to identify valuable resources now being lost in the waste stream and to divert these resources to the recycling program. The Recycling Planning Board (1) will foster an awareness of the value of resources and investigate the feasibility of recycling materials of any potential value. to identify recyclable wastes which are currently being disposed of in a landfill, incinerator, or other solid waste management facility and which could be disposed of at a lower cost through recycling or resource recovery. to safeguard assets, and to the degree warranted by their value, establish custody and access controls on select items collected for recycling. In developing bulletins on specific materials, the Board will consider the value and pilferability of the items and prescribe appropriate controls. to maintain accurate accounting records. The Base Comptroller will adopt appropriate operating procedures to ensure the accuracy of accounting records. to use the net proceeds on approved projects that will provide the 4.3.7.23 Economic Evaluation. Economic analysis to justify an RRRP may be based on revenues from sale of recyclable materials or cost avoidance for disposal of wastes in a solid waste management facility. 4.3.7.24 Before any recycling activity can be approved, an economic analysis must be performed. Service directives provide details for making such an assessment. Most of the main points are summarized below. The example economic analysis is based on a source separation program. It is also specific to recycling of TAB cards only. The procedure for evaluating other materials would be quite similar. 4.3.7.25 Factors for Economic Analysis and Implementation Schedule Format 1. Determine the approximate quantity of materials that will be source separated, locations where each type of material would be stored for pickup, and frequency of required pickup as influenced by economic, environmental, hygienic, aesthetic, and safety requirements. 2. Request from DRMO a determination of local markets for high-grade paper, corrugated containers, and/or newspapers, as applicable. Information to be obtained from DRMO includes the following: market price prognosis of price future pickup point changes any preparation required, such as baling, special tying, etc. (1) Described in Section 4.3.12. 3. 4. If there is no market, no further analysis is required. After receiving the market analysis report and the estimated sales revenue from DRMO, the installation conducts an economic analysis to determine if a QRP would be cost effective. 4.3.7.26 Determining Economic Feasibility. Selling recyclable material raises revenue, but it may not always be economical. Costs of running the program may exceed savings or revenue. Therefore, do not undertake a QRP without an economic analysis. An economic analysis will help decide the feasibility of establishing a qualifying recycling program. 4.3.7.27 Economic Analysis Handbook. Figure 4-3-7B provides a worksheet for documenting an economic analysis. A sample economic analysis is shown in Figure 4-3-7C. For more information on methods for performing economic analyses, see NAVFAC Publication P-442, Economic Analysis Handbook. 4.3.7.28 Assumptions. Added costs are the increased time, effort, and possibly equipment associated with removing a recyclable material from the waste stream and subsequently preparing it for sale. Avoided costs are decreases in the costs of waste handling, hauling, and disposal by removing a recyclable material from the waste stream. 4.3.7.29 Determining Avoided Costs. Estimate avoided costs by determining the weight or volume of each recyclable material diverted from the waste disposal stream by the QRP. Calculate tipping fees, surcharges, labor, prorated maintenance, hauling fees, permit fees, and generator "taxes" that are saved by recycling that quantity of material instead of disposing of it. This may or may not be a significant factor, depending on the material. 4.3.7.30 Determining Revenue. For each recyclable material, estimate annual sales revenue. Use DRMO market survey data for these estimates. 4.3.7.31 Is a Recycling Program Economically Feasible? The qualifying recycling program is economically feasible if added costs < avoided costs + revenue 4.3.8 Qualified Recycling Program (QRP). Upon completion of the economic analysis, the base commander of the installation shall decide whether or not to establish a QRP. Such a decision may be obvious when the added costs are less than or much greater than the avoided costs and revenue. If only a marginal difference exists, however, the decision may be more involved and need consideration of intangible benefits like aesthetics, employee morale, pollution abatement, availability of funds to meet the deficit, and future outlook. Any activity should be able to establish a QRP based on capturing proceeds from recyclable materials already being turned in to the DRMO. Savings resulting from reduced volume of waste going to disposal facilities 2. Sales revenue (tons-lb-gal/yr) x ($/ton-lb-gal) TOTAL AVOIDED COSTS + REVENUE: /yr Tyr lyr Estimated Return (Total Avoided Costs + Revenue) - (Total Added Cost) = FIGURE 4-3-7B Worksheet for Determining Waste Sales Economic Analysis lyr 3. Program Administration a. b. $ 1,631.5/yr $ 280/yr $ 5,600/yr $ 2,800/yr $ 2,000/yr SUBTOTAL $12,861.5/yr $ 2,800/yr $ 1,400/yr Instructions and operating procedures c. Publicity (0.05 manyr/yr) ($25,000/manyr) (1.12) SUBTOTAL $5,600/yr ESTIMATED AVOIDED COSTS AND REVENUE = 1. Tipping Fee Savings ($10/ton) (200 tons/yr) ESTIMATED RETURN Estimated Return = $38,000/yr - $25,061.5/yr = FIGURE 4-3-7C $ 2,000/yr $38,000/yr $12,938.5/yr 4.3.9 Implementation 4.3.9.1 To establish a QRP, the base commander issues an installation directive or instruction identifying the following program requirements: 1. Designate the program manager. Generally, this shall be the department already functionally responsible for the collection and disposal of the waste material. 2. Identify means for maintaining fiscal accountability of funds 3. 4. 5. Provide for maintenance of records on quantity and types of materials sold for recycling. Provide for review of projects funded with the proceeds of sales. This shall be done by the same people who would review such projects if funded from normal appropriations. Describe specific implementation procedures of the program. Copies of the directive shall be sent to the DRMO and higher Headquarters. 6. Establish procedures for tracking recycling expenses. 4.3.9.2 An installation that does not conduct its own waste disposal program may establish a QRP either by dealing with DRMO or through an agreement with the installation handling its waste disposal. The QRP is to be set up for the entire installation, not separate activities, with the installation as a whole receiving the proceeds from sales. If another installation is handling the waste collection, that installation may or may not be willing to also provide this service for recyclable materials. In any case, in order for a generating installation to be credited directly by DRMO with the proceeds from waste sales, the turn-in document (DD Form 1348-1) must contain a reimbursable fund site specific to that installation. If several generators with QRPs have a centralized collection process and wish to be reimbursed separately, a Form 1348-1 must be submitted for each installation, specifying the amount of material originating from each installation. DRMO will then determine equitable distribution of sales proceeds. A sample DD Form 1348-1 is shown in Appendix G. 4.3.9.3 Equipment and Facilities 1. Equipment for establishing of recycling programs shall be procured 2. The financing of equipment that is used jointly or shared with such activities as the DRMO or Army and Air Force Exchange Service (AAFES) |