Ontario Waste Management Corporation

B A R R I E R S T O R E D U C T I O N , R E C Y C L I N G

E X C H A N G E A N D R E C O V E R Y O F

SPECIAL WASTES IN O N T A R I O

v&B Victor & Burrell

BARRIERS To "Im, RECYCLING, MCHANGE

AND RB33vERY OF SPECIAL WASTE IN ONTARIO

PREPAFZD BY:

Resource Integration Systems Ltd.

i n association w i t h

Victor & B u r r e l l Research and

consulting

FOR:

The Ontario W a s t e hhnagemnt Corp.

FINAL REPOF3

May, 1984

second Printing

December, 1984

May, 1984

Dr. B. D. Mitchell Director of Planning and Development Ontario Waste Management Corporation 11th Floor, 2 Bloor St. W. Toronto

Re: Final Reportc Barriers to Reduction, Recycling, Exchange And Recovery Of Special

Waste In Ontario

Dear Dr. flitchell,

Study”. I am pleased to submit the final report of the “Barriers

The report documents existing obstacles to increased special waste reduction, recycling, exchange and recovery. It goes much further, however, and analyzes the sensitivity of each barrier to change, the opportunities that will be created through barrier removal, and the ways in which OWMC can be instrumental in bringing about desired change.

A strategic framework is recommended through which OWMC can implement a range of specific activities. During the course of the project it became clear to the consulting team that an increased commitment by OWMC to the promotion of special waste reduction can yield significant results for Ontario.

The consulting team found this project to be very stimulating and challenging. We thank you for your support and cooperation throughout the study.

Respectfully yours,

Jack McGinnis Project Manager

. :., , . . . . .

TABLES AND FIGURES

TABLE 1: SUMMARY OF BARRIERS TO WASTE REDUCTION, 9 , 10, 11

RECYCLING, EXCHANGE AND RECOVERY

FIGURE 1: MODEL IMPACTS O F COMPARATIVE REDUCTI?N

INTERVENTION A C T I V I T I E S

FIGURE 2 : WASTE REDUCTION POTENTIAL

APPENDICES

APPENDIX A: RESEARCH SOURCES

APPENDIX B: REFERENCE GROUP CONTACTS

APPENDIX C: REFERENCE GROUP LETTER AND SUMMARY

BARRIER DESCRIPTIONS

APPENDIX D: BIBLIOGRAPHY

APPENDIX E: BACKGROUND NOTE: FACTORS INFLUENCING

THE REDUCTION DECISION

TABLE OF CONTENTS

EXECUTIVE SUPLXARY

IXTRODUCTION OBJECTIVES ASSUMPTIONS REPORT METHODOLOGY

BARRIER RESEARCH & DESCRIPTIONS ECONOMIC BARRIERS INFORMATION BARRIERS TECHNOLOGICAL BARRIERS REGULATORY BARRIERS

OPPORTUNITIES FOR INCREASED REDUCTION AND RECYCLING

REFERENCE GROUP PROCESS MAJOR FINDINGS PRIORITY OPPORTUNITY AREAS

STRATEGY AND TIMING INTRODUCTION INTERVENTION TIMING REDUCTION IMPACT

CONCLUSION AND RECOMMENDATIONS SUMMARY CONCLUSIONS RECOMMENDATIONS

i

6

0

2 5

29

32

37 3 8

40 5 1

5 4

5 4

55

57

5 9

6 0

6 2

6 3

i

EXECUTIVE SUI!IlARY

PURPOSE O F THE REPORT -- T h i s r e p o r t examines t h e ways i n which t h e O n t a r i o Ilaste

Management C o r p o r a t i o n (OWMC can promote w a s t e r e d u c t i o n i n

O n t a r i o . I t i s b u i l t on t h e f o u n d a t i o n es tab l i shed by OL'IIC i n

p r e v i o u s work - p a r t i c u l a r l y t h e Waste Reduction Opportunities

s t u d y , b u t moves beyond t h e g e n e r a l l e v e l o f p r e v i o u s work by

a n a l y z i n g s p e c i f i c b a r r i e r s t o w a s t e r e d u c t i o n and o u t l i n i n q

s p e c i f i c o p p o r t u n i t i e s which OlJMC can p u r s u e , t o r educe or e l i m i -

n a t e those b a r r i e r s . The r e p o r t a l s o d e v e l o p s a comprehens ive

s t r a t e g y and a matching specif ic r e d u c t i o n program o u t l i n e t h a t

can be c o n s i d e r e d by OIIMC immedia t e ly , w i t h o u t f u r t h e r r e s e a r c h

be iny r e q u i r e d .

K h i l e the r e p o r t n e c e s s a r i l y i n c l u d e s d e t a i l e d background

i n f o r m a t i o n , it emphas izes r a t iona le , s t r a t e g y and s p e c i f i c

a c t i o n .

SCOPE AND METHOD

The s t u d y has three o b j e c t i v e s :

- T h e i d e n t i f i c a t i o n o f s p e c i f i c b a r r i e r s t o r e d u c t i o n ,

r e c y c l i n g , exchange and r e c o v e r y p r e s e n t i n O n t a r i o :

-

- A n a l y s i s of these barriers i n o r d e r t o i d e n t i f y o p p o r t u n i t i e s

t h a t w i l l r e s u l t i n s i g n i f i c a n t l y i n c r e a s e d was te reciuct ion i n

O n t a r i o ;

- The deve lopmen t of proposed s t r a t e y i e s t h a t O\:l lC might i n c l u d e

i n i t s o v e r a l l was t e management a c t i v i t i e s i n O n t a r i o .

The f o l l o w i n g methods w e r e eLmployed i n order t o meet t h e

o b j e c t i v e s i n t h e s e t h r e e main a r e a s of work:

Barrier I d e n t i f i c a t i o n Research:

- A r e v i e w o f r e l e v a n t l i t e r a t u r e , m a i n l y Canadian and U.S., based

on l i b r a r y r e s e a r c h and r e f e r r a l by s o u r c e s c o n t a c t e d d u r i n g

t h e r e s e a r c h :

- Reference of work p r e v i o u s l y conducted by t h e c o n s u l t a n t s , such

as t h e Region of waterloo I n d u s t r i a l Waste Management Program

carried o u t f o r Environment Canada:

- Phone i n t e r v i e w s w i t h r e p r e s e n t a t i v e s r e s p o n s i b l e f o r i n d u s t r i a l

waste r e d u c t i o n programs i n o t h e r key Canadian and U S .

j u r i s d i c t i o n s ;

S a r r i e r A n a l y s i s / O p p o r t u n i t y I d e n t i f i c a t i o n :

- I d e n t i f i c a t i o n and e v a l u a t i o n o f r e l e v a n t r e d u c t i o n programs i n

o t h e r j u r i s d i c t i o n s i n t e r m s of i n t e n t to t r a n s f o r m h a r r i e r s

i n t o o p p o r t u n i t i e s f o r waste r e d u c t i o n ;

- The deve lopmen t of a Reference Group Process i n v o l v i n g 21

r e p r e s e n t a t i v e s from i n d u s t r y and t r a d e a s s o c i a t i o n s i n O n t a r i o .

O v e r a l l S t r a t e g y and Program Development

- The development of c o n c e p t s and o v e r a l l s t r a t e y y :

- Review of known i n f o r m a t i o n r e g a r d i n g OCJMC and o t h e r key a c t o r s

-

and their c u r r e n t r o l e i n t h e f i e l d ( r l i n i s t r y of t h e

En v i ronment , o t h e r y o v ernmen t, p r i v a t e companies and

i n s t i t u t i o n s ) ;

- 'The development , based on the above i n f o r m a t i o n , of s p e c i f i c

r o l e s , r e s p o n s i b i l i t i e s and proyram components f o r c o n s i a e r a t i o n

by Oiil!C.

( i i)

S i g n i f i c a n t emphasis was g i v e n t o t h e r e s u l t s o f e x t e n s i v e

d i s c u s s i o n s w i t h t h e Reference Group - p a r t i c u l a r l y i n terms o f

t h e r e l a t i v e s e v e r i t y of s p e c i f i c b a r r i e r s , t h e f e a s i b i l i t y of

s p e c i f i c a c t i o n s t o overcome t h e s e b a r r i e r s , and t h e p r o b a b l e

i m p a c t o f c e r t a i n a c t i o n s and roles t h a t c o u l d be adopted by 0:JIIC.

The scope of t h i s r e s e a r c h w a s g e n e r a l l y l i m i t e d t o Canadian

and U . S . sources ( b o t h l i t e r a t u r e and p e r s o n a l d i s c u s s i o n ) .

PREMISES APW POSTULATED - The main premises tha t guided t h e r e s e a r c h d e s c r i b e d i n this

report were:

- T h a t O!lNC w i l l in t h e n e a r f u t u r e e s t a b l i s h f a c i l i t i e s for t h e

t r e a t m e n t and d i s p o s a l of special waste genea ted by i n d u s t r i e s

i n O n t a r i o

- T h a t O W C h a s a mandate t o s t i m u l a t e and encouracjr special

. , . . . waste r e d u c t i o n i n O n t a r i o

- T h a t OllI4C is n o t a r e g u l a t o r of i n d u s t r i a l w a s t e d i s p o s a l i n

Ontar io .

The c o n s u l t a n t s no ted i n t h e i r work and d i s c u s s i o n s w i t h or$riC

t h a t t h e r e i s a p o t e n t i a l c o n f l i c t between t h e f i r s t t w o

premises. E f f e c t i v e r e d u c t i o n .program implementa t ion w i l l , t o

some degree, d e c r e a s e t h e volume of w a s t e s r e q u i r i n g t r e a t m e n t by

t h e new f a c i l i t i e s . A l s o , t h e f i n a l P r i c i n g P o l i c y which gove rns

t h e charges f o r t r e a t m e n t services c o u l d p o t e n t i a l l y d i r e c t l y or

i n d i r e c t l y d i s c r i m i n a t e a g a i n s t OlJMC e x p e n d i t u r e s on r e d u c t i o n

a c t i v i t i e s . These c o n s i d e r a t i o n s h a v e been noted as s i g n t i c a n t

i n t h e i r impact on o v e r a l l s t r a t e g y .

(iii)

i

The approach t h a t w a s t a k e n i n the s t u d y a n d t h e subsequen t

c o n c l u s i o n s and recommendations d i d r e q u i r e t h a t t h e c o n s u l t a n t s

inake c e r t a i n key a s sumpt ions about t h e f u t u r e of waste management

i n O n t a r i o . B r i e f l y s ta ted , t h e s e are:

- I n d u s t r y a t t i t u d e s are e v o l v i n g towards s u p p o r t fo r improved

waste management;

- R e g u l a t i o n s fo r w a s t e disposal h a v e t i g h t e n e a and w i l l c o n t i n u e

t o do so;

- The cost of w a s t e d isposal w i l l c o n t i n u e t o r i s e i n r e s p o n s e t o

t h e t i g h t e n i n g of r e g u l a t i o n s .

T h i s e v o l u t i o n ( i n i n d u s t r y awareness , the r e y u l a t o r y

envi ronment , and w a s t e d i s p o s a l costs) w a s i d e n t i f i e d as h i g h l y

i m p o r t a n t t o c o n t i n u e d progress i n waste r e d u c t i o n .

STATUS OF DATA -- T h e i n f o r m a t i o n g a t h e r e d for u s e i n t h i s s t u d y has n o t been

h i g h l y t e c h n i c a l , due t o t h e o b j e c t i v e s o f t h i s s tudy . The f o c u s

h a s been on d e s c r i p t i v e r e d u c t i o n program i n f o r m a t i o n , t h e

o p i n i o n s and p e r c e p t i o n s of key i n d i v i d u a l s and the c u r r e n t

pract ices of example i n d u s t r i e s rather t h a n on h i g h l y t e c h n i c a l

d a t a r e g a r d i n g s p e c i f i c r e c y c l i n g processes or i n f o r m a t i o n of a

q u a n t i f i a b l e n a t u r e (e.g., t o t a l t o n s c u r r e n t l y b e i n < ] r e c y c l e d i n

O n t a r i o ) .

T h e main l i m i t a t i o n cjoverning thne in fo r :na t ion i n t h i s report i s

t h a t a perfect and f i n a l view of barriers and o p p o r t u n i t i e s i s

imposs ib le g i v e n the f l u i d . dynamic and p e r c e p t u a l n a t u r e o f the

s u b j e c t n'atter.

The l i t e r a t u r e r e v i e w and o t h e r basic d a t a c o l l e c t i o n steps i n t h e

s t u d y w e r e con f ined t o North America. S i n c e was te r e d u c t i o n , as

d e f i n e d i n t h i s s tudy , i n c l u d e s s e v e r a l t o p i c a r e a s (e.9.. w a s t e

exchange, r e c y c l i n g ) and s i n c e the main t o p i c and i t s subyroups

are n o t a r e a d i l y d e f i n a b l e l i b r a r y c a t e g o r y , an approach which

w a s h i g h l y s y s t e m a t i c w a s n o t ewployed f o r d a t a c o l l e c t i o n .

OCltIC, Resource I n t e T r a t i o n Systems Ltd. (RIS 1, and v a r i o u s

government s o u r c e s w e r e scanned f o r r e l e v a n t l i t e r a t u r e and

p e r s o n a l / i n s t i t u t i o n a l i n fo rma t ion r e sources . These s o u r c e s then

g e n e r a t e d a series of s p e c i f i c r e f e r r a l s , both i n t e r n s of

l i t e r a t u r e and p e r s o n a l c o n t a c t s , which were e v a l u a t e d and

pursued i f judged r e l e v a n t . A more s y s t e m a t i c approacli might

have i d e n t i f i e d more t o t a l i n fo rma t ion , b u t t h e approach u t i 1 i z e d

w a s judged t o be t h e m o s t e f f i c i e n t i n i d e n t i f y i n g the m o s t

c u r r e n t and r e l e v a n t i n fo rma t ion a t t h e lowes t cost.

In fo rma t ion g a t h e r e d i n t h e f i r s t s t a g e of t h e s t u d y ( b a r r i e r

i d e n t i f i c a t i o n ) w a s p r e s e n t e d i n p a r t or whole t o v a r i o u s

p a r t i c i p a n t s i n t h e Reference Group process . Given t h e b r e a d t h

of knowledge r e p r e s e n t e d by the Reference Group, t h i s s tep s e r v e d

as a s i g n i f i c a n t c ross -check t o e n s u r e t h a t no major d a t a gaps

were e x i s t e n t .

If budget l i m i t s had n o t been a c o n s i d e r a t i o n i n t h e s tudy , o t h e r

methods could h a v e been employed -e.g., dependence on a U.S. sub-

c o n t r a c t o r t o g e n e r a t e and r ev iew U.S. da t a : p e r s o n a l v i s i t s t o

d a t a s o u r c e s such a s the L i b r a r y of Congress. 1:hi le such

a d d i t i o n a l steps w o u l d have i n c r e a s e d t h e b r e a d t h and dep th of

d a t a employed i n t h e s tudy ,

h a v e had any impact on f i n d i n g s , c o n c l u s i o n s and recommendations

h e r e i n .

it i s h i g h l y u n l i k e l y t h a t t hey w o u l d

While much of t h i s report can be viewed a s c r i t i c a l judgement

rather t h a n o b j e c t i v e , i n v a r i a b l e f a c t , the methods employed have

combined t o e n s u r e t h a t a wide range of we l l - founded and c l e a r l y

unders tood a t t i t u d e s and p e r c e p t i o n s h a v e been d i r e c t l y u t i l i z e d

i n t h e i d e n t i f i c a t i o n and a n a l y s i s s e c t i o n s of this s tudy .

MAIM FINDINGS

The f i n d i n g s of t h i s s t u d y can be sununarized under t h r e e main

head inys --Barriers, O p p o r t u n i t i e s , and S trateyy/Ti!niny .

Barriers :

The report p r o v i d e s a f u l l d e s c r i p t i o n of t h e barr iers which

h a v e been i d e n t i f i e d . I n summary, the main categories are:

Economic Barriers:

- The economic cost of implementing waste r e d u c t i o n systems

- The i n a b i l i t y of e x i s t i n g i n c e n t i v e proyrams t o m e e t needs

- The n a t u r e of non-production o r i e n t e d waste r e d u c t i o n

inves tmen t s

- The cost of in fo rma t ion

In fo rma t ion Barr ie rs :

- I n t e r n a l i n fo rma t ion gaps w i t h i n t h e coinpdny

- E x t e r n a l i n fo rma t ion yaps across companies

Regula tory B a r r i e r s :

- Changing r e g u l a t o r y environment

- I n e q u i t a b l e ( b y r e g i o n ) r e y u l a t o r y enforcement

- Compliance as s o l e or pr imary o b j e c t i v e of companies

- The n a t u r e of t h e r e g u l a t i o n

Techn ica l Barriers:

- Lack of e f f e c t i v e research and developiiient a c t i v i t y

- The p r o c e s s of commerc ia l i za t ion has n o t y e t bcconie a

posi t ive f o r c e

- Mechanisms f o r t r a i n i n g of l i n e s t a f f n o t r e a d i l y

a v a i l a b l e

- Lack of r e a d i l y a c c e s s i b l e t e c h n i c a l s e r v i c e s

O p p o r t u n i t i e s :

While t h e r e is c l e a r l y a l i n k between Barriers and

O p p o r t u n i t i e s , t h e t w o cannot be viewed as mirror images of each

o t h e r . There are c e r t a i n a r e a s of o p p o r t u n i t y , i n fo rma t ion f o r

example, which e f f e c t i v e l y c u t a c r o s s t h e l i n e s used t o

c a t e g o r i z e b a r r i e r s . A s i n g l e i n f o r m a t i o n a c t i v i t y can s i m u l t a -

neous ly a d d r e s s s p e c i f i c economic, r e g u l a t o r y , and t e c h n o l o g i c a l

barriers.

The Reference Group p r o c e s s was key i n t h e i d e n t i f i c a t i o n and

e v a l u a t i o n of o p p o r t u n i t i e s . B a r r i e r / o p p o r t u n i t y in fo rma t ion

f r o m programs i n o t h e r j u r i s d i c t i o n s and from key i n d i v i d u a l s

o u t s i d e of t he Reference Group w a s combined wi th Reference Group

r e s u l t s . A l l d a t a , o p i n i o n s and s u g g e s t i o n s were e v a l u a t e d t o

( v i i )

a s s i g n o v e r v i e w p r i o r i t i e s t o o p p o r t u n i t y a r e a s . The f o l l o w i n g

are the main c r i t e r i a a p p l i e d i n this p r o c e s s :

- E x t e n t of r e d u c t i o n impact: i f a n o p p o r t u n i t y is pursued

s u c c e s s f u l l y , w i l l t h e i n c r e a s e i n was te r e d u c t i o n be

i n s i g n i f i c a n t , s i g n i f i c a n t or very s i g n i f i c a n t .

- E a s e of i m p l e m e n t a t i o n : how s e v e r e a r e t h e barriers to be

overcome, i n t e r n i s o f cost, complexi ty , o p p o s i t i o n from o t h e r s ,

p r o b a b i l i t y of success .

- E x i s t e n c e of change agent: how p r o b a b l e is it t h a t a s p e c i f i c

i n s t i t u t i o n (OUMC or o t h e r ) c o u l d r e a d i l y adopt t h e r o l e

r e q u i r e d f o r an o p p o r t u n i t y to be pursued r e a l i s t i c a l l y .

S i n c e areas of o p p o r t u n i t y do cross t h e boundar ies used t o

c a t e g o r i z e s p e c i f i c barriers and s i n c e f i n a l program d e s i g n m u s t

be c o n s t r u c t e d i n h i g h l y p r a c t i c a l t e r m s ( roles , key t a s k a r e a s ,

s p e c i f i c program a c t i v i t i e s , t i m i n g ) , the o r g a n i z a t i o n of

o p p o r t u n i t y a r e a s h a s been c o n s t r u c t e d t o s e r v e a t r a n s i t i o n a l

purpose, r a t h e r t h a n a s a d i r e c t e x t e n s i o n of the o r i g i n a l f o u r

c a t e g o r i e s .

The f i n d i n g s r e g a r d i n g o p p o r t u n i t y a r e a s are p r e s e n t e d and

summarized i n t h i s r e p o r t i n a manner in t ended t o e s t a b l i s h a

f i r s t s t a g e l e v e l of p r i o r i t i e s :

C e n t r a l P r i o r i t y :

A l l r e s u l t s i n d i c a t e that the a r e a of inforii iation p r e s e n t s

the g r e a t e s t p o t e n t i a l , based on t h e c r i t e r i a s t a t e d , a c r o s s

a l l barrier c a t e g o r i e s . I n d u s t r y r e p r e s e n t a t i v e s

( v i i i )

c o n s i s t e n t l y p o i n t t o t h i s o p p o r t u n i t y a r e a as a c e n t r a l

need, p a r t l y because it can be h i g h l y s u p p o r t i v e t o i n d u s t r y

wi thou t becoming an i n t e r f e r e n c e .

O t h e r P r ior i t ies :

T h e r e are immediate o p p o r t u n i t i e s f o r minor i n t e r v e n t i o n i n

economic and t e c h n o l o g i c a l a r e a s . W i t h a c ros s -ca t egory

in fo rma t ion program a s a base, i n i t i a l i n t e r v e n t i o n w i t h

core economic and t e c h n o l o g i c a l o p p o r t u n i t i e s is viewed a s

rea l i s t ic and p r o d u c t i v e , based on the s ta ted c r i t e r i a .

F u r t h e r Development Required:

While n o t i n any terms unimpor tan t , major i n t e r v e n t i o n i n

economic, r e g u l a t o r y and t e c h n o l o g i c a l areas cannot be

pursued wi thou t an i n i t i a l f o u n d a t i o n be ing e s t a b l i s h e d ana

f u r t h e r a n a l y s i s be ing conducted.

S t r a t e g y and T i n i i n q - Uaste r e d u c t i o n cannot be c o n s i d e r e d i n isolat ion from o t h e r

a s p e c t s of a t o t a l waste management program. A comprehensive

s t r a t e g y i s r e q u i r e d - one which considers e x i s t i n g p r a c t i c e s and

c i r cums tances , t h e development o f new f a c i l i t i e s and proposed

r e g u l a t o r y changes.

Timing is c r i t i c a l . I f r e d u c t i o n a c t i v i t i e s a r e launched a t

t h e same t i m e as r e g u l a t i o n s are i n c r e a s e d and new f a c i l i t i e s are

implemen ted , t h e b e n e f i t s of t h e s l o w e r r e d u c t i o n a c t i v i t i e s w i l l

o n l y o c c u r a f t e r t h e impacts of r e g u l a t o r y and f a c i l i t y s h i f t s

h a v e been f e l t . Gene ra to r s w i l l f a c e new r e g u l a t i o n s w i t h o u t the

o u t l e t of v i a b l e r e d u c t i o n a l t e r n a t i v e s i n p l a c e . A new f a c i l i t y

w i l l s u f f e r from a temporary peak f l o w i n m a t e r i a l volume, which

w i l l t h e n d e c l i n e o v e r t ime a s r e d u c t i o n a c t i v i t i e s g r a d u a l l y

a c h i e v e t h e i r impact on was te volumes.

Reduct ion a c t i v i t i e s implemented now w i l l a c h i e v e immediate

r e s u l t s ( i n r e l a t i o n t o r e d u c t i o n p r o c e s s e s t h a t are a l r e a d y

t e c h n i c a l l y and economica l ly v i a b l e ) , a l t h o u g h t h e t o t a l impact

will l i k e l y be minor. Over t i m e t h i s impact w i l l grow as o t h e r

changes occur, such a s r e g u l a t o r y s h i f t s and a v a i l a b i l i t y of new

t r e a t m e n t and d i s p o s a l s e r v i c e s .

T h e s p e c i f i c r e d u c t i o n s t ra tegies and program described i n t h i s

r e p o r t h a v e been deve loped i n r e f e r e n c e t o t h e s e o v e r a l l

s t r a t e g i c c o n s i d e r a t i o n s . I t w i l l be impor t an t f o r any d e c i s i o n s

which are now made by OWflC t o c o n t i n u e this r e f e r e n c e to o v e r a l l

s t r a t e g y and t iming.

CONCLUSIONS AND KECOI1HENDATIONS -

Conclusions:

1. Many c o n d i t i o n s a r e now converg ing which p o i n t to s i g n f i c a n t

o p p o r t u n i t i e s i n t h e f i e l d of was te r educ t ion . IIowever, no

forces were i d e n t i f i e d which can be expec ted , i n the s h o r t

term, t o v i s i b l y improve t h e s t a t e of waste r e d u c t i o n i n

On ta r io . S t r a t e g i c a c t i o n must be t aken i f c u r r e n t

o p p o r t u n i t i e s are t o be r e a l i z e d .

2 . Firmer r e g u l a t i o n s and i n c r e a s e d enforcement are c e n t r a l t o

a n i n c r e a s e i n waste r educ t ion , b u t s h o u l d n o t be pursued i n

i s o l a t i o n . Companies f a c i n g c o n c r e t e and s i g n i f i c a n t

bar r ie rs t o w a s t e r e d u c t i o n w i l l be f o r c e d i n t o a c o r n e r by

s t r o n g r e g u l a t o r y change under taken w i t h o u t matching suppor t

and guidance .

3 . I n d u s t r y r e p r e s e n t a t i v e s f e e l t h a t Olil-1C c o u l d and s h o u l d be

i n v o l v e d i n encouraging s p e c i a l waste r educ t ion . They

f u r t h e r f e e l t h a t there are s p e c i f i c and c o n c r e t e ways i n

which 0I:MC can f u l f i l l i t s mandate w i t h waste r e d u c t i o n i n

O n t a r i o .

Recommendations:

1 . O'IJHC s h o u l d adop t a c e n t r a l ro le i n t h e deve lopment of

w a s t e r e d u c t i o n i n i t i a t i v e s i n On ta r io . A h igh p u b l i c

p r o f i l e s h o u l d be e s t a b l i s h e d : t o r each b o t h t h e p u b l i c and

i n d u s t r y : t o e s t a b l i s h t h e importance of waste r educ t ion ; t u

s e r v e as a matching component t o f a c i l i t y development work

and as a f o u n d a t i o n for subseyuent r e d u c t i o n proyram

development.

2 . The pr imary approach i n t h i s r o l e s h o u l d be f a c i l i t a t i o n - s e l e c t i v e encouragement and s u p p o r t f o r i n d u s t r y - rather

t h a n d i r e c t i n t e r v e n t i o n . O\JI.lC s h o u l d f i l l the v o i d t h a t

e x i s t s b y s e r v i n g as a c a t a y l s t : i n d u s t r i e s and governinents

s h o u l d c o n t i n u e t o f u l f i l l t h e i r e x i s t i n g r e s p o n s i b i l i t i e s i n

w a s t e management.

3 . D i r e c t a c t i o n shou ld a l s o be t aken where a p p r o p r i a t e ,

p a r t i c u l a r l y where no o t h e r p a r t y can r e a l i s t i c a l l y be

expected t o t a k e a c e r t a i n a c t i o n o r r e s p o n s i b i l i t y .

4. OWlC should e s t a b l i s h an ongoing ro le i n p l a n n i n g and

development re la ted t o waste r educ t ion . C e r t a i n act ions nay

be h i g h l y impor tan t , b u t n o t j u s t i f i a b l e a t t h i s t i m e or

wi thou t f u r t h e r a n a l y s i s . An a c t i v e p l a n n i n g and development

s t a n c e w i l l be r e q u i r e d t o e n s u r e t h a t medium and long r a n g e

a c t i v i t i e s a r e handled p r o p e r l y .

5 . Key t a s k a r e a s are:

- Genera l promotion of waste r e d u c t i o n t o f o s t e r p u b l i c and

i n d u s t r y awareness.

- Development of in fo rma t ion / f a c i l i t a t i o n programs and

mechanisms to meet s p e c i f i c i n fo rma t ion needs t h a t have

been i d e n t i f i e d .

- Development of a d i r e c t a c t i o n program where i n t e r v e n t i o n

is judged t o be a p p r o p r i a t e a t t h i s t ime.

- Development and maintenance of an ongoing p r o c e s s of

e v a l u t i o n , dec i s ion and implementa t ion of long range

program components.

S p e c i f i c recommendations r e g a r d i n g OWIC a c t i v i t i e s w i t h i n each

Task A r e a are con ta ined i n t h e c o n c l u s i o n of t h i s r e p o r t .

( x i i )

INTRODUCTION

T h e O n t a r i o 1:aste Management Corpora t ion has as a mandate t h e

p u r s u i t of s p e c i a l waste r e d u c t i o n , r e u s e , r e c y c l e and exchange

i n O n t a r i o ( r e f e r r e d t o c o l l e c t i v e l y as ' r e d u c t i o n th roughou t

t h i s report). While i n d u s t r y i s c u r r e n t l y engaged i n these

a c t i v i t i e s , it is l i m i t e d t o w h a t is judged t o be appropriate

under t h e p r e s e n t c o n d i t i o n s . T h i s o v e r a l l l i m i t of i n v o l v e m e n t

i s d e f i n e d by the t o t a l of the i n d i v i d u a l e f f o r t s of i n d i v i d u a l

companies. . . . ..., .

On the company specif ic l e v e l , where the a c t u a l dec i s ions are

made, judyeiiient i s commonly made w i t h economic f a c t o r s as a

c e n t r a l c o n s i d e r a t i o n . However, a wide a r r a y of o t h e r factors

are a l s o impor tan t . For example, r e g u l a t i o n s , t echnology, and

i n f o r m a t i o n h a v e a c o n c r e t e i m p a c t on the specific d e c i s i o n s made

by i n d i v i d u a l companies.

G iven t h e d e s i r e t o d e v e l o p a waste r e d u c t i o n s t r a t e g y and t h e

v iew t h a t a complex a r r a y of factors impact on company d e c i s i o n

making, OW4C commissioned th i s s t u d y of barriers and oppor-

t u n i t i e s i n the f i e l d o f spec ia l waste r educ t ion . While d e t a i l e d

a n a l y t i c a l methods h a v e n e c e s s a r i l y been deve loped i n t h i s s t u d y

t o deal w i t h t h e a r r a y of barriers and o p p o r t u n i t i e s , one c l ea r

f o c u s has been ma in ta ined throughout :

1

OWNC has a mandate t o s t i m u l a t e and encourage s p e c i a l was te re-

duc t ion . An e f f e c t i v e s t r a t e g y i s needed: a s t r a t e g y t h a t d e a l s

w i t h t h e complex b a r r i e r s w h i l e e n s u r i n g p r o p e r i n t e g r a t i o n w i t h

OWMC's f a c i l i t y development p r o c e s s and o t h e r key a s p e c t s of t h e

f i e l d of i n d u s t r i a l was te management.

