Future OF Houston's
Waste Management
Due to the material components related to the consumption of goods, an increase in sales tax that is directly associated with the consumption habits of citizens is proposed. Titled the “waste tax,” the tax presents a 0.3% (0.003 per Dollar) increase in sales tax at the local level from 2.0% to 2.3%, a cumulative 8.55% state and local sales tax compared to today’s 8.25% [1]. This would rank Houston in 10th place above Tulsa, Kansas' rate of 8.52% and below San Francisco, California's 8.75% sales tax [1]. It is proposed that this tax policy be implemented by January 1, 2020.
Expected Outcomes
The primary goal of the tax is to transfer the cost of waste to the citizens that consume the most, and hence citizens who generate more waste pay more. The benefits are twofold: first, raising the cost of consumption in an attempt to reduce and better manage our resources. Second, set a financial foundation that further develops the management of such resources for a sustainable future. Our analysis is based on current financial data, however, one may assume that the introduction of a carbon tax to the system will increase the operations cost for Solid Waste Management and will be prompted to lowering the carbon footprint through material recovery [2]. The overall focus of solid waste is in line with Annex A: Sectors/Source Categories of 1997’s Kyoto Protocol, which further emphasize the importance of the tax/policy effort with respect to future global efforts [3].
Cost Projections and Revenue
Houston’s General Fund summaries and Solid Waste Management’s Fiscal Budgets are used to derive the potential cost of solid waste management operations and the tax based funds from local sales taxes [4, 5]. In order to project future costs of such operations, population projection by the Houston-Galveston Area Council are used from 2010-2040, while more exact rates are used for 2010-2014 by the United States Census Bureau [6, 7]. The calculation methodology is further explained in the Policy Document link in this website. The following table presents the conclusive calculations.
Dual Stream Collection and Targeted Materials
Product Waste Solution
Long Term Contracts with Surrounding Industries
A dual split-cart system in Houston is the most efficient and simple way to increase yield and lower contamination in recycling facilities for all the materials our group looked at including plastics, paper, and metals. A split-cart system would have residents separate paper from other recyclables using a split 64-gallon container. Pickup would require the recycling vehicle to have separate containers as well. Our proposed policy and recycled material profit would fund this initiative for new carts and recycling vehicles.
Other cities have already implemented this system and have experienced 9% increase of recovered paper and a 54% increase of mixed containers. In total, the program resulted in an additional 102 tons per month in the recycling stream [11]. Houston could experience just as much program and even more. Switching residential recycling to a dual split-cart system would complement current recycling efforts in the city as it would not require building entirely new facility, lower as opposed to increase cross contamination as well as create high quality material which benefits Houston’s economy and would help Houston become a competitive provided to the recycled material marke. A split cart system would also make educating the public easier since the city is currently mixed between split and two bin dual recycling. Education and collection would streamline and promote recycling efficiency.
For recycling become competitive, there needs to be a constant market for its recycled material. Plastic especially has a varied market as it drastically loses value after being used by the consumer. This material especially places a financial burden on recycling manufactures. It has been debated whether these manufactures of such materials should be responsible for its collection and disposal [13]. Additionally, the private manufacturing sector typically have the technology on hand to process plastic, technology that would require the local government to spend lots of money on for recycling facilities. Our solution to this problem would be to connect the public and private sector through long term contracts with surrounding industries to purchase back some percentage of the plastic being recovered by the local government. Houston is a great place to enforce such long term contracts and is currently ranked number one among the top United States manufacturing cities with a total of 6,093 manufacturer companies [14, 15].However, the private sector would most likely need incentives such as tax cuts and freedom of technology for dealing with the waste product [16].These contracts will make recycling more lucrative for the city and will increase their efforts to raise participation as well. Profits will allow the city to to approve and fund the development of a more efficient and less expensive curbside recycling program for the City of Houston. These contracts should be met with caution though as it could potentially become a quota arrangement and incentives waste plastic taking away the focus from lowering consumer waste output. Hence, the city of Houston must use caution in ensuring that long term contract offers a sense of flexibility and simply puts a price on materials and not a demand on materials. Furthermore, as an alternative to surrounding industries, the City of Houston can utilize the Port of Houston as a potential business solution in outsourcing its collected materials as it ranks first in the US in international commerce and sixth among the largest ports in the world [17, 18]. Similarly to how California exports collected materials to China, Houston could do the same especially in the event that world markets open up to more recycling initiatives.
