made into consumer
products,  is almost totally  recovered. It is  easily
accessible and generally uncontaminated, and almost
half of such waste consists of desirable high grades.
This waste is often baled onsite by the converter and
never enters the waste stream.
      At  the  opposite  extreme,  paper waste from
residential sources  is  widely dispersed  and highly
contaminated with  adhesives,  coatings,  and  other
materials  in the waste stream that are costly  and
difficult for papermills to remove. Thus, almost none
of the mixed paper in residential waste is recovered.
     ,The only paper recovered in significant quan-
tities from residential waste is  old news.  Recovered
newspapers are separated from other waste by home-
owners and  are usually collected by charitable organi-
zations.  Some  municipalities  have  begun experi-
menting with collecting newspapers along with the
regular refuse collection by placing them in special
racks on the collection vehicles. This offers promise
for increasing  the  recovery  of old newspapers for
residences.
      Commercial waste consists largely of business
.papers, mail,  and  packaging  materials, especially
corrugated  boxes,  and  is  usually concentrated at
commercial/retail centers. It is obviously more acces-
sible and desirable than mixed papers from residential
sources but generally less so than conversion wastes.
Corrugated  boxes comprise about 52 percent of the
commercial wastepaper recovered. They are usually
baled  or at least kept separate from other waste by
the  store or office. Significant quantities of mixed
papers are also recovered, because they often occur at
                                                 29

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30
RESOURCE RECOVERY
   100
    80
    60
    40
     20
          1955
                           1960
                                             1965              1970
                                                     YEAR
                                                                                1975
                                                                                                  1980
                           Figure A-1. Paper trends: consumption, disposal, and recycling.*
       'Source: Darnay, 'A., and W. E. Franklin. Salvage markets for materials in  solid
 wastes. Washington, U.S. Government Printing Office, 1972. Ch.IV.

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PAPER
                                                                                                    31
                                             TABLE A-l

                        WASTEPAPER RECOVERY BY GRADE AND SOURCE IN 1967*
                                            (thousands of tons)
Grade
Mixed
News
Corrugated
High grades
Total
Percent of all wastepaper
recovery
Residential
70
1,610
—
—
1,680
16.6

Commercial
1,860
50
2,300
200
4,410
43.6

Converting
850
345
998
1,841
4,034
39.8

Total
2,780
2,005
3,298
2,041
10,124
100.0

                   "Source:  Darnay, A., and W. E. Franklin, Salvage markets  for materials in solid
              wastes. Washington,  U.S. Government Printing Office,  1972. p.45-23.
                 Note: Net  exports add  another 176,000 tons  derived from  converting operations.
commercial establishments in high  concentrations
with few contaminants.
      Additional  quantities of waste are potentially
recoverable from residential and commercial sources.
Based  on  Midwest  Research  Institute  (MRI)
estimates,  in  1967 there were 35:2 million tons of
paper  discarded  as waste  but. not  recovered: 6.3
million tons  were newspapers; 8.6 million  tons were
corrugated; and  20.3 million tons were  all other
types.20 Of course, not all of this waste is potentially
recoverable. A portion of the waste is discarded in
rural or remote  locations and will  never  be  practi-
cably  recoverable.  A  portion  is  lost in Utter or is
'burned, and a  portion  would  be  unusable  for
technical reasons. The MRI study estimated that the
recoverable volume is most likely 10.2 million tons,
or  29  percent of  the presently unrecovered paper
waste   (Table  A-2).   Recovery  of  this   additional
amount would have meant an increase in recycling of
over 100 percent in 1967.
      Approximately  half  of  the additional
recoverable tonnage is made  up of newspapers and
corrugated board,  two grades already  recovered in
substantial quantities. The recycling of these wastes
can be  facilitated by creating a demand for materials
so  that they will be collected  before being discarded.
Prior  separation and separate  collection of these
wastes holds the possibility of a relatively quick and
efficient means of increasing the recycling of substan-
tial quantities of wastes.
      The remainder  of  the  tonnage that is poten-
tially  recoverable  is  mixed  paper, which would
require further processing before recycling.
      A promising technology for recovery of paper
from  mixed  residential  waste  has  now  been
developed, however. This is the wet pulping process
developed by the  Black-Clawson Company that is
being demonstrated in an Environmental Protection
Agency project in  Franklin, Ohio.  In this  process,
about 400 pounds of paper fiber is recovered  from
each  ton of mixed waste input.  Ferrous metals and
glass  are also  recovered during  processing.  The
economic feasibility of large-scale plants of this type
looks promising.

                     Markets

      From  a waste-utilization  point  of view, the
paper industry is made up of an integrated  segment
that primarily  uses woodpulp and  an independent
segment that primarily uses wastepaper (called paper-
stock by the industry). Most recycling takes place in
the independent  sector.  Major products  made  from
paperstock-and  these are  major  products  of the

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32
                                                                                 RESOURCE RECOVERY
                                             TABLE A-2

                         ADDITIONAL WASTEPAPER RECOVERY POTENTIAL FROM
                                        SQL ID WASTE IN 1967*
                                            (million of tons)


1

Newspapers
Corrugated
All other
Total
•
Unrecovered and
discarded
as waste
6.3
8.6
20.3
35.2
I

Most likely
recoverable
2.2
3,0
5.0
10.2
Recoverable as a
% of presently
unrecovered
paper waste
35.0
35.0
24.6
29.0
                   *Source: Darnay,  A., and W. E. Franklin. Salvage markets for materials in solid
              wastes. Washington, U.S. Government Printing Office, 1972. p.45-24.
 independent  segment-include  combination  board
 (e.g., cereal,  detergent,  and  shoe boxes),  deinked
 newspapers, and construction paper.
      Figure A-2 shows  the consumption of wood-
 pulp and  paperstock in the three major product
 grades of the paper industry: paper, paperboard, and
 construction paper and board. Paperboard accounts
 for  79.4 percent of paperstock  consumption; paper
 for  13.4  percent; and construction paper, for 7.2
 percent  of the total paperstock consumed. Thus,
 paper  recycling is closely  tied  to trends in combi-
 nation board consumption.
      Combination board production has grown at a
 substantially slower  rate than that of its direct com-
 petitor, solid wood pulpboard, which is made almost
 en'tirely from  virgin pulp. From 1959 to 1969, total
 paperboard production increased by 65 percent; solid
 wood  pulpboard, by 112 percent; and combination
 board, by  only 5 percent.2! Herein lies the major
 reason for the decrease in the wastepaper recycling
 ratio.
      There has been only one major new market for
 wastepaper in recent years, the deinking of old news-
 papers to make newsprint. Newspaper deinking is a
 very promising  market for old  news,  and increased
 newspaper recycling  will be' influenced strongly by
 this market.
                Issues and Problems

     There are  many interrelated factors that have
contributed to the decline in the percentage of paper
recycled; however, the two primary direct causes are
the lack of new markets and the declining share in the
combination board market.
     It is technically feasible to substitute paper-
stock for  woodpulp in many paper products (Table
A-3); however,  this is  not  practiced  extensively
because of economic factors and the present high
reliance of the dominant integrated industry on virgin
pulp. Key items that discourage use of wastepaper are
discussed in the following paragraphs.
     Logistics. Paper must be collected from diverse
sources, transported to a  processor, and then trans-
ported to a consuming mill. Combination board mills
are usually within  reasonable distances of wastepaper
sources, but the integrated mills are generally located
in the South or West, near forests, but far from cities,
where  waste is  generated. Thus, the high costs of
collection and transportation work to the detriment
of paper recycling.
      Contaminants. Contaminants in  wastepaper
have affected recycling economics  unfavorably, and
they  have also   influenced  industry  orientation.
Separation of wastepaper by grade and removal  of

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PAPER
                                                                                                                 33
                         Woodpulp and Paperstock Relative to Major Grades Produced    1967
          Total Paper
93.4                        6.6
92.5
           Newsprint
 7.5
        Communications
94.9                        5.1
       Packaging/Converting
 95.0                        5.0
87.6
             Tissue
12.4
                     Total Paperboard                        Total Construction
              66.6                       33.4  .         72.5                       27.5
        Unbleached Kraft         ,
100.0                      Neg.
              85.1    . Semichemical      14.9
           •   100.0
                          Bleached
                                         Neg.
       Combination Board
7.0                        93.0
       Construction Paper
55.2                       44.8
                                                Hard Board; Board


















                                                                                 Legend
      1:'::':'::'::'::::::1 Woodpulp



      \     I Paperstock
        Newsprint  1.9
                                  Percentage Distribution of Paperstock by End Uses
Paper 13.4








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                                                                                                  Board
                                                                              0.7-4
                        Figure A-2. Relative importance of woodpulp and paperstock in paper, 1967.*
       Note:  Other .fibrous  materials were  excluded;  expressed  in  percent  of total

 woodpulp and  paperstock.  Based on MR I   estimates.


