Fiscal Initiatives To Promote Waste Prevention in New York City
Comprehensive waste prevention Legislation
a working draft
Marjorie J. Clarke
Chair, MCSWAB Waste Prevention Committee
3/9/94 DRAFT 14
CONTENTS:
I Legislative Initiatives -- Uses of Funding
A Tax Incentives -- For consumers
B Economic Incentives
II Legislative Disincentives -- Sources of Funding for waste prevention
A General
B Environmental labeling
1. Manufacturers
2. Retailers
C Packaging initiatives
1. Overpackaging
2. Environmental Impact of Disposal -- Toxics content
3. Reuse
4. Recyclability
5. Responsibility for Fate of Packaging
6. Extension of Bottle Law
D Products initiatives
1. Disposables
2. Reuse
3. Durability/Repairability
4. Environmental Impact of Disposal -- Toxics content
III Administering and Regulating Authority
IV Enforcement
V Severability
I Legislative Initiatives -- Uses of Funding
A Tax Incentives -- For consumers
1. The City shall establish a waste disposal tax credit of $5 on all products with a manufacturer's warrantee of at least three years or if manufacturer has an established program to take products back for reuse or recycling.
2. The City shall establish a tax or sales tax credit of 10 cents for each refillable package sold in New York City.
3. The City shall establish a rebate for retail customers of 5 cents for each bag or dry cleaning bag, or dry cleaning hangers not used as a result of bringing their own back for reuse. (Funds for this rebate program shall come, in part, from charges for bags and napkins)
4. The City shall establish a sales tax credit of 2 cents for each package sold in New York City that can be recycled in existing programs.
5. The City shall establish a sales tax credit of 5 cents for each package sold in New York City with at least 50% recycled content.
6. The City shall establish a sales tax credit of 3% on the sales dollar for products which in their use encourage waste prevention (e.g., canvas bags, double-sided copiers).
7. The City shall establish a sales tax credit of 3% on the sales dollar for items/repairs purchased at second-hand and repair shops.
B Economic Incentives
1. DOS shall commence (via Economic Development Corporation or similar agency) institution of economic incentives such as the creation of new and expanded reuse industry facilities from vacant city-owned properties, and job training in the field of products maintenance and reuse both in industry and in public schools (shop and home economics classes revamped).
2a. The City shall provide tax breaks (up to $1,000 per year) to refurbishers, second-hand, rental, and repair stores to promote and increase the capability of these reuse centers.
OR
2b. The City shall repeal any sales taxes charged for repair, reconditioning, resale, rental, or reuse services, or for purchases of used products.
3. The City shall establish a tax credit of 2% on the sales dollar for companies which install equipment which recovers a usable material (e.g., metals, glass, paper, plastic), and additionally, for companies that buy equipment which reduces consumption of nondurable products (dishwashers, double-sided copiers, washing machines, etc..) and which offer services which reduce use of nondurable products (diaper services). (The first part is from Oregon)
4. The City shall provide a tax incentive of $50 per year for retailers providing a minimum percentage of retail shelf space to be set aside for products in refillable or returnable packaging, and bulk packaged products and concentrates.
5. All source reduction tax credits will be refundable, to be paid regardless of tax liability.
6. Rescind laws which penalize (via fines and tickets) the unauthorized removal of "trash" from waste receptacles other than trash bags.
II
Legislative Disincentives -- Sources of Funding for waste preventionA General
(All funding generated in this section shall be earmarked for the DOS waste prevention expense budget and to fund legislative incentives, above.)
1. The City shall assess a tonnage-based accounting surcharge to
a) institutional generators of wastes collected from institutional sources
b) to the DOS facility operating budgets for residential wastes
c) to commercial generators for commercial wastes disposed at DOS solid waste management facilities (landfills, incinerators, processing facilities, etc...). The fee is to be earmarked for DOS Waste Prevention programs. The lower on the hierarchy, the higher the fee. Fee schedule: $2.50/ton for disposal at a landfill or old incinerator, $1.50/ton for disposal at new incinerators, $.50/ton for disposal at recycling or composting facilities.
2. The Consumer Affairs Department shall establish and enforce a competitive system of quantity-based user fees (QBUFs, or fees charged on the basis of the volume of nonrecyclable garbage disposed) for commercial generators. Recyclables shall be collected for free.
