New York Gov. Kathy Hochul has proposed introducing an extended producer responsibility (EPR) program in an effort to address increasing amounts of recyclable products ending up in state landfills.

In her 2022 State of the State address, Hochel claims the solid waste industry accounts for 12 percent of New York’s greenhouse gas emissions. In addition, she says the state has been recycling less each year since 2021, while seven million tons of paper and packaging waste are produced each year.

Under the proposed EPR program, manufacturers will be responsible for managing their products and packaging at the end of their useful lives—meaning taxpayers wouldn’t pay for recycling anymore.

Hochel also notes that EPR will encourage producers to “reduce waste, invest in recycling infrastructure, make products that are easier to recycle and support a circular economy,” reports News10 ABC. In doing so, this could help struggling municipalities that can’t afford the costs of recycling, she adds.

As of now, only two states have successfully passed EPR legislation. Oregon became the second state to pass a law establishing EPR for packaging Aug. 6, 2021, just behind Maine, which passed similar legislation July 12, 2021.

This time last year, a number of material recovery facilities (MRFs) reported a decline in the volume and quality of incoming material largely because of the impact of the coronavirus pandemic on commercial generation and labor, with fewer workers meaning MRF operators were able to pay less attention to details. Despite the ongoing pandemic and labor shortage, many MRFs are reporting a steady increase in material quality—an encouraging sign as typically the holiday season typically yields the opposite.

“Our whole industry is struggling with a shortage of employees ... you’re going to have a change because of that,” says Shannon Dwire, president of Millennium Recycling Inc., a single-stream MRF based in Sioux Falls, South Dakota. “People that are delivering sorted goods may not be sorted as well because they don’t have the sorting staff. The garbage haulers that deliver material, for example, have [a] shortage of drivers that are not able to kind of police loads like you would hope.

“The mills so far have been pretty good about it,” she adds. “I think everybody’s in the same boat … there’s a little give and take, and the mills are pretty forgiving, too, because they need the material.”

The holiday season brings an abundance of old corrugated containers (OCC) on top of the already high levels seen during the pandemic because of the bigger shift to online shopping, a MRF operator based in the Midwest says, but a steady return to the workplace has created a recent increase in mixed paper as well.

He says it's a welcome change after stay-at-home orders resulted in very little mixed paper generation, and the increase is bigger than many in the industry would have predicted at this point.

“We’re seeing a return to work, [more people] back to the office, thus the commercial sector is reaching prepandemic levels but still 20 or 30 percent below those levels,” he says. “It has been at 50 percent, [but] it’s slowly working its way back."

He adds, “We’re seeing an increase in generation more specifically from the commercial sector from big office buildings much more than we had speculated. It went off the cliff when the pandemic hit. That was a near-disaster for our recyclers who are predicated on commercial single-stream recovery.”

The use of advanced sorting technology has upped finished bale quality, but a second MRF operator in the Midwest says it’s still difficult to keep up, particularly with staffing shortages at so many facilities.

Although mixed paper generation has increased recently, it still has not fully recovered to prepandemic levels, and the MRF operator says that with less mixed paper currently in the stream than in years past, the decreased quality becomes more noticeable. “With people, which are a very tough commodity right now, we average about 2 percent contamination. That standard really is tightening up.”

The increased supply of mixed paper has resulted in a continued decline in price, and a mill buyer based in the South says it’s resulted in overbuying because buyers “can just about name their price.”

“It’s now a buyer’s market,” she says. “[The supply is] out there. … Pricing is coming down. Premiums are coming down. When you get at capacity, you have no space to bring tons in. When the market gets sloppy like it is today, will I tend to overbuy because I can get it cheaper? That’ll tend to happen.

“It’s kind of like going to the store and seeing something on sale and buying it whether you need it or not," she adds. "You hate to turn it down. That’s what happens in this kind of market.”

But the higher mixed paper quality and increased generation have given many in the industry some hope for more market stability in 2022.

The second MRF operator based in the Midwest says, “It’s been a rollercoaster these last three years. Coming from some of our lowest of lows, charging customers to bring recycling in. … We’re seeing our highest of highs in a short time period, some market correction this last month or two. I think everyone would love to see a steady market that’s sustainable for recyclers. Recycling costs a lot of money, but we can do it economically.”