        "''Small percentage of paperstock used but cannot be verified'in statistics.
      ••  'Source:  Darnay, A.,  and W.  E.  Franklin. Salvage markets for materials  in solid

 wastes. Washington, U.S. Government Printing Office, 1972. p.45-2.

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34
                                                                                 RESOURCE RECOVERY
                                              TABLE A-3

                          TECHNICAL LIMITS FOR RECYCLED MATERIAL FROM
                                       PAPER  AND PAPERBOARD*
                      Material
                                                              Recycle limits (% paperstock)'
              Paperboard:
                 Unbleached kraft

                 Semichemical pulp

                 Bleached kraft

                 Combination board

              Paper:

                 Newsprint

                 Office, communications

                 Publishing, printing,
                    converting
                  10-25

                  100

                  5-15

                  90-100



                  100

                  10-80

                  10-80
                    'Source:  Midwest  Research  Institute. Economic studies in support of policy
              formation on resource recovery. Unpublished report to the Council  on  Environmental
              Quality, 1972.
contaminants are labor intensive and thus costly.
     Prices. Waste paper prices have a history of
wide  fluctuation  due  to the  relative  rigidity  of
supplies  and the  marginal costs of  acquiring new
supplies in periods of upswinging demand.
     Technology. Improvements  in  woodpulping
technology have  enabled  the paper industry to tap
abundant virgin raw materials at increasingly lower
costs.
     Integration.  Most  papermills  own their own
forests,  and  most paper  equipment  installed since
1945 has been woodpulp  based  and located close to
these virgin raw materials. The mills are designed as
continuous operations starting with  wood, going into
pulp, and ending with the finished product. Through
this integration, papermills  have also  been able to
exercise  control over the supply and  price of their
raw materials.
      Tax Treatments. The cost of virgin woodpulp
can  be kept  down significantly by  two tax treat-
ments:  a cost depletion allowance  (credit against
income taxes, based  on  timber  owner's  invested
capital in a forest and percentage of reserves sold) and
a capital gains allowance (profit from sales of timber
treated as a capital gain if the timber has been owned
for more than 6 months).

                    Economics

      Most of the  above  problems have  a  negative
effect on the economics  of wastepaper use. If one
examines the  economics of using wastepaper in the
manufacture of certain paper and board products, it
is obvious that increasing the amount of paperstock
in these products increases the cost of manufacturing
them.

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PAPER
                                                             35
      Table A-4 shows the comparative economics of
using supplemental wastepaper in existing papermills
for certain products. These examples are by no means
exhaustive of the many paper industry products, but
these cases support what would seem to be obvious
from  the current industry  orientation.  The  cost
penalty for increasing the use of paperstock is $2.50
per  ton  for corrugating medium,  $3.75 per ton for
linerboard (these  are  the materials used  to  make
corrugated  boxes),  and  $20  to  $30 per  ton for
printing/writing paper.  The latter  cost differential is
the result of the substantial upgrading of wastepaper
that would be required to produce a product of the
present high standards. The cost of newsprint manu-
facture,  however,  is lowered by using  100 percent
recycled fiber (deinked newsprint). This has been the
              only  major new market for wastepaper  in  recent
              years.
                    The economics of constructing new mills based
              on  either  virgin or secondary  fibers also supports
              industry's trend toward the use of more virgin fiber at
              the expense of secondary fiber. An analysis of folding
              boxboard (combination board made from secondary
              fiber  versus solid wood pulpboard made from virgin
              pulp) found that  the  return on investment from a
              virgin-based plant was 8.1 percent, whereas that from
              a plant based on wastepaper (combination board) was
              only 4.5 percent.22 Under such circumstances, invest-
              ments in  new  combination board  mills  are very
              unlikely. The reason for the shift in recent years of
              boxboard manufacture from combination board mills
              to virgin-based mills is obvious.
                                              TABLE A4

                           COMPARATIVE ECONOMICS OF PAPER MANUFACTURE
                               FROM RECYCLED AND VIRGIN MATERIALS*
                   Product
Linerboard
                                                    Corrugating
                                                      medium
           Printing/writing
               paper
              News-
              print
              Baseline case
              (recycled fiber
              content) (%)

              Baseline average
              operating cost
              ($/ton)

              Supplemental fiber  ..
              use (recycled fiber
              content) (%)

              Operating cost with
              increased use of
              recycled fiber ($/ton)

              Net cost of increased
              recycled fiber usage
              ($/ton)
                                            , 0
  78.50
     25
  82.25
   3.75
                                                          15
79.50
   40
82.00
 2.50
80-120
                                 100
                             100-150
 20-30
125
                                            100
                98
                                             27
                    *Source: Midwest Research  Institute.  Economic studies in support of policy
              formation on  resource recovery.  Unpublished  report to the Council on Environmental
              Quality, 1972.

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36
                                                                                 RESOURCE RECOVERY
                                          FERROUS METALS
                 Status and Trends

      Ferrous  solid waste, primarily in the  form of
food and beverage containers and discarded consumer
appliances, constitutes 7  to 8 percent of collected
municipal solid waste and totaled roughly 14 million
tons in 1970. However, a  much more sizable amount
of used and discarded ferrous products (an estimated
38  to 54  million  tons)  is generated  annually  and
appears on our landscape in  such visible  forms as
abandoned automobiles, discarded farm implements,
out-of-service  rail cars,  construction and demolition
waste, and other steel products.2 3 >24
      In  1967, American industry consumed  about
85.4 million tons of iron and steel scrap,  and 7.6
million tons were exported (Table A-5). The domestic
scrap consumption  represented about 65 percent of
the raw steel production  (Figure A-3). Fifty million
tons of this domestic scrap consumption was "home"
scrap that was generated in the ironmaking and steel-
making process and was fed back  into the furnaces.
Excluding home scrap and exports, 35 million tons of
scrap,  or  about 20 percent of the iron and steel
consumption, was recycled in 1967.
      For the past  25  years,  scrap  as a percent of
total  metallic  input to  steelmaking has remained
essentially  constant. However, the amount of  this
scrap  that  is  purchased  by  the  steel  industry

                    TABLE A-5

 U.S. IRON AND STEEL SCRAP CONSUMPTION IN 1967*
          Type
Amount (millions of short tons)
 Domestic scrap consumption:
   Home scrap
   Purchased scrap:
      Prompt
      Obsolete

 Exports
   Total
           50.2

           13.6
           21.4

            7.6
           93.0
      'Source: Darnay, A., and  W.  E. Franklin. Salvage
 markets for materials in solid wastes.  Washington, U.S.
 Government Printing Office, 1972. p.49 and 58-11.
(originating  from outside the steel plant) has been
decreasing slightly,  while that generated within the
steel mills has increased. As shown in Figure A-4,
purchased scrap as  a percent of total scrap input to
steelmaking  has decreased from 44.9 percent for the
period  1949-53  to 40.0 percent for 1964-68.  In
absolute terms, while total steel production increased
35  percent over the period  1950-69 and total scrap
consumption increased  30 percent, purchased scrap
increased only 8 percent.

                 Sources of Waste
      There are  two basic  types of iron and steel
scrap: home and-purchased scrap.  Home scrap, the
ferrous waste  product generated during iron and steel
production, includes ingot  croppings, sheet  trim-
mings,  and  foundry gates and  risers.  Because it  is
generated in the steel  mill, the scrap is  of known
composition  and  purity,  and  the  total  amount
generated is normally consumed. Home scrap repre-
sented 60 percent of the domestic scrap consumption
in!967.25
      Purchased  scrap is  further classified  as
"prompt" or "obsolete." "Prompt" industrial scrap is
generated by metalworking  firms in their fabrication
of  products.  Standard   procedures  have  been
developed for  the recycling of prompt scrap,  and it
never  really  enters the.waste  stream. At least  90
percent of the available prompt  scrap is estimated to
be  recycled.  The scrap is  desirable  because  of its
known composition, condition, and freedom  from
contaminants.  In addition, it is  considered a reliable
material source because the quantities available are
predictable and because recycling channels have been
established.  Prompt  scrap   represented  about  16
percent of  the domestic   scrap  consumption  in
1967.23
      "Obsolete" scrap  comes  from  discarded iron
and steel products. Major sources are structural steel
from  building demolitions, ships, railroad equipment,
and abandoned motor vehicles.  Ferrous solid waste,
of  course, occurs in many other forms, such as foodi
and beverage  cans  and  home appliances, which are
not generally recovered  because  of logistics, contami-
nation, or other factors. Obsolete scrap represented

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FERROUS METALS
                                                                                                           37
         150
         100
     c/j

     O

     I-
     oc
     O
     I
     oo
     CO


     O
          50
                                                                                            Raw Steel

                                                                                            Production
                                                       Total  Scrap
                                                       Consumption
                                                                                  Purchased  Scrap

                                                                                  Consumption
           1955
1960
                                                               1965
                                                                                         1970
                                                      YEAR
                          Figure A-3. Domestic raw steel production and scrap consumption.*
       •Source:  Darnay,  A., and W. E.  Franklin.  Salvage markets  for materials in solid wastes.

