HD5 - Annual Report of the Virginia Recycling Markets Development Council


Executive Summary:
The legislation establishing the Virginia Recycling Markets Development Council requires the Council to report annually to the Governor and the General Assembly on its findings and recommendations. This Annual Report of the Virginia Recycling Markets Development Council has been prepared on a Fiscal Year basis.

FY 2001 ACTIVITIES OF THE COUNCIL - MEETINGS

The Virginia Recycling Markets Development Council met on September 12, 2000 (Information Session), November 14, 2000 (Business Meeting), February 13, 2001 (Information Session), May 8, 2001 (Business Meeting), and June 12, 2001 (Information Session).

FY 2001 ACTIVITIES OF THE COUNCIL - SUBCOMMITTEES

The Virginia Recycling Markets Development Council was asked to review three issues in 2001 by the Chairman of the Commission on the Future of Virginia's Environment, Senator William T. Bolling. The three issues include the justification for a full time Recycling Markets Development Specialist, increasing recycling rates, and establishment of waste surcharges. Three ad hoc committees were established to review the issues and to make recommendations. Recommendations made by the subcommittees are presented below:

• Recycling Coordinator/Specialist - Edward A. Duffy, Subcommittee Chair

The subcommittee recommended the creation of the position of Recycling Markets Development Specialist and that this position be placed within state government at a level that would allow it to work across Secretariats. Funding to support the position should be derived from revenues generated through the Solid Waste Disposal Surcharge, recommended separately by the RMDC. It is estimated that funding in the amount of $100,000 per annum would be required for salary, benefits and other direct costs associated with the position.

• Recycling Rates - Michael P. Murphy Subcommittee Chair and Richard M. Lerner

The subcommittee recommended that there should be no change to the current 25% recycling rate mandate until data from all localities for Calendar Year 2001 is received and validated. (Annual reports from localities are required by Solid Waste Planning Regulations 9VAC30-120-10 et seq. as amended June 2001. (Posted 07/02/01 in the Virginia Register, effective date 08/01/01.)

• Waste Disposal Fee or Surcharge - Richard N. Weber, Subcommittee Chair

The subcommittee recommended the establishment of a surcharge on municipal solid waste disposal in the Commonwealth, regardless of the origin of the waste. The subcommittee further recommended that revenues generated from such a surcharge or fee be distributed to localities through solid waste management planning districts. Funding is needed at the state level to develop a Statewide Solid Waste Management Plan and to support the funding of a full-time Recycling Markets Development Specialist. The subcommittee recommended that the surcharge rate be five (5) dollars per ton disposed, and that it be collected on a quarterly basis and distributed on a semi-annual basis. Revenue generated through the surcharge should be placed in a non-reverting fund.

The 4 state agency representatives abstained from voting on this issue.

FY 2001 ACTIVITIES OF THE COUNCIL·- REGULATORY PARTICIPATION

The RMDC attended the Solid Waste Subcommittee (Senator Hanger) of the Commission on the Future of Virginia's Environment (Senator Bolling) on November 27, 2000 and presented information and recommendations from the RMDC 2000 Annual Report. The RMDC worked with members of the Commission on the Future of Virginia's Environment and other legislators on solid waste issues throughout the session. The RMDC also attended a meeting of the Commission on the Future of Virginia's Environment on June 26, 2001, and presented the recommendations of the Council for FY2001.

The Council requested legislative assistance in amending its statutory authority to change the quorum requirement from a set number (10) to a majority of the appointed membership and to stagger the terms of Council members effective with appointments to be made in July 2001. Legislation was enacted by the General Assembly and signed by the Governor making these changes effective on July 1, 2001.

During FY 2001, members of the Council participated on the DEQ Technical Advisory Committee for the revision to the Solid Waste Planning Regulations. The Council also formally provided comments to DEQ supporting the continuation of the Regulations governing the recycling tax credit.

FY 2001 ACTIVITIES OF THE COUNCIL - PRESENTATIONS

During the course of its deliberations during FY 2001, the Council received presentations from several organizations and individuals on recycling programs and issues. Included were presentations on "Pay as You Throw Programs," "Automotive Products Recycling Status," "Solid Waste Planning Regulations", "Environmental and Recycling Education," and "Abandoned Vehicles."

FY 2001 ACTIVITIES OF THE COUNCIL - STATE AGENCY INITIATIVES

The RMDC tracks state agency initiatives to identify possible areas of collaboration and cooperation. RMDC worked with the Department of Business Assistance, the Department of Environmental Quality, the Department of General Services, and the Virginia Department of Transportation throughout 2000 and 2001.

FY 2001 ACTIVITIES OF THE COUNCIL - PUBLIC FORUM

All meetings of the Virginia Recycling Markets Development Council were noticed in the Virginia Register and opportunities for public participation were an integral part of each meeting. In addition, the November 14, 2000 meeting of the VRMDC was held in conjunction with the Virginia Recycling Association's annual conference at Wintergreen Resort.

FY 2001 ACTIVITIES OF THE COUNCIL - VRMDC RECOMMENDATIONS

Based on its deliberations between July 2000 and June 2001, the Virginia Recycling Markets Development Council makes the following recommendations for consideration by the Governor and the General Assembly:

• That further study of the Virginia Recycling Tax Credit is done to determine the feasibility of expanding the recycling tax credit program to include more than manufacturing equipment. (tax credit is given for the purchase of equipment used in recycling)

• That the state defer consideration of increase in recycling rates pending:

1) Allowing a years' experience with new Solid Waste Management Planning Regulations and Annual Reporting.

2) Determining whether it should be a recycling rate or a diversion rate.

• That the state establish a surcharge on disposal of municipal solid waste (MSW) in Virginia.

• That the state establish a State Recycling Markets Development Specialist position.