3. City government agencies shall be provided an incentive to reduce nonrecyclables generation. Any cost savings resulting from reduction in waste collection vs. the baseline month shall be split between the agency and the DOS Waste Prevention fund. Recyclables shall continue to be collected and marketed by DOS for free.
4. Residences shall be assessed for waste collection by volume. Recyclables shall continue to be collected and marketed by DOS for free.
(For commercial, governmental, and institutional generators QBUFs shall become operational by the effective date of this statute; for residential generators, one extra year is allowed for research and planning.)
5. The City shall establish and collect quantity-based packaging fees (QBPFs) from all manufacturers, direct marketers, packaging retailers, and distributors who market or market excessively packaged products or which consist of materials that are not recyclable in New York City's recycling program. The fee shall be five cents per package or 0.3 percent of the market value of the product, whichever is greater.
To create guidelines to designate nonrecyclable- or excessively-packaged products a Packaging and Product Review Board, consisting of representatives of the packaging and manufacturing industry, environmental groups, government agencies, and citizens, shall be established. The DOS shall enforce this provision.
6. The City shall require annual commercial waste audits beginning on the effective date. If a generator has claimed a lower generation rate than the private carter has been charging, the private carter will immediately institute based on volume generated, reimburse all costs for the waste audit, and be liable for fines of up to $5,000. Consumer Affairs shall collect fines (keeping 10% for administrative costs) and enforce this provision. DOS shall provide technical assistance.
7. The City shall require all businesses to prepare waste prevention plans annually beginning on the effective date. The annual waste audit will serve as the basis for measuring gains in waste prevention. DOS shall enforce this provision and provide technical assistance.
8. The City shall require all newspapers published in New York City to use at least 15% post-consumer content.
9. The City shall require issuers of periodic statements or bills to recipients in New York City (e.g. utilities, financial institutions, credit cards, department stores), to use reversible (reusable) envelopes. Violators shall be fined $500 for the first offense, $1,000 subsequent offenses. DOS shall enforce this provision.
10. The City shall require payment of a surcharge of $20/day to the cost of construction permits for new construction of interiors and exteriors. Exemption shall be given for construction jobs which are more than 50% repairs and restorations, and for energy conservation jobs. The Department of Buildings shall collect payments (keeping 10% for administrative costs) and shall enforce this provision.
11. The City shall require a 5% tax on construction materials for new construction of interiors and exteriors. Exemption shall be given for:
a) virgin construction materials purchased solely in small quantities (less than $1000),
b) for purposes of repairing or replacing worn building materials or for energy conservation,
c) for materials containing at least 15% post-consumer waste.
DOS shall enforce this provision.
12. The City shall require auto manufacturers to take back discarded cars for recycling or ensure that they are recycled and to refund to owners a deposit paid at the time of initial purchase for unserviceable cars. Violators fined $2,000 for first offense; $4,000 for subsequent offenses.
13. The City shall require that all newspapers be available for sale by the section. Violators would be fined $500 first offense, $1,000 subsequent offenses.
B Environmental Labeling
1. Manufacturers
a. Overpackaging
1) The City shall require manufacturers to include product/package ratio (by volume) on the label. Violators fined $1000 for first offense; $2,000 for subsequent offenses. Consumer Affairs shall enforce this provision.
b. Durability
1) The City shall require manufacturers to label products for warrantee period and provide information to purchaser on where products can be repaired (if such repair is not nominally available as shoe repair and watch repair typically are). Food, cosmetic, and pharmaceutical products are excluded from this requirement. Violators would be fined $500 first offense; $1000 for subsequent offenses. Consumer Affairs shall enforce this provision.
c. Relative Cost of Packaging
1) The City shall require that the percentage of the total retail cost of each consumer product which reflects the packaging cost be listed on the package. Violations shall be subject to a fine of $500 for the first offense; $1000 for subsequent offenses. Consumer Affairs shall enforce this provision.
1) The City shall require that manufacturers label the composition of packages AND products containing any of the following pollutant precursors (nickel, cadmium, mercury, lead, manganese, chromium, arsenic, titanium, copper, beryllium, cobalt, silver, gold, CFC, radioactive elements, organic solvents, hazardous substances (Subtitle C), iron, chlorine, fluorine, sulfur, and nitrogen). This listing will be denoted by the heading "Pollutant precursors with potential for environmental impact" and by percent contained in the product and in the package. Violators shall be fined $500 for the first offense; $1000 for subsequent offenses. Consumer Affairs shall enforce this provision.
e. Recycled content
1) The City shall require that all products or packaging labelled "recycled" state clearly the percentages of pre-consumer and post-consumer content. Violators would be fined $500 first offense; $1000 for subsequent offenses. Consumer Affairs shall enforce this provision.
f. Recyclability
1) The City shall require that manufacturers label plastic bags and plastic containers to indicate plastic resin (by number and name). Violators shall be fined $500 first offense; $1000 for subsequent offenses. Consumer Affairs shall enforce this provision.