 Washington, U.S.  Government Printing Office, 1972. p.58-1 and 58-11.

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    60
a.
5
ID
tn

O
O
Q.
<
cc
O
tn
50
    40
O
DC
HI
a.
    30
                                                                                                    HOME SCRAP
                                                PURCHASED SCRAP
    20

     1945
                           1950
                                                      1955
                                                                                 1960
                                                                                                             1965
                                                                    YEAR
                                      Figure A-4. Domestic home and purchased scrap consumption.
      *Source: Darnay, A., and W.  E.  Franklin. Salvage markets for  materials in solid

waste. Washington, U.S. Government Printing Office, 1972. p.58-11.
                                                                                                                                              JO
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FERROUS METALS
                                                                                                    39
about 25 percent of the domestic scrap consumption
in 1967.15
     Not all of  the steel consumed flows immedi-
ately into the waste stream and is available as scrap.
Considerable portions go into semipermanent use
(buildings,  machinery,  etc.) and enter the  waste
stream  years  later.  It  is  estimated  that  the 21.4
million tons of obsolete scrap purchased or exported
in 1967 was 43 to 56 percent of that available in the
solid waste stream. Taking into  account scrap located
in remote locations  and probably not recoverable as
well as  scrap disposed by individuals, it is  estimated
that roughly another 24 to 39 million tons of ferrous
scrap could feasibly have  been  recovered in 1967.2 3

                     Markets

      The major markets for iron and steel scrap are
the  domestic  steel industry, the domestic foundry
industry, and  exports. In 1969, the percent of total
scrap consumption by each was 73.8, 17.5, and 8.7,
respectively.2 6  However, in terms of purchased scrap,
both prompt  and  obsolete, foundries  and exports
weigh more heavily. For the  steel industry, about 35
percent of  scrap  consumed is purchased, whereas
foundries purchase about 60 percent of their scrap
consumption,  and exports are, of course, purchased
scrap.
       The  American steel industry is composed of
approximately 110 companies;  of these, 21 are fully
integrated  (coke  ovens,  blast  furnaces, and
steelmaking   furnaces);  9  operate mostly  blast
and  80  operate only  steelmaking  furnaces,  with
electric  steelmaking  predominating. These 80
companies currently produce less than 10 percent of
the Nation's steel output, but  they are a significant
outlet for ferrous solid waste.
     The type of furnace used in steelmaking has a
direct bearing on scrap usage. Three types of furnaces
are used: open hearth, which uses an approximately
45-percent  scrap charge;  basic oxygen, 30-percent
scrap charge; and electric,  100-percent scrap. (These
charges  are based on standard  operating conditions,
which  take into account both technological and
economic factors.) Basic trends  have included (1) the
decline of the open hearth from 87 percent of steel
production in 1960 to 50  percent in 1968;  (2) rapid
rise  of  basic oxygen furnaces  from 3.3 percent of
production  in  1960  to 37.1 percent in 1968; (3)
moderate growth of electric furnace steel production,
8.4 percent in 1960 to 12.7 percent in 1968. To date,
declines in scrap requirements  from decreased open
hearth steelmaking have been balanced by increased
scrap needs  from rising electric furnace  production.
      In the foundry industry, scrap already accounts
for  about  85  percent  of the  metallic input,  and
product specifications  dictate  that pig iron  be  a
portion  of  the charge  in some cases.  The  cupola
furnace, which uses an 84-percent  scrap  charge,
dominates; it comprises  about 90  percent  of the
furnaces. Electric furnaces, which make up most of
the remainder and which use scrap 100 percent, have
been making inroads,  however. The  potential for
increased scrap consumption by foundries is limited,
but  factors  such as the increasing  trend  toward
replacing  cupola  facilities  with  electric  furnaces,
geographic dispersion of foundries to put them closer
to scrap sources, and  a growth  rate in excess of
domestic steel  production indicate that use of scrap
by foundries should at  least hold its own and may
increase slightly. However, foundries  do  not have
potential as  major  markets  for  increased scrap
consumption.
      Exports are a significant market for iron and
steel scrap, constituting 24 percent of total purchased
steel in 1970. Exports are particularly  important for
the  movement of  obsolete  scrap, because  a  large
portion of  the exports  are  from obsolete sources.
Japan is the largest consumer of export scrap, taking
48.8 percent of the market in 1970.
      Copper precipitation is the major market for
steel can scrap at present, but it is quite limited. Only
about 300,000  to 400,000 tons of old steel cans and
canmaking  wastes—a  small  percentage  of  the
estimated 5  million tons of  cans  produced each
year—are consumed annually by this market.2 7

                Issues and Problems

      Differential Tax Treatment.  Iron ore enjoys a
15-percent depletion allowance; in addition, iron ore
producers are allowed to use certain capital costs as
current  deductions. Both of these policies reduce tax
liability and, thus, the price at which the ore must be

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40
                            RESOURCE RECOVERY
sold to maintain a given profit level. For example,
the  15-percent  depletion  allowance  permits  a'
13.5-percent decrease  in the selling price without
reducing the profit to the producer. The percentage
depletion allowance continues as long  as income is
derived from the property, which is usually long after
the  capital investment  in the  property  has been
recovered. Thus, iron ore producers enjoy a major tax
subsidy that is not available for secondary material
processors.
      Steel  Industry  Structure.   The  integrated
portion of the steel industry is iron ore oriented and
has a significant investment in ore-processing equip-
ment.  The  integrated  steel manufacturers generally
own  virgin raw  material  sources  and  are able to
exercise control over supply and price. Uncertainties
in scrap price and availability are  inconsistent with
the .steel  industry's practices of long-range  planning
and long:term commitments to equipment and raw
materials.
      Scrap Quality. Rigid  steel production specifi-
cations require  that scrap be processed  to remove
contaminants and impurities. Home and prompt scrap
are from  known sources and  are generally higher in
quality than obsolete  scrap, with  the exception of
certain obsolete scrap such as rail, ship, and structural
scrap. Cans present a special problem because of their
contamination with tramp elements-aluminum from
tops, lead from the seams, and tin. For example, lead
can be harmful to furnace refractories, and too much
tin causes  undesirable properties  in finished steel.
Thus, except in periods of peak  demand or hot metal
shortages,  the  availability and  low  cost of higher
'quality raw materials tend to reduce the steelmaker's
incentive to use the lower quality portion of obsolete
scrap.
      Changing  Ironmaking   and  Steelmaking
Technology.. The replacement  of open  hearth
furnaces by basic  oxygen  furnaces  has tended to
reduce  scrap requirements. However, the increased
usage  of  electric  furnaces  has  kept  total  scrap
consumption roughly constant overall. Future scrap
consumption is tied closely to continued increases in
electric furnace melting. Investment decisions depend
on the  comparative   returns on  investment  from
various types of furnaces. The return on investment
from an electric furnace that uses 100 percent scrap
obviously is strongly influenced by scrap prices.     .  '
     The  technical feasibility  of. using increasing
proportions of scrap in other Steelmaking  furnaces
has been demonstrated. The basic oxygen furnace
charge, for example, can be increased by preheating
the scrap, but because this entails additional costs, it
can only be justified if scrap cost decreases .relative to
ore cost.
     Logistics. As with most materials present in
solid waste, logistics is a significant deterrent  to the
recycling  of  ferrous scrap. Collection and transport
from  diverse  sources  is costly. Recycling  of large
appliances, steel cans,  and other ferrous materials in
mixed municipal waste is strongly  inhibited by high
transport costs, relative to scrap value.
     Lpw  Growth  Rate  of  Consuming
Industries. The domestic iron and  steel industries are
not growing  as rapidly as  the rest of the American
economy,  primarily because of  increased  imports;
replacement of steel by other materials; and increased
use of  lighter, high-strength steels.  Over the past
decade, while the United States economy has grown
at an annual rate of over 5 percent, iron and steel
production has grown at an annual rate of about 3
percent.

                    Economics

     'Most of the issues  add up  to  an unfavorable
economic picture  for scrap use in  the steel industry,
though their  individual impact is difficult to measure.
The total costs to an  integrated  steel  producer of
using steel as opposed to ore in a basic oxygen
furnace  were estimated by the  Midwest Research
Institute in a study for the Council on Environmental
Quality.4 The comparative costs are difficult to deter-
mine because  the steel industry does not  maintain, or
at least does  not report, such figures. Estimates, have
been made, however, which indicate that the cost of
using  scrap is slightly higher than the cost ,of using
ore.
     The chosen point of equivalency in the produc-
tion process was  the  point where  either hot molten
pig iron  or melted scrap could be  used  to charge a
basic oxygen  furnace.  The total cost of scrap at this
point was estimated to be  $44.00  per ton, including
$33.50 purchased  price of the scrap, $6.00 melting
cost,  $3.50   for  scrap handling,  and   $1.00   for
increased refractory  wear  caused  by  scrap  usage.