OBJECTIVES

T h i s report d e s c r i b e s t h e r e s u l t s of r e s e a r c h and a n a l y t i c a l

e f fo r t s c a r r i e d o u t by t h e c o n s u l t a n t s i n o r d e r t u examine t h e

ways i n which OKMC can h e l p a l l e v i a t e b a r r i e r s t o f u r t h e r waste

r e d u c t i o n i n Ontar io . T h i s report a d d r e s s e s t h e main o b j e c t i v e s

of t h e work:

(i) The i d e n t i f i c a t i o n of s p e c i f i c b a r r i e r s to r e d u c t i o n ,

r e c y c l i n g , exchange and r ecove ry p r e s e n t i n Ontar io :

( ii) A n a l y s i s of t h e s e barriers i n terms of t h e i r s e v e r i t y

and o t h e r f a c t o r s i n o r d e r t o i d e n t i f y o p p o r t u n i t i e s t h a t

w i l l r e s u l t i n s i g n i f i c a n t l y i n c r e a s e d was te r e d u c t i o n i n

Ontar io :

(iii) The development of proposed s t r a t e g i e s t h a t 0P;l.IC might

i n c l u d e i n i t s o v e r a l l waste management a c t i v i t i e s i n

O n t a r i o .

N h i l e t h e report n e c e s s a r i l y i n c l u d e s d e t a i l e d background in -

format ion , it emphasizes t h e s t r a t e g i c framework and s p e c i f i c

a c t i o n s t h a t have been i d e n t i f i e d and deve loped by t h e c o n s u l t a n t s .

2

AS S U MF'T I O N S

The approach t h a t w a s t aken i n t h e s t u d y and the subsequent

c o n c l u s i o n s ana recoiiunendations d i d r e q u i r e t h a t t he c o n s u l t a n t s

make c e r t a i n key assumpt ions abou t the f u t u r e of w a s t e nianagenierit

i n On ta r io . B r i e f l y s ta ted, t h e s e are:

- I n d u s t r y a t t i t u d e s are e v o l v i n g towards s u p p o r t for improved

waste management:

- R e g u l a t i o n s for w a s t e d i s p o s a l h a v e t i g h t e n e d and w i l l con-

t i n u e t o do so:

- The cost of w a s t e d i s p o s a l w i l l c o n t i n u e t o r ise i n r e sponse

t o the t i g h t e n i n g of r e g u l a t i o n s and o t h e r factors.

i i h i l e con t inued e v o l u t i o n i n t h e r e g u l a t o r y envi ronment and

c o n t r o l s w a s i m p o r t a n t i n t h i s s tudy , and is impor t an t t o t h e

main f a c i l i t i e s development work of OWLlC, there w a s no assui:iption

made r e g a r d i n g a d i rec t OPJl4C ro l e i n r e g u l a t o r y change i n Ontar io .

RBPORT l4ETHODOLOGY

T h e specif ic r e s e a r c h methods employed were d e v e l o p e d by the

c o n s u l t a n t s i n c o o p e r a t i o n with s t a f f of OiII4C. T h e !:aste

Reduct ion O p p o r t u n i t i e s s t u d y p r e v i o u s l y conducted by t h e O n t a r i o

Research Foundat ion s e r v e d as a p o i n t of d e p a r t u r e . The f o l l o w i n g

s p e c i f i c methods w e r e t h e n i n i t i a t e d :

- A rev iew of r e l e v a n t l i t e r a t u r e :

- Reference t o work p r e v i o u s l y conducted by t he c o n s u l t a n t s ;

- Phone i n t e r v i e w s w i t h r e p r e s e n t a t i v e s i n v o l v e d i n i n d u s t r i a l

3

w a s t e r e d u c t i o n a c t i v i t i e s i n o the r key Canadian and U.S.

j u r i s d i c t i o n s ;

- I d e n t i f i c a t i o n and assessment of r e l e v a n t r e d u c t i o n programs i n

o t h e r j u r i s d i c t i o n s ;

- T h e developrxent of a Reference Group process i n v o l v i n g some 21

r e p r e s e n t a t i v e s from i n d u s t r y and Trade A s s o c i a t i o n s i n Ontar io :

- A n a l y s i s of a 1 1 in fo rma t ion , o p i n i o n s and c o n c e p t s gene ra t ed

from t h e s teps i d e n t i f i e d above.

I n t h i s e f f o r t s i g n i f i c a n t emphasis was g i v e n t o t h e r e s u l t s of

e x t e n s i v e d i s c u s s i o n s w i t h t h e Reference Group - p a r t i c u l a r l y i n

t e r m of the r e l a t i v e s e v e r i t y of specif ic b a r r i e r s , t h e feasi-

b i l i t y oE s p e c i f i c a c t i o n s t o overcome t h e s e barriers and the

p r o b a b l e impact of c e r t a i n a c t i o n s and roles t h a t c o u l d be adopted

by O1VI”lC.

I t w a s necessa ry i n t h e c o u r s e of t h e s t u d y t o make some

ad jus tmen t s to t h e o r i g i n a l work s ta tement . I n p a r t i c u l a r t h e r e

were changes i n t h e manner i n which s p e c i f i c barriers were

i d e n t i f i e d and e v a l u a t e d .

A l t h o u y h b a r r i e r s do n e e d t o b e i s o l a t e d s o t h a t t h e y c a n b e

p r o p e r l y understood, t h e complex i ty of b a r r i e r i n t e r a c t i o n and

t h e i m p r t a n c e of reconunending s t r a t e g i c a c t i o n s by which O!WC

can s h i f t l a r g e barr ier areas caused the c o n s u l t a n t s t o focus on

a n assessment of barriers i n b roade r terms t h a n o r i g i n a l l y

a n t i c i p a t e d . Whi le s p e c i f i c b a r r i e r s d e s c r i p t i o n s have been

d e v e l o p e d as p l anned , g r e a t e r emphasis h a s been g i v e n t o t h e

a n a l y s i s of b a r r i e r s w i t h i n f o u r broad concept areas - economics,

in for ina t ion , t e c h n o l o g i e s , and r e g u l a t i o n s .

4

One r e s u l t of t h i s s h i f t i s t h a t r e l a t i v e s e v e r i t y a n a l y s i s has

been deve loped f a r more s u c c e s s f u l l y t h a n a b s o l u t e s e v e r i t y . A s

expec ted ,

t h i s p o i n t t h e s p e c i f i c impact t h a t removal o f b a r r i e r s w i l l have

on was te q u a n t i t i e s i n On ta r io .

it has a l s o been i m p o s s i b l e t o a c c u r a t e l y e s t i m a t e a t

The f o l l o w i n g chapters d e s c r i b e t h e r e s e a r c h and c o n c l u s i o n s

drawn from each phase of t h e p r o j e c t ' s work. Chapter t w o is a

summary of b a r r i e r d e s c r i p t i o n s . Chapter t h r e e r e p o r t s o n t h e

main f i n d i n g s r e g a r d i n g o p p o r t u n i t i e s f o r i n c r e a s e d w a s t e re-

d u c t i o n and r e c y c l i n g . Chapter f o u r s u g g e s t s a framework t o h e l p

unders tand t h e s t r a t e y y and t iming f o r increased was te r e d u c t i o n

a c t i v i t i e s . Chapter f i v e c o n t a i n s t he f i n a l c o n c l u s i o n s and

recommendations f o r OKMC i n p u r s u i t of i ts s p e c i a l was te re -

d u c t i o n mandate .

5

BARRIER RESEARCH AND

DESCRIPTIONS

-

The barrier r e s e a r c h phase of t h e s t u d y w a s p r i m a r i l y in t ended

t o h e l p d e f i n e t h e problems impeding i n i t i a t i v e s f o r i n c r e a s e d

spec ia l waste r e d u c t i o n , r e c y c l i n g , r e c o v e r y and exchange ac t i -

v i t i e s i n O n t a r i o i n d u s t r y . T h i s r e s e a r c h w a s based upon a

thorough r e v i e w of e x i s t i n g l i t e r a t u r e i n t h e f i e l d : con-

s u l t a t i o n s w i t h i n d u s t r y groups, academics and a g e n c i e s i n o t h e r

j u r i s d i c t i o n s : and upon the s t u d y t e a m ' s p r e v i o u s e x p e r i e n c e i n

implementing i n d u s t r i a l waste r e d u c t i o n p r o j e c t s . The des-

c r i p t i o n s which f o l l o w are thorough b u t are n e c e s s a r i l y p r e s e n t e d

i n a summary fash ion . Fo r t h e purpose of c lear d e s c r i p t i o n , each

ba r r i e r i s t r e a t e d as a d i s c r e t e e n t i t y .

Fo r the purposes of t h i s report "barriers" t o i n c r e a s e d waste

r e d u c t i o n , r e u s e , r e c y c l i n g and exchange can be d e f i n e d as t h o s e

fac tors t h a t s e r v e t o impede g r e a t e r a d o p t i o n of t h e s e forms of

o v e r a l l waste r e d u c t i o n . T h i s c h a p t e r d e t a i l s t h e r ange of

"barriers" t h a t e x i s t w i t h i n O n t a r i o i n d u s t r y g e n e r a l l y b u t

makes specif ic r e f e r e n c e t o the m e t a l f i n i s h i n g , pr imary meta ls ,

c h e m i c a l s and small b u s i n e s s sectors, as p r e v i o u s work by t h e

O n t a r i o Research Foundat ion f o r Oill4C i d e n t i f i e d t h e s e as sectors

of pr imary importance. (See O n t a r i o Research Foundat ion, I.;aste

Reduct ion O p p o r t u n i t i e s S tudy)

-

6

I t s h o u l d be a p p r e c i a t e d a t t h e o u t s e t t h a t i n v e r y many cases

i n d u s t r y i s a l r e a d y engaged t o the maximum degree i n waste r educ t ion ,

r e u s e , r e c y c l i n g and exchange a c t i v i t i e s t h a t can be j u s t i f i e d

under t h e c u r r e n t economic, r e g u l a t o r y and t e c h n o l o y i c a l c l ima tes

i n On ta r io . There are therefore t w o fundamental r easons why a

greater degree of waste r e d u c t i o n does n o t occur . F i r s t l y , it is

no t e c o n o m i c a l l y j u s t i f i a b l e acco rd ing t o the c r i t e r i a by which

b u s i n e s s d e c i s i o n making occurs . Secondly, companies may be

unaware of t h e o p t i o n s a v a i l a b l e to t h e m . The " b a r r i e r s " to waste

r e d u c t i o n d e s c r i b e d t h e r e f o r e s h o u l d be seen both i n t e r m s of

d e f i n i n g the l i m i t s of what i s j u s t i f i a b l e i n i n d u s t r y which is

w e l l informed of w a s t e r e d u c t i o n o p p o r t u n i t i e s and i n terms of

t h e p o t e n t i a l for i n c r e a s e d w a s t e r e d u c t i o n w i t h i n i n d u s t r y under

the c u r r e n t se t of c o n d i t i o n s i n w h i c h b u s i n e s s e s ope ra t e . B o t h

of t h e s e fac tors w i l l be a f f e c t e d by changes i n t h e r e g u l a t o r y

environment. However f o r the purpose of unde r s t and ing t h e basis

f o r i n c r e a s i n g r e d u c t i o n a c t i v i t y , t h e d e s c r i p t i o n s f o l l o w i n g

focus upon c o n d i t i o n s as t h e y now e x i s t .

For purposes of a n a l y s i s , t he v a r i o u s "barriers" t o i n c r e a s e d

w a s t e r e d u c t i o n , r euse , r e c y c l i n g and exchange t h a t have been

i d e n t i f i e d can be c a t e g o r i z e d i n t o f o u r inain yroups. Econor.1i.c

c o n s i d e r a t i o n s are c e n t r a l t o a l l b u s i n e s s d e c i s i o n s , b u t these

d e c i s i o n s must n o n e t h e l e s s be made i n c o n s i d e r a t i o n of p r e v a i l i n g

and a n t i c i p a t e d r e g u l a t i o n s . I l i t h i n the waste r e d u c t i o n f i e l d ,

t echno logy i s c r i t i c a l i n de te r in in iny a v a i l a b l e o p p o r t u n i t i e s .

Knowledge of these three areas i s dependent upon s a t i s f a c t o r y

i n f o r m a t i o n networks. The barr iers t h a t p e r t a i n i n each of these

7

a r e a s w i l l be d e s c r i b e d and a n a l y s e d s e p a r a t e l y .

T a b l e 1 p r e s e n t e d on pages 9 and 10 SuiNnarizes t he b a r r i e r s

i d e n t i f i e d d u r i n g p r o j e c t r e sea rch . The economic b a r r i e r suiiunary

fo l lows t h e t e x t d i r e c t l y , because of the complex i ty o f t h e

f a c t o r s i n v o l v e d . The summary of t h e in fo rma t ion , t echno loyy and

r e g u l a t o r y b a r r i e r s r e p r e s e n t a s y n t h e s i s of t h e f i n d i n g s des-

c r i p t i o n s . I n g e n e r a l , t h e i n f o r m a t i o n i s in t ended as a s y n t h e s i s

of ve ry broad b a r r i e r a r e a s , r a t h e r than an e x h a u s t i v e a n a l y s i s

of i n d i v i d u a l problems.

ECONOI.1IC BAI<RIERS

Three major b a r r i e r a r e a s w e r e i c i e n t i f i e d which may be con-

s i d e r e d economic i n n a t u r e . T h e s e are:

i) t h e economic costs (and b e n e f i t s ) of implenientiny was te

r e d u c t i o n systems

ii) t h e i n a b i l i t y o f e x i s t i n g i n c e n t i v e s encouraging was te

r e d u c t i o n t o meet t h e needs o f i n d u s t r y .

iii) t h e n a t u r e of waste r e d u c t i o n inves tmen t d e c i s i o n s as

compared t o other p r o d u c t i o n i n v e s t m e n t s

i v ) t h e costs of i n f o r m a t i o n .

Each o f t h e s e f o u r a r e a s c a n i n t u r n be s u b d i v i d e d i n t o s p e c i f i c

components w i t h i n each area which s e r v e t o i n h i b i t g r e a t e r waste

r educ t ion a c t i v i t y .

i

mtm 1 - SUElPlARY O F BARRIERS T O - -

IIASTE REDUCTION, RECYCLING, EXCHANGE APJD RECOVERY -

Economic B a r r i e r s

1. The economic costs of implementing w a s t e r e d u c t i o n systems

- h i g h cap i t a l costs

- i n s u f f i c i e n t payback p o t e n t i a l

- increased maintenance, o p e r a t i n g , l a b o u r costs

- i n s u f f i c i e n t waste q u a n t i t i e s to j u s t i f y implementat ion

2. The i n a b i l i t y of e x i s t i n g i n c e n t i v e program t o meet needs

- l ack of t a g e t e d proyrams

- low proyrain awareness

- need f o r i n c e n t i v e " s t r u c t u r i n g " for companies of d i f f e r e n t

s i z e s

- a v e r s i o n t o government a s s i s t a n c e

- perception of a p p l i c a t i o n p rocedures ( r ed t a p e )

- i n a p p r o p r i a t e program d e s i g n and c r i t e r i a

3. T h e n a t u r e of non-product ion o r i e n t e d waste r e d u c t i o n

inves tmen t s

- company f o c u s on "p roduc t ion" inves tmen t s

- barr ie rs to r e t r o f i t t i n g o lde r p l a n t s

4. The costs of infor ina t ion

9

In fo rma t ion Barr iers

1. " I n t e r n a l " i n f o r m a t i o n gaps w i t h i n companies

- i n s u f f i c i e n t d a t a on volumes and c h a r a c t e r i s t i c s o f wastes

g e n e r a t e d

- imprecise a n a l y s i s of p o i n t s i n p r o d u c t i o n where wastes are

g e n e r a t e d

- i n s u f f i c i e n t cost a n a l y s i s of c u r r e n t w a s t e d i s p o s a l

- i n s u f f i c i e n t t r a c k i n g on v a l u e of feedstock w a s t e d

2. "Ex te rna l " i n f o r m a t i o n gaps across i n d u s t r i e s

- i n s u f f i c i e n t i n f o r m a t i o n on a l t e r n a t i v e s t o d i s p o s a l

- i n s u f f i c i e n t t e c h n i c a l i n f o r m a t i o n on a1 t e r n a t i v e s process

sys tems

- l ack of clear unde r s t and ing r e g a r d i n g r e g u l a t i o n s

- l a c k of r e l e v a n t case example s t u d i e s

- no r eady access t o infor ina t ion r e g a r d i n g funding and other

f i n a n c i a l i n c e n t i v e s

- i n s u f f i c i e n t research da ta and in fo r ina t ion r e g a r d i n g

markets f o r waste exchange materials

- l a c k of s p e c i f i c f o c u s and r e s p o n s i b i l i t y for w a s t e

r e d u c t i o n or exchange i n f o r m a t i o n

T e c h n o l o g i c a l B a r r i e r s

- ?Teed f o r more e f f i c i e n t research and development a c t i v i t y

- Supp ly and demand of d i r e c t l y r e l e v a n t t e c h n i c a l s e r v i c e s

10

is no t y e t a d e q u a t e l y developed or focussed

- The p r o c e s s of t echno logy co inmerc ia l iza t ion has n o t y e t

become a p o s i t i v e f o r c e

- kleclianisnls for t r a i n i n g and developnlent of l ine p e r s o n n e l

are not y e t i n p l a c e for waste r e d u c t i o n s y s t e n s

Regula tory C a r r i e r s

- Changing r e g u l a t o r y environment

- I n e q u i t a b l e (by r e y i o n ) r e g u l a t o r y enforcement

- Compliance as s o l e or pr imary o b j e c t i v e of most companies

- The n a t u r e of t h e r e g u l a t i o n

11

( i ) COSTS OF IMPLEIIEI~TING LIASTE REDUCTION SYSTEI.lS - F i v e s p e c i f i c f a c t o r s f a l l i n g w i t h i n t h i s c a t e g o r y l i m i t in-

creased waste r e d u c t i o n a c t i v i t y . Not a l l these f a c t o r s a r e

s i g n i f i c a n t t o a l l companies. However, between them they c o v e r

t h e broad range of c o s t f a c t o r s t h a t m i t i g a t e a g a i n s t g r e a t e r

adop t ion of waste r e d u c t i o n systems. These f a c t o r s i n c l u d e :

h igh c a p i t a l c o s t s ; s h o r t a g e o f a v a i l a b l e c a p i t a l : i n s u f f i c i e n t

payback p o t e n t i a l ; i n c r e a s e d maintenance, o p e r a t i n y and l a b o u r

costs; and i n s u f f i c i e n t was te q u a n t i t i e s .

Many companies a r e aware of t e c h n o l o g i e s which would r e s u l t i n

an o v e r a l l r e d u c t i o n of t h e i r was te s t reams. For a nuiiiber of

r easons , however, it may n o t be e c o n o m i c a l l y j u s t i f i a b l e t o adopt

the technology. I n i t s s i m p l e s t form, economic j u s t i f i c a t i o n t o

adopt a t e c h n o l o g y is a q u e s t i o n of payback on inves tment . Aspec ts

of payback r e l e v a n t t o t h i s s t u d y a r e addres sed throughout t h i s

c h a p t e r .

High C a p i t a l C o s t s - The h igh c a p i t a l c o s t s commonly a s s o c i a t e d w i t h a was te

r e d u c t i o n program a r e a major h u r d l e t o many companies w h i c h

might o the rwise unde r t ake such a program. S m a l l e r companies i n

p a r t i c u l a r may n o t h a v e t h e c a p i t a l r e q u i r e d t o implement pos-

s i b l e programs. bloreover, t he r e q u i s i t e c a 2 i t a l may e i t h e r be

u n a v a i l a b l e from l e n d i n g i n s t i t u t i o n s or may r e s u l t i n cash f low

d i f f i c u l t i e s f o r t h e company through the s e r v i c i n g of the debt..

These c o n c r e t e d i f f i c u l t i e s p e r t a i n t o a l e s s e r e x t e n t i n

l a r g e r companies, which t end t o h a v e b e t t e r a c c e s s t o c a p i t a l

markets and a better a b i l i t y t o s e r v i c e d e b t s i ncu r red . I n many

12

l a r g e r companies however, the need t o j u s t i f y c a p i t a l inves tment

i n t e r m s o f irnmediate payback is f u r t h e r compl i ca t ed by an in-

h e r e n t u n w i l l i n g n e s s t o i n v e s t what a r e p e r c e i v e d t o be l a r g e

amounts of c a p i t a l i n reducing c o s t s t h a t may t r a d i t i o n a l l y have

been absorbed a s maintenance o r o p e r a t i n g costs.

Throughout i n d u s t r y , c a p i t a l i nves tmen t is s u b j e c t t o competing

demands. Again, t h i s i s a r e l a t i v e l y more serious problem i n

s m a l l e r conipanies because of t h e c o m p a r a t i v e l y g r e a t e r s c a r c i t y

of a v a i l a b l e c a p i t a l . T h e r e a r e examples i n many corLip,onies where

i n n o v a t i v e approaches t o f i n a n c i n g w a s t e r e d u c t i o n (eg. through

government s u p p o r t t o l e a d i n g edge t e c h n o l o g i e s ) have c r e a t e d

the means t o j u s t i f y major c a p i t a l e x p e n d i t u r e s i n terms of

medium o r long te rm g o a l s . T y p i c a l l y , t h e companies where t h i s

h a s occurred have been l a r g e and concerned a s much w i t h l ong term

s t r a t e g y a s s h o r t term p r o f i t . The pr imary chemica l s i n d u s t r y ,

i n p a r t i c u l a r , p r o v i d e s examples of such inves tment . T h i s i n

part i s due t o t h e ongoin9 and c o n t i n u i n g t e c h n i c a l i n n o v a t i o n

which h a s proved necessa ry t o succeed i n t h i s i n d u s t r y .

I n s u f f i c i e n t Payback P o t e n t i a l

P o t e n t i a l payback on c a p i t a l i n v e s t m e n t s i n was te r e d u c t i o n

t e c h n o l o g i e s may come from t w o sources: a v e r t e d d i s p o s a l costs

and reduced f eeds tock costs as a r e s u l t o f more e f f i c i e n t u t i l i -

z a t i o n of feeds tock .

I n c r e a s i n g l y i n i n d u s t r y , managers a r e p e r c e i v i n g t h e u n i t c o s t

o f l i q u i d was te d i s p o s a l t o be a 'major ' expense. However, t h e

t o t a l c o s t o f l i q u i d w a s t e d i s p o s a l may a t t h e same time be q u i t e

1 3

minor bo th i n a b s o l u t e t e rm and r e l a t i v e t o o t h e r p l a n t c o s t s .

L i k e w i s e , t h e rep lacement v a l u e of f eeds tock l e a v i n g the p l a n t a s

w a s t e may be a l s o minor i n a b s o l u t e terms. The f i n a n c i a l s a v i n g s

t o be ga ined , t h e r e f o r e , are n o t n e c e s s a r i l y y r e a t even though

t h e pe rcen tage r e d u c t i o n i n was te g e n e r a t i o n may be c o n s i d e r a b l e .

A s a g e n e r a l r u l e , payback p e r i o d s f o r i nves tmen t i n new

c a p i t a l e q u i p m e n t i n i n i l u s t r y a r e i n t h e o r d e r o f f o u r t o f i v e

yea r s . I n p e r i o d s of f i n a n c i a l r e s t r a i n t , two t o t h r e e year

paybacks may be expected. While was te r e d u c t i o n o p p o r t u n i t i e s

e x i s t which a l l o w f o r paybacks w i t h i n this g e n e r a l t ime frame,

f r e q u e n t l y t h e q u a n t i t i e s of waste i n v o l v e d are i n s u f f i c i e n t to

j u s t i f y i n c r e a s e d was te r e d u c t i o n t e c h n o l q y adop t ion on economic

grounds a l o n e . T h i s i s p a r t i c u l a r l y t h e case i n view of com-

p e t i n g demands for a v a i l a b l e c a p i t a l and t h e f a c t t h a t many s m a l l

or medium s i z e d companies do n o t know what t h e i r w a s t e d i s p o s a l

c o s t s a r e .

S e t t i n g p r i o r i t i e s f o r c a p i t a l i n v e s t m e n t s w i l l be done on the

b a s i s of r a t e of r e t u r n on inves tmen t , other f a c t o r s be ing equa l .

I n a company where w a s t e management i n v e s t m e n t s may y i e l d a

payback i n t he o r d e r of f o u r y e a r s , f o r example, a competing

inves tmen t w i t h a t w o y e a r payback i s more l i k e l y t o be imple-

mented. The l o w p r i o r i z a t i o n a t t a c h e d t o w a s t e management i n

many companies as a r e s u l t of r e l a t i v e l y , a b s o l u t e l y o r p e r c e i v e d

u n a t t r a c t i v e paybacks i s compounded by many o t h e r f a c t o r s . The

t y p i c a l r e l e g a t i o n of was te management d e c i s i o n making t o middle

or j u n i o r management l e v e l s re f lec ts t h e low p r i o r i t y a s s igned to

was te management i n v e s t m e n t s ,

14

I n c r e a s e d blaintenance, Opera t ing - and Labour C o s t s

The maintenance and o p e r a t i o n of waste r e d u c t i o n t echno logy may

r e q u i r e s p e c i a l i z e d p e r s o n n e l beyond the l e v e l of e x p e r t i s e t h a t

a company w o u l d n o r m a l l y h i r e .

t h e costs o f r e t r a i n i n g o r h i r i n g more p e r s o n n e l i n a d d i t i o n t o

f i n a n c i n g t h e cost of t e c h n o l o g y purchase may p r o v e e x c e s s i v e l y

onerous u n l e s s s a v i n g s through r ecove ry a r e v e r y high.

E s p e c i a l l y f o r s m a l l e r companies,

A second maintenance f a c t o r concerns d i s r u p t i o n t o p roduc t ion

du r ing both t h e phase- in t i m e inunediately a f t e r adop t ion of a

t echno logy and equipment down-time. Appropr ia te w a s t e r e d u c t i o n

t echno logy is h i g h l y s i t e s p e c i f i c i n terms of t h e make-up of t h e

was te s it m u s t t reat . Both phase- in and down-time may impact on

p roduc t ion l e v e l s . T h e economic costs a s s o c i a t e d w i t h t i i ese

f a c t o r s w i l l va ry from t h e n e g l i g i b l e t o pe rhaps t h e s u b s t a n t i a l .

Other aspects of s i t e s p e c i f i c i t y are d i s c u s s e d under t ech -

n o l o g i c a l b a r r i e r s .

The costs and other problems a s s o c i a t e d w i t h r o u t i n e and other

maintenance work were s o u r c e s of f r u s t r a t i o n and impor tan t bar-

r i e r s c i ted by proponents of s p e c i a l was te r e d u c t i o n i n o t h e r

j u r i s d i c t i o n s . The pr imary m o t i v a t i o n f o r adop t iny in-house

was te r e c o v e r y t e c h n o l o g y was t o e n s u r e compliance w i t h l o c a l

bylaws. I n a f e w i n s t a n c e s s h o r t l y a f t e r commiissioniny a t ech -

nology, m a l f u n c t i o n s h a v e been found t o cause d i s r u p t i o n s t o t h e

p roduc t ion l i n e . The s t u d y team a l so encountered concern t h a t

a v a i l a b l e t e c h n o l o g y was n o t un i fo rmly r e l i a b l e and t h a t t h i s

could p o t e n t i a l l y r e s u l t i n s i g n i f i c a n t economic costs f o r i ndus t ry .

During fo l low-up Reference Group c o n t a c t s t he p e r c e i v e d need t o

15

provide back up equipment i n t he e v e n t of f a i l u r e ( i n chemical

r e c o v e r y equipment f o r example) was a l s o noted as a s e r i o u s

o b s t a c l e t o the i n t r o d u c t i o n o f new and i n n o v a t i v e was te r e c o v e r y

technology.

I n s u f f i c i e n t Iiaste Q u a n t i t i e s

Many medium or s m a l l s i z e d companies may g e n e r a t e wastes i n

q u a n t i t i e s of o n l y a few drums p e r year . I n t h e s e c a s e s ,

economic j u s t i f i c a t i o n f o r was te r e d u c t i o n a r e g e n e r a l l y l i m i t e d

t o low or no cost housekeeping measures. However, even was te

g e n e r a t i o n i n t h e o r d e r o f h u n d r e d s o f t h o u s a n d s o f l i t r e s nay be

i n s u f f i c i e n t t o j u s t i f y t h e a d o p t i o n of was te r e d u c t i o n t ech -

n o l o g i e s i n economic terms. The economic c o n s i d e r a t i o n s of

reducing , r e u s i n g or r e c y c l i n g s m a l l volumes of waste a r e c l o s e l y

t i e d t o the c a p i t a l and other cost of t echno logy iihiplementation.

G e n e r a l l y , t h e s e costs a r e r e l a t i v e l y i n f l e x i b l e , a t l e a s t a t t h e

lower end of t h e t e c h n o l o g y p r i c e range. Economic j u s t i f i c a t i o n

of t h e inves tmen t rests on t h e d i s p o s a l cost and f eeds tock re -

placement v a l u e of t h e volume of was te t h a t can be f ed through

t h e r e c o v e r y system, s i n c e it i s t h i s volume t h a t de t e rmines t h e

rate o f r e t u r n on inves tmen t .

A c a s e example w i l l h e l p demons t r a t e t h e complex i n t e r a c t i o n

among t h e v a r i o u s economic f a c t o r s i n f l u e n c i n g t h e decision t o

implement a w a s t e r e d u c t i o n system (i.e. c a p i t a l c o s t , payback

p o t e n t i a l , o p e r a t i n g costs and was te q u a n t i t i e s ) The case

example is an a c t u a l c a s e c i ted by a company d u r i n g barrier

r e s e a r c h c o n s u l t a t i o n .

The company g e n e r a t e s a process w a s t e which p o t e n t i a l l y c o u l d

be r e c y c l e d . However, t he n a t u r e of the p r o c e s s i s s u c h t h a t t h e

waste becomes contaminated o v e r time as a r e s u l t of t h e p rocess

i t s e 1 f. T h i s Contamination p r e v e n t s r ecyc 1 i n g a c t i v i t y .

The p l a n t manager is aware of a t echno logy t h a t c o u l d remove

t h e contaminant and t h e r e f o r e r ende r t h e waste r e c y c l a b l e in-

p l a n t . The cost of t h e t echno logy is i n t h e order of $500,000.

Although t h e company has been s e v e r e l y a f f e c t e d du r ing t h e recent

downturn i n t h e economy, company management s t a t e t h e c a p i t a l

needed t o purchase t h e t e c h n o l o g y c o u l d be made a v a i l a b l e i f t h e

economic r e t u r n on inves tmen t was s u f f i c i e n t l y a t t r a c t i v e .