Education and Research & Development
For recycling initiatives to have a bigger impact it all starts with educating the public to raise participation rates. Education is crucial to getting participation rates up but also to decrease contamination in the recycling process, create safer environments for workers and to create pure and valuable materials [20]. Misinformation about the difference recycling actually makes is another reason some people do not recycle. This could be helped with city-wide education programs in schools, neighborhoods, and in the media. People just need to know about the studies and statistics that do prove recycling is helpful. Creating a single city wide recycling program, like the proposed split-cart collection, will make this possible and easier to educate the public to ensure that they know the basics of recycling as well as the benefits for the environment and the city. The funding of these educational programs will come from the tax proposed as well as profits from the contracts with manufacturing companies and through increased recycled material.
Connecting with Organic Waste Operations
The education plan that is recommended in our product waste plan would also be in line with the education goals of the organic waste solution. Implementing both educational plans would give school children a round education of the waste stream and the importance to minimize the waste we use as well as make sure that whatever waste we do generated is put to good use. The overall lesson would be that waste should be repurposed as much as possible to create a more sustainable and greener future.
Please refer to our Policy Document for far greater detail and a full list of sources.
[1] Tax Foundation – Sales tax Rates in America’s Largest Cities (Website)
<http://taxfoundation.org/blog/sales-tax-rates-americas-largest-cities>
[2] EPA - MSW Generation, Recycling, and Disposal Facts and Figures 2012(PDF)
<http://www3.epa.gov/epawaste/nonhaz/municipal/pubs/2012_msw_fs.pdf>
[3] Kyoto Protocol – UN Framework Convention on Climate Change – Annex A (PDF)
<http://unfccc.int/resource/docs/convkp/kpeng.pdf >
[4] Fiscal Year Operating Budgets: Solid Waste Management Budgets 2012 - 2016 (PDF’s via Website)
<http://www.houstontx.gov/budget/>
[5] Fiscal Year Operating Budgets: General Fund Summary 2012 - 2016 (PDF’s via Website)
<http://www.houstontx.gov/budget/>
[6] United States Census Bureau: Houston(City), Texas Downloadable Data
<http://quickfacts.census.gov/qfd/states/48/4835000.html>
[7] Houston Galveston Area Council – Regional Growth Forecast 2010-2040 (PDF)
<http://www.h-gac.com/community/socioeconomic/forecasts/2040/documents/Summary_Charts.pdf >
[8] Texas State Historical Association – Sales Tax (Website)
<https://tshaonline.org/handbook/online/articles/mpszr>
[9] Texas House of Representatives: How a Bill Becomes a Law (website)
<http://www.house.state.tx.us/about-us/bill/>
[10] TLC Research Division: Overview of Local Taxes in Texas (Sales and Use Tax) by the Senate Committee on Finance,
2002 (PDF). <http://www.tlc.state.tx.us/pubspol/localtaxes.pdf>
[11] Early Results of Berkeley’s Split-Cart Recycling Show Big Gains (website)
<http://ecologycenter.org/blog/early-results-of-berkeleys-split-cart-recycling-show-big-gains/>
[12] BERKELEY CURBSIDE RECYCLING(website, image)
<http://ecologycenter.org/recycling/>
[13] Young, Mitchell. Garbage and Recycling. Detroit: Greenhaven, 2007. Print. Pg. 27, 68-75
[14] Industry Sectors in Houston. (website)
<https://www.houston.org/business/industry-sectors.html>
[15] Greater Houston Manufacturers Association.(website)
[16] Houston Economy.(website)
<http://www.city-data.com/us-cities/The-South/Houston-Economy.html>
[17] U.S Port Ranking by Cargo Volume 2010. (pdf)
<http://aapa.files.cmsplus.com/Statistics/2010%20U.S.%20PORT%20RANKINS%20BY%20CARGO%20TONNAGE.pdf>.