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FERROUS METALS
                                                                                                       41
Molten pig iron cost was estimated at $37.50 per ton,
including $28.50 for the ore and associated raw mate-
rials and  $9.00 for melting cost. Thus, the  cost  of
scrap ready for charging to a basic oxygen furnace is
about  $6.50, greater  than the cost of  hot metal
derived from ore at the same point.
      The mill operator may actually perceive an even
higher relative  cost of scrap usage because there will
be a tendency  for him to associate a loss with letting
ore reduction facilities already in place sit idle. The
mill operator will also associate a cost-in this case, a
real one—with  the possibility that end products made
from scrap may be rejected because they do not meet
product specifications.
      Thus, without a reduction  in scrap cost of at
least $6.00 to  $7.00 per ton, it  is unlikely that the
utilization of  scrap  in  basic  oxygen  furnaces by
existing steel mills will increase.
               Usage Considerations

     - the reluctance of the integrated steel industry
to  risk contamination in  situations  where  specifi-
cations are demanding is understandable. However,
for  the  small  electric  furnace  operator serving the
crude  steel reinforcing bar and not participating  in
       specification steel at all, there is no particular quality
       problem.
             Table A-6  shows how  well  various  steel pro-
       ducts are  suited  for the  input of lower  grades  of
       scrap, and  it shows their tonnage figures and percen-
       tages of total output in 1970.  Reinforcing bars and
       hot-rolled light shapes can be produced from miscella-
       neous  waste scrap, with  no significant sacrifice  in
       properties.  In plants producing a considerable variety
       of products, including  high-specification items, low
       grade scrap would be unattractive even at low prices;
       the trend is to  produce steel furnace output that can
       meet a wide  range of product specifications, and low
       grade scrap could result in lower quality home scrap.
            . The total market for reinforcing bars and light-
       shape raw materials, would be sufficient to handle the
       gatherable  supply of low  grade ferrous scrap  if all
       these products were produced by  electric  minimills.
       There is, in.fact,  a reasonably good fit between the
       ferrous  solid waste problem and the minimill require-
       ments-in price, materials, and  geography.  However,
       the large integrated steel producers also have a  share
       in the  reinforcing bar and  shape markets, and  as
       stated above, they are reluctant to use the lower scrap
       grades.            .       .     ,
                                               TABLE A-6
                   STEEL PRODUCT. SUITABILITY FOR INCLUSION OF LOW GRADE SCRAP"
                          Product
  1970 net
tons shipped
 (millions)
 Percent
 of 1970 '
shipments
 Suitability of
low grade scrap
 as ingredient '
               Reinforcing bars    •                  4.891         5.4     Excellent
                  Selected hot-rolled light shapes       6.076         6.7     Excellent

               Selected wire rods                     1.607   .      1.8  .   Very good
                  Selected rail accessories    '          .440          .5     Very good

               Selected plates                        7.777         8.6     Good
Oil country goods
Heavy structural shapes
Steel piling
Hot-rolled strips
Hot-rolled sheet
All other products
Total
1.307
5.566
.495
1.293
12.319
49.027
90.798
1.4
6.1
.5
1.4
13.6
54.0
100.0
Fair.
Fair
Fair
Marginal
Marginal
Generally unsuitable
-
                    *Source:  Midwest Research  Institute.  Economic. studies  in support of policy
               formation on resource recovery.  Unpublished report to the  Council on Environmental
               Quality, 1972.

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42
                                                                                RESOURCE RECOVERY
                                      NONFERROUS METALS
      In  1969, a total of 10.5 million tons of alumi-
num, copper, lead, and zinc were consumed in the
United States, and 3.2 million tons were recycled, an
average of 30 percent of consumption. Figures A-5
through A-8 show consumption and amount of these
materials  recycled from 1960  to  1969. For 1969,
recycling as a percent of  consumption for each was
23  percent for aluminum, 46 percent for copper, 44
percent for lead, 10 percent for zinc,28
      Approximately 24 percent of the  aluminum
and only about 4 percent  of all the other major non-
ferrous metals  consumed  occur in municipal waste.
These four metals constitute less than 1  percent, or
roughly 1.2 million tons, of the municipal solid waste
collected  in   1968.  Aluminum accounted  for  83
percent of this total.2 9

               Sources and Markets

      Table A-7  shows the amounts of each of the
 nonferrous metals recovered from prompt and obso-
 lete sources.  Copper and lead recovery from obsolete
 sources is a very important part of recovery, whereas
 for aluminum  and zinc, little of the recovered scrap
 comes from obsolete sources. In all cases, virtually all.
 of the available  prompt scrap from industrial fabri-
   cation is  recovered.  Recovery of the metals from
   obsolete sources  is directly related  to the  form in
   which the scrap occurs and to its location. Thus, large
   quantities of lead are recovered from wornout bat-
   teries returned to  dealers by consumers. Obsolete
   zinc, which is widely  scattered and usually appears in
   small quantities and in combination with other mate-
   rials, is largely unrecbvered.
         The aluminum can recycling programs of alumi-
   num  producers and soft drink producers  have been
   the most  visible  efforts to  reclaim  aluminum from
   municipal waste.  In 1970, these programs  resulted in
   the removal of about 2,875 tons of  aluminum from
   the solid waste stream.  This  was 1.3 percent of the
   quantity of aluminum cans reaching the market.30
         The feasibility  of these programs depends on
   the continued voluntary delivery of aluminum cans to
   the centers at no more than $200 per ton. Thus far,
   this price has proved to  be sufficient incentive to
   persuade individuals, Boy Scout groups, and others to
   collect cans and bring them to the centers.  One of the
   major aluminum  manufacturers participating in the
   recycling program has estimated that the quantity of
   aluminum cans ultimately recoverable by this method
   will be between 5 and 30 percent of that reaching the
   market.
                                             TABLE A-7

                   AMOUNT OF NONFERROUS METALS RECOVERED FROM PROMPT AND
                                    OBSOLETE SOURCES IN 1969V   ,

                                                                       Amount recycled
              Material                            Source                 (thousands of tons)
              Aluminum
              Copper
              Lead
              Zinc
 Obsolete
 Prompt

 Obsolete
 Prompt

 Obsolete
 Prompt

.Obsolete
 Prompt
175
855

657
832

497
 88

 41
141
                   *Source: Battelle Memorial  Institute, Columbus Laboratories/A study to  identify
              opportunities for  increased solid waste utilization. Book  2. v.2. Environmental Protection
              Agency, 1972.  (Distributed by National Technical Information Service, Springfield, Va.
              as PB 212 730.)

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NONFERROUS METALS
                                                                                                 43
          5.0
          4.0
      I
      t
      o
      w
      c
      o
3.0
          2.0
          1.0
                                      Aluminum Consumption
                                                              Aluminum Scrap Consumption
                                                                (excluding home scrap)
                             1960
                                                      1965
                                                                                                   1970
                                                        YEAR
                              Figure A-5. Aluminum and aluminum scrap consumption.*
             'Source: Battelle Memorial Institute, Columbus Laboratories. A study  to  identify
       opportunities for increased solid waste utilization. Book 1. v.2. U.S. Environmental
       Protection Agency, 1972. (Distributed by  National Technical  Information Service,
       Springfield, Va.  as  PB 212 729.)

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44
     o


     t
     o
     -C
     V)
     c
     o
                                                                                       RESOURCE RECOVERY
                                                                     Copper Consumption
                                                                    Copper Scrap Consumption

                                                                    (excluding home scrap)
                           1960                                1965


                                                       YEAR



                                     Figure A-6. Copper and copper scrap consumption.*
1970
            'Source:  Battelle Memorial  Institute,  Columbus  Laboratories. A  study  to  identify

      opportunities  for increased solid waste  utilization. Book  2. v.3. U.S. Environmental

      Protection Agency, 1972. (Distributed by National  Technical Information  Service,

      Springfield, Va. as  PB 212  730.)

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NONFERROUS METALS
                                                                                                               45
         1.4
         1.2
     c
     o
      .
     in
     c
     o
1.0
         0.8
        0.6
        0.4
                                                                          Lead Consumption
                                                                       Lead Scrap Consumption
                                                                       (excluding home scrap)
                            1960
                                                                1965
                                                                                                     1970
                                                        YEAR
                                      Figure A-7. Lead and lead scrap consumption.*
           •Source: Battelle Memorial  Institute,'Columbus Laboratories. A study  to  identify
     opportunities for  increased solid waste  utilization. Book 2. v.4.  U.S. Environmental    •
     Protection Agency,  1972. (Distributed by National Technical  Information  Service,
     Springfield, Va. as PB 212 730.)                                            '

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46
                                                                                        RESOURCE RECOVERY
        2.0
      .  1.6
    c
    o

    o
    c.
    v>
    c
    o
1.2
        0.8
        0.4
                                                                    Zinc Consumption
                                                                  Zinc Scrap Consumption
                                                                  (excluding home scrap)
                           1960
                                                              1965
                                                                                          1970
                                                     YEAR
                                  Figure A-8. Zinc and zinc scrap consumption.
          'Source:  Battelle  Memorial  Institute,  Columbus. Laboratories.  A  study to  identify
   opportunities for  increased solid waste utilization.  Book 2. v.4. U.S.  Environmental Protection
   Agency,  1972. (Distributed by  National Technical Information Service, Springfield,  Va.  as
   PB 212 730.)