The waste is gene ra t ed a t an annua l rate of between G50,OOO and

900,000 l i t r e s p e r y e a r , depending on how busy t h e p l a n t i s

du r ing any g i v e n yea r . A h a u l e r u i s p o s e s of the waste acco rd ing

t o M i n i s t r y of t h e Environment Wayb i l l r e g u l a t i o n s . The d i s p o s a l

c o s t , i n c l u d i n g t r a n s p o r t a t i o n , i s approx ima t l ey 11 c e n t s p e r

l i t re . Implementa t ion of t h e t echno logy t o remove t h e con-

taminant from t h e waste would r e s u l t i n e l i m i n a t i o n of t h e

d i s p o s a l cost. S a v i n g s on f e e d s t o c k purchase are n o t cons ide red

s i g n i f i c a n t , s i n c e t h e was te m a t e r i a l i n i t s v i r y i n form i s i n

a m p l e s u p p l y i n Canada a t l o w c o s t .

T h e r a t e of payback on i n v e s t i n g i n this t echno logy may be

viewed i n a number of ways. A t c u r r e n t costs, a simple payback

( e x c l u d i n g d i s c o u n t i n g ) of between 5 and 7 y e a r s c o u l d be ex-

pec t ed depending on the l e v e l of a c t i v i t y i n t h e p l a n t . However,

t e n y e a r s a g o t h e cost of d i s p o s i n g o f t h e same m a t e r i a l was 2

c e n t s per l i t r e . Given t h e c u r r e n t s ta te of i n c r e a s i n g knowledge

and concern of i n d u s t r i a l w a s t e d i s p o s a l and inanayement, t h e

1 7

t r e n d t o h i y h e r d i s p o s a l cost i n c r e a s e s niight be exiJected t o

c o n t i n u e i n the f u t u r e . Payback on t h e i n v e s t m e n t niay, therefore ,

be s i y n i f i c a n t l y fas ter t h a n c u r r e n t c o s t s would i n d i c a t e .

A f u r t h e r f a c t o r i n t h i s e x a m p l e i s t h e r a t e o f i n c r e a s e i n t h e

cost of t h e t e c h n o i o g y i n q u e s t i o n . I n the mid 1970 ' s w l i c n the

p l a n t manayer f i r s t became aware of the technolocjy, it w a s

a v a i l a b l e f o r approx ima te ly $250,000. I n t h e absence of e v i d e n c e

t o the c o n t r a r y , p l a n t management e x p e c t s t h a t t h e t echno loyy

w i l l p r o b a b l y be more e x p e n s i v e i n t he f u t u r e .

An argument i n f a v o u r of i n v e s t i n g i n the t echno loyy today

c o u l d , i n theory , be advanced on the grounds t h a t t h e c a p i t a l

r e q u i r e d now is s u b s t a n t i a l l y l e s s t h a n w i l l be r e q u i r e d i n t h e

f u t u r e and t h a t both r i s i n g d i sposa l costs and a n i n p r o v i n g

economic s i t u a t i o n w i l l s u b s t a n t i a l l y reduce the payback t i m e

from what i s p r o j e c t e d i n t o d a y ' s costs. I n l i g h t of other

inves tmen t p r ior i t ies w i t h more d e f i n i t e r a t e s of r e t u r n ,

however, i n v e s t i n g i n this t e c h n o l o g y has r e c e i v e d l i t t l e a t -

t e n t i o n . The p l a n t manager s u g g e s t s t h a t a known payback p e r i o d

of t w o o r three y e a r s w o u l d p r o b a b l y be r e q u i r e d t o r e s u l t i n the

inves tmen t be ing made. A t the same time, he acknowledges t h a t

t h e c u r r e n t econoinic s i t u a t i o n makes the i n v e s t m e n t 'desirable ' .

T h i s approach t o the j u s t i f i c a t i o n of waste r e d u c t i o n t echno loyy

c o n t r a s t s sharply w i t h t he i n v e s t m e n t s made as a r e s u l t of

r e g u l a t o r y p r e s s u r e . I t is however, a n approach t o the j u s t i -

f i c a t i o n of i n v e s t m e n t s t h a t w a s d i s c u s s e d i n d e t a i l w i t h s e v e r a l

Reference G r o u p p a r t i c i p a n t s and w h i c h is c l e a r l y fundamental t o

d e c i s i o n making, p a r t i c u l a r l y i n many medium s i z e d and snial l e r

conlpanies .

( ii ) GOVERNMENT INCENTIVES - TO ENCOURAGE I'JASTE ABATEMENT

There are a wide v a r i e t y of government and government agency

i n c e n t i v e proyrams a v a i l a b l e t o i n d u s t r y t h a t c o u l d p o t e n t i a l l y

be used for pu rposes of w a s t e r e d u c t i o n . 1 4 0 S t of t h e s e are

a d m i n i s t e r e d a t the f e d e r a l l e v e l . Examples i n c l u d e : t h e

Development and Demonstrat ion of Resource And Energy C o n s e r v a t i o n

T e c h n o l q y (DRECT), a d m i n i s t e r e d th rough Environment Canada: t h e

I n d u s t r i a l Research A s s i s t a n c e Program ( I M P ) a d m i n i s t e r e d

th rough t h e N a t i o n a l Research Counci l : and the Department of

Regional I n d u s t r i a l Expansion 's I R D P ( I n d u s t r i a l and Regional

Development Program). The re are a l so less w e l l known p r o v i n c i a l

programs, such as the Sinal. 1 Bus iness I n d u s t r y Technology Program

(SBITP), which c a n be and h a v e been used by i n d u s t r y t o h e l p

r educe w a s t e g e n e r a t i o n th rough w a s t e r e d u c t i o n , r e u s e and/or

r e c y c l i n g .

Lack of T a r g e t e d Programs -- E x c e p t for DRECT, the above programs are n o t s p e c i f i c a l l y for

the c o n s e r v a t i o n of r e s o u r c e s or w a s t e r educ t ion . T h e i r poten-

t i a l i n the waste management f i e l d i s g e n e r d l l y l l m i t e d by v i r t u e

o f t h e i r r e q u i r i n g the i n t r o d u c t i o n of t echno logy new t o Canada,

t h e expans ion of manufac tur ing c a p a c i t y or t h e enhancement of

r e s e a r c h and development i n t h e b u s i n e s s c o m u n i t y . Thus, w h i l e

there may be scope t o e x p l o i t t h e s e programs f o r waste r e d u c t i o n

purposes , such e x p l o i t a t i o n i s l i k e l y t o be i n c i d e n t a l t o t h e

more c e n t r a l g o a l s of expanding p r o d u c t i v i t y and encouraging

r e s e a r c h and development i n i t i a t i v e s .

tlore d i r e c t f i n a n c i a l a s s i s t a n c e i s a v a i l a b l e t o i n d u s t r y t o

19

a i d i n f i n a n c i n g w a s t e r e d u c t i o n i n c e n t i v e s . Examples i n c l u d e

t h e a c t i v i t i e s of t h e F e d e r a l Bus iness Development Bank, S m a l l

B u s i n e s s Loans and A c c e l e r a t e d C a p i t a l Cos t T a x Allowances.

iuhile t h e s e avenues may be a p p l i c a b l e , i n most c a s e s was te rc-

d u c t i o n measures a r e once a g a i n no t h i g h l i g h t e d by the programs.

Low Program Awareness - There g e n e r a l l y appea r s t o be ve ry l o w awareness i n i n d u s t r y of

t h e f i n a n c i a l a s s i s t a n c e a v a i l a b l e t o a i d i n was te r e d u c t i o n

i n i t i a t i v e s . Even t h o s e programs which a r e s p e c i f i c a l l y t a i l o r e d

t o t h e c o n s e r v a t i o n of resources or energy ( s u c h as t h e DRECT

program ) a r e n o t w e l l known i n the i n d u s t r i a l community. Other

programs t h a t may be a p p l i c a b l e , depending on t h e c i rcuuis tances

o f t h e a p p l i c a t i o n , have l i t t l e p r o f i l e . Except ions occur when a

company h a s e x p l o i t e d a program and becomes known w i t h i n an

i n d u s t r y group f o r hav ing done so. As an example, t h e URECT

program i s known by many O n t a r i o e l e c t r o p l a t e r s because of an

i n n o v a t i v e approach t o was te t r e a t m e n t t aken by a p a r t i c u l a r

p l a t e r i n t h e p r o v i n c e p a r t i a l l y funded through t h e DRECT

program.

S t r u c t u r e of Programs - There are i m p r t a n t d i f f e r e n c e s i n the n a t u r e of what con-

s t i t u t e s a f i n a n c i a l " i n c e n t i v e " , acco rd ing t o i n d u s t r y s i ze .

Larger companies, which g e n e r a l l y have bet ter a c c e s s t o c a p i t a l

m a r k e t s t h a n smaller companies, f o r t he m o s t p a r t p r e f e r t a x

i n c e n t i v e s t o g r a n t s o r loans . T h i s r e l a t e s t o t h e p o i n t made

e a r l i e r r e g a r d i n g t h e need t o demonst ra te t h e l i k e l i h o o d of an

20

adequate r e t u r n on inves tmen t b e f o r e a p o s i t i v e inves tment

d e c i s i o n is t aken . I t is not , a t t h i s l e v e l , a q u e s t i o n of

a v a i l a b l e c a p i t a l : it i s more d i r e c t l y a q u e s t i o n of a c h i e v i n g a

payback on t h e inves tment . T a x b reaks are a t t r a c t i v e f o r t h i s

reason. Fo r example, among l a r g e r companies who have adopted

was te r e d u c t i o n measures, t h e A c c e l e r a t e d C a p i t a l Cos t A 1 lowance

p r o v i s i o n i s reyarded a s an e f f e c t i v e i n c e n t i v e .

Aniony smaller companies, however, such t a x a1 lowances a r e o f t e n

n o t a t t r a c t i v e as inducements t o adopt waste r e d u c t i o n measures.

Because the i n i t i a l c a p i t a l is o f t e n no t a v a i l a b l e t o t h e s e

companies t o unde r t ake was te r e d u c t i o n a c t i v i t y , a t t r a c t i v e

f i n a n c i n g o p t i o n s m u s t i n c l u d e t h e p r o v i s i o n of up- f ront c a p i t a l

r e p a y a b l e a t a r a t e t h a t does n o t s t r a i n cash-flow. I n

p r inc ip le , g r a n t s a r e f avoured o v e r l o a n s f o r this reason , a s

w e l l a s for t h e p r e f e r e n c e i n some c a s e s f o r " f r e e money".

Aversion t o Government A s s i s t a n c e - There a l s o appea r s t o e x i s t a n a v e r s i o n w i t h i n many medium

s i z e d and sinal l e r conipanies to a c c e p t i n g "government money" a t

a l l . T h i s r e l a t e s t o a p e r c e p t i o n t h a t accep tance of a s s i s t a n c e

through government f i n a n c i n g programs i s tantamount t o a c c e p t i n g

c h a r i t y from t h e government. Given t h e d e e p l y f e l t s ense of

independence among s m a l l b u s i n e s s managers i n p a r t i c u l a r , t h e r e

i s an a t t i t u d i n a l b a r r i e r t o be overcome a t t h i s l e v e l b e f o r e

t h e r e can be more widespread adop t ion of e x i s t i n g f i n a n c i n g

o p t i o n s , ( e v e n assuming t h e r e is a g r e a t e r awareness of what

o p t i o n s a r e a v a i l a b l e ) .

21

P e r c e p t i o n of "Red Tape" --- T h e a v e r s i o n t o assistance problem is exace rba ted by a per-

c e p t i o n w i t h i n i n d u s t r y t h a t government programs are i n f l e x i b l e

and s u b j e c t t o p r o c e d u r a l d e l a y s . T h i s p e r c e p t i o n is p r e s e n t i n

many l a r g e r companies as w e l l as s m a l l e r ones. I n p a r t i c u l a r ,

t h e sho r t - t e rm n a t u r e of much s m a l l b u s i n e s s p l a n n i n g i s such

t h a t t h e time-frame r e q u i r e d by government a g e n c i e s a d m i n i s t e r i n g

t h e programs i s n o t a c c e p t a b l e t o t h e s m a l l b u s i n e s s dec is ion

maker. A common view from s m a l l companies i s t h a t t h e y have

n e i t h e r t i m e to keep informed of t h e d i f f e r e n t programs they may

q u a l i f y f o r , nor t h e time t o d e v o t e t o t h e program a p p l i c a t i o n

p rocess .

Program Design

A f i n a l p o i n t w i t h r e g a r d t o i n c e n t i v e programs concerns t h e

a b i l i t y of demons t r a t ion programs to lead t o widespread adoption

o f i n n o v a t i v e w a s t e r e d u c t i o n technology. The DRECT program, i n

p a r t i c u l a r , w a s c r i t i c i z e d d u r i n g t h e Reference Group con-

s u l t a t i o n because a p r o j e c t can be funded t h a t w i l l be of d i r e c t

b e n e f i t t o t h e r e c i p i e n t of t h e fundiny , b u t of no f u t u r e impact

on i n d u s t r y a s a whole. T h i s s i t u a t i o n a r i s e s because t h e

f u n d i n g i t s e l f i s t h e d e t e r m i n i n g f a c t o r as t o w h e t h e r o r n o t t h e

implementa t ion of t h e t e c h n o l o g y i s j u s t i f i a b l e from a n

i n d u s t r y ' s p o i n t of view. Thus, i n s p i t e of hav ing been

"demonstrated", f u r t h e r a d o p t i o n of t h e t echno logy may be s e v e r e l y

l i m i t e d because it is n o t e c o n o m i c a l l y j u s t i f i a b l e under normal

market c o n d i t i o n s .

2 2

( iii) WASTE REDUCTION INVESTCIENT DECISIONS

Kaste r e d u c t i o n inves tment d e c i s i o n s are s u b j e c t bo th t o normal

payback assessment and, f r e q u e n t l y , t o more s u b t l e d e c i s i o n

making p rocesses . Research and c o n s u l t a t i o n s i n d i c a t e t h a t waste

r e d u c t i o n i n v e s t m e n t s a r e viewed d i f f e r e n t l y from, and a r e of

lower p r i o r i t y t o inves t inen t s i n d i rec t p r o d u c t i o n o r i e n t e d

equipment.

Company Focus on P roduc t ion Inves tments -- A tendency i n medium and s m a l l e r s i z e d companies t o i n t e r n a l i z e

w a s t e manayement c o s t s r e f l e c t s a p roduc t ion expense focus a c r o s s

i n d u s t r y . G e n e r a l l y , was te management c o s t s are a t t r i b u t e d t o

o p e r a t i o n a l and maintenance management a reas . T y p i c a l l y , these

areas are n o t s u b j e c t t o t h e same s t a t e g i c d e g r e e of on-going

r e v i e w as, for example, o v e r a l l p roduc t ion costs. Thus,changes

inwastenianagementsystemsmayoccuronlyas a f u n c t i o n o f some

g r e a t e r and more s e n i o r l e v e l i n p u t .

t i r e l y a p p r o p r i a t e i n t h e c u r r e n t b u s i n e s s environment g i v e n t h a t

t o t a l waste management c o s t s m y be minor r e l a t i v e t o o t h e r p l a n t

costs. From an env i ronmen ta l p e r s p e c t i v e , t h e e l i m i n a t i o n of a

waste stream may be h i y h l y d e s i r e a b l e . From a f i n a n c i a l per-

spective however, t he d e s i r e a b i l t i y may be ve ry l o w u n l e s s more

s t r i n g e n t r e g u l a t o r y compliance is requ i r ed .

T h i s m a y b e s e e n a s e n -

Barriers to R e t r o f i t t i n g Older P l a n t s - T h e d i s t i n c t i o n between the costs a s s o c i a t e d w i t h i n c l u s i o n of

w a s t e r e d u c t i o n t echno logy i n t h e d e s i g n of new p l a n t s and the

costs a s s o c i a t e d w i t h r e t r o f i t t i n g an e s t a b l i s h e d p l a n t w i t h t h e

2 3

saiiie t e c h n o l o g y i s a n o t h e r i i n p r t a n t c o n s i d e r a t i o n i n f l u e n c i n g

waste r e d u c t i o n t echno logy investri ients. I J i th in t h e pr imary

metals and metal f i n i s h i n g sectors f o r e x a m p l e , a r e l a t i v e l y h i g h

p e r c e n t a g e of p l a n t s c a n be c a t e g o r i z e d as " o l d e r p l a n t s " . The

r e t r o f i t t i n g of these p l a n t s may be s i g n i f i c a n t l y more c o s t l y

t h a n t h e base purchase price of a g i v e n technology. O t h e r

factors t h a t must be overcome i n r c t r o f i t t i n y a p l a n t i n c l u d e t h e

cost of a phase- in debugqing period and p roduc t ion downtime as a

r e s u l t of re t rof i t a c t i v i t y . These a re d i s c u s s e d f u r t h e r l a t e r

i n t h i s chap te r .

( i v ) COSTS 01.' I N F O K l ~ l n T I @ N -_ In fo rma t ion need i d e n t i f i c a t i o n , r e s e a r c h and r e t r i e v a l can bc

c o s t l y i n three ways: time, money and r i s k .

S m a l l b u s i n e s s i n t e r e s t s i n p a r t i c u l a r f a c e a s i g n i f i c a n t bar-

r ier i n s e t t i n g a s i d e s u f f i c i e n t t i m e t o r e s e a r c h in fo rma t ion o n

w a s t e r e d u c t i o n t e c h n o l o g i e s and systems. T i m e a 1 l o c a t e d t o such

r e s e a r c h p o t e n t i a l l y b e a r s a s i g n i f i c a n t o p p o r t u n i t y cost.

The p r o c e s s of in fo rma t ion research can i n i t s e l f a l so be

c o s t l y . P r o f e s s i o n a l s such as c o n s u l t a n t s and e n g i n e e r s do pro-

v i d e companies w i t h a l 1 forms of w a s t e r e d u c t i o n infor ina t ion

r ang ing from d e t a i l e d w a s t e a u d i t e v a l u a t i o n s tiirough t o c a n p l e t e

w a s t e r e d u c t i o n system and t e c h n o l o g y assessments . Such

p r o f e s s i o n a l a d v i c e can c e r t a i n l y p r o v e t o be cost e f f e c t i v e , b u t

it can none t h e less r e q u i r e S i g n i f i c a n t expense and r i s k .

The r i s k s of in fo rma t ion e x p e n d i t u r e s w i l l v a ry acco rd ing t o

the complex i ty of t h e in fo rma t ion r e q u i r e d and t h e d e p t h of

i n f o r m a t i o n needed t o be pursued. 'J'he company s e e k i n g t h e i n f o r -

24

mation must r e c o s n i z e t h a t t h e search may p r o v e f r u i t l e s s (e.y.

t h e recommended system i s deemed too e x p e n s i v e ) o r t ha t con-

s i d e r a b l e r i s k a s ses smen t w i l l s t i l l be r e q u i r e d by the conipany

i n coming t o a f i n a l d e c i s i o n , hecause f u l l i n fo rma t ion i s s i ~ p l y

n o t a v a i l a b l e .

111 a d d i t i o n t o t h e economic obstacles, t h e r e are a v a r i e t y of

a d d i t i o n a l factors t h a t impede G r o w t h of w a s t e r e d u c t i o n

a c t i v i t i e s . These factors p r e c l u d e adop t ion of was te r e d u c t i o n ,

r euse , r e c y c l i n g and exchange a c t i v i t y e v e n i f such a c t i v i t y i s

i n f ac t c u r r e n t l y e c o n o m i c a l l y j u s t i f i a b l e .

I t i s a x i o m a t i c t h a t u n l e s s one lrnows what is p o s s i b l e one

canno t p u r s u e t ha t which i s possible. I n t h e i n d u s t r i a l wastc

management f i e l d , knowledge of waste r e d u c t i o n o p t i o n s i s o f t e n

l a c k i n g i n fundamental areas, p a r t i c u l a r l y w i t h i n rnedium or

sma l l e r s i z e d companies. Even i n l a r g e r comLanies, inforiliatioii

may be l a c k i n g t h a t i s bas i c t o p l a n n i n g a l o n g teri.1 was te

managenient proyrarn.

In fo rma t ion needs are of t w o pr imary types . R e l e v a n t

i n t e r n a l l y - d e r i v e d i n f o r n a t i o n i n c l u d e s :

volumes and character is t ics of waste r jenerated, the p o i n t s i n

p roduc t ion , where waste is gene ra t ed , t he means of waste d i s p o s a l

c u r r e n t l y employed and t h e cost of waste g e n e r a t i o n i n terms of

b o t h d i sposa l cost and v a l u e of f e e d s t o c k wasted. T h i s i n f o r -

mat ion is s t a n d a r d i n conductincj a waste a u d i t of a i : l an t . !.'lost

d e t a i l s concern ing t h e

25

. :.. . .

companies know some of these f a c t o r s : v e r y f e w know them a l l .

I n the s m a l l and medium s i z e d p l a n t range, companies f o r t h e most

p a r t do n o t have a comprehensive unde r s t and ing of their wastes.

Even i n l a r g e r companies much o f t h i s i n fo rma t ion i s e i t h e r

mis s ing or e l se i s d i s t r i b u t e d through d i f f e r e n t depar tments i n

s u c h a w a y a s t o h i n d e r f u l l w a s t e m a n a g e n e n t c o s t i n y a n d

e f f e c t i v e was te management p l ann ing .

E x t e r n a l l y d e r i v e d i n f o r m a t i o n r e q u i r e d f o r was te abatement

program p l a n n i n g i n c l u d e s : was te r e d u c t i o n , r e u s e , and r e c y c l i n g

o p t i o n s : t h e t e c h n o l o g y a v a i l a u l e f o r each: d i s p o s a l op t ions :

r e l e v a n t costs: a n unde r s t and ing of t h e r e g u l a t o r y framework:

c a s e examples: funding o p t i o n s : p o t e n t i a l markets f o r was te

exchange: and economic and env i ronmen ta l b e n e f i t s . T h i s i n f o r -

mat ion can be t i m e consuming t o o b t a i n and may c o n s e q u e n t l y be

beyond the C a p a b i l i t y of snial l e r and medium Sized companies.

The r o l e o f t e c h n o l o g y demons t r a t ion can be i n v a l u a b l e i n t h e

i n d u s t r i a l waste management f i e l d . The role of t h e DRECT

program has been b r i e f l y d i s c u s s e d under t he Economic s e c t i o n o f

t h i s chap te r . The shor tcomings of t h e proyram h i g h l i g h t e d i n

t h a t s e c t i o n m a y b e i n p a r t o f f s e t by t h e v a l u e o f e n c o u r a g i n g

i n n o v a t i v e a c t i o n s t h a t are a v a i l a b l e f o r p u b l i c s c r u t i n y . I n

a d d i t i o n t o h e l p i n 9 b r i d y e the gap between p r o t o t y p e d e s i g n and

o p e r a t i o n a l model, t h i s can h e l p t o coun te r an o b s t a c l e f aced by

many companies i n t e r e s t e d i n implementing was te r e d u c t i o n

systems: the inadequacy o f the e x i s t i n g p u b l i c a l l y a v a i l a b l e

d a t d base on was te r e d u c t i o n i n n o v a t i o n s .

There a r e f o u r major e x t e r n a l sources of i n f o r m a t i o n on waste

r e d u c t i o n a v a i l a b l e t o most companies. I n some c a s e s , t r a d e and

2G

i n d u s t r y a s s o c i a t i o n s a r e a b l e t o p r o v i d e e i t h e r v e r y g e n e r a l

i n fo r ina t ion or a d v i c e r e g a r d i n g f u r t h e r a d d i t i o n a l i n fo rma t ion

sources. I n o t h e r c a s e s , t h e i n f o r m a l network t h a t e x i s t s

be tween companies i n v o l v e d i n s i m i l a r b u s i n e s s e s can p r o v i d e

u s e f u l in format ion . Salesmen or s u p p l i e r s can a l so supp ly de-

t a i l e d in fo rma t ion , b u t o b v i o u s l y from a pre-determined view-

p o i n t . F i n a l l y , p r o f e s s i o n a l c o n s u l t a n t s can make a v a i l a b l e

c o n s i d e r a b l e infor ina t ion and recommend c o u r s e s of a c t i o n .

Each of these s o u r c e s has shortcomings. Trade and i n d u s t r y

a s s o c i a t i o n may h a v e a t e c h n i c a l i n fo rma t ion component t o them,

b u t t h i s t r a d i t i o n a l l y has been gea red towards p r o d u c t deve lop -

ment r a t h e r t h a n waste r e d u c t i o n t echno logy o p t i o n s . During

Reference Group contacts, o n l y one of t h e associations s p e c i -

f i c a l l y s t a t e d t h a t t h e i r o r g a n i z a t i o n w a s c a p a b l e of an indep th

r e s p o n s e t o a n i n q u i r y f rom a member company a s t o w a s t e c o n t r o l

op t ions . No t r a d e a s s o c i a t i o n c o n t a c t e d produced a t r a d e j o u r n a l

w i t h c o n s i s t e n t was te r educ t io i i c o n t e n t . The f e d e r a l Techn ica l

In fo rma t ion S e r v i c e o p e r a t e d by t h e N a t i o n a l Research Counci l i s

no t , a p p a r e n t l y , w i d e l y known.

I n many i n d u s t r i e s , t h e i n d u s t r y network e x t e r i o r t o an

a s s o c i a t i o n c o n t e x t i s a n a r e a of c o n s i d e r a b l e in fo rma t ion ex-

change. U n f o r t u n a t e l y , waste management in fo rma t ion exchanged a t

t h i s l e v e l is g e n e r a l l y n o t of h i g h q u a l i t y . Because c r e d i b l e

in fo rma t ion from s o u r c e s e x t e r i o r to t h e network are not f o r t h -

coming on more t h a n an e s s e n t i a l l y s t o c h a s t i c basis, i n fo rma t ion

exchange a t this l e v e l t e n d s t o r e i n f o r c e e x i s t i n y opin ion .

There e x i s t s , t h e r e f o r e , an e l emen t of t h i n k i n g which d i c t a t e s

t h a t a l t e r n a t i v e v i a b l e waste management s t r a t e g i e s or t ech -

n o l o g i e s d o n ' t e x i s t because cveryone s a y s they don ' t . 'l'his i s

p a r t i c u l a r l y s i g n i f i c a n t i n s m a l l e r conipanies where p e r s o n n e l

canno t a f f o r d t h e t ime t o keep abreast of r e l e v a n t i n i t i a t i v e s

e x c e p t th rough an i n f o r m a l i n d u s t r y network. I t is a l so in-

d i c a t e d froin t h e r e s e a r c h work t h a t i n fo rma t ion of v i a b l e i n i t i a -

t i v e s i s o c c a s i o n a l l y suppressed by t h o s e i n p o s s e s s i o n of t h e

knowledye s i n c e s i g n i f i c a n t was te r e d u c t i o n i n i t i a t i v e s o f t e n

c o n s t i t u t e a c o m p e t i t i v e advantage. The i n f o r m a t i o n t h e n assumes

p r o p r i e t a r y s t a t u s . While the above in fo rma t ion sources a r e impor t an t f o r medium

and smaller s i z e d companies, e v e n when u s e f u l i n f o r m a t i o n can be

o b t a i n e d from these s o u r c e s i t s u t i l i t y i s o f t e n compromised by

be ing t o o gene r i c . T h i s is a f u n c t i o n of bo th t h e p l a n t - s p e c i f i c

n a t u r e of waste r e d u c t i o n implementa t ion and a g a i n , t he tendency

for v e r y d e t a i l e d i n f o r m a t i o n t o be regarded as p r o p r i e t a r y

i n f o r m a t i o n by those w h o p o s s e s s it.

The shor tcomings of t h e s e t w o i n f o r m a t i o n s o u r c e s can i n p a r t

be addres sed by sa1esi:ien and s u p p l i e r s . I n these c a s e s , however,

t h e r e i s a n o b v i o u s concern t h a t inforn ta t ion from a salesman is

based on t h e sa les lnan ' s desire t o a c t u a l l y s e l l a product . While

t h i s c o n f l i c t of i n t e r e s t can be m i t i g a t e d t o some e x t e n t by

i n f o r m a t i o n d e r i v e d from a s u p p l i e r , there a r e p r a c t i c a l limits

t o t h e dep th o f i n fo rma t ion it is r e a s o n a b l e t o e x p e c t a s u p p l i e r

t o be a b l e t o p r o v i d e . Moreover, w h i l e s u p p l i e r s t o some i n d u s t r y

s e c t o r s may make a v a i l a b l e s u b s t a n t i a l i n fo rma t ion , s u p p l i e r s t o

o t h e r sectors may p r o v i d e none a t a l l .

The u s e of c o n s u l t a n t s t o e n s u r e maximum e f f i c i e n c y of waste

2 8

r e d u c t i o n i n i t i a t i v e s i s a f avoured o p t i o n f o r niany l a r y e companies.

The expense i n v o l v e d i n h i r i n g c o n s u l t a n t s , however, d i s c o u r a g e s

siiial ler conipanies from pursu ing in fo rma t ion from t h i s source.

Smal l e r and medium s i z e d companies y e n e r a l l y r e l y on in fo rma t ion

t h a t i s p r e s e n t e d t o them, u n l e s s t hey are under r e g u l a t o r y or

o t h e r p r e s s u r e t o change e x i s t i n g systems. I n t h i s sense , t h e y

r c a c t t o incoming in fo rma t ion r a t h e r t han s e a r c h o u t the liieans t o

b r i n g abou t change.

In fo rma t ion concern ing t h e p o t e n t i a l f o r waste r e c o v e r y and

exchange appear t o be p a r t i c u l a r l y l ack ing . In laany cases ,

companies g e n e r a t e wastes which c o u l d be exchanged for

r e u s e / r e c y c l e pu rposes w i t h m i n i m a l d i f f i c u l t y on t h e p a r t of

bo th t h e g e n e r a t o r and u s e r . A major h inde rencc i n t h i s r e y a r d

i s t h e l a c k of a p p r e c i a t i o n c o m p a n i e s h a v e t h a t w h a t may be a

waste i n t h e i r sector may be u s e f u l e l sewhere . O f p a r t i c u l a r

s i g n i f i c a n c e i s t h e source s e p a r a t i o n of waste streams, which may

open up in- p l a n t r e u s e / r e c y c l i n g o p p o r t u n i t i e s as w e l l as waste

exchange p o s s i b i l i t i e s .

TECHNCLOGICAL EAKKIERS

Elany of t h e t e c h n o l o g i c a l l y - r e l a t e d obstacles t o i n c r e a s e 6

waste r e d u c t i o n are u l t i m a t e l y r e l a t e d t o o t h e r "barrier-areas".

The costs r e l a t e d t o t echno logy impleinentat ion: i n c e n t i v e s t o

a d o p t t e c l i n o l o s y t h a t i s e i t h e r u n p r o v e n o r w h i c h i s n o t , i n i t s

own r i g h t , econoniical ly j u s t i f i a b l e ; t h e problem r e l a t e d t o

o b t a i n i n y comprehensive inforn ia t ion i n adequa te d e t a i l from an

o b j e c t i v e and c r e d i b l e source: and t h e consequences of t h e s e

23

factors on i n c r e a s e d waste r e d u c t i o n a c t i v i t y h a v e been d i s c u s s e d

e l sewhere .

