ciwmb electronic waste recycling program
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R.W. Beck, Inc. Humboldt State University. CIWMB Electronic Waste Recycling Program. Analysis of 2005 Net Cost Reports. Analysis of 2005 Net Cost Reports Outline. 1. Background 2. Results 3. Issues and Considerations. HSU, Office for Economic & Community Development - PowerPoint PPT PresentationTRANSCRIPT
CIWMB Electronic Waste Recycling Program
R.W. Beck, Inc.Humboldt State University
Analysis of 2005 Net Cost Reports
Humboldt State University
R. W. Beck, Inc.
1. Background1. Background2. Results3. Issues and Considerations
Analysis of 2005 Net Cost Reports
Outline
Humboldt State University
R. W. Beck, Inc.
The TeamHSU, Office for Economic & Community DevelopmentMargaret Gainer, DirectorDan Iharra, PhD, EconomicsStudent Assistants
R.W. Beck, Inc.Ed Boisson, Project ManagerGreg Broeking, CPASusan Bush and Mary Chamberlin, Recycling Market Analysts
Humboldt State University
R. W. Beck, Inc.
Project Objectives
Help participants prepare reports
Maximize accuracy and consistency
Provide information to help the Board administer the program
Humboldt State University
R. W. Beck, Inc.
TimelineJul. 2005 – Project beginsOct. 2005 – Participant survey and literature reviewNov. 2005 – Reporting forms and GuideJan. 2006 – Webinar trainingsMar. 2006 – 2005 reports dueNov. 2006 – Preliminary results; Guide and forms
revisedJan. 2007 - Webinar trainingsMar. 2007 – 2006 reports due
Humboldt State University
R. W. Beck, Inc.
The MathTotal Revenue
- Costs (Labor, Transportation, Other)
= Net Cost÷ Pounds Handled= Net Cost per Pound
Humboldt State University
R. W. Beck, Inc.
Net Cost Reporting System Form 220, Net Cost Report Worksheets
Form 220a for collectors Form 220b for recyclers
Guide with Line-by-Line Instructions
Humboldt State University
R. W. Beck, Inc.
Humboldt State University
R. W. Beck, Inc.
Key Guidelines Include costs & revenue for Covered
Electronic Waste (CEW) only Report on collection & recycling
separately Don’t include CIWMB revenue Report your best, most reasonable
estimate
Humboldt State University
R. W. Beck, Inc.
Analysis of 2005 Net Cost Reports
Outline
1. Background
2. Results2. Results3. Issues and Considerations
Humboldt State University
R. W. Beck, Inc.
Methodology
Preliminary Analysis to Determine Best Approach
Select Representative Sample Review and “Confirm” Selected
Reports (Not an Audit) Analyze Confirmed Reports
Humboldt State University
R. W. Beck, Inc.
Sample of 2005 Reports Analyzed
Item Analyzed Sample
Percent of 2005 Totals
Number of Collector Reports 29 11%
Number of Dual Entity Reports 20 71%
Total Recovered Pounds CEW in Analyzed Reports 43,100,991 66%
Total Recycled Pounds CEW in Analyzed Reports 44,716,438 69%
Humboldt State University
R. W. Beck, Inc.
Most Common Errors Wrong forms Reporting on e-waste other than
CEW Separating collection & recycling
activities Missing line item costs Arithmetic errors
Humboldt State University
R. W. Beck, Inc.
-$0.50
$0.00
$0.50
$1.00
$1.50
CIWMB Standard Recovery Payment Rate
Reported Recovery Cost Included in Sample
Collection Net Costs in Sample
Humboldt State University
R. W. Beck, Inc.
Recycling Net Costs in Sample
$0.000
$0.200
$0.400
$0.600
$0.800
$1.000
CIWMB Standard Recycling Payment Rate
Reported Recycling Cost Included In Sample
Humboldt State University
R. W. Beck, Inc.
Net Cost per Pound (2005)
Weighted Average Mean Median
Percentage Below
Standard Payment Rate
Recovery
Revenue 3.9 3.8 0.0 NA
Cost 21.0 24.6 17.9 NA
Net Cost 17.1 20.8 15.3 63%
Recycling
Revenue 5.7 5.5 5.1 NA
Cost 30.9 39.1 31.8 NA
Net Cost 25.2 33.6 27.5 50%
Humboldt State University
R. W. Beck, Inc.
Net Cost per Pound (2006 - Preliminary)
Weighted Average Mean Median
Percentage Below
Standard Payment Rate
Recovery
Revenue 2.0 2.3 0.4 NA
Cost 18.7 17.2 15.0 NA
Net Cost 16.7 14.9 14.2 66%
Recycling
Revenue 5.8 6.2 5.3 NA
Cost 27.4 37.2 29.0 NA
Net Cost 21.5 31.0 23.5 64%
Humboldt State University
R. W. Beck, Inc.
Comparison of Weighted Average Net Cost per Pound
2005 2006(Preliminary)
Difference
Recovery 17.1 16.7 -3%Recycling 25.2 21.5 -15%
Humboldt State University
R. W. Beck, Inc.
Findings High variability of net costs Current payment rates cover
*most* participants’ net cost High variability in suggested
“reasonable rate of profit”
Humboldt State University
R. W. Beck, Inc.
1. Background2. Results
3. Issues and 3. Issues and ConsiderationsConsiderations
Analysis of 2005 Net Cost Reports
Outline
Humboldt State University
R. W. Beck, Inc.
Key Trends Growing, Immature Industry – Continued
Restructuring Likely Intense Recycler Competition
Mergers, acquisitions, partnerships Innovative business models Pass thru of funds to collectors, handlers and
generators Relatively strong end markets and pricing in 2005
and 2006 Changing technologies will radically affect recycling
costs, but not yet
Humboldt State University
R. W. Beck, Inc.
Issues for Board Consideration Which measure of “average net
cost” should be used? Include collector revenue? Should collector, recycler or both
rates be changed? Are tiered payment rates
practical?
Humboldt State University
R. W. Beck, Inc.
Options to Enhance the Self-Reporting Approach
On-site review of documentation and/or audits Time-and-motion studies Derive reasonable costs for archetypal
programs Analyze impact of changing technologies
Decline of CRTs, new consumer products, etc. Analyze recycling industry market trends
Impact of SB20 system on recycling non-CEW material Document best management practices