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NONFERROUS METALS
                                                                                                     47
      The  major sources and markets for recycled
aluminum, copper, lead, and zinc, in terms of product
type, are shown in Tables A-8 to A-15.

                Issues and Problems
      Nonferrous metals are high-value materials for
which a steady demand exists. Compared to paper,
steel, glass, textiles, and plastics, the costs of collec-
ting,  transporting,  and processing  nonferrous metal
scrap are not as high a  percentage of its  value. In
addition,  costs  of  refining virgin nonferrous metals
are high. Because handling nonferrous scrap does not
increase costs inordinately, the scrap is considerably
cheaper than virgin material. Thus, the  scrap moves
freely.
      Probably  the major  reason  that more  non-
ferrous scrap is  not recycled is the form and location
in which it occurs. Most of the nonferrous scrap that
is easily accessible  is recycled. However, there are
certain types of scrap that are too  contaminated and
too  widely scattered to allow economical  recovery,
despite the high value of the materials (dealers buying
prices range from $60 to $920 per ton). For example,
copper in cartridge brass and .lead in ammunition are
usually widely scattered over the countryside. Zinc is
usually used as an alloying agent and. coating and thus
is  extremely  difficult  to  separate.  Aluminum
occurring  in  consumer  durables,   transportation
vehicles,  and construction  is often only a small part
of the product, thus much of it is never recovered.
Aluminum used  in packaging and  ending up in the
municipal  waste  stream  cannot  be  economically
recovered  at   present.  It  could  only be  feasibly
separated as part of a large reclamation system where
other materials that constituted  a  higher percentage
of the waste are also recovered.
     An interesting perplexity of nonferrous metal
recycling is that  for some  of the metals-copper is a
good example-the scrap dealers perceive that they
are  pulling in about  all that  is available.  Their
estimate of the recycling ratio would be much higher
than the actual.
                                              TABLE. A-8

                            SOURCES OF OBSOLETE ALUMINUM SCRAP IN 1969*

Source

Building and
construction
Transportation
Consumer durables
Electrical
Machinery and equipment
Containers and
packaging
Other
Total
Estimated available
for recycling
(thousands of tons)
.71.0

329.0
197.0
7.0
61.0
486.0

183.0'
1 ,334.0
Estimated amount
recycled
(thousands of tons)
9.0

100.0
25.0
6.5
15.0
2.0

. 17.5
175.0

Percent
recycled
13.0 .

30.0
13.0
93.0
25.0
.4

9.2
13.1
                    *Source:  Battelle Memorial  Institute, Columbus Laboratories. A' study to  identify
               opportunities  for increased  solid.waste utilization. Book 2. v.4.  U.S. Environmental
               Protection Agency, 1972. (Distributed by  National Technical Information Service,
               Springfield, Va. as PB 212 730.)                             ...

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48                                                                                   RESOURCE RECOVERY



                                               TABLE A-9

                     MARKETS FOR PROMPT AND OBSOLETE ALUMINUM SCRAP IN 1969*

. Use

Casting alloys
Wrought aluminum products
Exports
Total
Scrap
consumption
(thousands of tons)
741
255
77
1,073

Percent

69
24
7
100
                     'Source: Battelle Memorial Institute, Columbus Laboratories. A study to identify
              . opportunities  for  increased  solid  waste utilization.  Book 2. v.2.  U.S.  Environmen-
               tal Protection Agency, 1972,  (Distributed  by National Technical Information Service,
               Springfield, Va. as PB 212 730;)
                                              TABLE A-10     .  .


                             SOURCES OF OBSOLETE COPPER SCRAP IN 1969*

Source

Electrical wire and
copper tube
Magnet wire
Cartridge brass
Automotive radiators
Railroad car boxes
Oth'er brass, cast
and wrought
Alloying additives
Miscellaneous
Total
Estimated available
for recycling
(thousands of tons)
471.0

158.0
112.1
53.0
22.6
703.3

96.9
6.1
1 ,623.2
Estimated amount
recycled
(thousands of tons)
319.4

13.5
35.4
48.5
20.0
213.9

0
6.1
656.8

Percent
recycled
68

9
31
91
88
30

0
100
40
                    'Source:  Battelle Memorial Institute, Columbus Laboratories. A study to  identify
               opportunities for increased solid waste utilization. Book 2. v.2. U.S.  Environmental
               Protection Agency, 1972. (Distributed by  National  Technical  Information Service,
               Springfield, Va. as  PB 212 730.)

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NONIfERROUS METALS                                                                                     49


                                               TABLE A-ll

                      MARKETS FOR PROMPT AND OBSOLETE COPPER SCRAP IN 1969'
                                                              Scrap
                                                          consumption
                       Use                              (thousands of tons)                  Percent


               Wire and cable                                   292                            20
               Brass mill products                               701                            47
               Brass/bronze foundries                            369                            25
               Other                                          127                             8
                     Tots,                                   1'489                           100'
                     •Source:  Battelle Memorial  Institute, Columbus Laboratories. A study to identify
               opportunities  for increased solid waste utilization.  Book 2. v.3. U.S.  Environmental
               Protection Agency, 1972. (Distributed  by National Technical  Information Service,
               Springfield, Va.  as  PB 212 730.)
                                                TABLEA-12

                               SOURCES OF OBSOLETE LEAD SCRAP IN 1969*


Source
Batteries
Cable sheathing
Solder
Bearing metal
Type metal
Ammunition
Other
Total
Estimated available
for recycling
(thousands of tons)
485
130
65
33
29
80
100
922
Estimated amount
recycled
(thousands of tons)
350
32
9
10
29
5
62
497

Percent
recycled
72
25
14
30
100
6
62
54
                     'Source: Battelle  Memorial Institute, Columbus  Laboratories. A study to identify
               opportunities for  increased  solid  waste  utilization. Book  2. v.4.  iU.S. Environmental
               Protection Agency,  1972. (Distributed by  National  Technical Information  Service,
               Springfield, Va. as PB 212  730.)


                     ^271,000 tons of lead used in tetraethyl lead for gasoline and 125,000 tons of lead
               used in oxides and  chemicals are not included because there is no possibility for its recovery.

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50                                                                                    RESOURCE RECOVERY



                                               TABLEA-13

                        MARKETS FOR PROMPT AND OBSOLETE LEAD SCRAP IN 1969*
Use
Type '
Tetrae'thyl lead
Batteries
Solder' :
Cable
Bearings
Other
Total
Scrap
consumption
(thousands of tons)
28
75
400
31
19
13
19
585
Percent
4!8
12.8
68.4
5.3
3.2
2.2
3.2
99.9
                     'Source:  Battelle Memorial Institute, Columbus  Laboratories. A study to identify
               opportunities  for increased solid waste utilization. Book 2.  v.2,  U. S. Environmental
               Protection Agency, 1972. (Distributed by  National Technical Information  Service,
               Springfield; Va. as  PB 212 730.)'

                    .           ,     ,      •     TABLE A-14

                               '  SOURCES OF OBSOLETE ZINC SCRAP IN 1969*


Source
Zinc base alloys
Old galvanized
Oxides and chemicals
Other
Total
Estimated available
for recycling
(thousands of tons)
353
390
190
. 1 30
1,063
Estimated amount
recycled
(thousands of tons)
33
0
0
8
41 ,

Percent
recycled
9
0
0
6
3.9
                     'Source:  Battelie Memorial Institute, Columbus  Laboratories, A study to identify
               opportunities  for increased solid waste utilization. Book 2.  v.2.  U.S. Environmental
               Protection Agency, 1972. (Distributed by  National Technical Information  Service,
               Springfield, Va. as  PB 212  730.)


               ••       '         '               TABLE A-15

                       MARKETS FOR PROMPT AND OBSOLETE ZINC SCRAP IN 1969*


Use .
Slab zinc • .'
Zinc dust . .
Alloys
Oxides and chemicals
Total ' . •
Scrap
consumption
(thousands of tons)
' 76
34
27
45
182


Percent
41.7
18.8
14.8
24.7
100.0
                     "Source:.Battelle Memorial Institute, Columbus Laboratories. A study to identify
               opportunities  for  increased  solid waste utilization.  Book 2. v.5.  U.S.  Environmental
               Protection  Agency,  1972.  (Distributed by  National  Technical  Information  Service,
               Springfield, Va. as PB 212 730.)

