Chapter 1: Introduction

Municipal Solid Waste: An Overview

An ever-increasing rate of municipal solid waste (MSW) generation, caused by a well established "consume and throwaway" attitude, has become a staple of the American lifestyle. Indeed the U.S. municipal solid waste generation has increased from 88 million tons in 1960 to 180 million tons in 1988 and to 208.1 million tons in 1995 (U.S EPA 1996, P.41). Of that 208.1 million tons of MSW generation, the vast majority (57 percent) is disposed in landfill, 27 percent is recovered, and 16 percent is incinerated (U.S. EPA 1996, P.7).

At the same time, environmental laws such as the 1976 Resource Conservation and Recovery Act (RCRA) have enabled more of this waste to be diverted from landfills. Diversion refers to the waste that is prevented from being disposed of in landfills and incinerators through recovery and source reduction. Table 1.1 illustrates the increases since 1980 in the recovery of most materials in U.S. municipal solid waste stream.

Table 1.1: U.S. Recovery of Specific Materials

In California, diversion rates have increased by more than 16 percent since 1990. This is due in large part to the passing of a law entitled AB939, which requires all municipalities to achieve a 25 percent diversion rate by the year 1995, and a 50 percent diversion rate by the year 2000. By the end of 1995, California was able to meet its goal with a 26 percent diversion rate. By the end of 1996, California’s diversion rate had reached 30 percent (CIWMB 1996, P.1).

Still, although diversion rates are climbing, landfill space shortfalls are eminent. Indeed, thirty seven states report having 10 year landfill space capacity, and two states report having less than 5 years of capacity left (U.S. EPA 1996, P.12). This is particularly alarming when U.S. landfill disposal is expected to increase from the current 118 million tons to 119 million tons by the year 2000, and 125 million tons by 2010 (U.S. EPA 1996, Page 8). These projections are based on population and Gross National Product increases. Thus, the percentage of MSW going to landfill is decreasing, while the overall amount is projected to increase.

Why Is a Case Study of a Solid Waste Reduction Program Important?

If the "macro level" situation in solid waste management is expected to be improved, it is important to know how this improvement works on a "micro level." One way to accomplish this task is to conduct a "micro level" case study of a successful solid waste reduction program (SWRP). Specifically, the economic and environmental impacts of such a program would be analyzed in an effort to document its impacts. If other companies are to succeed with solid waste reduction, it is important to have proof of its benefits. This report contains the results of a case study that offers such proof. Clearly, the more case studies examining how solid waste reduction works, the easier it will be for other companies to succeed. "Reinventing the wheel" is less necessary when effective examples are available to demonstrate how a SWRP works. When it is demonstrated that a SWRP has a beneficial effect on the "bottom line," a company is more apt to implement such a program. In business the "bottom line" is important when considering the implementation of any program. If a SWRP is proven to be economically beneficial to a company, then it is more likely that the company will implement said program.

The economic benefits of a SWRP can be found by examining the success of environmental consultants, such as Corporate Recycling Services in Tacoma, Washington. Corporate Recycling Services deals exclusively with the implementation of solid waste reduction programs. While working for Pay’n Save Drugstores, Corporate Recycling Services saved the company an estimated $2.5 Million per year in disposal fees and production costs (Profiting By Cutting Back 1997, p.19).

Other examples of the economic success of solid waste reduction programs abound. The California Integrated Waste Management Board (CIWMB) has published several case studies involving companies that have had success with solid waste reduction programs. For example, Hewlett Packard in Roseville CA, which had a 92.5% diversion rate in 1996. Due to its SWRP, Hewlett Packard saved an estimated $721,192 in disposal fees, and earned $149,241 from its recycling programs (HP Reduces Waste 1997, P.1).

Most of the case studies published by the CIWMB are fairly brief, two to three page write-ups summarizing the success of a given company. The following case study of Baxter Healthcare CardioVascular Group (CVG) goes into more depth. The chronological evolution of a solid waste reduction program is detailed and a cost-benefit analysis is performed. This analysis is presented on a year-by-year basis. Furthermore, an environmental impact analysis has also been completed. This analysis examines the amount of resources that are saved and the amount of toxicity that is reduced due to certain solid waste reduction programs. This includes such savings as electricity, trees, water, and reduced pollution. This case study is important, because it examines both the ecological and economic benefits of a solid waste reduction program.

Baxter Healthcare Corporation Cardiovascular Group

The Cardiovascular Group (CVG) of Baxter Healthcare Corporation specializes in the development and manufacturing of cardiovascular medical devices. CVG is one of five divisions at Baxter Healthcare Corporation, with estimated annual earnings of $1 billion. CVG has a totally integrated pollution prevention program, which includes among other aspects: energy conservation, hazardous waste reduction, and solid waste reduction. For the purposes of this case study, the focus will be limited to solid waste reduction. CVG has been chosen, because of its successful track record with solid waste reduction. CVG is a 5-year California Waste Reduction Awards Program (WRAP) winner.

The California Integrated Waste Management Board (CIWMB) created WRAP to inspire business to save money through resource efficiency and waste reduction. CVG has won this award every year since WRAP’s inception. In order to win this award, a company must submit a detailed application outlining its waste management program. The CIWMB reviews these applications and chooses winners.

Purpose of the Project

The purpose of this project is to demonstrate the potential economic and environmental benefits of a solid waste reduction program (SWRP). By demonstrating these benefits on a "micro level," the macro theory can be supported. The macro theory being that solid waste reduction programs are both economically and ecologically beneficial.