The major remain ing factors r e l a t i n g t o tec l ino loc j ica l

" b a r r i e r s " are c e n t e r e d on t h e need for more e f f i c i e n t r e s e a r c h

and development suppor t . Such s u p p o r t would encourage greater

waste r e d u c t i o n a c t i v i t y throuyh t h e development of t e c h n o l o g i e s

for t h e r e d u c t i o n , r e u s e or r e c y c l i n y of w a s t e streams t h a t are

c u r r e n t l y i n a c c e s s i b l e . I t would a l s o i n c r e a s e t h e s u i t a b i l i t y of

waste r e d u c t i o n t e c h n o l o g i e s a v a i l a b l e f o r smaller voluine and

l o w e r v a l u e was te streams.

;.!any smal l e r and medium-sized companies h a v e a t best ve ry

i n f r e q u e n t c o n t a c t w i t h laboratories t o o b t a i n an a n a l y s i s of

waste stream characteristics. I n some cases, a supp l i e r can

p r o v i d e good s e r v i c e s a t a c c e p t a b l e cost. T h i s i s p a r t i c u l a r l y

so i n the case of chemical s u p p l i e r s , who o f t e n u s e waste manaye-

ment s e r v i c e s t o market t h e i r s u p p l y bus iness . In other cases, a

m u n i c i p a l i t y may provide l a b o r a t o r y a n a l y s e s of wastes which t h e y

w i s h t o see managed by a company i n solile a l t e r n a t i v e fash ion .

More g e n e r a l l y . , however, the s e r v i c e s of a p r i v a t e l a b o r a t o r y

must be employed. S m a l l e r and medium-sized coinpanies c o n t a c t e d

d u r i n y t h e research and Reference Group c o n s u l t a t i o n s were uni-

f o r m l y r e l u c t a n t t o employ such s e r v i c e s i n p a r t , apparent ly- ,

because of a p e r c e p t i o n of hav ing t o spend money t o l e a r n o n l y

t h a t improved w a s t e management w i l l cost more money. E v i d e n t l y ,

there i s a s t r o n g i n t e r - r e l a t i o n s h i p i n t h i s area w i t h

" in fo rma t ion" obstacles. l J n t i 1 one knows what one i s d e a l i n g

wi th , p l a n n i n g appropriate action i s s e v e r e l y cornpromised.

The need for i n c r e a s e d l a b o r a t o r y access v a r i e s w i d e l y i n

33

i n d u s t r y . G e n e r a l l y speaking , many smaller p l a n t s i n the

clieinical; s e c t o r have access t o such f a c i l i t i e s through t h e

o f f i c e s of t h e i r p a r e n t company. Indeed, t h i s c h a r a c t e r i s t i c of

m u l t i - n a t i o n a l companies e x t e n d s inuch f u r t h e r t h a n t h e chemica l s

sector. On t h e o t h e r hand, independently-owned manufactur ing

p l a n t s may no t even r ecogn ize t h e need t o i d e n t i f y waste strean!

c h a r a c t e r i s t i c s u n t i l r e g u l a t o r y a c t i o n f o r c e s t h i s upon them.

There are examples of r e s e a r c h and development i n i t i a t i v e s

under taken i n bo th t h e academic and p r i v a t e sectors which have

p roved promising a t t h e l a b o r a t o r y demons t r a t ion l e v e l , b u t which

h a v e n o t d e v e l o p e d f u r t h e r because of l a c k o f furids t o coni-

m e r c i a l i z e t h e technology. I n a d d i t i o n , tliere 1s widespread

f e e l i n y d e t e c t e d through t h e project c o n s u l t a t i o n t h a t tlie

f u r t h e r r e f i n i n y of e x i s t i n g t e c h n o l o y i e s c o u l d r e s u l t i n

cheaper , smal le r scale t echno logy inore a p p r o p r i a t e t o iiiipacting

on srnal l e r volu ine / lower v a l u e waste streams. Uhether t n i s would

a l s o l e a d t o t echno logy c a p a b l e of impact ing on h i g h l y v a r i a b l e

waste s t r e a m s (such as from custom p a i n t f o r m u l a t i o n , f o r

exaciple) i s n o t as c l e a r . U h i l e t h e r e a r e s e v e r a l a g e n c i e s who

are enilmwered t o fund t h i s research and deve1opr:ient. n o e x i s t i n g

funding agency i n Canada w a s i d e n t i f i e d that w a s i n a p o s i t i o n t o

c o - o r d i n a t e an i n t e g r a t e d r e s e a r c h and development proqram w i t h

s p e c i f i c c r i t e r i a and o b j e c t i v e s .

F i n a l l y , it i s a p p a r e n t t ha t t h e r e e x i s t s i n t h e waste inanage-

inen t t echno logy f i e l d a p e r c e p t i o n t h a t w a s t e management a t t h e

company l e v e l is v e r y l a r g e l y a q u e s t i o n of cornpliance w i t h

e x i s t i n g r e g u l a t i o n s . Liy e x t e n s i o n , t h i s l e a d s t o a f e e l i n g t h a t

31

i improved w a s t e management i s n o t a q u e s t i o n of b e t t e r technology,

b u t a q u e s t i o n of e n f o r c i n g r e g u l a t i o n s and e n s u r i n g t h a t

a v a i l a b l e t e c h n o l o g y i s adopted. : I h i l e such a t t i t u d e s may con-

t r i b u t e t o be t te r w a s t e management, it w i l l o n l y i n d i r e c t l y l e a d

t o optimum w a s t e management, whicli must i n c l u d e waste r e d u c t i o n ,

r euse , r e c y c l i n g and exchange opt ions.

WGULATORY BAl<I:IEF:S

I t i s c l ea r t h a t f o r a number of r easons , i n c r e a s e d r e g u l a t i o n

r e g a r d i n g w a s t e r e d u c t i o n , r e c y c l i n g , r e u s e and exchange is bo th

p r a c t i c a l l y and p h i l o s o p h i c a 1 l y u n d e s i r e a b l e for most companies.

IIowever, enforcement o f w a s t e d i s p o s a l r e g u l a t i o n s i s a powerfu l

t oo l i n e n s u r i n g i n c r e a s e d w a s t e r e d u c t i o n a c t i v i t y .

Waste manaqement "problems" h a v e t r a d i t i o n a l l y been seen by

. . ..,: . , . b u s i n e s s o r g a n i z a t i o n s as an env i ronmen ta l , r a t h e r t h a n an i n -

d u s t r i a l i s s u e . I n t h i s simplest a n a l y s i s , a company h a s

"problems" o n l y when i t s economic v i a b i l i t y is t h r e a t e n e d i n some

way. I n t h e w a s t e management f i e l d , "problems" h a v e been c r e a t e d

w i t h i n i n d u s t r y o n l y when a company becomes aware t h a t i t i s i n

c o n t r a v e n t i o n of a r e g u l a t i o n , or when a company's was te s t rean

has grown t o such a volume t h a t i t t h r e a t e n s t h e company's

p r o f i t a b i l i t y .

Cornpanies w i l l g e n e r a l l y nanage wastes by what t h e y p e r c e i v e t u

be t h e c h e a p e s t means a v a i l a b l e , e i t h e r t h rough some form of

w a s t e r e d u c t i o n , w a s t e t r e a t m e n t , f i n a l d i s p o s a l or l o n g term

s t o r a y e . I f w a s t e s are beinc; managed i n t h e c h e a p e s t way p o s s i b l e

w i t h i n the c o n f i n e s of t h e law, companies are u n l i k e l y t o per-

32

c e i v e of t h e m s e l v e s a s having a waste "problem". Cxcept ions t o

t h i s g e n e r a l l y occur o n l y i f c o s t s a r e s t i l l unaccep tab ly high.

Th i s , however, i s d major s t i m u l u s t o t h e development of

e c o n o n i c a l l y l u s t i f i a b l e new was te systems.

Companies g e n e r a l l y p e r c e i v e t l ie inselves a s doing all t h a t i s

j u s t i f i a b l e t o reduce was te g e n e r a t i o n under c u r r e n t c o n d i t i o n s .

For v a r i o u s reasons , o u t l i n e d e l sewhere i n this r e p o r t , t h i s may

n o t i n f a c t be the c a s e , p a r t i c u l a r l y f o r medium and s m a l l e r

s i z e d companies. I t is o n l y w i t h t h e change of c o n d i t i o n s under

which waste management occurs, ( th rouqh e i t h e r g r e a t e r waste

g e n e r a t i o n , h i g h e r c o s t s or r e g u l a t o r y change,) t h a t a company is

l i k e l y t o see i t s e l f a s hav ing a waste management "problem".

I J n t i l a company e i t h e r p e r c e i v e s i t s e l f as h a v i n g a waste

" p r o b 1 e m " o r i s t o l d b y a r e g u l a t o r y a u t h o r i t y t h a t i t s w a s t e i s

caus ing "problems", and mus t t h e r e f o r e a l t e r i t s behaviour ,

change i n was te management i s u n l i k e l y t o o c c u r .

There is widespread acknowledgement w i t h i n i n d u s t r y t h a t it

would be i n a p p r o p r i a t e f o r companies t o r e g u l a t e theinsel ves w i t h

r e s p e c t t o w a s t e d i s p o s a l . I t is g e n e r a l l y accep ted t h a t

government has t h e r e s p o n s i b i l i t y t o e s t a b l i s h what i s or i s n o t

p e r m i s s i b l e i n t h e was te management f i e l d . Many of t h o s e con-

t a c t e d i n t he course of p r o j e c t r e s e a r c h drew a t t e n t i o n t o what

i s p e r c e i v e d from an i n d u s t r y p o i n t of view t o be an i n e q u i t a b l e

s i t u a t i o n i n the d e t e r m i n a t i o n and enforcement of waste managc-

ment r e g u l a t i o n i n Ontar io .

T h e medium and s m a l l e r s i z e d companies c o n t a c t e d i n Reference

G r o u p work confirmed t h e p e r c e p t i o n t h a t waste management i s seen

3 3

by most b u s i n e s s e s i n terms of compliance w i t h r e g u l a t i o n s .

G e n e r a l l y , t h e i n c r e a s i n g s t r i n g e n c y of r e g u l a t i o n s gove rn ing

waste d i s p o s a l was t r a n s l a t e d by t h e s e companies as r e q u i r i n g a

change i n e i t h e r t h e d i s p o s a l method o r t he c h a r a c t e r of t he

w a s t e t o be d i sposed of. i l a s t e r e d u c t i o n is seldom cons ide red ,

n o t w i t h s t a n d i n g t h a t t h e economics of w a s t e management h a v e

changed s u b s t a n t i a l l y i n r e c e n t y e a r s , i n l a r g e measure due t o

more s t r i n g e n t r e g u l a t i o n s . One i n d u s t r y r e p r e s e n t a t i v e , who i s

most f a m i l i a r w i t h the p l a t i n g sector i n On ta r io , s tated b l u n t l y

t h a t even i f t o t a l d i s p o s a l c o s t s doubleu o v e r n i g h t , i n h i s

op in ion t h e m a j o r i t y of o p e r a t o r s w o u l d c o n t i n u e t o g e n e r a t e t h e

same amount of was te and s imply a b s o r b the i n c r e a s e d costs i n t o

the c o s t o f t h e f i n i s h e d product . C o n s i d e r a t i o n of was te re-

d u c t i o n , a s such, would d e v e l o p s l o w l y and o n l y a t a l a t e r date.

Other i n d i v i d u a l s , p a r t i c u l a r l y i n the pr imary m e t a l s and meta l

f i n i s h i n g s e c t o r s , echoed t h e s e sen t imen t s . ! l i t h i n t h e chemica l

i n d u s t r y t h e r e a p p e a r s t o be a markedly more s o p h i s t i c a t e d ap-

proach. One r e p r e s e n t a t i v e of t h e i n d u s t r y a t t r i b u t e d this to

t h e f a c t t h a t many chemical companies i n Canada a l so o p e r a t e i n

t h e US., where they a r e under s u b s t a n t i a l l y g r e a t e r p r e s s u r e t o

reduce was te g e n e r a t i o n .

.,. .

For most companies i n O n t a r i o t h e s i n g l e most impor t an t

r e g u l a t o r y a u t h o r i t y i s t h e a u t h o r i t y which e n f o r c e s the l o c a l

sewer d i s c h a r g e by-law. I n t h e i n d u s t r i a l i z e d "Golden

Horseshoe" , a s w e l l a s e l s e w h e r e i n t h e p r o v i n c e , t h i s i s a

mun ic ipa l r e s p o n s i b i l i t y . Sewer d i s c h a r y e by-laws are drawn up

w i t h t h e p r o t e c t i o n of a p u b l i c a l l y owned t r e a t m e n t works i n

mind, n o t e n v i r o n m e n t a l p r o t e c t i o n as such. This h a s l e a d t o

34

:..,::.:. . .

s u b s t a n t i a l g e o g r a p h i c a l i n e q u i t i e s i n both by-law s t a n d a r d s and

the degree of by-law enforcement. From t h e mun ic ipa l per-

s p e c t i v e , g i v e n t h e o b j e c t i v e s of a s e w e r d ischarge Dy-law, t n i s

may be j u s t i f i a b l e . From an i n d u s t r y ' s p o i n t of view, it can l e a d

to c o n s i d e r a b l e c o m p e t i t i v e d i s a d v a n t a g e s for companies i n a

p a r t i c u l a r l y s t r i n y e n t j u r i s d i c t i o n . From t h e p o i n t of view of

maximizing waste r e d u c t i o n p r o v i n c i a l l y , l a x by-laws or enforce-

ment, t o g e t h e r w i t h t h e o t h e r obstacles described i n t h i s

chapter, e n s u r e t h a t the waste management s t a t u s quo i s

main ta ined .

S e v e r a l m u n i c i p a l i t i e s can be r e a d i l y c a t e g o r i z e d as e i the r

more or l e s s s t r i n g e n t t h a n "average" i n s e w e r d i s c h a r g e by- law

f o r m u l a t i o n and implementa t ion . The Xegional f l u n i c i p a l i t i e s of

ITaterloo and Ha l ton , for example, were c i t ed d u r i n g Reference

Croup c o n t a c t s as hav ing p a r t i c u l a r l y r i g o r o u s sewer d i s c h a r g e

by-laws and by-law enforcement. I :hi le it i s t r u e t h a t OiJllC w i l l

not , by d e f i n i t i o n , h a n d l e i n d u s t r i a l wastes t h a t are sewered, it

i s e q u a l l y t r u e tha t i f the o v e r a l l t r e n d s of t h e past decade a re

con t inued i n t o the f u t u r e , it w i l l become i n c r e a s i n g l y expens ive

(and pe rhaps i l l e g a l ) f o r companies across O n t a r i o t o con t inue

sewering some of t h e wastes t h a t are c u r r e n t l y d i sposed of i n

t h i s manner. I n t h i s e v e n t , such w a s t e s , or t h e s l u d g e s from

these wastes, may v e r y w e l l be of concern to 0IJ:"lC. I , k i l e

q u a n t i t a t i v e data are hard t o de termine , it appears t h a t t h e

uptake of w a s t e r e d u c t i o n sys tems g e n e r a l l y i n t h e i Ia te r1oo and

H a l t o n r e g i o n s h a v e been h i g h e r t h a n elsewhere i n Ontar io . T h e

m o t i v a t i o n i n most cases h a s undoubtedly been compliance, n o t

35

economic payback. B u t i n a s i t u a t i o n where compliance i s

demanded, w a s t e r e d u c t i o n , r euse , r e c y c l i n g and exchange i s o f t e n

more a t t r a c t i v e than s imply t r e a t m e n t . To the e x t e n t that t he

economics can be improved and t h a t h i g h q u a l i t y infor rna t ion of

o p t i o n s can be d i s semina ted , was t e r e d u c t i o n w i l l become a n

i n c r e a s i n g l y more a t t r a c t i v e o p t i o n .

36

i3iile t h e r e is c l e a r l y a l i n k between B a r r i e r s and O p p o r t u n i t i e s ,

t h e two cannot be viewed a s mirror images of each other, a t

l e a s t n o t i n t h e coiitext of this study. l p o r example t h c r c a r e

c e r t a i n a r e a s of o p p o r t u n i t y i n t he i n f o r m a t i o n f i e l d w h i c h

e f f e c t i v e l y c u t a c r o s s t h e l i n e s used t o c a t e g o r i z e b a r r i e r s . A

s i n g l e i n f o r m a t i o n o p p o r t u n i t y can s i i i iu l taneous ly a d d r e s s spe-

c i f i c economic, r e g u l a t o r y and t e c h n o l o g i c a l b a r r i e r s .

The Reference Group p r o c e s s ( d e s c r i b e d i n d e t a i l f o l l o w i n g ) was

a s t r u c t u r e d c o n s u l t a t i o n under taken by t h e s t u d y teain w i t h

s e l e c t e d experts, i n d u s t r y groups and companies. T h e p r o c e s s

s e r v e d n o t o n l y t o conf i rm b a r r i e r s i d e n t i f i e d through t n e pro-

ject r e s e a r c h b u t a l so t o he12 a n a l y s e t h e i r r e l a t i v e s e v e r i t y

and to e x p l o r e methods, s t r a t e g i e s and a c t i o n s by which b a r r i e r s

can be t ransformed i n t o o p p o r t u n i t i e s .

While i n p u t from the Reference Group was c e n t r a l , o t h e r

mechanisms were employed d u r i n g o p p o r t u n i t y a n a l y s i s , p a r t i -

c u l a r l y i n terios o f e s t a b l i s h i n g p r i o r i t i e s f o r s p e c i f i c

37

a c t i v i t i e s t o be pursued. These o t h e r mechanisms i n c l u d e d t h e

r ev iew of b a r r i e r and o p p o r t u n i t y judgements made i n r e d u c t i o n

programs i n o t h e r j u r i s d i c t i o n s and d i s c u s s i o n s w i t h key sourczs

o u t s i d e of t h e r e f e r e n c e group (see Appendix A f o r a l i s t of

t h e s e sou rces ) . D i scuss ions i n t e r n a l t o t h e c o n s u l t i n s team, and

wi th p e r s o n n e l a t t h e O n t a r i o T:aste tlanagement Corpora t ion , ap-

p l y i n g knowledge o f t h e f i e l d and p r e v i o u s program exper ience ,

w e r e a l so impor tan t to t h e process of i d e n t i f y i n g p r i o r i t y op-

p o r t u n i t y a reas .

REFERENCE GROUP PROCESS

The Reference Croup c o n s u l t a t i o n s were in tended t o s e r v e th ree

b a s i c f u n c t i o n s :

i) t o h e l p assess r e l a t i v e and s p e c i f i c b a r r i e r s t o i n c r e a s e d

w a s t e r e d u c t i o n and r e c y c l i n g a s t hey p e r t a i n t o key

i n d u s t r y s e c t o r s

ii) t o h e l p de te rmine r e a l i s t i c o p p o r t u n i t i e s f o r i n c r e a s e d re-

d u c t i o n and r e c y c l i n g w i t h i n t h e s e sectors

iii) t o h e l p d e f i n e t h e most a p p r o p r i a t e r o l e s f o r t h e O n t a r i o

Waste Management Corpora t ion i n encouraging g r e a t e r r e d u c t i o n

and r e c y c l i n g a c t i v i t i e s

rdiile t h e r e was c e r t a i n l y n o t unanimity i n o p i n i o n s expressed ,

t h e Reference Group c o n s u l t a t i o n s p rov ided i n s i g h t s i n t o i n d u s t r y ' s

p e r c e p t i o n s of was te management i s s u e s i n y e n e r a l , r e d u c t i o n

o p p o r t u n i t i e s i n p a r t i c u l a r , and p o t e n t i a l roles i d e n t i f i e d f o r

OldElC .

33

The Reference Group p rocess was i n i t i a t e d e a r l y i n t h e b a r r i e r

research phase of the s tudy. The s tudy team i d e n t i f i e d a p r e l i -

minary c o n t a c t l i s t of some 40 companies and i n d u s t r y o rgan i -

z a t i o n s from which the R e f e r e n c e Group was s e l e c t e d . The l i s t

r e p r e s e n t e d a broad a r r a y of i n t e r e s t w i t h emphasis on the t h r e e

key sectors i d e n t i f i e d by O W ' S ea r l ie r r e s e a r c h . P o t e n t i a l

p a r t i c i p a n t s w e r e i d e n t i f i e d based upon known i n t e r e s t i n t h e

f i e l d , p r e v i o u s s t u d y team and /o r OI:?IC c o n t a c t , and i n d u s t r y

recormaendations. I n d u s t r y a s s o c i a t i o n s and i n d i v i c i u a l coiiipanies

were c o n t a c t e d i n o r d e r t o p r e s e n t both s p e c i f i c i n d u s t r i a l

p r o c e s s s u y y e s t i o n s and a view r e p r e s e n t a t i v e of t h e broad sector

of O n t a r i o i n d u s t r y .

Twenty-six companies and/or a s s o c i a t i o n s were c o n t a c t e d by m a i l

and s u b s e q u e n t l y by t e l ephone . A c o v e r l e t t e r was s e n t t o each

p r o s p e c t i v e Reference Group c o n t a c t person w i t h an a t t a c h e d sum-

mary d e s c r i p t i o n of 'barrier r e s e a r c h t o d a t e ' f o r d i s c u s s i o n

d u r i n g f o l l o w up i n t e r v i e w s . (Appendix i3 l i s t s Reference GrouiJ

P a r t i c i p a n t s ; Appendix C c o n t a i n s a copy of t h e c o v e r l e t t c r and

summary d e s c r i p t i o n s s e n t t o t h e Reference Group).

Twenty-one of t h e 26 companies / indus t ry a s s o c i a t i o n s c o n t a c t e d

agreed t o become i n v o l v e d i n t h e c o n s u l t a t i o n p r o c e s s throuyh a

f o l l o w up i n t e r v i e w . Three o r g a n i z a t i o n s / c o n p a n i e s f e l t unab le

t o c o n t r i b u t e t o t h e p rocess ; two organizations/conipanies d id n o t

respond to t h e l e t t e r o r fo l low-up t e l e p h o n e c o n t a c t s .

Most i n t e r v i e w s l a s t e d approx ima te ly one hour t o an hour and a

h a l f . TWO p e r s o n s from the project team a t t e n d e d most meetings.

The d i s c u s s i o n s w e r e s t r u c t u r e d b u t g e n e r a l l y i n f o r m a l , and

39

o p i n i o n s were o f f e r e d i n s t r i c t confidence.

The f i n d i n g s p r e s e n t e d f o l l o w i n g a r e p r i m a r i l y based upon t h e

d i s c u s s i o n s w i t h t h e Reference yroup p a r t i c i p a n t s , b u t have a l s o

been shaped by o t h e r f a c t o r s . The f i n d i n g s r e p r e s e n t a sunnary

of o p i n i o n s expressed by Reference Group p a r t i c i p a n t s , o t h e r key

sources of i n fo rma t ion , and a n a l y s i s under taken by t h e s t u d y

t e a m . A s a p p r o p r i a t e , d i s s e n t i n g p o s i t i o n s have been noted and

s p e c i f i c cxarnpler; c i t e d .

I"1AJOR FINDINGS REGARDING BARRIERS AcJO 0PPOI:TIJPJITICS TO INCKEASCD - - SPECIAL liASTC REDUCTION

(1 ) PARTICIPATION I N TIIC PROCESS -- A s no ted above, v i r t u a l l y a l l sources c o n t a c t e d f o r i n p u t i n

t h i s p r o j e c t were nost c o o p e r a t i v e i n t h e i r w i l l i n g n e s s t o become

i n v o l v e d i n t h i s c o n s u l t a t i v e process . T h i s w i l l i n y n e s s extended

s p e c i f i c a l l y i n t o t h e Reference Group i n t e r v i e w s themselves .

I n t e r v i e w e e s were generous and iorthcoi:iincj w i t h t h e i r i d e a s ,

s u g g e s t i o n s and concerns r e g a r d i n g t h e was te r e d u c t i o n f i e l d .

Coiiipanies', a s s o c i a t i o n s ' , and o t h e r e x p e r t s ' w i l l i n g n e s s to

p a r t i c i 2 a t e i n t h e p r o j e c t appeared i n p a r t to be niot ivatcd by

t h e i r p e r c e p t i o n of a c u r r e n t l a c k of a c l e a r l y d e f i n e d r o l e f Q r

0IJP:C i n t h e i n d u s t r i a l was te f i e l d . S e v e r a l i n t e r v i e w e e s sug-

ges t ed t h a t t h i s l a c k of c l e a r d e f i n i t i o n was hav ing an

a d d i t i o n a l u n s e t t l i n g e f f e c t upon an a l r e a d y somewhat u n s t a b l e

f i e l d . A cormnon i n t e r e s t was expres sed i n s e e i n g o \ l i lC c l a r i f y

i t s p o s i t i o n w i t h i n t h e f i e l d a s r a p i d l y as p o s s i b l e .

40

G e n e r a l l y speaking , t h e Reference Group and o t h e r c o n s u l t a t i o n s

r e g a r d i n g the s t u d y of barriers t o waste r e d u c t i o n r e p r e s e n t e d a

c o n t i n u a t i o n of a p o s i t i v e p r o c e s s of i n t e r e s t group c o n s u l t a t i o n

by OIJl4C. There appea r s t o be e v e r y o p p o r t u n i t y to c o n t i n u e t o

e x t e n d t h i s p r o c e s s f o r f u t u r e c o n s u l t a t i o n r e g a r d i n g was te re-

d u c t i o n i n i t i a t i v e s f o r 01.7MC.

( 2 ) PERCEPTION OF WASTE 14ALJAGE1,IEMT PROJ3LENS - 1Jaste management i s j u s t beginning t o emerge a s an i s s u e of

major concern f o r many i n d u s t r y groups. I n t e r e s t i n was te management

i s s u e s today were compared by s e v e r a l Reference Group inter

viewees t o t h e eriieryiny concern f o r ene rgy c o n s e r v a t i o n i n

i n d u s t r y f i v e y e a r s ago. The O n t a r i o Kaste i.lanager;ient Corpora t ion

was a l s o c i ted by some i n t e r v i e w e e s as an impor t an t f a c t o r i n t h e

i n c r e a s e d p r o f i l e f o r was te management problems and requi rements

i n t h e p r o v i n c e .

. .

Uhile t h e p u b l i c and c o r p o r a t e p r o f i l e f o r was te management concerns

a r e growing r a p i d l y , t h e c o r p o r a t e r e sponse t o t h e s e concerns i s

n o t w e l l o rgan ized w i t h i n a1 1 coinpanies and i n d u s t r y s e c t o r s .

S p e c i f i c a l l y , r e s p o n s i b i l i t y f o r was te management i s n o t a lways

w e 1 1 c o o r d i n a t e d w i t h i n i n d i v i d u a l companies. For example, s i n c e

waste d i s p o s a l i s f r e q u e n t l y c o n s i d e r e d a maintenance f u n c t i o n

w i t h i n many companies, it may n o t be p e r c e i v e d as an impor t an t

component of t h e p r o d u c t i o n process . As a consequence, t h e

n e c e s s a r y l a b o r a t o r y work, marke t ing s u g p o r t and p o s s i b l y tech-

n i c a l in for rna t ion i s o f t e n n o t w e l l c o o r d i n a t e d o r proGer ly

a p p l i e d to the t a s k of maximiziny was te r educ t ion .

41

i

.:::::::>.

The p r o f i l e of t h e need f o r p rope r was te management d e c i s i o n

making can be enhanced through O\jl".'s s u p p o r t t o waste r e d u c t i o n

o p p o r t u n i t i e s . T h e f i n a l c h a p t e r of this r e p o r t c o n s i d e r s and

recommends measures p r e s e n t e d i n tercis of o r g a n i z a t i o n a l

f u n c t i o n s i n o r d e r t o h e l p ensu re O W I C ' s pursu ing the proper

approach t o t h i s t a s k . The f o l l o w i n g d e s c r i p t i o n s i d e n t i f y

g e n e r i c . b p p o r t u n i t y a r e a s f o r s p e c i a l waste r e d u c t i o n , and i n -

c l u d e an a n a l y s i s of b a r r i e r s e n s i t i v i t y t o change.

( 3 ) KEY OPPORTUNITY AREAS - The ' o p p o r t u n i t y d e s c r i p t i o n s which io1 low correspont j w i t h

barrier c a t e g o r i e s i d e n t i f i e d d u r i n g phase one r e sea rch .

Although as mentioned e a r l i e r b a r r i e r s and o p p o r t u n i t i e s were

not found t o mirror one a n o t h e r , d i s c u s s i o n s ( p a r t i c u l a r l y w i t h

Reference group p a r t i c i p a n t s ) g e n e r a l l y f o l l o w e d t h e sequence of

a d d r e s s i n g economic, i n f o r m a t i o n a l , t e c h n o l o g i c a l and r e g u l a t o r y

barriers and o p p o r t u n i t i e s . T h i s c h a p t e r conc ludes 5y p r e s e n t i n g

t h e summary f i n d i n g s of t h e o p p o r t u n i t y a n a l y s i s , i n c l u d i n g a

d e s c r i p t i o n of t h e c r i t e r i a used f o r de te rmining p r i o r i t y op-

p o r t u n i t i e s .

Each o p p o r t u n i t y a r e a d e s c r i p t i o n c h a r a c t e r i z e s the s e n s i t i v i t y

of b a r r i e r s i d e n t i f i e d t o change. A l o w s e n s i t i v i t y t o change

f o r example, i n d i c a t e s t h a t e x t e r n a l i n t e r v e n t i o n s , such as may

be pursued by OW1C, a r e u n l i k e l y t o have s i g n i f i c a n t b a r r i e r

r e m o v a l impacts i n t h e short-term. B y c o n t r a s t , e x t e r n a l i n t e r -

v e n t i o n s can be expec ted t o be s u c c e s s f u l i n sho r t - t e rm removal

of b a r r i e r s w i t h h i g h s e n s i t i v i t y t o change.

42

( i ) Economic o p p o r t u n i t i e s

Two f o r m of economic o p p o r t u n i t y were i d e n t i f i e d . There a r e

a c t i v i t i e s which a r e c u r r e n t l y both t e c h n i c a l l y f e a s i b l e and

e c o n o m i c a l l y v i a b l e , i.e. low and no cost r e d u c t i o n measures such

as i n - p l a n t housekeeping. These t y p e s of o p p o r t u n i t i e s a r e now

be ing iinpeded by non-economic b a r r i e r s (e.g. i n f o r m a t i o n ) . The

second form nf economic o p p o r t u n i t y i n v o l v e s measures w h i c h d e a l

d i r e c t l y i n some manner wi th a c t u a l c o s t s - 2.g., v i a impact on

was te management costs, or through t h e e s t a b l i s l i m e n t of i n c e n t i v e

and f i n a n c i a l c o n t r i b u t i o n programs. The economics of i n c r e a s e d

special waste r e d u c t i o n , r e c y c l i n y , exchange and r e c o v e r y a r e i n

many i n s t a n c e s n o t s u f f i c i e n t l y a t t r a c t i v e as an a l t e r n a t i v e to

was te d i s p o s a l and i n o t h e r i n s t a n c e s , n o t a lways w e l l known

even where they are a t t r a c t i v e .