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                                                                                                      51
                                                GLASS
                 Status and Trends
      In  1967  the  glass  manufacturing  industry
produced 12.8 million tons of glass. This production
was divided among the three major segments of the
industry: containers, flat glass, and pressed and blown
glass.  Containers,  the  most  significant  segment,
accounted  for  8.9 million tons, whereas  flat  glass
accounted  for 2.1 million tons and blown glass for
only 1.8 million tons.
     By weight, glass constitutes only 6 to  8 percent
of  municipal solid  waste. There is  virtually no
recovery of  glass from mixed waste, but a small
amount of glass is recycled through voluntary collec-
tion centers  and cullet dealers. Compared to other
materials,  glass  is  among the lowest in  recycling
ratios, or about 4.5  percent of consumption, when
home scrap  (scrap  generated in the glass  manufac-
turer's plant) is  excluded. Of a total of 12.8 million
tons of glass produced in  1967, purchased  cullet
consumption was approximately 580,000 tons.3'

               Sources and Markets

      Only a minute portion of glass waste (almost
exclusively flat  glass) is   associated  with  industrial
sources. Thus, municipal waste  is the main potential
source for  old glass for recycling. In 1968, there were
about  11.6 million  tons  of glass in  municipal solid
waste.
      The  best sources of quality cullet have been
declining. Clear glass milk bottles and returnable glass
containers  rejected from  bottle-washing  operation-
major  sources  of cullet  in the past-are  gradually
disappearing. Sorting, collection,  and delivery costs
have risen, principally because these operations are
highly labor  intensive. Plants  have not been  main-
tained  and  equipment  has  not been purchased
because of the limited capital of the  few dealers still
in  operation. As  the quality and availability  of
purchased cullet have deteriorated, its use in the glass
industry has also declined.
      The  glass container  segment of  the  industry,
which accounts for over 70 percent of  the total glass
tonnage output, purchased only about  100,000 tons
 of cullet, or 1 percent of its raw material consump-
 tion in 1967. This is significantly lower than in the
 other  two segments of the industry, largely because
 of increased utilization  of  in-plant cullet. Flat  glass
 producers purchased  10 percent,  or 244,000 tons;
 and pressed and blown glass producers,  12 percent, or
 256,000 tons.32
      In addition to the use of purchased cullet in
 glass furnaces, there are  several alternatives for cullet
 utilization. The most widely publicized alternative is
 in  "glasphalt,"  a road-surfacing  material in  which
 cullet  replaces part of the asphalt aggregate.  Initial
 testing results at the University of Missouri indicate
 that glasphalt is equal to or superior to conventional
 asphalt. However, cullet would  have to compete
 economically with asphalt aggregate, which ranges in
 price from $1.50 to $5.00 per ton when delivered to
 the asphalt  plant. Present cullet  prices  are signifi-
 cantly higher than this amount.
      Other proposed uses for cullet include construc-
 tion  materials,  such as glass-cement  blocks,  and
 cullet-terrazzo. Experiments to  determine the feasibi-
 lity of cullet utilization in these  products are cur-
 rently underway.          '   .

                Issues and Problems

      The glass industry has  certain characteristics
•that make high levels of waste recycling much more
 favorable than in other industries. First, the manufac-
 ture  of glass  containers is  essentially  a one-step
 process, starting with raw materials and ending with
 the finished  product. Second,  cullet can be  substi-
 tuted  for virgin  raw materials  in  large percentages,
 provided  that the  cullet  meets  minimum specifi-
 cations of color, cleanliness,  and purity. From a
 technology standpoint, glass manufacture from 100
 percent cullet appears possible.
      There  are,  however,   two problem  areas:
 comparative  economics  and  the  recovery of cullet
 from mixed  waste.  With respect to economics,  the
 cost of virgin raw materials averages $15.48 per ton
 batch, as compared to  a range of from $16.00 to
 $22.50 per ton batch of cullet; both include freight
 charges to the plant. Processing cost differentials are

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52
                                                                                  RESOURCE RECOVERY
not significant. The conversion of an existing plant to
using increased quantities of purchased cullet would
cost from $50,000 to $100,000, depending upon the
plant; but the changeover could be  accommodated
within  a  framework  of  normal  periodic  plant
improvements. A new  plant  designed  to  use cullet
would be no  more costly than a new plant designed
for virgin materials.4
      The recovery of large quantities of cullet from
municipal waste is dependent on the  development of
a technical  process for separating and upgrading the
cullet. However, the  possibility of source  separation
of  glass  containers in the  home  for  separate collec-
tions is  an alternative  that  cannot  be eliminated.
Neither traditional cullet dealers nor voluntary citizen
delivery  of glass  to  recycling  centers is likely to
increase  the cullet flow by more  than a few percent.
      Mechanical separation   methods  for removing
glass from other components of municipal waste are
 still under development. One  promising  system that
 combines  density  classification  and  optical  color
 sorting -is currently being  tested at Franklin, Ohio;
 other  methods,  including  one  developed  by  the
 Bureau  of  Mines, are  not yet ready for a compre-
 hensive test.
      Until  the  technology 'is  further developed,
 utilization of purchased  cullet on a large scale does
 not appear possible. Further,  because glass is only a
 small percent of solid waste, complete glass recovery
 from mixed waste  is not likely  to occur until  full-
 scale  recovery  centers  concerned  with all major
 materials are set up.
      Unless source separation of glass containers is
 found to be feasible, utilization  of'purchased cullet
 on a large scale appears to.be closely tied to develop-
 ment  of  full-scale  municipal  resource  recovery
 centers. The glass coming out of such systems will not
 be attractive  to the glass industry on a cost basis,
 however, unless economic incentives are provided.
                                             .  PLASTICS
                 Status and Trends

      Plastics are becoming an increasingly important
 material in our society, and their growth continues at
 an'impressive  rate.  From 1960 to  1970, plastics
 consumption increased 'at an average  annual rate of
 11.8 percent and totaled 8.5 million tons in 1969. By
 1980,  consumption is expected to reach 19 million
 tons.33   '
      Today  plastics  account  for  only  about  2
 percent by weight of municipal solid waste and,' by
 1980,  will average about 3 percent. Very little plastic
 scrap  is recycled  other than  that reused within the
 manufacturing  plant in which it is generated.  This,
 however,  is a fairly significant quantity. Plastics fabri-
 cators, for example, consumed an-amount'of internal
 scrap equal to about 1.5 million tons'in 1970'.34 There
 is essentially no  recovery  of plastic waste   from
 obsolete products.
      'The plastics reprocessor is the recycling channel
 for all industrial plastics recycled outside originating
 plants.  About 500,000  tons of waste plastics were
 handled by  reprocessors in 1970. Of the plastics
 recycled through reprocessors', about 55 percent came
 from resin  producers; 30  percent, from fabricators;
 and 15 percent,'from converters.35 '36
      There are two types of plastics,  thermoplastics
 and  thermosetting  plastics: The  thermosetts,  20
 percent of plastics consumption, cannot be softened
 and  reshaped through heating  and,  thus,  are  not
 recyclable. In'addition, most of the plastics used as
 coatings and  adhesives are  impossible   to 'recycle.
'Thus, about 75 percent of the plastics consumed are
 potentially recyclable.                  ......

                Sources and Markets          "

      Table A-16 shows the major markets for plas-
 tics.  Packaging and construction are by far the'most
 significant, accounting for  20 and 25 percent, respec-

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PLASTICS
                                                                                                     53
                                              TABLE A-16

                          TOTAL AND SELECTED MAJOR END USE MARKETS FOR
                                CONSUMPTION OF PLASTICS, 1967 TO 1969*
                                            (thousands of tons)
Market
Agriculture ,
Appliances
Construction
Electrical
Furniture
Housewares
Packaging
Toys
Transportation
Total consumption
1967
75+
198
1,070 •
396
250+
313
1,121 +
208
109
6,550
1968
. 85
•238
1,215
452
273
373
1,508
243
334
7,558
1969
95
234
1,327
567
328
. 425
1,729
' 269
536
8,535
                     •Source: Darnay, A., and  W. E.  Franklin. Salvage markets for  materials in solid
               wastes. Washington, U.S. Government Printing Office, 1972. p.88-5.
lively,  of consumption  in  1970.  Plastics  from
.packaging account for about 60 percent by weight of
the plastics in the  solid waste stream; much of the
other plastic  consumed is "held  up" in permanent
and semipermanent end uses. Although  some of the
waste  generated in  the various  stages  of .plastics
production is  recycled, the portion that is not makes
up  about  15 percent .of the  plastics in the waste
stream. Thus, packaging and  industrial waste account
for 75 percent of plastic waste.3 7
      As a general rule,, scrap plastic has to be used in
an end application having wider specification require-
ments than  the product  yielding the  scrap.  The
primary markets for  scrap plastic  include such items
as hose, weather stripping, toys,  cheap  housewares,
pipe,  and similar applications.  These are areas where
(1) plastic-properties and performance are  not para-
mount; (2) relatively noncritical processes  are used,
such as compression molding or heavy extrusion; (3)
the cost of plastic resin is a high proportion of total
product cost.
      Plastics also have potential as a fuel supplement
for generating energy because of their high Btu value
of  11,500 Btu per  pound. (The Btu  content of
paper is about 8,000 Btu per pound and that of coal
is about 12,000 Btu  per pound. This  is particularly
appealing  for the recovery of plastics,  or value from
plastics, in municipal waste, where plastics are hard to
separate from other materials.

