Final_Guidelines_for_Third_Party_Recycling_Credit_-_10.12.17.pdf

Revision Date: 10/12/17

City of San Diego

Guidelines for Third Party Recycling Tonnage Credit in Calculation of Annual Minimum Diversion Requirements

These guidelines are issued by the Environmental Services Department (Department) pursuant to the Non-Exclusive Solid Waste Collection Franchise Agreements (Franchise Agreements), Article 5, Section 5.4.2. Per Section 5.4.2, the City shall, upon Franchisee’s request, consider third party recycling arranged by, or recycling conducted by, Franchisee’s customers in calculating Franchisee’s diversion rate.

These guidelines specify: (1) the types of third party recycling that may be credited toward a Franchisee’s diversion rate under Section 5.4.2; and (2) the types of documentation that may support Franchisee’s third party recycling request. Upon request, Franchisees may also obtain a Department-approved fillable form for submission of their third party recycling credit request.

“Third Party Recycled Tonnage” means the total City-approved tonnage that is recycled for the Franchisee’s customer by anyone other than the franchisee for the calendar year.

I. Eligibility Criteria

The following criteria apply to whether the City will grant diversion credit to the Franchisee for third party recycling:

The Franchisee may only claim third party recycling credit for the portion(s) of the calendar year for which the Franchisee was the solid waste service provider for that City of San Diego address.

The tonnage is Recyclable Material pursuant to San Diego Municipal Code section 66.0102, and is not Hazardous Waste, Hazardous Substances, Universal Waste, or Medical Waste.

The Recyclable Material was not hauled by another Franchisee.

The Recyclable Material is not a type that is normally generated and diverted as a primary part of the customer’s business, such as metal Recyclable Material generated from an auto wrecking company.

The Recyclable Material could have been hauled by the Franchisee to a recycling facility under their Franchise Agreement and therefore represents a “missed opportunity” to the Franchisee.

II. Examples

The following examples are provided for Franchisee’s reference only. A Franchisee may request that the Department preliminarily review any activity before the end of the calendar year to determine if it is eligible for third party recycling diversion credit according to the above-referenced criteria.

Example 1: Distribution Center A large distribution center bales boxes and route slips. The bales are collected by a fiber company at no cost to the distribution center. A Franchisee collects the solid waste and commingled recycling from the address, and has been doing so for the last four months of the calendar year. The Franchisee could claim recycling credit for those four months because they are the solid waste service provider and could have collected the paper and cardboard for recycling under their Franchise Agreement.

Example 2: Demolition Project An old office building is being demolished. A Franchisee collects the solid waste and commingled recycling from the building and has had the account for 15 years. The demolition contractor hires a different Franchisee to provide roll-off service for the mixed C&D, concrete, and metal. The Franchisee that holds the solid waste collection account would not receive credit because the Recyclable Material was hauled by another Franchisee (and will count towards that Franchisee’s diversion rate). If the demolition contractor self-hauled the concrete and metal to a recycler, the Franchisee would receive credit since it represents a missed opportunity.

Example 3: Office Building A large office building generates E-waste and contracts with a certified E-waste collector. A Franchisee that provides solid waste collection services to the building would not receive credit for the E-waste because this material is considered Universal Waste and it is also not a type of material that Franchisee could have collected under their Franchisee Agreement.

Example 4: Coffee House A small coffee house collects all bottles and cans and returns them to a recycling center for the CRV value. Additionally, the coffee house composts the grounds in an on-site compost bin. A Franchisee provided solid waste collection services to the coffee house for the first six months of the calendar year. That Franchisee could claim recycling credit for the bottles and cans self-hauled by the business during the time period when the Franchisee was the solid waste provider for that City of San Diego address. The Franchisee would not receive credit for any Recyclable Material comprised of the composted coffee grounds because it remains on-site and does not represent a missed opportunity.

Example 5: Parking Structure

A Franchisee provides roll-off service for a large construction job at a parking structure. The construction project crushes and screens a large volume of the demolished concrete to be reused as base for the new structure. The Franchisee would not receive credit for any Recyclable Material comprised of the concrete that was crushed and reuse on site, because it remains on-site and does not represent a missed opportunity.

Example 6: Restaurant A restaurant has a permit through the City of San Diego Food Establishment Wastewater Discharge program and subscribes to a biofuel service that collects the restaurant’s used cooking oil and grease. The Franchisee that has provided solid waste collection services to the restaurant for would not receive credit for the used cooking oil and grease because it is not a type of material that Franchisee could have collected under their Franchisee Agreement.

Example 7: Auto Wrecking Yard A Franchisee provides solid waste collection service to a large auto wrecking and recycling yard.

The business is primarily engaged in the handling and diversion of metal Recyclable Material.

The Franchisee would not receive credit for any of the metal Recyclable Material that the auto wrecking company generates as a primary part of their business.

III. Requesting Third Party Recycled Tonnage Credit

To apply for third party recycling diversion credit, the Franchisee must submit the request annually to the City at the same time as the Franchisee’s Quarterly Report for the fourth quarter of the prior calendar year (January 20Th), and must identify each customer property and provide supporting documentation satisfactory to the City per Article 5 of Section 5.4.2 of the Franchise Agreement. Satisfactory supporting documentation may include, but is not limited to, the following: a letter from the generator on the generator’s letterhead stating the types of recyclable material self-hauled or hauled by a non-franchisee, including the name of the entity or individual hauling the material, and the estimated annual volume or weight for each type of material. The Director, or his designee, shall review the request and, if approved, shall apply third party diversion credit towards the Franchisee’s annual minimum diversion requirement.

If a request is denied, the Department will notify the Franchisee.

Note: These Guidelines may be reviewed annually and are subject to change when deemed warranted by the Department Director.