. . , . . . The s e n s i t i v i t y of economic b a r r i e r s t o change is g e n e r a l l y

j u d g e d b y R e f e r e n c e Group p a r t i c i p a n t s t o b e i n t h e low t o mode-

rate range. T h i s g e n e r a l assessment . i s based i n p a r t upon t h e

assumption t h a t t h e major impacts for i n c r e a s e d s p e c i a l was te

r e d u c t i o n a c t i v i t y w i l l come through t h e p r e s s u r e of market

f o r c e s : t h e market i s seen t o be t h e major d r i v i n g f o r c e towards

i n c r e a s e d r e d u c t i o n a c t i v i t y .

T h i s view does n o t s u g g e s t t h a t s t r a t e g i c " e x t e r n a l l y

i n i t i a t e d " ( i .e . o u t s i d e of i n d u s t r y ) impacts are unach ievab le .

P r o p e r l y implemented i n c e n t i v e programs (both f i n a n c i a l and non-

f i n a n c i a l ) , t a x a1 lowances and r e s e a r c h , development and demon-

s t r a t i o n funding can p o t e n t i a l l y have a f a v o u r a b l e impact by

a d d r e s s i n g s p e c i f i c economic o b s t a c l e s t o change. However, t h e

43

most s i g n i f i c a n t economic impacts a r e seen t o r e s u l t from

e v o l v i n g changes i n t h e market , such as t h e i n c r e a s e d p r o f i l e of

waste ~~ ianagenen t , t h e i n c r e a s e d c o s t of d i s p o s a l o p t i o n s , and

b e t t e r knowledge of o p t i o n s a v a i l a b l e .

I m p o r t a n t a s t hey a r e , economic b a r r i e r s a r e n o t a lways a t t h e

h e a r t of t h e r e s i s t a n c e t o i n c r e a s e d was te r e d u c t i o n

o p p o r t u n i t i e s . There a r e now t e c l i n i c a l l y f e a s i b l e and f inan -

c i a l l y v i a b l e was te r e d u c t i o n o p p o r t u n i t i e s t h a t a r e n o n e t h e l e s s

n o t be ing p u t i n t o p l a c e . S e v e r a l s u p p o r t inechanistns were recoiii-

iiiended throughout t h e p r o j e c t c o n s u l t a t i o n s which c o u l d be

a p p l i e d t o t h e t a s k of encouraging t h e s e waste r e d u c t i o n measures

(ey. t r a i n i n g suppor t , manual development , plant waste a u d i t s ,

and o t h e r employee m o t i v a t i o n i n i t i a t i v e s ) .

Oi!lX i s g e n e r a l l y no t p e r c e i v e d by Xeference Group p a r t i c i p a n t s

t o have a prominent r e g u l a t o r y role. Nor i s t h e O n t a r i o I l a s t e

lianagement Corpora t ion expec ted t o d e v e l o p a major funding capa-

b i l i t y , a t l e a s t i n t h e s h o r t term. O\!kIC's raajor economic impact

i s r a t h e r a n t i c i p a t e d t o r e s u l t fron: i t s e f f e c t upon s p e c i a l

waste t r e a t m e n t and d i s p o s a l c o s t s .

(ii) In fo rma t ion o p p o r t u n i t y l i r eas

Reference Group p a r t i c i p a n t s and o t h e r s c o n t a c t e d dur iny pro-

ject r e s e a r c h were i n s u b s t a n t i a l agreement t h a t i n fo rma t ion i s

both a major b a r r i e r a r e a and key o p p o r t u n i t y for O:ii,C i n t e r -

v e n t i o n i n s p e c i a l was te r e d u c t i o n and r e c y c l i n g . tit t h e n o s t

y e n e r a l l e v e l , s e v e r a l i n t e r v i e w e e s a s s i y n e u t o O L ~ ~ I C J. r o l e i n

in forn inc j and educa t ing t h e p u b l i c about s p e c i a l waste i s s u e s i n

O n t a r i o .

44

r:lore s p e c i f i c a l l y , i n fo rma t ion needs are seen t o be most

c r i t i c a l w i t h i n t h e small b u s i n e s s s e c t o r . The s m a l l b u s i n e s s

person i s i n v o l v e d i n a l l a s p e c t s of t h e o p e r a t i o n and t h u s w i l l

be t h e l e a d a g e n t i r i s e t t i n g i n p l a c e new p r o d u c t i o n and/or was te

r e d u c t i o n t e c h n o l o g i e s . A s s o c i a t i o n s r e p r e s e n t i n y s m a l l b u s i n e s s

i n t e r e s t s were qu ick to p o i n t o u t ,however , . tha t infor i : ia t ion

a l o n e i s n o t a s u f f i c i e n t f a c t o r t o encourage was te r e d u c t i o n

w i t h i n t h e sector. Time and ,most i r n p r t a n t l y , a c c e s s t o c a p i t a l

a r e a l s o necessa ry f a c t o r s r e q u i r e d t o s t i m u l a t e a c t i o n . The

n o t i o n s o f rewarding behaviour beyond compliance and p r o v i d i n g

a 1 1 forms of i n c e n t i v e s ( r a t h e r t han emphasizing r e g u l a t i o n ) were

mentioned by s e v e r a l Reference Group i n t e r v i e w e e s , bu t e s p e c i a l l y

by s m a l l b u s i n e s s peop le .

LJithin l a r g e b u s i n e s s s e c t o r s , two foritis of i n fo rma t ion oppor-

t u n i t i e s were i d e n t i f i e d . t l o s t companies and indus t . ry r ep resen -

t a t i v e s w e r e r e d d i l y a b l e t o i d e n t i f y one or more exarnples of

knowledye gaps w i t h i n t h e i r i n d u s t r y . Perhaps t h e most coiiuuonly

c i t e d i n f o r m a t i o n need is t h e a r e a of i d e n t i f y i n g markets f o r

r e c o v e r e d p r o c e s s m a t e r i a l s ( i . e . beyond i n f o r m a t i o n a v a i l a b l e

through p a s s i v e exchange networks) . A second o p p o r t u n i t y a r e a

i d e n t i f i e d was t h a t of t h e need f o r more d i v e r s e and adequate

c h a n n e l s of comiiunication r ega rd ing was te r e d u c t i o n p r a c t i c e s a n d

t e c h n o l o g i e s . Once aga in , companies and i n d u s t r y r e p r e s e n t a t i v e s

sugges t ed a wide range of m e a s u r e s seen t o be a p p r o p r i a t e t o

t h e i r s p e c i f i c s e c t o r - eg. workshops, suppl.ements t o t e c h n i c a l

j o u r n a l s , and t e c h n i c a l manuals.

The s e n s i t i v i t y of i n fo rma t ion b a r r i e r s t o change was g e n e r a l l y

judged by Reference Group p a r t i c i p a n t s t o f a l l w i t h i n t h e mode-

45

r a t e t o h i g h range. The in fo rma t ion a r e a a l l o w s f o r r a p i d ,

c o m p a r a t i v e l y non-complex change mechanisms w h i c h can be s p e c i f i -

c a l l y des igned t o a d d r e s s i n d i v i d u a l problem a r e a s wi thou t

s i g n i f i c a n t t h r e a t of unforeseen r i p p l e effects i n t o o t h e r a r e a s .

I n one sense , i n fo rma t ion h a r r i e r s a r e seen t o be t h e e a s i e s t of

b a r r i e r s to be overcome. T h i s assumes however t h a t in forn la t ion

gene ra t ed i s n e c e s s a r i l y in fo rma t ion r e c e i v e d . T h e p rope r d e s i g n

and d e l i v e r y of waste r e d u c t i o n in fo rma t ion i s recognized

throughout i n d u s t r y t o be a p r e r e q u i s i t e t o e f f e c t i v e in fo rma t ion

t ransfer .

In fo rma t ion needs were found to be p a r t i c u l a r l y impor tan t

d u r i n g t h e cour se of Reference Croup d i s c u s s i o n s i n terms of

t h e i r i n f l u e n c e upon a l l o t h e r o p p o r t u n i t y a r e a s . The l a c k of

knowledge r e g a r d i n g i n c e n t i v e programs, t h e l a c k of t e c h n i c a l

in for ina t ion on was te r e d u c t i o n t e c h n o l o g i e s i n p l a c e o u t s i d e

O n t a r i o and t h e l a c k of c l e a r i n fo rma t ion r ega rd ing the c u r r e n t

s t a t u s and proposed changes t o the r e g u l a t o r y environment a r e

prime examples o f i n f o r m a t i o n gaps which e x a c e r b a t e o t h e r b a r r i e r

a r e a s .

While in fo rma t ion b a r r i e r s and o p p o r t u n i t i e s were g e n e r a l l y

i d e n t i f i e d a s an a r e a of r e s p o n s i b i l i t y f o r OIJ~K, it was a l s o

recognized t h a t responding t o in fo rma t ion needs a l o n e would n o t

be s u f f i c i e n t t o encourage g r e a t e r r e d u c t i o n behaviour . In fo r -

iiiation development and d i s s e m i n a t i o n r e p r e s e n t s an i d e a l e n t r y

p o i n t f o r more in-depth i n v o l v e m e n t i n t e c h n i c a l , economic and

r e g u l a t o r y i s s u e s . In fo rma t ion p r o v i s i o n a l o n e , however, w i l l

n o t h a v e t h e iinpact which i s warran ted and p o s s i b l e i n t h e waste

r e d u c t i o n f i e l d , and t h u s must e v e n t u a l l y be suppor t ed through

s e l e c t i v e and s t r a t e g i c f i n a n c i a l , t e c l i n i c a l and r e g u l a t o r y

measures.

iii) T e c h n o l o g i c a l Oppor tun i ty Areas

The e x i s t i n g envi ronment for t e c h n i c a l i n n o v a t i o n i n waste re-

d u c t i o n sys tem in ip lementa t ion v a r i e s s i g n i f i c a n t l y across

i n d u s t r y sectors, acco rd ing t o i n d u s t r y s i z e , and i n r e l a t i o n t o

p l a n t age. Consequent ly , techno1oi;ical o p p o r t u n i t i e s tend t o be

i n d u s t r y specific. The pace of t e c h n o l o g i c a l i n n o v a t i o n w a s

g e n e r a l l y c h a r a c t e r i z e d by Reference Group par t ic ipants t o be

slow and d i f f i c u l t t o change. N e v e r t h e l e s s , €our major po in t s of

consensus eineryed r e g a r d i n g g e n e r i c t e c h n o l o g i c a l o p p o r t u n i t y

a r e a s th rough d i s c u s s i o n s w i t h Reference Group p a r t i c i p a n t s and

wi th waste r e d u c t i o n exper t s i n o t h e r j u r i s d i c t i o n s .

T h e f i r s t p o i n t of consensus i s t h e c r i t i c a l n a t u r e of p rope r

and adequa te maintenance of e x i s t i n g t e c h n i c a l equipment.

Chemical i n d u s t r y r e p r e s e n t a t i v e s i n p a r t i c u l a r emphasized the

a b s o l u t e importance of t h e ~ i a i n t e n a n c e of e x i s t i n g equipment and

c i t e d f r e q u e n t examples of equipment n o t l i v i n y up t o s p e c i -

f i c a t i o n s due t o improper a t t e n t i o n . T h i s problem under sco res

t h e impor tance of t h e 'human e l emen t ' i n waste management

practices and reemphas izes the need for a l l forms of employee

t r a i n i n g and encouragement for 'good housekeeping' . 1:lore t h a n

one i n t e r v i e w e e c i t e d t h e work of t h e I n d u s t r i a l Accident

P r e v e n t i o n A s s o c i a t i o n ( I A P A ) as a model of e E f e c t i v e cooperation

w i t h i n d u s t r y i n t h e s a f e t y area.

A second i s s u e r a i s e d w a s t h e proper a p p l i c a t i o n of t e c h n i c a l

47

r e sea rch . A common p e r s p e c t i v e across i n d u s t r y i s tha t t o be

s u c c e s s f u l , r e s e a r c h s h o u l d be d e v e l o p e d f r o m t h e beginning

through t h e a c t i v e p a r t i c i p a t i o n of commercial i n t e r e s t s . Some

i n t e r v i e w e e s expres sed concern t h a t c o n f l i c t s c a n be c r e a t e d

r ega rd iny c o n f i d e n t i a l i t y o f i n f o r m a t i o n and /o r f a v o u r i t i s m to-

wards a s i n g l e company. Consequent ly r e s e a r c h need i d e n t i -

f i c a t i o n and in fo rma t ion d i s s e m i n a t i o n were g e n e r a l l y recoynized

as t h e iiiost appropriate near- term o p p o r t u n i t y areas €or r e s e a r c h

r e l a t e d suppor t .

T h i r d l y t h e r e w a s consensus r e g a r d i n g t h e need f o r b e t t e r was te

a u d i t i n g p r a c t i c e s i n i n d u s t r y , a l t h o u g h t h e r e was no aGreenent

as t o how t h e s e and other Inore in-depth t e c h n i c a l se rv ices s h o u l d

b e s t be developed . The m o s t comionly c i t e d problems were t h e

need f o r p l a n t spec i f ic a d v i c e and p o t e n t i a l c o n f l i c t s w i t h

e x i s t i n g and erierging p r i v a t e t e c h n i c a l s e r v i c e s (eg. l abo ra -

to r ies and c o n s u l t i n g s e r v i c e s ) . Some I leference Group res1:on-

d e n t s sugges t ed t h a t a be t te r l i n k c o u l d bc ancouraged between

suppor t for (or even p r o v i s i o n o f ) waste a u d i t i n g a c t i v i t i e s

( t h r o u g h manuals or del i ionstrat ion p r o j e c t s ) and the s t i n u l a t i o n

of e x i s t i n g t e c h n i c a l s u p p o r t s e r v i c e s f o r inciustry ( e g . l a b s and

eng inee r iny c o n s u l t a n t s ) .

The c lea res t consensus t o emerge froit1 t h e d i s c u s s i o n of techiio-

l o g i c a l o p p o r t u n i t i e s i s t h a t OllIlC s h o u l d s i t u a t e i t s e l f i n t h e

waste t r e a t m e n t and r e d u c t i o n i n d u s t r y i n a f a s h i o n which sup-

p o r t s o v e r a l l e x i s t i n g i n d u s t r i a l waste s e r v i c e s and a c t i v i t i e s .

S e v e r a l i n n o v a t i v e s u g g e s t i o n s and p i l o t i n t e r v e n t i o n s were recoin

mended t o t h i s end i n t h e t e c h n i c a l s u p p o r t f i e l d .

Support for sirla11 t o medium companies c i t e d w a s t h e ene rgy bus

One inodel o f

program which o f f e r s energy c o n s e r v a t i o n a u d i t s e r v i c e s to

i n d u s t r y . Although the Corpora t ion would l i k e l y n o t want t o

endorse a s p e c i f i c r e d u c t i o n t e c h n o l o g y f o r a p a r t i c u l a r p r o c e s s ,

it was sugges t ed t h a t OIJMCcould s e r v e d v a l u a b l e r o l e a s a

s o u r c e o f object ive in fo rma t ion on t e c h n i c a l o p t i o n s and prac-

t ices i n selected a r e a s .

( i v ) Regula tory Changes

V i r t u a l l y a 1 1 Reference Group p a r t i c i p a n t s p e r c e i v e OIWC t o

. h a v e had, and e x p e c t i t t o c o n t i n u e t o h a v e some i m p a c t upon the

r e g u l a t o r y environment f o r s p e c i a l waste treatment i n Ontar io .

To r e p e a t , however, p a r t i c i p a n t s do n o t a t t r i b u t e t o O\UiC a m a j o r

r e s p o n s i b i l i t y i n de te r in in ing the n e c e s s a r y changes. S ince the

major topic of d i s c u s s i o n w i t h p a r t i c i p a n t s was i n r ega rd t o

s p e c i f i c b a r r i e r s , o p p o r t u n i t i e s , and roles f o r OIIIIC, r e g u l a t o r y

m e a s u r e s were n o t a s impor t an t a n i n t e r e s t a s , f o r example,

i n f o r m a t i o n a l and economic needs.

The pr imary consensus of Reference Group p a r t i c i p a n t s i s t h e

ii:ihportance of p r o v i d i n g i n c e n t i v e s t o encourage was te r e d u c t i o n

a c t i v i t i e s r a t h e r t h a n r e l i a n c e upon t h e i n c r e a s e d r e g u l a t i o n of

company behaviours . Respondents g e n e r a l l y r ecogn ize the need f o r

t h e r e g u l a t i o n of was te s t r eams and p l a c e t h i s r e s p o n s i b i l i t y

w i t h government bodies. However, Reference Group p a r t i c i p a n t s

f o r t he most p a r t f e e l t h a t e n v i r o n m e n t a l r e g u l a t i o n has been

o v e r emphasized, a l m o s t t o t h e p o i n t of e x c l u d i n g i n c e n t i v e s for

env i ronmen ta l p r o t e c t i o n . S e v e r a l i n t e r v i e w e e s a l s o ei!lphasized

t h e e q u a l i m p r t a n c e of n o n - f i n a n c i a l i n c e n t i v e s (eg. awards f o r

49

waste r e d u c t i o n achievements w i t h i n companies of d i f f e r e n t s i z e )

as m o t i v a t i o n a l suppor t for waste reduct ion .

Reference (;roup p a r t i c i p a n t s g e n e r a l l y a s c r i b e t o ~ \ ; f - i C a r o l e

i n s u g g e s t i n g and r e a c t i n g t o t h e impacts of proposed r e g u l a t o r y

changes as t h e y miyht s p e c i f i c a l l y e f f e c t waste r e d u c t i o n op-

p o r t u n i t i e s i n Ontar io . The l a c k of a s i n y l f focus o r g a n i z a t i o n

for w a s t e r e d u c t i o n concern w a s i d e n t i f i e d by s o m e Reference

Group p a r t i c i p a n t s i n s e v e r a l a r e a s I n a more g e n e r a l way,

Keference Croup p a r t i c i p a n t s expres sed some f r u s t r a t i o n w i t h t h e

p e r c e i v e d j u r i s d i c t i o n a l o v e r l a p c u r r e n t l y o p e r a t i n g i n t h e i n -

d u s t r i a l waste f i e l d ancl w i t h t h e u n s e t t l i n y i m p a c t s t h i s

c o n t i n u e s t o h a v e i n t h i s a l r e a d y very cor:iplex fielci.

Reference Group p a r t i c i p a n t s g e n e r a l 1 y view t h e rer jul . i tory area

as an o p p o r t u n i t y w h i c h i s s l o w t o change. I n fac t , as d i s c u s s e d

p r e v i o u s l y , froill a n i n d u s t r y p e r s p e c t i v e t h e v e r y n o t i o n of

' r e g u l a t o r y o p p o r t u n i t i e s ' may be viewed as a misnomer. Nonethc-

less , r e g u l a t o r y c!ianyes are seen t o be of v i t a l importance t o

i n d u s t r y and are a n area i n which i n d u s t r y would very much l i k e

t o be a c t i v e l y c o n s u l t e d .

The most s p e c i f i c area of corlcern i d e n t i f i e d by Keference

Group p a r t i c i p a n t s i n t h e r e y u l a t o r y f i e l d is t h e problem of

unequa l and i n c o n s i s t e n t enforcement of c u r r e n t r e g u l a t i o n s

across reg ions . Although no s p e c i f i c s u g g e s t i o n s were made as t o

how the enforcement problem c o u l d r e a d i l y be improved upon (and

t h u s how O!lL.!C might a f f e c t t h e s i t u a t i o n ) t h e r e e x i s t s con-

s i d e r a b l e concern i n some s e c t o r s f o r t h e u n f a i r b u s i n e s s d i s -

a d v a n t a g e s this creates and f o r t h e r e s u l t a n t env i ronmen ta l

impacts .

50

P K l O l i I T Y OPPORTUP! I T Y AREAS

The c o n s u l t a n t s were r e s p o n s i b l e ?or p r i o r i z i i i y o p p o r t u n i t y

a r e a s f o r was te r e d u c t i o n a c t i v i t i e s based upon t h e d a t a ,

o p i n i o n s and s u g g e s t i o n s forwarded du r ing p r o j e c t c o n s u l t a t i o n s .

Three main cr i ter ia w e r e applied i n t h i s process .

( i ) l ix t en t - of r e d u c t i o n impact: i f an o p p o r t u n i t y is pursued

s u c c e s s f u l l y , w i l l t h e i n c r e a s e i n was te q u a n t i t i e s re-

duced be i n s i g n i f i c a n t , s i g n i f i c a n t o r v e r y s i g n i f i c a n t

( ii) Ease of implementat ion: how s e v e r e are t h e barriers t o bc -- overcome, i n terins of cost, complexi ty , o p p o s i t i o n from

o t h e r s , p r o b a b i l i t y o f success.

(iii) E x i s t e n c e o f change agent : how p r o b a b l e is it t h a t a - s p e c i f i c i n s t i t u t i o n (OIJI,IC or o t h e r ) c o u l d r e a d i l y

adop t t he ro le r e q u i r e d for an o p p o r t u n i t y t o be p u r s u e d

r e a l i s t i c a l l y .

Based upon t h i s a n a l y s i s , t h r e e p r i o r i t y c a t e g o r i e s were

developed:

CENTPAL P R I O R I T Y

All r e s u l t s i n d i c a t e t h a t the infor ina t ion a r e a p r e s e n t s t h e

g r e a t e s t p o t e n t i a l , based on t h e c r i t e r i a s t a t e d , a c r o s s a l l

b a r r i e r c a t e g o r i e s . I n d u s t r y r e p r e s e n t a t i v e s c o n s i s t e n t l y

p o i n t e d t o t h i s o p p o r t u n i t y a r e a a s a c e n t r a l need, i n p a r t

because it can be h i g h l y s u p p o r t i v e t o i n d u s t r y w i t h o u t becorning

51

!

an i n t e r f e r e n c e .

Two main f a c t o r s r ende r t h e Infor ina t ion a r e a as a prime op-

p o r t u n i t y . F i r s t , g e n e r a l and s p e c i f i c in forn la t ion gaps h a v e

been i d e n t i f i e d which can be acldresseci th rough co i i ipara t ive ly non-

coriip 1 ex change mechani sins . Secoild 1 y, I n forlnat i o n o p p o r t u n i t i e s

r e p r e s e n t the optimum e n t r y p o i n t s f o r impact and f u t u r e i n t e r -

v e n t i o n i n t o o t h e r o p p o r t u n i t y areas.

s p e c i f i c reconuneudations r e g a r d i n g rkraste r e d u c t i o n i n f o r u a t i o n

and o t h e r o p p o r t u n i t y a r e a s a r e con ta ined i r ! t h e f i n a l c h a p t e r of

t h i s r e p o r t .

0TIIE.K € ’ I~ IORITILS

‘rilere a r e iniinediate o p p o r t u n i t i e s f o r ininor i n t e r v e n t i o n i n t l ie

economic and t e c h n o l o g i c a l a r e a s . !:ith a c ross -ca t egory i n f o r -

mation program as a base, i n i t i a l i n t e r v e n t i o n w i t h c o r e econoiiiic

and t e c h n o l o g i c a l o p p o r t u n i t i e s i s viewed a s r e a l i s t i c and prci-

d u c t i v e , based on t h e s t a t e d c r i t e r i a .

i l i no r i n t e r v e n t i o n i n economic ar.d t e c h n o l o g i c a l o p p o r t u n i t y

a r e a s w a s q e n e r a l l y recomaended through r e f e r e n c e C r o u p and o t h e r

co i - i su l ta t iono both because of t h e p e r c e i v e d s lowness t o chancje i n

t h e s e a r e a s and because of t h c complex i ty i n v o l v e d i n a f f e c t i n 9

chmge .

P’U Rl’I!l: I< L w J J i LC I’ i”EiJT RE QU I 11’’ u

! Ih i l e no t i n any terms u n i r n p r t a n t , iiia j o r i n t e r v e n t i o n i n

economic, r e g u l a t o r y and t e c h n o l o q i c a l a r e a s cannot be pursued

w i t h o u t an i n i t i a l founda t ion beincj e s t a b l i s h e d and f u r t i i e r

5 2

a n a l y s i s be ing conducted. Throughout t h e project c o n s u l t a t i o n s ,

a n emphasis w a s p l a c e d upon measures w h i c h c o u l d e f f e c t i v e l y be

implemented i n t h e s h o r t term. tdonetheless , s t r a t e q i c con-

s i d e r a t i o n s r e q u i r e t h a t e q u a l a t t e n t i o n be afforded t o

o p p o r t u n i t y areas o f f e r i n g l o n g e r term and p o t e n t i a l l y s i g n i f i -

c a n t irupacts.

53

STRATEGY

AND TII.IIIG -

INTRODUCTION

The l i n k s between waste r e d u c t i o n and other aspects of t h e

f i e l d of i n d u s t r i a l waste nianagement which were i d e n t i f i e d i n

t h i s s t u d y l e d t o t h e c o n c l u s i o n t h a t i t w a s n o t s u f f i c i e n t t o

c o n s i d e r a waste r e d u c t i o n s t r a t e g y i n i s o l a t i o n . I n o r d e r t o

ensure , for example, t h a t w a s t e r e d u c t i o n a c t i v i t i e s can s e r v e as

a u s e f u l b a l a n c e t o r e g u l a t o r y change, it i s c r i t i c a l t h a t a

comprehensive o v e r v i e w s t r a t e g y f i rs t be d c v e l oped through which

waste r e d u c t i o n can be p r o p e r l y i n t e g r a t e d w i t h o t h e r a s p e c t s of

t o t a l w a s t e management ( p a r t i c u l a r l y w i t h r e g u l a t o r y change and

new f a c i l i t y deve lopment ) .

I n sumniary:

A comprehens ive s t r a t e g y i s r e q u i r e d . !Jd.stc r e d u c t i o n barriers - - and o p p o r t u n i t i e s must be c o n s i d e r e d w i t h i n t h e c o n t e x t of t o t a l

waste management i.e. e x i s t i n g pract ices and c i r cums tances , t h e

deve lopment of a f a c i l i t y , and p o s s i b l e - r e g u l a t o r y changes.

__.- - - - ~ - -

-- --

IN 3 E RVEN'I ' I ON T I 1.11 LUG

. . . . . ,:_:,..:.:.

T h i s concern, and more p a r t i c u l a r l y the i s s u e of t i n i n q , a r e

addressed i n F i g u r e One on t h e f o l l o w i n g page. T h i s concep tua l

diagram i l l u s t r a t e s t h e dynamic r e l a t i o n s h i p between r e g u l a t o r y

change, new f a c i l i t y developinent and r e d u c t i o n i n t e r v e n t i o n , and

can t h e r e f o r e s e r v e a s t h e basis for a s t r a t e g i c framework i n

which t o e v a l u a t e p o t e n t i a l was te - r e d u c t i o n a c t i v i t i e s .

I n th i s diagram, r e g u l a t o r y change i s r e p r e s e n t e d by the e x t e n t

of t h e barrier between waste g e n e r a t i o n and d i s p o s a l . A s regu-

l a t i o n s are t i g h t e n e d , t h e impact of the b a r r i e r impeding was te

f low to d i s p o s a l i s i n c r e a s e d . I f t h e r e i s a h i g h r e s i s t a n c e t o

waste flows beiny d i v e r t e d t o e i t h e r t r e a t m e n t o r r e d u c t i o n ( i . e .

l a r g e b a r r i e r s i n b o t h c a s e s d u e t o no new f a c i l i t y and no re-

d u c t i o n i n t e r v e n t i o n ) one l i k e l y r e s u l t i s t h a t m a t e r i a l w i l l

con t inue , a l b e i t a t a reduced volume, to f l o w t o d i s p o s a l regard-

less of new r e g u l a t i o n s des igned t o p r o h i b i t t h i s .

The e s t a b l i s h m e n t of a b a r r i e r a t t h e p o i n t of d i s p o s a l w i l l

l o g i c a l l y be more e f f e c t i v e i f t h e r e s i s t a n c e t o a l t e r n a t e f lows

i s reduced e i t h e r th rough e s t a b l i s h m e n t of a new f a c i l i t y o r t h e

e l i m i n a t i o n of barriers t o r educ t ion .

A more c r i t i c a l r e l a t i o n s h i p , p a r t i c u l a r l y i n terms of f a c i l i t y

s i z i n g , i s t h a t an i n c r e a s e i n barriers t o d i s p o s a l which i s n o t

matched wi th a d e c r e a s e i n barriers t o r e d u c t i o n w i l l l e a d t o

most d i v e r t e d w a s t e s going t o t r e a t m e n t (i.e. new f a c i l i t y ) . I f

h igher c o s t s o r o t h e r impediments r e s u l t from t h i s s h i f t from

o t h e r d i s p o s a l p r a c t i c e s t o new t r e a t m e n t p r a c t i c e s , t h e n the

number of c a s e s where r e d u c t i o n ( r e c y c l e , exchange, e t c . ) can he

5 5

i

j u s t i f i e d ( e c o n o m i c a l l y anu o t h e r w i s e ) w i l l i n c r e a s e . Over t i m e

some of the f l o w which w a s d i v e r t e d from d i s p o s a l t o t r e a t m e n t

w i l l s h i f t t o r e d u c t i o n . The r e s u l t , assurriing t h e dynamic re-

l a t i o n s h i p s i l l u s t r a t e d would be a temporary peak s u r y e i n volume

d i r e c t e d t o t h e new f a c i l i t y . Desicjniny f o r t h i s Ljealc, o n l y t o

see volumes d r o p permanent ly t o a lower l e v e l o v e r t i m e ,

a c o s t l y problein.

c o u l d be

C a r e f u l t i c l ing of any- r e d u c t i o n i n t e r v e n t i o n a c t i v i t i e s c o u l d

p o t e n t i a l l y e v e n o u t t h i s peak volume t o minimize or e l i n i i n a t c

the problem. T h i s s c e n a r i o i s i l l u s t r a t e d i n Reduct ion

I n t e r v e n t i o n , S t e p One and S t e p Two (ir. F i g u r e One). In t h i s

case, t h e b a r r i e r s t o r e d u c t i v n a r e reduced ijrior to an i n c r e a s e

i n barr iers t o t r e a t m e n t (new f a c i l i t y ) . By d e v e l o p i n g an aware-

n e s s of r e d u c t i o n a l t e r n a t i v e s and p r o v i d i n g s u p p o r t and guidance

t o adop t r e d u c t i o n p r a c t i c e s ahead of o t h e r changes, i n d u s t r i e s

would h a v e t h e l e a d time n e c e s s a r y t o l e a r n about , and beg in t h e

a d o p t i o n of, new t e c h n o l o g i e s and systems.