                Issues and ProWems

      Technology. There is a fundamental difference
between the nature of plastics recycling and that of
metals,  paper,  glass, and  other materials.  Metals
production, for  example,  begins with an impure ore
that is  progressively concentrated,  smelted,,refined,
and freed  from impurities. Plastics production, on the

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54
                                                                                  RESOURCE RECOVERY
other hand, begins with a high-purity virgin polymer
to which  various additives, colorants, and reinforce-
ments are added. Thus, in the metals industries, there
is a background of technology designed to purify and
upgrade ores and concentrates. Such technology can
also be applied to the upgrading of scrap. In the plas-
tics industry, where the basic raw material is progres-
sively "contaminated" in production, little techno-
logy has been developed that  can be applied to purify
waste plastics.
      Compatibility.  The   principal  difficulty   in.
recycling  plastics   is  that  different  polymers
(polyethylene, polyvinyl chloride,  etc.) are not com-
patible with each other and must be separated, a very
difficult and costly task.
      Economics. The  continually decreasing cost  of
basic  plastic materials  has  made scrap plastic less
competitive with its main competitor, off-grade virgin
resin. For example, since 1961,  the price of  low-
density  polyethylene has decreased from 24 to 13
cents per pound. Scrap plastic, which is restricted by
rising labor and distribution costs, did not drop as
rapidly; the price of the scrap is  now only about 1
cent per pound under the off-grade resin price, versus
about 3 cents in 1961.
      Logistics. This problem,  which is common to
recycling  of all materials,  is important  to plastics
recycling.  The  extremely  low density   of plastics
makes transportation very costly.
     Separation. Separation of plastics  from other
waste is  extremely  difficult,  making recovery of
plastics  from  municipal waste  almost  impossible
unless the plastics can be diverted  from the waste
stream and kept separate.
                                              TEXTILES
                 Status and Trends
      The U.S. textile industry consumed approxi-
 mately 5  million tons of textile  fiber in 1970, an
 increase since 1960 of 61.5 percent. Far more signifi-
 cant for textile recycling was the change in the type
 of fiber consumed, with a major shift occurring from
 use of natural to manmade fibers. In  1960,  natural
 fibers constituted 69  percent of fiber  consumption;
 manmade fibers,  31  percent. In  1970, the  figures
 were 39 percent for natural fibers and 61 percent for
 manmade. By 1980, the ratio of natural to manmade
 fibers is expected to be 25 to 75. The implications of
 this  change will  be  discussed.38
      In 1970, an estimated 0.8 million tons of waste
 textiles were processed by waste textile dealers and
 sold (recycled) to various markets.3 9 In addition, an
 undetermined amount of used clothing that poten-
 tially would enter the waste stream was collected by
 social welfare agencies and redistributed.
      There  are not sufficient historical data available
 to show  trends in  textile recycling. However, it  is
 known that  secondary textile consumption in many
 traditional markets has been declining and that other
markets, such as the important wiping cloth market,
have been growing at a slower rate than total  textile
consumption. Thus, it is almost certain that the rate
of  textile recovery  (waste recovered versus  textile
consumption) has been declining.
      Textiles  represent  only a  small portion of
municipal solid  waste. In 1968, textiles in  collected
municipal solid waste totaled  1.2 million tons, or 0.6
percent of the total. Most of the textile consumption
that does not appear in the municipal waste  stream is
either collected  by social welfare  agencies,  disposed
of,  sent to secondary textile dealers by industry, or is
being accumulated in households.

                Sources and Markets

      Figure  A-9  represents  the major sources and
markets for textile waste. The mill waste is the home
scrap  of  the textile  industry; the  manufacturing
waste, the prompt portion,  and consumer  discards,
the obsolete.
      In  contrast  to most of  the other materials
discussed in this report, the home scrap (mill  waste) is
not reused within the generating plant, but instead,

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TEXTILES
                                               55
passes  through the  secondary textile dealers.  Mill
waste accounted for about one-third of the material
handled by waste textile dealers in 1970.
     Waste from fabrication (prompt) is a consider-
ably less important source of recycled textile waste
than is the case  with many other materials. It has
been estimated that waste recovered from fabrication
is only about 60 percent of that generated.40 Fabri-
cation  waste accounted for an estimated 20 percent
of the waste handled by waste textile dealers in 1970.
     Obsolete waste accounted for the remaining 45
percent of  recycled  textile waste.  This  waste  is
provided  mostly  by  social  welfare  agencies  and
institutions  such  as  Goodwill Industries from items
deemed unsuitable for reuse as clothing.
                Issues and Problems

      The increasing trend  toward the use of cotton-
polyester  and  wool-polyester  blends  probably
represents the major problem of textile recycling of
the  1970's.  These  blends are not  only generally
unusable as wastes in themselves, but they also tend
to become  mixed with  other, usable waste textiles
and  thereby reduce the  economic value of the total
waste supply. This has caused problems, particularly
in the  three  major markets for  cotton  waste:  rag
paper, vulcanized fiber, and wiping cloths.
      In the case of the first two markets, contami-
nation of cotton is limited to a maximum of 1 to 2
percent.  Thus,  increase  in blends  means  greater
control  by  the  textile  processors,  resulting  in
increased cost. It also greatly reduced the usable yield
from used textiles.
      Fiber blends have essentially the same effect on
the wiping cloth business. Wipers are less sensitive to
small percentages of polyester fiber, but fiber blends
with  over 50 percent polyester do not have satis-
factory absorption  characteristics. (Garments with
polyester/cotton  blends of  50/50  and 65/35  are
extremely common.) The present percent of such
blends in mixed rag bundles is unknown, but the
increased  replacement  of manmade  fibers  by
synthetics  is  testimony  that  they  are  likely  to
increase, thereby reducing usable yields.
      Another major problem of textile recycling is
that used textiles are  losing ground in many tradi-
tional  markets.  Wool markets are one of the most
serious problems, due  mainly to the  Wool Labeling
Act  (the  effect has  been psychological  one,  on
consumers who perceive that virgin wool is cleaner or
purer) and increased competition from  secondary
wool from foreign sources. Also, virgin-based mate-
rials are replacing used textiles in some markets. The
incentive  for  using  secondary textiles  as  paddings,
filler, etc., has traditionally been their low cost. Now,
development  of  virgin-based  products  such  as
urethane foams  at competitive prices has resulted in
decreasing used textile markets.

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GENERATORS:
Fiber Producers and
   Textile Mills
Manufacturers
Apparel
Home
Furnishings
Industrial
Products
Miscel-
laneous
                                                                                                                      Consumers Used
                                                                                                                          Discards
SECONDARY MATERIAL
INDUSTRY:
            Cotton Mill Waste
                   and
               Fiber Blends
                            WASTE TEXTILE DEALER
                             (Broker, Sorter, Processor)
         Cotton Mill Waste
                and
            Cotton Rags
    Cotton Rags
        and
Cotton-Rich Blends
                                Paper Mills
                                    and
                              Vulcanized Fiber
   Synthetic
(Nylon, Rayon
       etc.)
                                                           Reprocessed
                                                                and
                                                           Used Wool
  200 million Ib
                              200 million Ib
                                                           450 mi/lion Ib
                                                                                     100 million Ib
                                                                                                               150 million Ib
                                                                                                                                       200 million Ib
                                                      Figure A-9. Waste textile utilization flows."
       "Source: Battelle Memorial  Institute, Columbus Laboratories. A  study to identify opportunities  for
 increased solid  waste utilization.  Book 3. v.9.  U.S.  Environmental Protection  Agency, 1972. (Distributed by
 National Technical  information Service, Springfield,  Va.  as PB 212 731.)
                                                                                                                                                          §
                                                                                                                                m
                                                                                                                                •ya
                                                                                                                                m
                                                                                                                                o
                                                                                                                                O
                                                                                                                                w