[18] THE LOCAL AND REGIONAL ECONOMIC IMPACTS OF THE PORT OF HOUSTON (pdf)
<http://www.portofhouston.com/static/gen/about-us/Misc/Regional_Economic_Impact_Report_2015.pdf>
[19] Some enviro-friendly items hurt recyclers' bottom line (website, image)
[20] Ways Houston can increase its recycling rate (website)
<https://www.texasenvironment.org/ways-houston-news-post/>
[21] Waukesha, Milwaukee officials: Never place propane tanks in recycling bins, trash (website)
<http://fox6now.com/2015/07/02/waukesha-officials-never-place-propane-tanks-in-recycling-bins-trash/>
[22] Automated Recycling: FAQ (PDF)
<http://www.houstontx.gov/solidwaste/automated_recycling_B2013.pdf>
Resources
The Waste Tax
Ultimately, the proposed tax could generate a financial system that could support paying for the solid waste management’s budget twice over by the year 2040. Moreover, the excess in funds should be applied to other systems that could lower the solid waste management’s budget and serve as a core foundation in the transition to a more sustainable city.
Use of Revenue
Assuming that the waste tax is implemented at the beginning of 2020, the tax will generate a summation of 496,007,316 dollars by the end of 2040. Such income should be used to further expand product waste collection, business initiatives with surrounding industries, and education as further explained in this webpage. The following pie charts are a proposed breakdown of the waste tax.
The mandatory spending portion of the waste tax will insure that the increase in waste flux caused by commuters/travelers and the external shopping effect cause by lower surround sales taxes are accounted for in the overall balance of the proposal. If needed, mandatory spending should be increased to a maximum of 1.5%, half of the waste tax.
Credits and Refunds
Credits should be given to products that are expected to have a long life or those who serve as an alternative to disposable items. Post-consumer products could also serve as an extension of the credit. Lastly, refunds should be placed with respect to the incentive program explained in the above pie chart.
Political Process
Texas has defined the State’s sales at 6.25% and limits the Local or “Municipal” sales to a maximum of 2.0% which reflects Houston’s current 8.25% tax rate [8]. First, the representative or senator that is responsible for a majority of Houston’s population would have to present a case for a new bill on an odd numbered year (preferably 2017 or 2019) at the State level that challenges the local tax limit of 2.0% to that of 2.3% [9]. Secondly, the citizens of Houston will have to vote to approve the increase in sales tax rate [10]. If approved by the State and supported by Houston’s citizens, the waste tax is applicable. Further scenarios are explained in the policy document.
Plastic bales from a Waste Management Recycling Facility. Photo taken from the Houston Chronicle [19].
Example of a Split cart recycling vehicle. Photo taken by the Berkley, CA Ecology Center [12]
Generally, the most important thing is to make sure recyclables are clean and dry or else they can potentially contaminate everything else in the stream making it unusable. These contaminated materials will end up in the landfill, so citizens should make the most of the material they are going to recycle by simply making sure what they recycle is clean. Secondly, simply knowing what can or cannot be recycled at your local recycling facility makes it easier on workers who sort through the material and increase efficiency and yield of the facility especially in looking at plastics where most facilities only accept #1-5 and sometimes #7 plastic [22]. Furthermore, education will keep hazardous material out of the recycling stream which make it safer for workers because when material that the facility is not designed for comes through it can cause jams, accidents, and sometimes explosions such as the one in Waukesha, Milwaukee which was caused by a propane tank in a recycling center on June 28th 2015 [21].