I n surnniary:

Timiny w i l l be c r i t i ca l .

t h e s a m e time as r e g u l a t i o n s are i n c r e a s e d and a new f a c i l i t y i s

implemented, t h e b e n e f i t s o f t h e s lower r e d u c t i o n a c t i v i t i e s -- w i l l

o n l y occur a f t e r t h e impacts - of r e g u l a t o r y -- and f a c i l i t y s h i f t s

h a v e been f e l t . G e n e r a t o r s w i l l f ace new r e g u l a t i o n s wi thou t - t h e

o u t l e t of v i a b l e r e d u c t i o n a l t e r n a t i v e s - i n p l a c e . A _ - new f a c i l i t y

may s u f f e r froni a teiiiporarjr peal: f l o w i n tiraterial volunle, - which

w i l l t h e n d e c l i n e o v e r t i ne as r e d u c t i o n a c t i v i t i e s g r a d u a l l y --

- If r e d u c t i o n a c t i v i t i e s a re launciled - a t __ -

- --- - --- - - --

- - __- -__-

___-___---

5 6

a c h i e v e t h e i r impact on was te volumes. --

REDUCTION ILlPACT

Wii le r e g u l a t o r y change and o the r s h i f t s ( p a r t i c u l a r l y those

i n v o l v i n g i n c r e a s e d costs) are n e c e s s a r y b e f o r e a major s h i f t t o

r e d u c t i o n w i l l occur , r e s e a r c h for t h i s s t u d y i n d i c a t e s t h a t

there are many cases c u r r e n t l y where reductSon i s t e c h n i c a l l y and

e c o n o m i c a l l y feasible , b u t has n o t been implemented. while pre-

cise e s t i m a t e s can n o t be made on the basis of t h i s research,

f i g u r e 2 r e p r e s e n t s a s i m p l i f i e d i l l u s t r a t i o n of t h e s ca l e of

change t h a t can or cannot o c c u r under c u r r e n t and f u t u r e c i r c u m -

s t a n c e s .

FlCU RE TWO

WASTE REDUCTION POTENTIAL

10% - 20% Current Feasibility

70% Feasible Given Change

10% - 20% Not Feasible (Even Given Change)

NOTE: This chart is a theoretical model only. I t indicates reduction potential under different conditions. based upon a theoretical reduction potential of 100% Le.. technically and economically feasible waste reduction measures. ‘Change’ refers t o sets of regulatory and other changes as described in the text.

5 7

T h i s diagram i s in t ended t o r e p r e s e n t o n l y a b e s t estimate'

magnitude of scale i n terms of r e d u c t i o n t h a t can r e a l i s t i c a l l y

be a c h i e v e d both under c u r r e n t c i r cums tances and under changed

c i r cums tances ( r e g u l a t o r y and other change). I l h i l e t he pcr-

c e n t a g e s may be imprec i se , the o v e r a l l view i s f e l t t o be ac-

c u r a t e .

The f i g u r e unde r sco res tine impor tance of iinciediate barr ier

removal m e a s u r e s i n s u p p o r t of r e d u c t i o n a c t i v i t i e s w h i c h are

c u r r e n t l y f e a s i b l e . It a l s o s u s g e s t s t'rte importance of rerju-

l a to ry (and o t h e r ) changes as a p re -cond i t ion t o s i g n i f i c a n t

waste r e d u c t i o n p o t e n t i a l . Some chanye can occur now, as a

r e s u l t of r e d u c t i o n a c t i v i t i e s w h i c h e l i m i n a t e c e r t a i n barriers

( p a r t i c u l a r l y those c a t e y o r i z e d as in fo r ina t ion ) ; the yreatest

change w i l l occur through a combina t ion of r e d u c t i o n i r i te rvent i . cn

and o t h e r change ( p a r t i c u l a r l y r e g u l a t o r y ) ; b u t f i n a l l y some

r e d u c t i o n , though t e c h n i c a l l y and e c o n o m i c a l l y feas ib le , w i l l n o t

l i k e l y occur even under new c i r cums tances (due t o i n e r t i a , l a c k

of proper p l a n n i n g / a n a l y s i s , etc.).

I n summary:

Reduct ion a c t i v i t i e s iinplemented - now --- w i l l a c h i e v e - inmieciiatc

r e s u l t s i n r e l a t i o n t o r e d u c t i o n processes t h a t are a l r e a d y

t e c h n i c a l l y arid e c o n o m i c a l l y - v i a b l e , - a l t h o u y h t h e t o t a l i m p a c t

w i l l l i k e l y b e minor. Over time this impact w i l l grow as o the r

chanyes occur ,

t r e a t m e n t and disposal se rv ices .

- - -- --

-- -- - - ~ - __- - - such a s r e g u l a t o r y shifts and a v a i l a b i l i t y -_ o f new --- -

CONCLUSION

AND RECOMMENDATIONS -

The basis f o r c o n c l u s i o n s drawn i n t h i s s t u d y was main ly com-

p r i s e d of r e s u l t s from t h e v a r i o u s t a s k s o u t l i n e d e a r l i e r , w i t h

emphasis on t h e Reference Group process . However, i n o r d e r t o

e n s u r e t h a t t h e s t r a t e g i e s and recommendations deve loped were

o p t i m a l l y comprehensive, t h e c o n s u l t a n t s have macle s i g n i f i c a n t

r e f e r e n c e t o a broad unde r s t and ing of t h e was te rnanagement f i e l d ,

t h e c u r r e n t s t a t e of s p e c i a l was te managenent, and t h e known

p l a n s and p o l i c i e s of the O n t a r i o Vaste Management Corpora t ion ,

t h e O n t a r i o Government and o t h e r key a c t o r s .

I n e s sence , t h e c o n c l u s i o n s f o l l o w i n g and t h e subsequent recom-

mendat ions are based n o t o n l y cn t h e t a s k s performed f o r t h i s

s t u d y b u t a l s o t h e knowledge and e x p e r i e n c e of t h e c o n s u l t a n t s .

T h i s p o i n t would be less s i g n i f i c a n t and r e l e v a n t i f t a i s s t u d y

were more concerned w i t h d i s t i n c t , c o n c r e t e d a t a c o l l e c t i o n and

a n a l y s i s . I t i s more c r i t i c a l i n a r e p o r t of t h i s t y p e , however,

s i n c e it d e a l s l a r g e l y w i t h t h e o p i n i o n s ana p e r c e p t i o n s of

i n d u s t r y l e a d e r s , t h e s o f t s i d e of w a s t e management, and t h e

development of c o n c e p t s and s t r a t e g i e s t h a t are h i g h l y f l u i d and

dynamic i n n a t u r e .

59

SU I 4 iAl?Y

SUI~iI.RRY VIE:: OF W S T X IiEDUCTIOPi - IS OIU'Al'.IO -- The combinat ion of t h e l i t e r a t u r e review, p r e v i o u s work i n t h e

f i e l d , s e l e c t e d i n t e r v i e w s and d i s c u s s i o n s , ancl t h e I leference

Group p r o c e s s p rov ided t h e c o n s u l t a n t s w i t h a highly c u r r e n t and

comprehensive unde r s t and ing of t h e p r e s e n t s t a t e of was te re-

d u c t i o n w i t h i n t h e i n d u s t r i a l s e c t o r i n On ta r io . T h i s view of

t h e f i e l d i n c l u d e s ha rd in fo rma t ion r e g a r d i n g s p e c i f i c r e d u c t i o n

a c t i v i t i e s , p e r c e p t i o n s and o t h e r f a c t o r s (economics,

r e g u l a t i o n s , etc.) t h a t w i l l de te rmine t h e f u t u r e d e c i s i o n s made

by i n d u s t r i e s i n Ontar io .

Given t h e focus on b a r r i e r s and o p p o r t u n i t i e s , e v e r y e f f o r t was

made t o p i n p o i n t any t r e n d s , v i s i b l e o r subsu r face , which rnight

inc i ica te t h a t a s i g n i f i c a n t change i n t h e s ta te of r e d u c t i o n was

going t o appear i n t h e nea r f u t u r e , independent of any i n t e r -

v e n t i o n t h a t might be p lanned . : : i th in t h e t echno logy t r a n s f e r

p r o c e s s , t h e r e w i l l o f t e n bz a ' c a lm b e f o r e t h e storin ' - a p o i n t

where no s i g n i f i c a n t adop t ion of a new i d e a has y e t occu r red

v i s i b l y , b u t where f o r c e s have combined to b r i n g t h e i d e a t o t h e

t h r e s h o l d of widespread adopt ion . I n t h i s c a s e all t h a t i s

needed i s a l i t t l e t i m e ancl p a t i e n c e , a n d t h e new i d e a w i l l

b lossom of i t s own accoru.

T h i s i s no t t h e c a s e wi th s p e c i a l waste r e d u c t i o n i n On ta r io .

I J h i l e bo th t h e i d e a and t h e p r a c t i c e of r e d u c t i o n have yrown o v e r

t h e p a s t s e v e r a l y e a r s , w e a r e not a t t h e t l i r c s h o l d of widespread

6 0

adop t ion . I n o r d e r f o r the c u r r e n t slow pace of development t o

be a l t e r e d , t h e r e is no doub t t h a t s i g n i f i c a n t i n t e r v e n t i o n w i l l

be r e q u i r e d i n t h e removal of key b a r r i e r problems.

I n d i s c u s s i o n w i t h i n d u s t r y leaders, OIltlC i t s e l f was t h e o n l y

new f a c t o r i d e n t i f i e d a s p o t e n t i a l l y a l t e r i n g t h e c u r r e n t s ta te

o f r e d u c t i o n , a l t h o u g h r e f e r e n c e was o c c a s i o n a l l y made t o t h e

impact t h a t might be d e r i v e d from t h e B l u e p r i n t p rocess .

REGULATORY CIINJGE I S CENTRAL - An assumption was stated a t the o u t s e t of t h i s s t u d y t h a t b o t h

r e g u l a t i o n s and enforcement would con t inue , a s t h e y have i n p a s t

y e a r s , t o become more e f f e c t i v e a t minimizing improper t r e a t m e n t

and d i s p o s a l of i n d u s t r i a l s p e c i a l wastes. I J h i l e c r i t i c a l , t h i s

p o i n t s h o u l d n o t r e q u i r e e l a b o r a t i o n . Simply s t a t e d , i f in-

d u s t r i e s are a 1 lowed to c o n t i n u e f o l l o w i n g , w i t h o u t thought ,

o u t d a t e d w a s t e management procedures , t h e r e is l i t t l e i n c e n t i v e

f o r a s i g n i f i c a n t s h i f t t o a l t e r n a t e systems and technolocj ies .

. . . . . . .

I t i s p o s s i b l y less obv ious t ha t p u r s u i t of , r e g u l a t o r y change

i n i s o l a t i o n can p o t e n t i a l l y become coun te r -p roduc t ive .

Companies t h a t a r e f o r c e d i n t o a c o r n e r cannot a lways be expec ted

t o r e a c t i n t h e m o s t i d e a l manner. I f they a r e be ing t o l d t o

s t o p one p r a c t i c e when there is no v i a b l e a l t e r n a t i v e r e a d i l y i n

s i g h t , t h e y f e e l j u s t i f i a b l y t rapped . I n this c i rcumstance ,

where they w i l l l i k e l y view t h e r e g u l a t i n g body a s an a d v e r s a r y ,

it i s p o s s i b l e t h a t t h e i r judgement r e y a r d i n g the p a t h of l e a s t

r e s i s t a n c e (or l o w e s t c o s t ) w i l l n o t be t h e sanie a s t h e p a t h t h a t

t h e r e g u l a t i n g body (or OWMC) might p r e f e r t h a t t h e y take.

T h e a n a l o g y of the c a r r o t and t h e s t i c k a p p l i e s i n t h i s ca se .

61

P a r t i c i p a n t s i n the Reference Group p r o c e s s made s p e c i f i c cow

ments a b o u t t h e i r hope t h a t t h e y w o u l d no t s imply be r e g u l a t e d - t ha t c o n s i d e r a t i o n w o u l d be g i v e n t o some t y p e of c a r r o t

( f i n a n c i a l i n c e n t i v e s , t e c h n i c a l / i n f o r m a t i o n suppor t , or other

a s s i s t a n c e and guidance) .

I t is n o t s u r p r i s i n g t ha t i n d u s t r i e s would stress the nerd f o r

i n c e n t i v e s and o t h e r suppor t . I t is impor tan t t o n o t e that t h e r e

w a s a l s o g e n e r a l l y a r e c o g n i t i o n of t h e i n e v i t a b i l i t y of regu-

l a t o r y change. The main s u p p o r t w a s n o t f o r f a v o u r i t i s m b u t for

a b a l a n c e d and reasoned approach. That is , r e g u l a t o r y change

which i s t o occur is expec ted t o be phased i n t o reduce detr i -

men ta l impacts and be ba l anced w i t h i n c e n t i v e s f o r pu r su ing

r e d u c t i o n a l t e r n a t i v e s .

SUPPORT FOR OI7MC ACTION -- Feedback from t h e Reference Group p r o c e s s and o t h e r d i s c u s s i o n s

w i t h i n d u s t r y o f f i c i a l s i n O n t a r i o p r o v i d e s c l e a r e v i d e n c e t h a t

there is s u p p o r t for a n OlIiiC role i n r e d u c t i o n a c t i v i t i e s .

S p e c i f i c s u g g e s t i o n s r e l a t e d t o t h i s p o i n t were raised, and have

been i n c l u d e d i n t h e a n a l y s i s l e a d i n g t o t h e i d e n t i f i c a t i o n of

o p p o r t u n i t i e s and t h e recommendations i n t h i s r e p o r t .

CONCLUS IOl7S

1. I'any c o n d i t i o n s are now conve rg ing which p o i n t t o s i g n i f i c a n t

o p p o r t u n i t i e s i n the f i e 1 6 of waste reduc t ion . However, no

f o r c e s w e r e i d e n t i f i e d w h i c h can be expected, i n the s h o r t t e r m ,

6 2

t o v i s i b l y improve the s t a t e of waste r e d u c t i o n i n On ta r io .

S t r a t e g i c a c t i o n m u s t be t aken if c u r r e n t o p p o r t u n i t i e s are t o be

r e a l i z e d .

2.

a n i n c r e a s e i n w a s t e r e d u c t i o n , b u t should n o t be pursued i n

i s o l a t i o n . Companies f a c i n g c o n c r e t e and s i g n i f i c a n t barriers t o

waste r e d u c t i o n w i l l be f o r c e d i n t o a c o r n e r by s t r o n y r e g u l a t o r y

change under taken w i t h o u t 1mtcliintJ s u p p o r t and guidance.

Firmer r e j u l a t i o n s and i n c r e a s e d enforcement are c e n t r a l t o

3. I n d u s t r y r e p r e s e n t a t i v e s f e e l that Oi!flC could and s h o u l d be

i n v o l v e d i n encouraging spec ia l waste r e d u c t i o n . They f u r t h e r

f ee l t h a t there are specific and c o n c r e t e ways i n whicn 0:I::C can

f u l f i l l i t s mandate w i t h w a s t e r e d u c t i o n i n On ta r io .

1. OWIIC s h o u l d adop t a c e n t r a l r o l e i n the developrnent o f waste

r e d u c t i o n i n i t i a t i v e s i n Ontar io . A h igh p u b l i c p r o f i l e s h o u l d

be e s t a b l i s h e d : t o reach bo th the p u b l i c and i n d u s t r y : t o esta-

b l i s h the impor tance of w a s t e r educ t ion : t o s e r v e as a rmtchini;

component t o f a c i l i t y development w o r k and as a founda t ion for

subsequen t r e d u c t i o n program development.

2.

t a t i o n - s e l e c t i v e encouragement and s u p p o r t for i n d u s t r y -

ra ther t h a n direct i n t e r v e n t i o n . O:!I1C s h o u l d f i l l the v o i d t h a t

e x i s t s by s e r v i n g as a c a t a l y s t : i n d u s t r i e s and Soverniiients

s h o u l d c o n t i n u e t o f u l f i l l t he i r e x i s t i n g r e s p o n s i b i l i t i e s i n

The p r i m a r y a p p r o a c h i n t h i s r o l e s h o u l d b e o n e o r ' f a c i l i -

63

waste matiagrment.

3. Direc t a c t i o n s h o u l d a l s o be t aken where a p p r o p r i a t e , par t i -

c u l a r l y where no o t h e r p a r t y c a n r e a l i s t i c a l l y be expec ted t o

t a k e a c e r t a i n action or r e s p o n s i b i l i t y .

4. o\!llC s h o u l d e s t a b l i s h an ongoing r o l e i n p l a n n i n g and d e v e l o p

inent re la ted t o waste r educ t ion . C e r t a i n a c t i o n s may be h i y h l y

impor t an t , b u t n o t j u s t i f i a b l e a t t h i s t i r z e or w i t h o u t f u r t h e r

a n a l y s i s . An a c t i v e p l a n n i n g anC deve1op1nent s t a n c e w i l l be

r equ i r ed t o e n s u r e t h a t medium and l o n g range a c t i v i t e s are

h a n a l e d p rope r ly .

5. The s t u d y team reco:;unends f o u r key t a s k areas f o r a c t i o n .

( i ) Genera l Promotion of !Jaste Deduction: - OIJMC s h o u l d f o s t e r p u b l i c and i n d u s t r y awareness of the

impor tance (economic, envi roni i icn ta l ) of improved waste management

practices and t h e specif ic waste r e d u c t i o n o p p o r t u n i t i e s t h a t

c u r r e n t l y e x i s t i n Ontar io . Hecorninended a c t i v i t i e s are:

- Co-promote r e d u c t i o n a l o n g w i t h t h e coming f a c i l i t y v i a a

he igh tened prof i le w i t h i n d u s t r y and the p u b l i c ;

- Devel02 a reward (ai inual awards) for e x c e l l e n c e by i n d u s t r y ;

- Co-operate w i t h t h e M i n i s t r y of t h e i;nvironi:icnt i n v a r i o u s

proinotion and c ia rke t ing a c t i v i t i e s ;

- Adapt e x i s t i n g p u b l i c a t o n s - e.q. n e w s l e t t e r s - f o r u se a s

d i r e c t riiarketing tools :

- Focus d i r e c t marke t ing e f f o r t s on Trade A s s o c i a t i o n s and o t h e r

key i n d u s t r y networks.

6 4

(ii) Develop s p e c i f i c information/facilitation programs - and

mechanisms :

By meet ing s p e c i f i c i n fo rma t ion needs t h a t h a v e been i d e n t i -

f i e d , b a r r i e r s across a l l f o u r c a t e g o r i e s can be addressed.

Heconmended a c t i v i t i e s are:

Develop a r e s o u r c e bank as a c e n t r a l a c c e s s p o i n t f o r

t e c h n i c a l , economic, and o t h e r u s e f u l i n fo rma t ion ;

- Develop a series of i n d u s t r y - s p e c i f i c k i t s ( w i t h small

i n d u s t r y as t h e first and pr imary focus , and w i t h a component

o f s p e c i f i c t e c h n i c a l i n fo rma t ion ) ;

- Develop and d i s t r i b u t e s u p p o r t m a t e r i a l r e g a r d i n y w a s t e

a u d i t m e thodo 1 oy i e s ;

- Promote t h e use of e x i s t i n g w a s t e exchange, p o s s i b l y i n

c o n j u n c t i o n w i t h w a y b i l l systeins as point of i d e n t i f i c a t i o n ;

Develop program t o encourage a r o l e by mun ic ipa l governments

i n the o p e r a t i o n of l o c a l was te exchange and o t h e r s u p p o r t

s e r v i c e s ;

E v a l u a t e mechanisms by which i n i t i a l guidance can be p r o v i d e d

t o s p e c i f i c companies so t h a t t h e y l i n k t o and encourage t h e

growth o f was te r e d u c t i o n c o n s u l t i n g s e r v i c e s .

(iii) Develop a d i rec t a c t i o n program where i n t e r v e n t i o n i s

judged t o be a p p r o p r i a t e a t t h i s time:

- - -- ---

C e r t a i n i n t e r v e n t i o n and r e l a t e d a c t i v i t i e s can be implemented

i n t h e short term.

- Develop a s t r a t e g i c approach t o research and devclopment;

- A c t as a 'watch dog' i n r e l a t i o n t o e x i s t i n g and proposed

r e g u l a t i o n s ( i n c l u d i n g con t inued i n p u t t o the K i n i s t r y of t h e

6 5

Environment) ;

- P r o v i d e d i rec t a s s i s t a n c e r e g a r d i n g company a c t i v i t i e s such as

no c o s t / l o w c o s t measures (housekeeping) and was te a u d i t :

- Develop and ma in ta in a s t r a t e g i c and a c t i v e p e r s p e c t i v e on t h e

was te r e d u c t i o n irnpact of r e g u l a t i o n s .

( i v )

c a p a c i t y :

Develop and m a i n t a i n - a n a c t i v e p l a n n i n g - and development -

An ongoirig p r o c e s s of e v a l u a t i o n , d e c i s i o n and implementa t ion

w i l l be c r i t i c a l t o e n s u r e t h a t medium and long ranc;e grocjram

comlmnents are no t over looked . I’iiere are now p o t e n t i a l acti-

v i t i e s w h i c h are v e r y s i g n i f i c a n t , b u t w h i c h r e q u i r e f u r t h e r

a n a l y s i s o r c o n s i d e r a t i o n a t a l a t e r p o i n t . These a c t i v i t i e s

i n c l u d e :

- E s t a b l i s h m e n t of a province-wide funding p o o l ( R h D, c a p i t a l

support, o p e r a t i n g subs idy ) :

- F u r t h e r c o n s i d e r a t i o n of v a r i o u s t a x i n c e n t i v e s t o en-

courage and f a c i l i t a t e implementa t ion of r e d u c t i o n p r o c e s s e s

by i n d u s t r y :

- Develop a s p e c i f i c R h D coriiwnent: i d e n t i f i c a t i o n and

e v a l u a t i o n of c u r r e n t s t a t e , s u p p o r t f o r needed dernon-

s t r a t i o n s , a s s i s t a n c e i n the g r a d u a l commerc ia l i za t ion ;

- I d e n t i f y gaps t h a t may e x i s t : c o n s i d e r t h e c r e a t i o n of a

c e n t r a l i z e d t e c h n i c a l s u p p o r t team t o p r o v i d e d i rec t o n - s i t e

s u p p o r t where r e q u i r e d .

- Examine r e l a t e d poss ib i l i t i e s , s u c h as the impact of a

d i s p o s a l f e e l i n k e d t o r e d u c t i o n funding (re: H i n i s t r y

B l u e p r i n t ) .

6 6

- E s t a b l i s h a S tand ing Committee On Special I J a s t e Reduct ion

t o p r o v i d e i n p u t f r o m a b r e a d t h o f i n t e r e s t s o n c u r r e n t and

f u t u r e i n i t i a t i v e s . S e l e c t e d Reference Group p a r t i c i p a n t s

c o u l d s e r v e as a s t a r t i n g core membership for t h i s a d v i s o r y

committee t o t h e O n t a r i o Uas te tlanagement Corpora t ion .

67

' 1 RESEARCH SOURCES

Canadian Sources:

Alberta mv i romt B.C. Public Interest Research Group

Canadian E h v i m m t Law Research Foundation

Canadian Law Society

Conservaticm Council of New Brunswick

mvirolment Canada

h v i r u m t New Brunswick

E n v i r o m t Quebec

Mani toba Departmnt of the h v i r u m t

Ontario Ministry of the Env i romt

Ontario Waste Managemat Corp3ration

Stablex Canada

U.S. soures:

California Department of Health Services California Hazardous Waste Managemnt Council C l e v e l d : The Electroplating Prcgrm

Florida State university

Gidlands, Massachusetts

Janis Kobran, Hazardous Waste Rep3rt

Hennepin County, Minnesota Inform, New York City

Massachusetts Dspartwmt of h v i r u m n t a l Managent

National Conference of State Legislatures

Ruth d e Fries, National Research Council

New York hviromental Facil i t ies Coqmration

North C a r o l i n a Waste "agemznt Board

Russell Swag, 3M Corpration

U.S. E n v i m m t a l Protection Agency

Don Huisingh, University of North Carolina

other sources:

United Nations Environment Program

APPENDIX B

REFERENCE GROUP PARTICIPANTS The following companies agreed to take part in the Reference Group process. Contact names and interview dates are given.

Alcan Canada Products Ltd. (Guelph Works) Klaus Kuschke - Manager February 7, 1984

American Electroplaters Society Wally Wikaruk - Treasurer January 17, 1984

American Hot Dip Galvanizers Association Glen Nishimura - Marketing Director January 24, 1984

Association of Municipalities of Ontario Ken Cousineau - Policy Analyst February 1, 1984

Automotive Parts Manufacturers Association Denis DesRosiers - Director of Research January 16, 1984

Baxter Travenol Laboratories of Canada (Alliston) Harry Rempel - Plant Engineer February 15, 1984

Canadian Association of Re-Refiners Jack Marshall - Secretary/Treasurer February 1, 1984

Canadian Chemical Producers Association Doug Lisle - Technical Advisor January 20, 1984

Canadian Copper Brass Development Association Ray Wardell - Executive Director February 7, 1984

Canadian Organization of Small Business Ian Kennedy - Executive Director January 27, 1984

Chemical Salvage, Toronto Ken Wulff - Owner January 16, 1984

Eco-Tek, Pickerinq Craig Brown - Vice President February 6, 1984

Glidden Company, Toronto Ben Gonsko - Plant Manager January 31, 1984

Hanson Inc., Toronto Jim Hall - General Manager Equipment Division Janaury 17, 1984

Industrial Processing, Cambridge John Krebs - President February 17, 1984

Ontario Chamber of Commerce Elaine Roscoe - Assistant General Manager January 12, 1984

Ontario Trucking Association Brian Crow - Executive Director February 8, 1984

Pollution Control Association of Ontario Grant Mills - President February 1, 1984

Society of the Plastics Industry of Canada Ron Hayter - Executive Director January 24, 1984

The Canada Metal Company, Toronto Bill Jaine - Operations Manager February 1, 1984

X-Pert Metal Finishing, Burlington Brian Calver - Vice President January 31, 1984

Also Contacted:

The following were contacted because of their prior and on-going work in the field.

Canadian Environmental Law Association Virginia Adamson October 27, 1983 Moni Campbell January 25, 1984

Pollution Probe Colin Isaacs October 27, 1983

Other Contacts:

The following companies were invited to take part in the Reference Group process, but declined to do so or were unavailable for comment.

Canadian Die Casters Association Canadian Manufacturers Association Electrical & Electronic Manufacturers Association The Stanley Works, New Hamburg Viceroy Rubber and Plastics, Toronto

A P P E N D I X C

FILE ODPY

December 22, 1983

""

Dear B3:

I am wr i t i ng to reques t your assistance - along with r ep resen ta t ives of about 20 o t h e r indus t ry groups and a s s o c i a t i o n s - as we at Ontario Waste Management Corporation begin to develop programs which can he lp indus t ry reduce i n d u s t r i a l ar.d hazardous wastes.

As you may know, O W is a p rov inc ia l crown agency whose major task is t h e es tab l i shment of f a c i l i t i e s to treat and d ispose of industrial wastes s a f e l y . An a d d i t i o n a l part of our task, however, is to encourage ard assist indus t ry i n reducing the mount of waste which r equ i r e s treatment.

Industry is a l ready doing a great deal to reduce wastes, as ue reported i n a s tudy we released last spring en t i t l ed Waste Reduction Cppo r t u n i t i e s . That remrt. also descr ibed sam of the w a y s i n which O W C might f u r t h e r assist these e f f o r t s .

Your a s s i s t a n c e now w i l l he lp O W to select an appropr ia te role. asked Resource I n t e g r a t i o n Systems Limited (R.I.S.) of Toronto to ga ther mre i n f o m t i o n on "barriers" which p resen t ly i n h i b i t greater w a s t e reduct ion i n indus t ry . I a t t a c h a b r i e f desc r ip t ion of the s tudy o u t l i n e . A r ep resen ta t ive of R.I.S. w i l l be c a l l i n g you i n the next week or 90 t o d i s c u s s the project i n mre detail and seek your advice on appropr i a t e information sources.

Thank you i n advance f o r your a s s i s t ance . comnents, please d o n ' t hesitate to call me or Barry Mi tche l l , Director of Corporate Planning and Developnent.

-

We have

If you have any ques t ions or

Since re ly ,

Attachment

D.A. Chant Chairman and President

BARRIERS T O THE REDUCTION, RECYCLING, RECOVERY AND EXCHANGE OF SPECIAL WASTES IN ONTARIO

The primary purpose of the barrier study being conducted by Resource Integration Systems is to examine potential roles for The Ontario Waste Management Corporation t o encourage greater special waste reduction, recycling, recovery and exchange in Ontario. As part o f this project, KIS in consultation with OWMC staff, has identified a reference group o f approximately 20 individuals representing a cross section o f industry groups and associations. I t is our hope tlrat tliese selecled individuals can help guide the process o f OWMC‘s exercising its mandate in encouraging special wastc reduction in Ontario industry.

To date, the project teain has identified and described in broad tcriiis four major harrier areas. A summary o f this research follows:

b Economics otlrer factors tliat impact upon increased waste reduction. Tlierc are tliree siiecific factors which are being examined in this s tudy: tlie impacts o f current and future projected laiidfill costs: evaluation criteria for nun-production orientated industry investment (e.g. waste reduction tecliiiologics); and the suitability (if existing incentive programs available t o industry for waste ahatement. The project team is developing a series of models to help assess tlie potential impact o f chmges i n cad i (if these areas upon waste reduction activities within Ontario industry sectors.

b abatement technical infurination generally dues not adequately address plant specific situations. Current perceptions o f waste often result in nun-descrimination between various waste streams and tlius tlie loss o f potentially recoverable waste streams through the mixing of one stream with aiiotlier. The project team is both examining measures t o help overcome technical obstacles to was te reductioii (e.g. through greater source separation in industry) and assessing potential roles for OWMC t o ensure a matching of industry needs and research priorities.

b o f Ontario industry, tliere appear to be at least tliree areas wliere seriuus information gaps exist. Small waste generators often d o not see themselves as having special waste problems simply because individual quantities are small. Yet Paken collectively. their total waste generation is significant. Within large comp- anies waste reduction technology is nften inore appnipriately known as “process efficiency teclinology”. This ambiguity of terms hinders meaningful dialogue between interest groups and understates the reduction activity already underway. Finally, within the waste service industry (e.g. waste Iiaulers) waste exchange in particular has not yet been optimized. Concerns regarding confidentiality of innovative treatment processes appear to be an important obstacle to greater information sharing. The project team is assessing various information channels (e.& trade journals and local waste excliaiiges) which could he accessed and supported by OWMC to help address tliese information gaps.

b Regulations - Regulations regarding industrial waste tieatiiient and disposal liave increased dramat- ically in recent years. Although regulations themselves d o not prevent increased waste reduction, unclear regulations and unequal enforcement (particularly across municipalities) d o have the effect of discouraging efforts to reduce end-of-pipe waste. Tliere are also several “institutional” regulatory barriers to be examined (e.g. lack of incentives for using recycled materials). The project team is assessing potential regulatory measurers by lileans o f which OWMC can encourage greater waste reduction.