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INSTALLATIONS. .  -1."
                                                                                    57
                        Resource Recovery Installations
                                      TABLE A-17
            MUNICIPAL SOLID WASTE COMPOSTING PLANTS IN THE UNITED STATES IN 1969*
Location
Altoona,
Pennsylvania
Boulder,
Colorado
Gainesville,
Florida
Houston,
Texas
Houston,
Texas
Johnson City,
Tennessee
Largo,
Florida
Mobile,
Alabama
Norman,
Oklahoma
Phoenix,
Arizona
Sacramento County,
California
San Fernando,
California
San Juan,
Puerto Rico
Springfield,
Massachusetts
St. Petersburg,
Florida
Williamston,
Michigan
Wilmington,
Ohio
Company
Altoona FAM, Inc.
Harry Gorby
Gainesville Municipal
Waste Conversion
Authority
Metropolitan Waste
Conversion Corporation
United Compost
Services, Inc.
U.S. Public Health
Service and
Tennessee Valley
Authority
Peninsular Organics,
Inc. •
City of Mobile
International
Disposal Corporation
Arizona Biochemical
Company
Dano of America, Inc.
International
Disposal Corporation
Fairfield
Engineering Company
Springfield Organic
Fertilizer Company
Westinghouse Corporation
City of Williamston
Good Riddance, Inc.
Capacity Type Opening
Process (tons/day) waste date
Fairfield- 45
Hardy
Windrow 100
Metrowaste 1 50
conversion
Metrowaste 360
conversion
Snell 300
Windrow 52
Metrowaste 50
conversion
Windrow 300
Naturizer 35
Dano 300
Dano 40
Naturizer 70
Fairfield- 150
Hardy
Frazer- 20
Eweson
Naturizer 105
Riker 4
Windrow 20
*Source:' Breidenbach, A. W. Composting of municipal solid
Garbage, paper
Mixed refuse
Mixed refuse,
digested sludge
Mixed refuse, raw
sludge
Mixed refuse
Mixed refuse, raw
sludge
Mixed refuse,
digested sludge
Mixed refuse,
digested sludge
Mixed refuse
Mixed refuse
Mixed refuse
Mixed refuse
Mixed refuse
Garbage
Mixed refuse
Garbage, raw
sludge, corn cobs
Mixed refuse
wastes in the United
1951
1965
1968
1966
1966
1967
1963
1966
1959
1963
1956
1963
1969
1954
1966
1955
1963

Status
Operating
Operating
intermittently
Operating
Operating
Closed (1966)
Operating
Closed (1967)
Operating
intermittently
Closed (1964)
Closed (1965)
Closed (1963)
Closed (1964)
Operating
Closed (1962)
Operating
intermittently
Closed (1962)
Closed (1965)

     States. Washington, U.S. Government Printing Office, 1971.

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58                             '                                                RESOURCE RECOVERY
                                            TABLE A-18

                RESOURCE RECOVERY INSTALLATIONS: INCINERATORS WITH MAJOR HEAT
                                       RECOVERY OPERATIONS*
Location
Atlanta, Georgia
Boston, Massachusetts
Braintree, Massachusetts
Chicago, Illinois
(Northwest)
Chicago, Illinois
(Southwest)
Hempstead, New York
(Merrick)
Hempstead, New York
(Oceanside)
Miami, Florida
Norfolk, Virginia
(U.S. Naval Station)
Oyster Bay, New York
Providence, Rhode Island
Type of installation
Volund
Refractory
Waterwall
Waterwall
Refractory
Refractory
Refractory
Refractory
Waterwall
Refractory
Refractory
Design refuse
capacity
(tons per day)
700
	
240
1,600
1,200
	
600
900
360
	
	
                    "Source: Systems study  of air pollution from municipal incineration, 3 v. Cambridge,
               Arthur D. Little, Inc., Mar.  1970. 920 p.  (Distributed by National Technical Information
               Service,  Springfield, Va., as PB  192 378 to PB 192 380.)

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                             REFERENCES
 1. Ayres, R. U., and A. V. Kneese. Environmental pollution. In Resource recovery act of
       1969.  Pt.2. Hearings before the Subcommittee on Air and Water Pollution of the
       Committee on Public Works,  U.S. Senate, 91st Cong., 1st sess., S.2005, Serial No.
       91-13. Washington, U.S. Government Printing Office, 1969.p.821.

 2. Ayres and Kneese, Environmental pollution, p.819. •

 3. Darnay, A., and W. E. Franklin. Salvage markets for materials in solid wastes. Washing-
       ton, U.S. Government Printing Office, 1972.  187 p.

 4. Midwest  Research Institute. Economic studies in support of policy formation on
       resource recovery. Unpublished report to the  Council on Environmental Quality,
       1972.

 5. Darnay, A., and W. E. Franklin. The role  of packaging in solid waste management,
       1966 to 1976.  Public Health Service Publication No. 1855. Washington, U.S. Gov-
       ernment Printing Office, 1969. p.105.

 6. EPA extrapolation based on data for 1967 from Black, R. J., A. J. Munich, A. J. Klee,
       H. L. Hickman, Jr., and R. D. Vaughan. The national solid wastes survey; an interim
       report. Cincinnati. U.S. Department of Health,  Education, and Welfare, 1968. p.13.

 7. EPA extrapolation based on census data from U.S. Bureau of the Census, Statistical
       abstract of the United States,  1971. 92d  ed. Washington, U.S. Government Printing
       Office. 1,008 p.

 8. EPA  extrapolation  based on data  for  1965 from Combustion  Engineering,  Inc.
       Technical-economic study of solid waste disposal needs and practices. Public Health
       Service Publication No. 1886.  Washington, U.S. Government Printing Office, 1969.
   .    705 p.'

 9. EPA extrapolation based on data from 1965 from Air pollution-1969. Hearing before
       the Subcommittee on Air and Water Pollution  of the Committee on Public Works,
       U.S. Senate,  91st Cong., 1st  sess., Oct.  27, 1969. Washington,  U.S.  Government
       Printing Office, 1970. 244 p.

10. EPA extrapolation based on U.S. Bureau of Mines  estimates,  1972.

11. EPA extrapolation based on data for 1966 from Air pollution-1969.

12. EPA extrapolation based on Agricultural handbook, 1971,

13, Black,  Muhich, Klee,  Hickman, and Vaughan, The national solid wastes survey; an
       interim report, p.13.

14, Darnay and Franklin, Salvage markets, p.35 and 45-7.

                                      59

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60                                                                                          RESOURCE RECOVERY


                 15.  Darnay and Franklin, Salvage markets, p.58-11.

                 16.  Darnay and Franklin, Salvage markets, p.81.

                 17.  Darnay and Franklin, Salvage markets, p.64-5.

                 18.  Midwest  Research Institute. Resource recovery from mixed municipal solid wastes.
                       Unpublished data, 1972.

                 19.  Darnay and Franklin, Salvage markets, p.45-13 and 45-14.

                 20.  Darnay and Franklin, Salvage markets, p.45-24.

                 21.  Darnay and Franklin, Salvage markets, p.35.

                 22.  Resource Planning Associates. Preliminary report on a Federal tax incentive for recy-
                       cling post-consumer waste materials. Unpublished data, 1972.

                 23.  Darnay and Franklin, Salvage markets, p.49.

                 24.  Battelle Memorial Institute, Columbus Laboratories. Identification of opportunities for
                       increased  recycling  of ferrous solid waste. U.S.  Environmental Protection Agency,
                       1973.  p.116,  (Distributed by National Technical Information Service, Springfield,
                       Va.,asPB213577.)

                 25.  Darnay and Franklin, Salvage markets, p.58-2.

                 26.  Battelle  Memorial Institute, Identification of  opportunities for  increased recycling,
                       p.118.

                 27.  Battelle  Memorial Institute, Identification of  opportunities for  increased recycling,
                       p.167.

                 28.  Battelle Memorial Institute,  Columbus Laboratories. A study to identify opportunities
                       for increased  solid  waste.utilization. Book 2. v.2-5. U.S. Environmental Protection
                       Agency, 1972. (Distributed  by National Technical Information Service, Springfield,
                       Va.,asPB212 730.)

                 29.  Darnay and Franklin, Salvage markets, p.59.

                 30.  Battelle Memorial Institute, A study to identify opportunities, Book 2.

                 31.  Darnay and Franklin, Salvage markets, p.65.

                 32.  Darnay and Franklin, Salvage markets, p.66-67.

                 33.  Darnay and Franklin, Salvage markets, p.82, 83, and 88-5.

                 34.  Milgrom,  J., Arthur D. Little, Inc. Incentives for recycling and  reuse of plastics. U.S.
                       Environmental Protection Agency, 1972. p.3-18. (Distributed by National Technical
                       Information Service, Springfield, Va., as PB 214 045.)

                 35.  Milgrom, Incentives for recycling, p.3-15.

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REFERENCES                                                                                                    6!


                36.  Personal Communication. J.  Milgrom, Arthur  D.  Little,  Inc.,  to Steven A. Lingle,
                       Office of Solid Waste Management Programs, 1972.

                37.  Milgrom, Incentives for recycling, p.3-57.

                38.  Battelle Memorial Institute, A study to identify opportunities, Book 3, v.9, p.10.

                39.  Battelle Memorial Institute, A study to identify opportunities, Book 3, v.9, p.16.

                40.  Battelle Memorial Institute, A study to identify opportunities, Book 3, v.9, p.26.
                MO820R                                            fiU.S. GOVERNMENT PRINTING OFFICE: 1974  546-316/276 1-3

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