As planning begins for the 2022 conference season, meaningful programming and worthwhile conversation are at the forefront of the Recycling Today Media Group’s mind. This year, we’d like to hear from readers on which topics they hope to see on the agenda at our fall events. The Paper & Plastics Recycling Conference is scheduled for Oct. 19 – 20 and the MRF Operations Forum will be held Oct. 18, both in Chicago.

If there’s a topic you think the industry should be discussing, let us know! Use the links below to submit your ideas for each event.

Paper & Plastics Recycling Conference
MRF Operations Forum

For programming questions, please email Lauren Rathmell, Conference Producer at lrathmell@gie.net.

We’re excited to hear from you! 

RoadRunner Recycling of Pittsburgh has announced the closing of a $70 million Series D investment BeyondNetZero, the climate investing venture of growth equity firm General Atlantic, bringing RoadRunner’s total funding to date to $129.5 million. 

RoadRunner says it has diverted more than 200,000 tons of material from landfills across more than 8,000 locations, saving its customers more than $50 million. The company’s technology platform predicts the volumes of different materials that are generated by different industries and which containers will most efficiently organize these waste and recycling streams. This enables RoadRunner to offer a customized plan that helps streamline waste and recycling operations across a portfolio, the company says, improving recycling rates and making sustainability goals measurable and achievable while also reducing costs and improving service.

With the Series D financing, RoadRunner, which was founded in 2014, says it will further develop its machine-learning and marketplace technology, grow its enterprise business offering, drive national expansion and support operations in more than 40 U.S. cities.

“We’re grateful for General Atlantic’s partnership and investment in our mission of developing an innovative and sustainable materials management company built on high-quality technology,” says Graham Rihn, CEO and founder of RoadRunner Recycling. “We believe that this next stage of growth will put RoadRunner on a course to achieve its vision of propelling the entire waste industry toward enduring change that protects our planet and our futures.”

“We founded BeyondNetZero to support innovative growth companies that are producing practical, tech-enabled climate solutions—like RoadRunner—and help them scale so they can accelerate the net-zero transition,” says Michael Bevan, the New York-based managing director on the BeyondNetZero team at General Atlantic. “We are thrilled to partner with RoadRunner and its management team as they strive to make sustainable waste management more affordable and achievable for businesses across the globe.”

Rihn says RoadRunner has considerable opportunity for growth. “Oftentimes, waste—and the mismanagement of it—can be an issue that flies under the radar for companies. But with the $80 billion industry reaching a tipping point from lack of innovation for decades, we’re here to show folks there is a better, more efficient way to manage materials and divert waste from landfills while keeping the planet, and your business, top of mind.” 

About RoadRunner Recycling

RoadRunner Recycling is on a mission to elevate recycling in a world dominated by waste. The company provides customized and sustainable materials management solutions, supported by technology and engineered to serve thousands of commercial businesses from more than 20 industries across the country. RoadRunner leverages its proprietary technology and expertise to boost cost savings, improve recycling rates, streamline waste operations, and deliver an unparalleled customer experience that drives sustainability for the waste industry, and our world, forward. For more information on RoadRunner and its services visit: 

About BeyondNetZero 

The BeyondNetZero team seeks to invest in growth companies delivering innovative climate solutions and aims to help them achieve scale. BeyondNetZero looks to identify companies that have the potential to meet and exceed net zero emissions targets, with a focus on decarbonization, energy efficiency, resource conservation and emissions management. BeyondNetZero combines General Atlantic’s growth equity experience with a global team of proven climate investors, advisors and industry executives, including Lord Browne of Madingley, who serves as Chairman of BeyondNetZero. This diverse team of experts brings decades of experience in both addressing climate-focused problems and building pioneering growth companies. For more information on BeyondNetZero, please visit the website: https://beyond-net-zero.com/

About General Atlantic

General Atlantic is a leading global growth equity firm with more than four decades of experience providing capital and strategic support for over 445 growth companies throughout its history. Established in 1980 to partner with visionary entrepreneurs and deliver lasting impact, the firm combines a collaborative global approach, sector specific expertise, a long-term investment horizon and a deep understanding of growth drivers to partner with great entrepreneurs and management teams to scale innovative businesses around the world. General Atlantic currently has over $86 billion in assets under management inclusive of all products as of September 30, 2021, and more than 215 investment professionals based in New York, Amsterdam, Beijing, Hong Kong, Jakarta, London, Mexico City, Mumbai, Munich, Palo Alto, São Paulo, Shanghai, Singapore and Stamford. For more information on General Atlantic, please visit the website: www.generalatlantic.com.