Economics are perceived by many in industry and gL,vcriiment alike to be central t o all

Technology .- Although waste streams are plant specific in type, cliaracter and viilunie, existing waste

Information - Despite the considerable waste reductiun activity already underway within segments

Our objectives in reviewing this work with a reference group (if experts in the field are three-fold:

e to assess the degree t o wlricli economic, technical, informational and regulatory barriers are forces against greater special waste reduction within specific industry groups (e.& primary metals, chemical manufacturing, metal finisliiiig and generic small businesses); t o discuss opportunities and possible means which can encourage greater waste reduction within industry; ti) help assess specific rules for OWMC in eiicouraging greater special waste reduction, recycling, recovery and exchange in Ontario.

0

We are aware that a great deal is already liappenitrg witliin industries of all sizes and sectors ill Ontario t o maximize greater special waste reduction measures. Our primary objective is t o see liow these efforts can be supported and extended even further. The final report For this project, to be completed early in 1984, will describe iii depth tlie findings froin tlris examination. It will d o so in a maliner which ensures the confidentiality of information provided.

APPENDIX D

BIBLIOGRAPHY

Battelle Columbus Division. A Preliminary Handbook on the Potential of Recycling or Recovery of Industrial Hazardous Wastes in New York State, for New York State Environmental Facilities Coruoration. Battelle Columbus Division. Columbus, Ohio, July, 1982.

British Columbia Public Interest Research Group. Citizen's Guide to Hazardous Wastes. Simon Fraser University, Burnaby, B.C., . 1983.

Business and Hazardous Waste Program - Phase IV. Volume 5, Par- ticipation and Education. Exeter, New Hampshire.

Canviro Consultants Ltd. and Simcoe Enqineerinq Limited. An In- ventory of L i q u i d and Special-Wastes for 'The Regional Municipality of Watcrloo. April, 1982.

Case, Charles D. Expanded Excluslons from Propcrcy 'l'axes for Pollution Atmtemcnt Equipment. North Carolina, 1982

Case, Charles D. "A Snail's Pace €or Waste Site Plans," Chemical Week. - April 20, 1983.

City of Winnipeg and Province of Manitoba. "An Update and Summary , of the 1981 Inventory of Hazardous Wastes Generated in the City of Winnipeg," a joint study by City of Winnipeg Water- works and Waste Disposal Division, and Province of Mani- toba Environmental Management Division. Winnipeg, Mani- toba, August, 1983.

Cleveland Area Development Corporation. The Electroplating Program. Cleveland, Ohio, 1983.

Committee on Land Disposal of Hazardous Wastes of the North Carolina Academy of Science. Carolina. Carrboro, North Carolina, May, 1983.

Managing Hazardous Wastes in North

Duke Environmental Center. "Resource Recovery and Disposal of Hazardous Waste: Technologies and Design," Honors Seminar sponsored by the Duke Environmental Center. Durham, North Carolina, January, 1981.

Environment Quebec. Les Dechets Dangereux. Quebec, 1983.

Estey, Melvyn K. and Robert G. Lutes. "Hazardous Waste in New Brunswick," for Environment ~.iew Brunswick. March, 1982.

Godavari, S. Norma. Hazardous and Special Waste: A Bibliography. Manitoba Environment Community Relations Branch, Winnipeg, Manitoba, 1983.

Hazardous Waste Management Committee. Hazardous Waste Management in Alberta. Alberta Environment, Edmonton, Alberta,l980.

Herndon, Roy C., editor. Proceedings of The National Conference on Waste Exchange. The Florida State University, Tallahassee, Florida, March 8-9, 1983.

Huisingh, Donald and Vicki Bailey, editors. Making Pollution Prevention Pay. Pergamon Press, Elmsford, New York, 1982.

Jackson, John and others. Chemical Nightmare. Between the Lines, Toronto, Ontario, 1982.

Kaler, Frank. "Statement of Frank Kaler to the Northeast Conference on Hazardous Waste," Portsmouth, New Hampshire, Oct. 24, 1979.

Lee, Betty Lou. "Coping with Chemicals," Hamilton Spectator.

Massachusetts Hazardous Waste Source Reduction Conference & EX- hibition. Boston, Mass., Oct. 13, 1983.

Ministry of the Environment. Proceedings: Liquid Industrial Wastes. Ontario Ministry of Health, Toronto, Ont., March, 1980.

Mudar, M.J. Overview of Six European Waste Management Facilities. New York State Environmental Facilities Corp., Albany, New York, 1982.

Mudar, M.J. and others. A Survey of Waste Exchange Programs. New York State Environmental Facilities, Corp., Albany, New York, 1981.

New York State Environmental Facilities Corporation. Industrial Materials Recycling Act: Annual Report. Albany, New York, 1982.

New York State Environmental Facilities Corporation. Industrial Materials Recycling Act: Second Annual Report. Albany, New York, 1983.

Office of Technology Assessment. "Waste Reduction Alternatives," Technologies and Management Strategies for Hazardous Waste Control. Washington, D.C., 1983.

Ontario Research Foundation and others. General Process Tech- nologies Studies. Prepared for the OWMC. Toronto, Ont., August, 1982.

Ontario Research Foundation and others. Waste Quantities Study. Prepared for the OWMC. Toronto, Ontario, August, 1982.

Ontario Research Foundation and others. Waste Reduction. Prepared for the OWMC. Toronto, Ontario, July, 1982.

Ontario Research Foundation and others. Waste Resuction Opportunities Study. Prepared for the OWMC. Toronto, Ontario. Jan., 1983.

Pollution Probe Foundation. Profit from Pollution Prevention. Pollution Probe Foundation, Toronto, Ontario, 1982.

Reid, Crowther & Partners Limited and Bissell & Associates. Hazardous Waste in Alberta: An Inventory & Review of Prac- tices and Technology. Prepared for Alberta Environment. Edmonton, Alberta, 1980.

Reid, Crowther & Partners Limited and Bissnell & Associates. Standards for Special Tax Treatment of Recycling and Resource Recovery Equipment and Facilities. North Carolina Dept. of Human Resources, June, 1976.

Resourze Integration Systems, "Industrial Waste Reduction Survev" For Environment Canada (Ontario Region), Toronto, 1982, Unpublished

Resource Integration Systems. "Transfer Station Survey" For Environment Canada (Ontario Region), Toronto, 1982. Unpublished

Sarokin, David. Source Reduction of Hazardous and Toxic Wastes: Obstacles and Incentives. Inform, Inc., New York, N.Y., 1983.

Sarokin, David. "Standards for Special Tax Treatment of Equipment and Facilities for Recycling, Recovering and Preventing Generation of Solid and Hazardous Waste.", 1981.

State of Minnesota Waste Management Boars. Hazardous Waste Cisposal Bargaining Co-00. Greg Lie, editor. Crystal, Minnisota, 1983.

State of North Carclina. Governor's Waste Management Board: Annual Report and Special Reports. Raleigh, North Carolina, 1982.

State of North Carolina. Report and Recommendations on Liability Issues in the Area of Waste Management. Governor's Waste Management Branch, editor. Raleigh, North Carolina,l983.

State sf North Carolina, Report of the Governor's Task Force on Waste Management. Ralelgh, North Carollna, 1981.

U.S. Environmental Protectlon Agency. Waste Exchanges: Background Information. Office of Water & Waste Management, Washington, D.C., Dec., i980.

World Environment Center. Contact: Toxics. Gulde to Specialists on Toxic Substances. Rlchard L. Penberthy, editor. World Environment Center, New York, New York, 1980.

Appendix E

Background Note

Factors In f luenc ing t h e Reduction Decision:

Economic Considerations and S t r a t e g i c Imp1 i c a t i o n s f o r OWMC

1. Factors A f f e c t i n g t h e Dec is ion t o Engage i n Reduct ion A c t i v i t y

1.1 Perceived I n t e r e s t - t h e Importance o f Economics

1.1.1 The Nature o f t h e Reduction Dec is ion

The d e c i s i o n t o engage i n r e d u c t i o n a c t i v i t y i s made when t h e f i r m

pe rce i ves t h a t i t i s i n i t s bes t i n t e r e s t s t o do so. I n genera l t h i s

means t h a t r e d u c t i o n a c t i v i t y must make economic sense f o r t h e firm.

What i n f l u e n c e s t h e economics o f r e d u c t i o n a c t i v i t y ? From t h e f i r m ' s

perspec t ive , r e d u c t i o n a c t i v i t y i s a s u b s t i t u t e f o r d isposa l . The

economic a t t r a c t i v e n e s s o f r e d u c t i o n h inges on a comparison between t h e

c o s t o f r e d u c t i o n and t h e c o s t o f d isposa l .

The f i r m w i l l cons ider under tak ing r e d u c t i o n a c t i v i t y i f t h e c o s t o f

r e d u c t i o n a c t i v i t y i s l e s s than t h e c o s t o f d isposa l . Using a r a t i o n a l

economic dec is ion-making framework, t h i s means t h a t t h e firm w i l l

i d e n t i f y r e d u c t i o n a c t i v i t y t o be economica l l y d e s i r a b l e i f , f o r t h e

economica l l y bes t r e d u c t i o n o p t i o n o r op t i ons :

N Ri d 'i c - i=l ( l t r ) i i = l ( l + r ) i

Where:

Ri = Cost o f r e d u c t i o n a c t i v i t y i n yea r i

Di = Cost o f d i sposa l a c t i v i t y i n yea r i

N = L i f e t i m e o f t h e r e d u c t i o n o p t i o n

r = D iscount r a t e se lec ted b y t h e f i r m .

- 2 -

That i s , t h e f i r m cons iders those r e d u c t i o n measures whose cos ts ( i n

present va lue terms) a re lower than t h e cos ts o f d isposa l .

t h e f i r m ' s d e c i s i o n i s almost never o f t h e " e i t h e r / o r " v a r i e t y .

r e d u c t i o n and d isposa l a c t i v i t i e s a re pursued by most f i r m s .

no t a m a t t e r o f whether r e d u c t i o n - o r d isposa l w i l l be u t i l i z e d , it i s a

ques t ion o f what mix o f r e d u c t i o n and d isposal a c t i v i t i e s makes bes t

business sense.

separates ou t t h e economica l l y a t t r a c t i v e r e d u c t i o n and d isposa l o p t i o n s

f rom the economica l l y u n a t t r a c t i v e ones.

I n r e a l i t y

Both

Thus it i s

F i g u r e 1 i l l u s t r a t e s t h e na tu re o f t h i s d e c i s i o n which

1.1.2 The Cost o f Reduction

As i n d i c a t e d i n F i g u r e 2 t h e major elements de te rm in ing t h e cos ts o f

r e d u c t i o n measures i n c l u d e :

, market va lue o f m a t e r i a l s saved

. r e d u c t i o n technology a v a i l a b l e

. i n t e r e s t r a t e s ( a p p l i c a b l e f o r c a p i t a l i n t e n s i v e measures)

. t a x t rea tment (eg., d e p r e c i a t i o n a1 lowed on c a p i t a l equipment)

. l a b o u r and r e l a t e d cos ts ( o p e r a t i n g cos ts assoc ia ted w i t h t h e measures)

government g r a n t s and subs id ies ( i f any) .

- 3 -

F igu re 1

I d e n t i f y i n g the F i r m ' s Economici M i x o f 3R and [ i isposdl Act.

Cost o f 4R A l t e r n a t i v e s

Revenue m e of Ma te r ia l s Which Are: - Sdved

- Recycled - Exchanged

c o s t - - Cap i ta l Cost - Operdt ing Cost

Cost of Permissable Disposdl A l t e r n a t i v e s

cos t __ - Cap i ta l Cost - Operat ing Cost - Transpor tat ion - Tipp ing Fee - Other

Econmic Eva lua t i on C r i t e r i o n (Net Present Waliie) .

4R A c t i v i t i e s Uhich a re Econanica l ly

A t t r a c t i v e

O i sposal A c t i v i t i e s Uhich d r e Ecananica l ly

A t t r a c t i v e

1 4R A i t i v i t i e s Uhich

d m Economical ly U n a t t r a c t i v e

Olsposdl A c t i v i t i e s Which d r v E c o n m l c d i l y

UnntLrdct ive I I

- 4 - F i g u r e 2

I n t e r e s t Rat?!.

FACTOR. AFFECTING REDUCTION COSTS

Government I Cost o f R e d u c t i o n G r a n t s f S u D s i d i e s A c t i v i t i e s

S t a t e of Reduct ion Technology

I n t e r e s t Rat?!.

Market Va lue o f M a t e r i a l s Saged

Through R e d u c t i o n

Government I Cost o f R e d u c t i o n G r a n t s f S u D s i d i e s A c t i v i t i e s

I

Tax T r e a t m e n i

Government G r a n t s I S u b s i d i e s

I n t e r e s t Rates

‘:1 Treatment Labour and R e l a t e d Costs

FACTORS AFFECTING DISPOSAL COSTS ___

D i s p o s a l Techno1 ogy

R e g u l a t i o n s . t n f orcement

P r a c t i c e s

I

- 5 -

Reduct ion c o s t s va ry w ide ly , depending upon t h e measure adopted,

( r e c y c l i n g , reduc t ion , exchange, etc.) and t h e n a t u r e o f t h e spec ia l

waste reduced. Reduction c o s t s can be:

. nega t i ve - measures where t h e va lue o f m a t e r i a l s saved exceeds t h e c o s t o f sav ing them (eg., r e c y c l i n g : see Campbell and Glenn, (1982) f o r a number o f examples)

. minimal - s imp le housekeeping measures, such as waste stream segregat ion, which f r e q u e n t l y c o s t v e r y l i t t l e t o implement

s i g n i f i c a n t - f o r example process changes which i n v o l v e expend i tu res on new c a p i t a l equipment (eg. see ORF (1983A and 19838)).

.

1.1.3 Cost o f Disposal - The Key Role o f Regu la t ion

As F igu re 2 i n d i c a t e s t h e f a c t o r s a f f e c t i n g t h e c o s t o f d isposa l i nc lude :

. r e g u l a t i o n s and enforcement

. t r a n s p o r t a t i o n c o s t s

. t i p p i n g fees

. i n t e r e s t r a t e s ( f o r d i sposa l op t i ons r e q u i r i n g a c a p i t a l investment )

. l a b o u r and r e l a t e d cos ts

There a r e a wide v a r i e t y o f d i sposa l o p t i o n s open t o t h e f i r m , f rom

s imp ly dumping i t s spec ia l wastes i n t o t h e environment t o h i g h l y

s p e c i a l i z e d containment, t r a n s p o r t a t i o n , t rea tment and d isposa l .

c o s t s o f these methods va ry w i d e l y f rom t h e no c o s t / l o w cos t , (eg.,

sewering un t rea ted wastes), t o t h e v e r y h i g h c o s t , (eg., expensive

containment, t r a n s p o r t a t i o n , t rea tment and d i sposa l ) .

The

What d i sposa l approaches w i l l a f i r m consider? Government r e g u l a t i o n s

' I

- 6 -

and t h e i r enforcement p l a y a c r i t i c a l r o l e i n de te rm in ing d isposa l cos ts .

The company w i l l s e l e c t from among those d isposal methods which

r e g u l a t i o n s pe rm i t ; u s u a l l y i t s p r e f e r r e d d isposa l o p t i o n s w i l l be t h e

l e a s t c o s t l y method which i s c o n s i s t e n t w i t h p r e v a i l i n g r e g u l a t i o n s and

t h e manner i n which they a r e enforced.

This e x p l a i n s why many low c o s t o r no c o s t r e d u c t i o n o p t i o n s may n o t be

pursued:

c o s t r e d u c t i o n o p t i o n s t o compete e f f e c t i v e l y .

t h e d i sposa l a l t e r n a t i v e may be j u s t t o o cheap f o r even low

- 7 -

1.1.4 S e l e c t i n g t h e Economical ly A t t r a c t i v e Opt ion - Other Cons idera t ions

The firm may n o t pursue a r e d u c t i o n o p t i o n even though i t i s economica l l y

a t t r a c t i v e . Reduct ion a c t i v i t i e s a r e f r e q u e n t l y more c a p i t a l i n t e n s i v e

than d i sposa l a c t i v i t i e s .

t h e more l i k e l y i t i s t h a t r e d u c t i o n op t i ons r e q u i r i n g s i g n i f i c a n t

c a p i t a l o u t l a y s w i l l be squeezed out. Th is i s p a r t i c u l a r l y t r u e f o r

sma l le r f i r m s w i t h fewer i n t e r n a l f i n a n c i a l resources.

The more l i m i t e d t h e f i r m ' s access t o c a p i t a l ,

The firm l a y i n g o u t money f o r waste r e d u c t i o n i s making a c o s t sav ing

investment. Some f i rms p lace a lower va lue on these investments than

t h e y do on " s t r a t e g i c " investments -- investments which inc rease market

share, o r p o s i t i o n t h e f i r m b e t t e r wi th respec t t o i t s compet i t ion .

these f i r m s s t r a t e g i c investments w i l l g e n e r a l l y ge t f i r s t c a l l on scarce

c a p i t a l resources, even i f t h e i r r e t u r n on investment i s somewhat lower

than t h e r e t u r n which a c o s t sav ing measure can earn.

Fo r

This means t h a t c o s t sav ing investments such as r e d u c t i o n may n o t be

i n i t i a t e d d e s p i t e be ing economical ly a t t r a c t i v e . Th is e f f e c t has been

e x t e n s i v e l y documented f o r energy conserva t ion investments, which l i k e

r e d u c t i o n measures, p r imar i l y e n t a i l c o s t sav ings (see A l l i a n c e t o Save

Energy, (1982)) .

- 8 -

1.2 Percep t ion vs. R e a l i t y - The Importance of I n f o r m a t i o n

N a t u r a l l y t h e f i r m cons iders o n l y those reduc t i on o p p o r t u n i t i e s which i t

knows e x i s t .

t r u l y e x i s t f r e q u e n t l y d i f f e r .

a c t u a l l y a v a i l a b l e t o t h e f i r m i s much g r e a t e r t han t h e range o f

a l t e r n a t i v e s which t h e f i r m a c t u a l l y perce ives e x i s t .

However, perce ived r e d u c t i o n o p p o r t u n i t i e s and those t h a t

Of ten t h e range o f r e d u c t i o n a l t e r n a t i v e s

Why i s t h i s t h e case?

r e d u c t i o n a r e wider . broader and f r e q u e n t l y r e q u i r e s p e c i a l i z e d knowledge

t o apply. They sometimes r e q u i r e d e t a i l e d in fo rmat ion about t h e

company's waste stream, as w e l l as knowledge about r e d u c t i o n techniques

and approaches t h a t have been attempted elsewhere.

U n l i k e d i sposa l op t ions , t h e p o s s i b i l i t i e s f o r

It takes t i m e f o r

i n f o r m a t i o n about new methods t o f i l t e r down t o p o t e n t i a l users.

takes t i m e f o r t r i e d and t r u e methods which have n o t been used elsewhere

t o become p a r t o f t h e f i r m ' s work ing understanding.

It

Thus f i r m s a r e f r e q u e n t l y under-informed about r e d u c t i o n o p p o r t u n i t i e s

a v a i l a b l e t o them. In fo rma t ion about r e d u c t i o n o p p o r t u n i t i e s does n o t

j u s t emerge and present i t s e l f t o t h e f i r m .

and adapted, sometimes a t cons ide rab le expense.

f i n d ou t about r e d u c t i o n o p p o r t u n i t i e s , and be a b l e t o devote t h e

i n t e r n a l resources necessary t o o b t a i n and i n t e g r a t e i n f o r m a t i o n about

them.

It must be a c t i v e l y sought

The f i r m must want t o

A p r e c o n d i t i o n f o r t h i s a t t i t u d e on t h e p a r t o f t h e f i r m i s t h a t

r e d u c t i o n a c t i v i t i e s must have a p o s i t i v e " p r o f i l e " i n t h e i n d u s t r y .

F i rms must be aware t h a t r e d u c t i o n measures a r e o f p o t e n t i a l i n t e r e s t t o

i

- 9 -

them. Generators o f spec ia l waste have t o t h i n k "au tomat i ca l l y " i n terms

o f reduc t i on o p p o r t u n i t i e s , i n the same way they n a t u r a l l y t h i n k o f

d isposa l a c t i v i t i e s -- namely, as a t e c h n i c a l l y l e g i t i m a t e , v i a b l e and

" n a t u r a l " way t o deal w i t h wastes.

- 10 -

2. B a r r i e r s t o F u r t h e r Reduct ion A c t i v i t y : An Econmic Perspec t i ve

2.1 The Cur ren t S i t u a t i o n

C u r r e n t l y a g rea t deal o f r e d u c t i o n a c t i v i t y i s t a k i n g p lace i n On ta r io

-- t h e f u l l range o f r e d u c t i o n a l t e r n a t i v e s a re b e i n g pursued, from

simple housekeeping measures th rough r e c y c l i n g and exchange.

a number o f s t u d i e s i n d i c a t e (ORF e t a l . (1983), Campbell and Glenn

(1982)) and as t h e i n f o r m a t i o n generated through t h e re fe rence group

process has demonstrated, t h e t e c h n i c a l p o t e n t i a l f o r r e d u c t i o n i s f a r

from being r e a l i zed.

However, as

What i s p reven t ing t h i s p o t e n t i a l from be ing implemented? One way o f

cons ide r ing t h e f a c t o r s which a r e i n h i b i t i n g t h i s a c t i v i t y i s i n terms o f

t h e b a r r i e r t ypo logy i d e n t i f i e d i n t h e t e x t o f t h e r e p o r t , namely:

. economics . i n f o r m a t i o n . r e g u l a t i o n . techno1 ogy

A way o f t h i n k i n g about these b a r r i e r s which i s c o n s i s t e n t w i t h t h i s

typo logy , and w i t h t h e d e c i s i o n framework presented i n s e c t i o n 1, and

which he lps t o o r d e r t h e b a r r i e r s f rom a p o l i c y pe rspec t i ve i n keeping

w i t h OWMC's resources and mandate, i s t o cons ider a l l r e d u c t i o n measures

as f a l l i n g i n t o two c a t e g o r i e s :

A: r e d u c t i o n measures which a r e c u r r e n t l y economical ly a t t r a c t i v e

B: r e d u c t i o n measures which a r e - n o t c u r r e n t l y economical ly

a t t r a c t i v e .

- 11 -

F igu re 3 shows how ca tegory A can i t s e l f be d i v i d e d i n t o two p o r t i o n s :

A l : r educ t i on a c t i v i t i e s which a r e economica l l y a t t r a c t i v e and which

a re c u r r e n t l y be ing implemented

A2: r e d u c t i o n a c t i v i t i e s which a re economica l l y a t t r a c t i v e b u t which

a re - not being implemented.

I n terms o f t h i s grouping, b a r r i e r s can be n a t u r a l l y organized i n t o two

ca tegor ies :

. b a r r i e r s t o moving a c t i v i t i e s from group A2 t o group A 1 -- t h a t i s , b a r r i e r s t o implementing r e d u c t i o n a c t i v i t i e s which a r e c u r r e n t l y economica l l y a t t r a c t i v e

b a r r i e r s t o moving a c t i v i t i e s from group B t o group A -- t h a t i s , b a r r i e r s t o making c u r r e n t l y uneconomic a c t i v i t i e s economic a1 1 y a t t r a c t i ve.

.

What are t h e b a r r i e r s which f a l l i n t o t h e f i r s t ca tegory? Fo l l ow ing t h e

d i scuss ion i n s e c t i o n 1 , t h e c h i e f f a c t o r s r e l a t e t o i n f o r m a t i o n and

f i nanc ing .

by a l l o f t h e f a c t o r s l i s t e d i n F i g u r e 2 -- f a c t o r s which c o n t r i b u t e t o

r e l a t i v e l y h i g h c o s t r e d u c t i o n and r e l a t i v e l y l ow c o s t d isposa l .

o r combinat ion o f these -- r e g u l a t i o n s and enforcement, technology

development, t a x t rea tment , t i p p i n g fees, e t c . -- can be viewed as a

b a r r i e r t o moving more r e d u c t i o n a c t i v i t y i n t o t h e "economical ly

a t t r a c t i v e " category.

The b a r r i e r s f a l l i n g i n t o t h e second ca tegory a re i n f l u e n c e d

Any one

How l a r g e a re these c a t e g o r i e s ?

a re t h e r e many r e d u c t i o n a c t i v i t i e s which are c u r r e n t l y n o t be ing

How b i g i s ca tegory A2, f o r example:

F i g u r e 3

Reduct ion A c t i v i t i e s - An Economic Typology

A. Reduct ion A c t i v i t i e s Which Are C u r r e n t l y Economica l l y A t t r a c t i v e

6.

I

r N

I

- Reduct ion A c t i v i t i e s Which Are Not C u r r e n t l y Economica l l y A t t r a c t i v e

A.2. Economica l l y A t t r a c t i v e A c t i v i t i e s Which Are Not C u r r e n t l y Being

Impl emented Being I m p l emented

- 13 -

undertaken d e s p i t e t h e i r economic a t t r a c t i v e n e s s ?

p r e c i s e answer t o t h i s ques t ion i s n o t poss ib le ; i n f o r m a t i o n on

o p p o r t u n i t i e s i s n o t a v a i l a b l e i n t h e k i n d o f d e t a i l necessary t o answer

t h i s .

A2 i s f a r f rom i n s i g n i f i c a n t .

smal l f i r m s i n p a r t i c u l a r , a r e under- informed about r e d u c t i o n a c t i v i t i e s .

Lack o f i n f o r m a t i o n i s n o t r e s t r i c t e d t o smal le r f i r m s ; t h e waste

r e d u c t i o n campaign undertaken b y t h e 3M Corpora t ion i n t h e U.S. d u r i n g

t h e 1970's revealed a l a r g e number o f c o s t e f f e c t i v e b u t u n u t i l i z e d waste

r e d u c t i o n o p p o r t u n i t i e s f o r t h a t l a r g e and s o p h i s t i c a t e d chemical

producer (see Soosag, " P o l l u t i o n Prevent ion Pays, t h e 3M Corporate

Experience", i n Hu is ingh (1982)).

i n O n t a r i o (Ki tchener-Water loo, f o r example) and o t h e r j u r i s d i c a t i o n s

A q u a n t i t a t i v e l y

However, evidence f rom a v a r i e t y o f sources suggests t h a t ca tegory

The re fe rence group process revealed t h a t

Exper ience f rom se lec ted case s t u d i e s

( e s p e c i a l l y t h e Un i ted S t a t e s ) demonstrates t h a t once t h e p r o f i l e o f

r e d u c t i o n a c t i v i t i e s i s r a i s e d and concer ted a t t e n t i o n i s p a i d t o

i d e n t i f y i n g and pursu ing a v a i l a b l e r e d u c t i o n o p p o r t u n i t i e s , a l a r g e

number o f c o s t e f f e c t i v e o p p o r t u n i t i e s a r e uncovered.

What about t h e o t h e r s e t o f b a r r i e r s ?

measures t h a t c o u l d be moved f rom ca tegory B i n t o category A?

p o t e n t i a l here i s t h e o r e t i c a l l y enormous. The t e c h n i c a l p o t e n t i a l fo r

r e d u c t i o n i s almost u n l i m i t e d -- i f economics were n o t a cons idera t ion ,

t h e volume o f waste l e f t f o r d i sposa l c o u l d be reduced many orders o f

magnitude. The r e l e v a n t ques t ions f rom a p o l i c y p e r s p e c t i v e then are:

How l a r g e i s t h e ca tegory o f

The

. how much can t h e encouragement o f such a s h i f t be j u s t i f i e d : ie., t o what e x t e n t i s r e d u c t i o n c u r r e n t l y overpr iced and d i sposa l underpr iced?

. t o what degree i s such a s h i f t a c t u a l l y l i k e l y t o take p lace:

- 14 -

. what a r e t h e fo rces and f a c t o r s a t work t h a t w i l l push measures from ca tegory 6 i n t o ca tegory A ( o r v i c e v e r s a ) ?

The f i r s t ques t i on i s a c e n t r a l concern o f environmental p o l i c y making i n

Ontar io. While OWMC i s o f course i n t e r e s t e d i n t h e answer t o t h i s

quest ion, i t has few o f t h e p o l i c y t o o l s a t i t s d i sposa l t o a c t d i r e c t l y

on t h e answer. For example, i f some s p e c i a l waste d i sposa l i s c u r r e n t l y

underpr iced (eg., because i t i s n o t be ing g iven env i ronmen ta l l y adequate

t rea tment be fo re o r d u r i n g d i s p o s a l ) , t h e remedy l i e s i n more s t r i n g e n t

r e g u l a t i o n s and/or enforcement.

c a p i t a l expend i tu res f o r some measures (eg., s imp le housekeeping) do no t

q u a l i f y f o r f a s t w r i t e - o f f s (eg., and no t c l a s s i f i e d as Class 24, 27 o r

2 9 ) , t h e remedy l i e s i n a l t e r i n g t h e t a x r e g u l a t i o n s and/or t h e i r

a d m i n i s t r a t i o n .

t i g h t e n i t s r e g u l a t i o n s and t o have Revenue Canada make s u i t a b l e changes

t o t h e Income Tax Act and i t s a d m i n i s t r a t i o n . But i n n e i t h e r case can

OWMC i t s e l f d i r e c t l y make t h e necessary changes.

O r i f reduc t i on i s ove rp r i ced because

OWMC can lobby t o have t h e M i n i s t r y of t h e Environment

Thus, OWMC w i l l n a t u r a l l y d i r e c t i t s a t t e n t i o n t o those i n i t i a t i v e s which

are l i k e l y t o o b t a i n t h e g r e a t e s t m i leage f o r i t , g i ven i t s mandate and

resources. From t h e d i s c u s s i o n i n s e c t i o n 1 i t should be c l e a r t h a t i t

w i l l be d i f f i c u l t f o r OWMC t o a l t e r t h e u n d e r l y i n g economics o f

reduc t ion .

a t t e n t i o n t o r e d u c t i o n economics -- as s e c t i o n 1 i n d i c a t e d , f avou rab le

economics a re a necessary ( though n o t always s u f f i c i e n t ) c o n d i t i o n f o r

reduc t ion . Economics i s t h e p r imary d r i v i n g f o r c e behind reduc t ions

imp1 ementati on.

This i s n o t t o suggest t h a t OWMC should no t pay c lose

- 15 -

It does suggest, however, t h a t i n terms o f t h e prospec ts and

p o s s i b i l i t i e s f o r s h i f t i n g measures from ca tegory B t o ca tegory A, OWMC

should d i r e c t more o f i t s a t t e n t i o n t o t h e second quest ion.

and f a c t o r s a r e a t work t h a t c o u l d push r e d u c t i o n measures from t h e

uneconomic ca tegory i n t o the economic one?

What fo rces

2.2 B a r r i e r S h i f t s and t h e Prospects f o r S i g n i f i c a n t Changes i n Reduct ion O p p o r t u n i t i e s i n t h e Near Fu ture

Since t h e Second World War t h e r e have been two impor tan t forces

i n c r e a s i n g t h e economic a t t r a c t i v e n e s s o f r e d u c t i o n a c t i v i t i e s f o r

s p e c i a l waste i n Ontar io.

The f i r s t and most impor tan t change has been t h e inc rease i n d isposal

c o s t s brought about by t h e t i g h t e n i n g o f environmental regu la t i ons . The

On ta r io Water Resources Act, t h e c r e a t i o n o f t h e On ta r io M i n i s t r y o f t h e

Environment, t h e Waste Management Act, and t h e c o n s o l i d a t i o n and

s t reng then ing of environmental l e g i s l a t i o n th rough t h e Environmental

P r o t e c t i o n Act, have a l l p rov ided a s i g n i f i c a n t encouragement t o

r e d u c t i o n by r e q u i r i n g more env i ronmen ta l l y a p p r o p r i a t e d isposal

p r a c t i c e s .

The second push came from i n c r e a s i n g c o s t o f raw m a t e r i a l s , e s p e c i a l l y

petrochemicals a f t e r 1973. This made recovery, r e c y c l i n g and exchange

much more economical ly a t t r a c t i v e f o r On ta r io spec ia l wastes.

It appears now t h a t On ta r io i s on t h e verge o f “a t h i r d wave” o f

r e d u c t i o n encouragement. Once again, a r e g u l a t o r y s h i f t appears t o be

- 16 -

t h e main impetus.

i t s i n t e n t i o n o f m o d i f y i n g O n t a r i o ' s approach t o waste management.

M i n i s t e r o f t h e Environment has s t a t e d t h a t waste management i s t h e

pre-eminent cha l lenge o f t h e 1980's ( B l u e p r i n t f o r Waste Management i n

Ontar io , (1983), p.69). The M i n i s t r y ' s r a t i o n a l e f o r t a k i n g an

i n i t i a t i v e i n t h e area i s concern about t h e environmental i m p l i c a t i o n s o f

c u r r e n t waste management p r a c t i c e s :

The O n t a r i o M i n i s t r y o f t h e Environment has announced

The

"The pas t t w e l v e years have seen a steady accumulat ion o f i n f o r m a t i o n and e x p e r t i s e f rom ou r own exper ience and t h e exper ience o f o thers , r e s u l t i n g i n more s o p h i s t i c a t e d waste management p rac t ices . It i s apparent t h a t a more i n t e n s i v e e f f o r t w i l l be neccessary t o b r i n g t h e M i n i s t r y ' s waste management programme up t o t h e same h i g h standards achieved by the a i r and water programme." ( B l u e p r i n t , (1983), p.59)

This concern has a l r e a d y mani fested i t s e l f i n t he c r e a t i o n o f OWMC.

However, t h e M i n i s t r y has n o t as y e t s e t t l e d on a l l t h e s p e c i f i c s o f i t s

new approach.

m a t t e r s i n i t s B l u e p r i n t (1983). It incorpora tes a number o f suggest ions

which would encourage r e d u c t i o n d i r e c t l y o r i n d i r e c t l y . These i n c l u d e :

It has i n d i c a t e d p r e l i m i n a r y i n t e n t i o n s on a number o f

. a r e v i s e d c l a s s i f i c a t i o n system f o r waste ( i n c l u d i n g a s p e c i a l ca tegory f o r recyc led wastes)

. a r e v i s e d w a y b i l l system

. p r o v i s i o n o f "perpetual care" f o r waste; i n c l u d i n g t h e p r o v i s i o n o f adequate f i n a n c i a l resources t o ensure t h e pe rpe tua l c a r e takes p l a c e

a c o n t i n u a t i o n i n t h e process o f c l o s i n g l o c a l l a n d f i l l s t o s p e c i a l waste d i sposa l

o r d e r t o encourage reduct ion.

.

. a spec ia l t i p p i n g f e e imposed on a l l wastes going t o d i sposa l i n

The i n t e n t i o n i s c l e a r l y t o t i g h t e n up on c u r r e n t waste d i sposa l

- 17 -

p r a c t i c e s . The e f f e c t w i l l be, i n p a r t a t l e a s t , t o encourage reduc t ion .

What impact w i l l t h i s s h i f t a c t u a l l y have on reduc t i on? How many

r e d u c t i o n measures w i l l be s h i f t e d from ca tegory B t o ca tegory A - t h a t

i s how much more r e d u c t i o n a c t i v i t y w i l l make economic sense?

It i s imposs ib le t o be p r e c i s e f o r two reasons. F i r s t o f a l l t h e na tu re

o f t h e r e g u l a t o r y s h i f t - - bo th t h e conten t o f t h e new r e g u l a t i o n s and

t h e in tended change i n enforcement p r a c t i c e -- a r e unc lear a t t h i s p o i n t .

The M i n i s t r y o f Environment remains engaged i n i t s c o n s u l t a t i o n s on t h e

B l u e p r i n t and has y e t t o put fo rward i t s p r e f e r r e d approach. It i s n o t

c l e a r what components o f t h e waste stream w i l l be a f f e c t e d nor i s i t

c l e a r how t h e y w i l l be a f fec ted .

Secondly, i n f o r m a t i o n on r e d u c t i o n p o s s i b i l i t i e s ( a t b o t h a disaggregated

and aggregated l e v e l ) i s n o t a v a i l a b l e .

waste c u r r e n t l y generated and on t h e r e d u c t i o n measures a v a i l a b l e t o deal

w i t h them a re inadequate.

The d e t a i l s on q u a n t i t i e s o f

Given t h e On ta r io government's i n t e n t i o n s , then, a s h i f t i n r e d u c t i o n

o p p o r t u n i t i e s w i l l t a k e place. Only i t s magnitude i s uncer ta in . Much

depends on t h e d e t a i l s o f t h e r e g u l a t i o n s implemented (eg., whether t h e r e

w i l l be a " s m a l l q u a n t i t i e s exemption", as c u r r e n t l y proposed). Th is i s

t i e d i n v e r y c l o s e l y w i t h t h e ques t i on o f t h e r o l e and a c t i v i t y o f OWMC

i t s e l f . It i s c l e a r t h a t t h e more s t r i n g e n t t h e r e g u l a t i o n s and t h e

enforcement c l i m a t e , t h e g r e a t e r w i l l be t h e s h i f t o f r e d u c t i o n

o p p o r t u n i t i e s i n t o t h e economica l l y a t t r a c t i v e category. For example,

- 18 -

t h e g rea te r t h e p o r t i o n o f O n t a r i o ' s l i q u i d waste which i s r e q u i r e d t o go

t o an OWMC-like f a c i l i t y , t h e g rea te r w i l l be t h e o p p o r t u n i t i e s f o r

economica l l y a t t r a c t i v e r e d u c t i o n a c t i v i t y .

What i m p l i c a t i o n s does t h i s have f o r OWMC's a c t i v i t y i n t h e r e d u c t i o n

f i e l d ?

As F i g u r e 4 i n d i c a t e s , a f t e r t h e i n t r o d u c t i o n o f r e g u l a t o r y change t h e r e

w i l l be an inc rease i n t h e number o f r e d u c t i o n a c t i v i t i e s which a r e

economica l l y a t t r a c t i v e . How many of these w i l l a c t u a l l y be implemented

and how q u i c k l y w i l l t h i s implementat iop take p lace?

A key i s s u e r e l a t e s t o t h e s p l i t between c a t e g o r i e s A 1 and A2.

As t h e d i scuss ion i n s e c t i o n 1 ind i ca ted , o b j e c t i v e economic

o p p o r t u n i t i e s do n o t a u t o m a t i c a l l y and immediately t r a n s l a t e i n t o

r e d u c t i o n dec i s ions . Lags a re normal. The adopt ion of new o p p o r t u n i t i e s

f r e q u e n t l y f o l l o w e d an "S" shaped ( l o g i s t i c s ) curve over t ime.

t h e p a t t e r n t y p i c a l o f t h e adopt ion o f many new p roduc ts o r

o p p o r t u n i t i e s .

This i s

F igu re 5 con ta ins two i l l u s t r a t i v e adopt ion p a t t e r n s f o l l o w i n g a

r e g u l a t o r y s h i f t .

r e d u c t i o n o p p o r t u n i t i e s migh t be adopted under a "business as usual"

scenar io.

r e d u c t i o n o p p o r t u n i t i e s which become economica l l y a t t r a c t i v e as a r e s u l t

o f t h e r e g u l a t o r y change.

o p p o r t u n i t i e s migh t be adopted.

t h a t would be reduced as a r e s u l t o f r e g u l a t o r y change -- t h e r e d u c t i o n

o p p o r t u n i t i e s a c t u a l l y adopted.

The t o p curve i n d i c a t e s t h e pace a t which new economic

The s t r a i g h t l i n e a t t h e t o p o f t h e diagram shows t h e

The curve shows t h e pace a t which these

The area under t h e cu rve shows t h e waste

. . . . . . . T o t a l Reduct ion P r o j e c t s Which a r e - Economical ly A t t r a c t i v e A f t e r Regu la to ry Change

- 19 - Figure 4

Economical ly A t t r a c t i v e Reduct ion P r o j e c t s : The E f f e c t o f A Regu la to ry Change Which Increases

t h e Cost o f Specia l Waste Disposal

I! Number and Magnitude of Ac t i v i t i es A f f e c t e d Depends Upon Nature and I n t e n s i t y o f Regu la to ry Change

- 20 - F igu re 5

The Implementation o f 3R Pro jec ts Which Became Economical ly

A t t r a c t i v e A f t e r d Regulatory Change Two Cases

Case I Reference Case: Na Special Programs

100% I

Percentage Imp1 emenred*

Lengih o f t ime : Per iaa Fo l l ow ing the l n t r a d u c t i o n o r Regulatory Change I Regul a tory 'change

In t roduced

Length o f t ime Per iaa Fo l l ow ing the l n t r a d u c t i o n or Regulatory Change

Po in t & i c h I I Regulatory Change

In t roduced

Case 2 The P o t e n t i a l Impact o f In format ion 6 Related Prourams

Length o f t ime : Per iod Fol lowing the I n t r o d u c t i o n 01 l iegulatory Change

Introduced

* Refers t o Percentage Implementation o f 4R A c t i v i t y Which Became

Note: Meant f o r I l l u s t r a t i v e Purposes Only. Magnitudes a re aypa the t i ca l

ECOnOmiCally A t t r a c t i v e Only d f t e r Regulatary Change

- 21 -

The slope o f t h e curve -- t h e r a t e a t which t h e new o p p o r t u n i t i e s a re

adopted -- depends on a v a r i e t y o f f ac to rs , i n c l u d i n g t h e r a t e o f

i n fo rma t ion t r a n s f e r .

newly a t t r a c t i v e o p p o r t u n i t i e s a v a i l a b l e t o them, t h e f a s t e r w i l l t h e

o p p o r t u n i t i e s be adopted.

The more q u i c k l y waste generators l e a r n about t h e

The lower h a l f o f f i g u r e 5 shows t h e hypothe t ica l impact o f a program

designed t o increase in fo rma t ion f l o w t o waste generators about reduc t ion

oppor tun i t i es . I t s e f f e c t i s t o increase t h e r a t e o f o p p o r t u n i t y uptake.

As demonstrated by t h e increased area under t h e curve, i t r e s u l t s i n a

g rea ter , and e a r l i e r , reduc t ion i n waste generation.

What t h i s suggests, there fore , i s t h a t t h e b a r r i e r s themselves w i l l

s h i f t . Some economic b a r r i e r s w i l l be removed, b u t i n fo rma t ion r e l a t e d

b a r r i e r s w i l l emerge. Without i n i t i a t i v e s t o remove these in fo rma t ion

b a r r i e r s t h e implementation o f t h e new reduc t ion o p p o r t u n i t i e s w i l l be

much slower.

i n t h e reduc t i on area.

Th is has impor tant i m p l i c a t i o n s f o r OWMC and i t s a c t i v i t y

- 22 -

3. O p p o r t u n f t i e s fo r Wllc I n i t i a t i v e s i n the Reduct ion Area: Sane S t r a t e g i c Cons idera t ions

3.1 The Nature o f t h e O p p o r t u n i t i e s f o r OWMC

OWMC has i n d i c a t e d an eagerness t o encourage r e d u c t i o n a c t i v i t y i n

Ontar io . The r e p o r t ' s a n a l y s i s o f b a r r i e r s t o increased r e d u c t i o n

suggests a s t r a t e g i c o r i e n t a t i o n f o r OWMC i n t h i s f i e l d .

Economic i n c e n t i v e i s t h e d r i v i n g f o r c e behind t h e adopt ion o f r e d u c t i o n

measures.

implement reduc t ion .

OWMC -- an o r g a n i z a t i o n w i t h o u t power t o impose environmental r e g u l a t i o n s

and w i t h o u t f i s c a l inducements ( t a x i n c e n t i v e s , subs id ies , e t c . ) a t i t s

d i sposa l -- t o a f f e c t d i r e c t l y t h e u n d e r l y i n g economics i n favour o f

reduc t ion .

a u t h o r i t y and resources t o make t h e changes.

d i r e c t impact.

Economic a t t r a c t i v e n e s s i s a p r e c o n d i t i o n f o r f i r m s t o

However, i t i s d i f f i c u l t f o r an o r g a n i z a t i o n l i k e

OWMC can use i t s i n f l u e n c e t o encourage those w i t h t h e

But i t can have l i t t l e

However, t h e r e a r e two over lapp ing , complementary o p p o r t u n i t i e s f o r OWMC.

C u r r e n t l y t h e r e a r e a number o f economica l l y a t t r a c t i v e r e d u c t i o n

o p p o r t u n i t i e s which a r e n o t be ing implemented, i n p a r t because o f

inadequate i n fo rma t ion .

measures which a r e t e c h n i c a l l y f e a s i b l e , b u t economica l l y u n a t t r a c t i v e .

Over t h e n e x t pe r iod , w i t h t h e i n t r o d u c t i o n o f a more env i ronmen ta l l y

s t r i n g e n t r e g u l a t o r y environment i n Ontar io , a p o r t i o n o f these measures

w i l l become economica l l y a t t r a c t i v e . Some o f them w i l l be adopted b u t a

number w i l l not , i n p a r t because o f inadequate i n f o r m a t i o n : t h e n a t u r e o f

t h e b a r r i e r s f o r these a c t i v i t i e s w i l l s h i f t from economics t o

There a r e a much l a r g e r number o f r e d u c t i o n

- 23 -

in fo rmat ion . This suggests two major o p p o r t u n i t i e s areas f o r OWMC:

1. Encourage t h e implementat ion o f reduc t i on o p p o r t u n i t i e s which a re c u r r e n t l y economica l l y a t t r a c t i v e b u t n o t be ing undertaken.

2. Acce le ra te t h e implementat ion o f r e d u c t i o n o p p o r t u n i t i e s which w i l l become economica l l y a t t r a c t i v e w i t h t h e changes i n O n t a r i o ' s r e g u l a t o r y environment.

How can OWMC undertake these two tasks?

in fo rma t ion - re la ted . The d i scuss ion i n Sec t ion 1 suggests a c t i v i t i e s

which:

Both o p p o r t u n i t i e s a r e

. Raise t h e o v e r a l l p r o f i l e o f r e d u c t i o n o p p o r t u n i t i e s : t h i s w i l l s t i m u l a t e f i r m s ' i n t e r e s t i n a c q u i r i n g i n f o r m a t i o n about r e d u c t i o n measures

- Make i n f o r m a t i o n on s p e c i f i c r e d u c t i o n o p p o r t u n i t i e s a v a i l a b l e ( e s p e c i a l l y f o r sma l le r f i r m s ) : t h i s w i l l h e l p i n t e r e s t e d f i r m s assess the p o t e n t i a l f o r r e d u c t i o n and implement a p p r o p r i a t e measures

OWMC can use i t s own v i s i b l i l i t y t o h e l p d ischarge t h e f i r s t o f these.

OWMC must make r e d u c t i o n o p p o r t u n i t i e s a c e n t r a l p a r t o f i t s "message".

It should be s t a t i n g a t every p o s s i b l e o p p o r t u n i t y t h a t d isposa l ( a t i t s

f a c i l i t y o r o t h e r s ' ) i s n o t t h e o n l y v i a b l e response t o t i g h t e n i n g

regu la t i ons .

How should OWMC deal w i t h t h e second a c t i v i t y ? I n p a r t by i t s e l f moving

t o ensure t h a t t h e i n f o r m a t i o n gap i s f i l l e d - by fund ing t h e p roduc t i on

o f i n f o r m a t i o n k i t s on s p e c i f i c r e d u c t i o n a p p l i c a t i o n s , f o r instance.

However, i t i s e s s e n t i a l t h a t OWMC use a l l o f t h e forces a v a i l a b l e t o

encourage the d i ssemina t ion o f i n fo rma t ion .

i s t o s t i m u l a t e " t h i r d p a r t i e s " t o p rov ide t h e miss ing i n f o r m a t i o n and

exper t i se . F i r m s (eg. c o n s u l t i n g eng ineers ) who can p rov ide t h e

An e f f e c t i v e way t o do t h i s

i

- 24 -

i n f o r m a t i o n on t h e b a s i s o f a m u t u a l l y rewarding arrangement w i t h waste

genera tors o f f e r a p o t e n t i a l l y powerful t o o l f o r bo th r a i s i n g t h e p r o f i l e

o f r e d u c t i o n and i n f i l l i n g t h e i n f o r m a t i o n gap.

Experience i n t h e U.S. w i t h RCRA suggests t h a t t h i s development i s

c r i t i c a l t o ensu r ing t h a t t h e r e d u c t i o n o p p o r t u n i t i e s c rea ted by t h e

t i g h t e n i n g r e g u l a t i o n s a re a c t u a l l y implemented (see Palmer, "Chemical

Recyc l ing : Making i t Work, Making i t Pay" i n Hu is ingh (1982)). Firms

w i t h t h e business m o t i v a t i o n t o market and d e l i v e r r e d u c t i o n

o p p o r t u n i t i e s may be t h e most e f f e c t i v e v e h i c l e f o r d i ssemina t ing

i n f o r m a t i o n and e x p e r t i s e . OWMC should ensure t h a t i t s r e d u c t i o n

encouragement i n i t i a t i v e s embody t h i s perspec t ive .

f a c i l i t a t e t h e development o f t h i s k i n d o f f i r m wherever poss ib le .

OWMC should seek t o

- 25 -

3.2 The Importance o f Timing

Since one o f t h e key o p p o r t u n i t i e s f o r OWMC t o a s s i s t i n t h e promotion o f

r e d u c t i o n w i l l emerge o n l y w i t h r e g u l a t o r y change, should no t OWMC w a i t

u n t i l t h e changes a r e implemented be fo re i t undertakes s i g n i f i c a n t

a c t i v i t y ?

r e d u c t i o n ' s p r o f i l e and t o f i l l s p e c i f i c i n f o r m a t i o n gaps th rough a

v a r i e t y o f measures ( s p e c i f i c recommendations a re conta ined i n t h e

r e p o r t ' s main body).

There a r e two major reasons f o r OWMC t o beg in now t o r a i s e

These reasons are:

1. A c t i v i t y now w i l l h e l p t o remove t h e b a r r i e r s f o r those

r e d u c t i o n measures which c u r r e n t l y make economic sense b u t

which remain on t h e s h e l f f o r l a c k o f i n fo rma t ion . Thus

immediate OWMC a c t i v i t y can be j u s t i f i e d , even i f On ta r io

implements no f u r t h e r r e g u l a t i o n - r e l a t e d changes.

2. A c t i v i t y now by OWMC w i l l acce le ra te t h e response t o t h e

r e g u l a t o r y s h i f t when (and even b e f o r e ) i t i s a c t u a l l y

implemented. I n f o r m a t i o n l a g s t a k e t ime t o overcome. By

r a i s i n g t h e p r o f i l e o f reduc t i on , by t a l k i n g about r e d u c t i o n as

a v iab le , c o s t e f f e c t i v e response t o more s t r i n g e n t

r e g u l a t i o n s , and ( i n coopera t ion w i t h t h e M i n i s t r y o f t h e

Environment) by e x p l a i n i n g t h e n a t u r e o f t h e r e g u l a t o r y s h i f t

and OWMC's r o l e i n it, OWMC w i l l ensure t h a t r e d u c t i o n

o p p o r t u n i t i e s a r e implemented more q u i c k l y .

begins i t s s t i m u l a t i o n o f reduc t ion , t h e more w i l l t h e cu rve i n

t h e lower h a l f o f F igu re 5 s h i f t upward and t o t h e l e f t . The

more pronounced t h i s s h i f t , t h e more e a s i l y w i l l OWMC be a b l e

The e a r l i e r OWMC

- 26 -

t o undertake i t s waste disposal r e s p o n s i b i l i t i e s successful ly .

The f o l l o w i n g sect ion discusses t h i s p o i n t i n more d e t a i l .

- 21 -

3.3 A Ra t iona le f o r OWMC Involvement i n Encouraging Reduct ion

Why should OWMC be i n t e r e s t e d i n beg inn ing now t o encourage r e d u c t i o n i n

On ta r io?

general i n nature, and do n o t d i r e c t l y r e l a t e t o OWMC's mandate.

f i r s t o f these i s environmental. It almost always makes b e t t e r

environmental sense t o reduce wastes r a t h e r than d ispose o f them -- regard less how s o p h i s t i c a t e d and e f f e c t i v e t h e d i sposa l method a v a i l a b l e .

There a r e reasons f o r encouraging r e d u c t i o n a c t i v i t y , which a r e

The

The second o f these i s economic and r e l a t e s t o t h e i n d u s t r i a l h e a l t h o f

Ontar io .

e f f e c t i v e way t o respond t o environmental r e g u l a t i o n s . F i rms which

q u i c k l y adopt t h e economica l l y sound approach ( r a t h e r than more c o s t l y

d i sposa l o p t i o n s ) w i l l be i n a much b e t t e r p o s i t i o n t o compete

e f f e c t i v e l y and s u r v i v e economical ly.

some o f O n t a r i o ' s sma l le r i n d u s t r i a l concerns which a r e c u r r e n t l y

economical ly marg ina l .

hav ing access t o t h e e x p e r t i s e necessary t o implement them may enable

some o f these f i r m s t o con t inue opera t i ons r a t h e r than shut down.

I n many ins tances r e d u c t i o n o p p o r t u n i t i e s a r e - t h e c o s t

Th is i s e s p e c i a l l y r e l e v a n t f o r

Having knowledge o f r e d u c t i o n o p p o r t u n i t i e s , and

There a r e a l s o sound reasons from OWMC's pe rspec t i ve as a waste d i sposa l

agency.

perce ived t o be a c t i n g s e r i o u s l y , t hen i t s t a s k o f s i t e s e l e c t i o n may be

f a c i l i t a t e d somewhat.

I f OWMC a c t s s e r i o u s l y t o promote reduc t i on a c t i v i t y , and i s

The i m p l i c a t i o n s f o r OWMC's f a c i l i t y o p e r a t i o n a r e much more impor tan t .

As t h e t o p h a l f o f F igu re 5 shows, a "business as usua l " scenar io would

r e s u l t i n a gradual phasing i n o f r e d u c t i o n o p p o r t u n i t i e s a f t e r t h e

- 28 -

i n t r o d u c t i o n o f a r e g u l a t o r y change.

r e l a t i v e l y l o n g p e r i o d d u r i n g which OWMC would be faced w i t h a h i g h

demand f o r waste d i sposa l serv ices . The requirement f o r waste se rv i ces

would then drop.

Other t h i n g s equal, t h i s means a

Compared w i t h t h e l ower h a l f o f F i g u r e 5, t h i s means a much l o n g e r p e r i o d

o f h i g h demand f o r waste d i sposa l serv ices .

"good f o r business" f o r OWMC. I n r e a l i t y t h i s k i n d o f scenar io c o u l d

have a seve re l y n e g a t i v e economic impact on OWMC's opera t ion .

be r e q u i r e d t o b u i l d much l a r g e r f a c i l i t i e s t o accommodate t h i s l a r g e

volume i n t h e e a r l y pe r iod . The f a c i l i t y would be ove rs i zed t o handle

t h e volumes generated over t h e l onger te rm and would c o n s t i t u t e an

economic burden.

A t f i r s t g lance t h i s l o o k s

OWMC c o u l d

What about t h e lower h a l f o f F i g u r e / 5 ?

o f problem, even w i t h t h e implementat ion o f a program t o s t i m u l a t e

reduc t i on?

t h a t e a r l y implementat ion (p reced ing r e g u l a t o r y implementat ion) r e s u l t s

i n lower volumes r i g h t f rom t h e s t a r t .

r e l a t i v e l y h i g h volumes makes t r a n s i t i o n a l arrangements more v i a b l e -- s to rage f o r l a t e r p rocess ing , o r t h e gradual phasing i n o f r e g u l a t i o n s ,

f o r example.

l a r g e r f a c i l i t y .

Does n o t OWMC face t h e same k i n d

The f i r s t t h i n g t o no te i s t h a t t h e problem i s reduced i n

Also, t h e s h o r t e r p e r i o d o f

Th is k i n d o f arrangement c o u l d o b v i a t e t h e n e c e s s i t y f o r a

This suggests a s t r o n g economic m o t i v a t i o n f o r OWMC t o encourage t h e

adopt ion o f r e d u c t i o n measures " e a r l y and o f t e n " d u r i n g t h e p e r i o d

l e a d i n g up t o t h e es tab l i shmen t o f i t s f a c i l i t y . However, i s t h e r e a

- 29 -

c l e a r i n c e n t i v e f o r OWMC t o continue t o encourage reduct ion once i t i s

a c t u a l l y opera t ing a waste processing and disposal f a c i l i t y ?

- 30 -

3.4 OWMC's Long Term Role i n Encouraging Reduct ion

I n t h e p e r i o d b e f o r e i t beg ins o p e r a t i n g i t s f a c i l i t y , OWMC has t h e c l e a r

i n c e n t i v e t o encourage reduc t ion . Once OWMC i s a f u l l y - f l e d g e d opera tor ,

however, t h i s i n c e n t i v e may evaporate.

i n i t s b e s t i n t e r e s t s t o d iscourage f u r t h e r r e d u c t i o n a c t i v i t y .

Indeed OWMC may f i n d t h a t i t i s

How could t h i s occur? The more s t r i n g e n t t h e revenue requirement which

i s imposed upon OWMC, t h e s t r o n g e r w i l l be t h e pressure on i t t o market

i t s waste d i sposa l s e r v i c e s a c t i v e l y and aggress ive ly . I n t h i s s i t u a t i o n

encouraging r e d u c t i o n means d iscourag ing t h e f l o w o f waste d i sposa l

a c t i v i t y , and thus revenue, t o OWMC.

expected t o a g g r e s s i v e l y encourage r e d u c t i o n ?

Can an agency i n t h i s p o s i t i o n be

The i n t e n s i t y o f t h e economic pressure on OWMC w i l l i n l a r g e p a r t be

determined b y t h e revenue requi rement imposed on i t b y t h e government.

An overs ized f a c i l i t y would exacerbate t h i s pressure.

OWMC should beg in now t o cons ider t h e i m p l i c a t i o n s of t h e c o n f l i c t which

may a r i s e i n t h e l o n g e r term.

c o n f l i c t i s t o min imize t h e revenue pressure on t h e Corporat ion.

i s n o t p o s s i b l e , t h e Corpora t ion w i l l need t o deal w i t h t h e m a t t e r

d i r e c t l y -- perhaps b y c r e a t i n g a s p e c i a l "arm's l e n g t h " v e h i c l e o r b y

d i v e s t i n g i t s e l f o f r e s p o n s i b i l i t y f o r r e d u c t i o n encouragement.

o f o p t i o n s appear p o s s i b l e .

issue, which i s o f l o n g e r te rm concern, t h e g r e a t e r w i l l be t h e range o f

o p t i o n s open t o it.

One way t o m i t i g a t e t h i s p o t e n t i a l

I f t h i s

A number

The e a r l i e r OWMC t a k e s s teps t o address t h i s

Selected References

A l l i a n c e t o Save Energy, T h i r d P a r t y Financing: I nc reas ing Investment i n Energy E f f i c i e n t I n d u s t r i a l P ro jec ts , pub l i shed by A l l i a n c e t o Save Energy, Nov. 1982

Campbell, M.E. and W.M.Glenn, P r o f i t from P o l l u t i o n Prevent ion, pub l i shed by P o l l u t i o n Probe Foundation, 1982

Huisingh, D. & V.Bailey, Making P o l l u t i o n Prevent ion Pay, pub l i shed by Pergamon Press Inc., 1982

Moo i j , H. & Asso. Ltd., Chemicals I n d u s t r y ( I n o r g a n i c ) I n d u s t r i a l Waste Reduction/Reuse, p r e l i m i n a r y d r a f t r e p o r t f o r t h e Environmental P r o t e c t i o n Service, Feb. 1983

I n d u s t r y I n c l u d i n g P l a s t i c s Resin and Elastomer Manufactur ing, p r e l im ina ry d r a f t r e p o r t , March 1983

Mooi j , H. & Asso. l td . , Waste Reduction/Reuse i n the Organic Chemicals

Ontar io M i n i s t r y o f t h e Environment, B l u e p r i n t f o r Waste Management i n On ta r io , June 1982

Ontar io Research Foundation, I n d u s t r i a l Waste Prevent ion : An Assessment and Demonstrat ion Programme i n t h e Region o f Waterloo Proposal No.

a P-3988/1, ORF Report No. 83 - 05, 1983

Ontar io Research Foundation, I n d u s t r i a l Waste Prevent ion: An Assessment and Demonstrat ion Programme i n t h e Region o f Waterloo Proposal No. 7-398811 1 9

Ontar io Research Foundation e t a l , Waste Reduction Oppor tun i t i es Study, May 1983

Proc to r & Redfern Ltd, e t a l , Waste Q u a n t i t i e s Study On ta r io Waste r a t i o n , August 1982

Sarokin, D., "Source Reduction o f Hazardous and Toxic Wastes: Obstacles and I n c e n t i v e s "

U.S. Congress, Technologies and Management S t r a t e g i e s f o r Hazardous Waste Con t ro l , U.S. OTA Report OTA-M-196, pp141-156, March 1983