2) The City shall require that manufacturers label all packaging and wrappings to indicate whether or not they can be collected in New York City's curbside recycling program. Packages will be labelled either "Package recyclable in New York City" or "Package not recyclable in New York City". Violators shall be fined $500 first offense; $1000 for subsequent offenses. Consumer Affairs shall enforce this provision.
2. Retailers
The City shall require that shop owners label products or shelves containing
a. items displaying one of the three New York State symbols (recycled content, recyclability, reusable -- including refillable containers)
b. bulk packaged items, refills, concentrates, mixes
c. non-toxic cleaners and other nontoxic household items for which the alternatives are normally considered household hazardous wastes.
Violators would be fined $50 for a first offense, and $100 for subsequent offenses. Consumer Affairs shall enforce this provision.
C Packaging initiatives
1. Overpackaging
a. The City shall require that retailers charge 5 cents on each bag offered to customers and 5 cents for each napkin beyond the first added at the end of a retail transaction. Retailers would be required to post signs alerting customers of their opportunity to save money by rejecting these items. Violators would be fined $50 for a first offense, and $100 for subsequent offenses. Consumer Affairs shall enforce this provision. Funds collected will pay for rebates to consumers for bringing back bags and clothes hangers. Fines collected shall go to the DOS waste prevention expense budget.
b. The City shall require large distributors to make products (e.g., grains, detergents, liquid, etc...) available, at reasonable price, to retailers in bulk sizes where such bulk sizes are manufactured. Violators shall be fined $100 for the first offense; $200 subsequent offenses.
2. Environmental Impact of Disposal -- Toxics content
a. The City shall require that manufacturers reduce by 90% by 1997 the amount of the following pollutant precursors in packaging and products sold to retailers in New York City: nickel, cadmium, mercury, lead, manganese, chromium, arsenic, titanium, copper, beryllium, cobalt, silver, gold, radioactive elements, iron, CFC, chlorine, fluorine, sulfur, nitrogen, organic solvents, and hazardous substances (Subtitle C). Violators shall be fined $1000 for a first offense; up to $5,000 for subsequent offenses. Consumer Affairs shall enforce this provision utilizing label information and via spot testing.,
3. Reuse
a. The City shall require retailers to provide at least 10% of retail shelf space to be set aside for products in refillable/returnable, packaging, bulk packaged products, refills, and concentrates. Violators shall be fined $50 for a first offense; $100 for subsequent offenses. Consumer Affairs shall enforce this provision.
4. Recyclability
a. By 1996 all plastic packaging sold in New York City must be recyclable by New York City's curbside program. Manufacturers shall be subject to a $1000 fine for a first offense; $2000 subsequent offenses. Consumer Affairs shall enforce this provision.
b. The City shall prohibit the sale to retailers after 1997 of multi-material containers in which the materials are not separable for recycling. Violators shall be subject to a $1000 fine for a first offense; $2000 subsequent offenses. Consumer Affairs shall enforce this provision.
c. Retailers shall be required to pay a 5% excise tax on packaging materials and bags purchased for in-store packaging (e.g. meat, produce). Exemption will be given to materials which are recyclable in the New York City curbside program. Funds generated shall go to the DOS Waste Prevention Fund. Consumer Affairs shall enforce this provision.
5. Responsibility for Fate of Packaging
a. The City shall require all manufacturers to accept from retailers all returned transport or shipping packaging for recycling, reuse, and/or disposal. Violators shall be fined $500 for the first offense; $1000 for subsequent offenses. Consumer Affairs shall enforce this provision.
6. Extension of Bottle Law
a. The City shall require that all noncarbonated beverages be subject to the bottle law. The exemption given to restaurants, delis, salad bars, which allows containers of beverages consumed on premises not to be subject to a deposit, shall be removed. Violators shall be subject to fines up to $1,000. Consumer Affairs shall enforce this provision.
b. The City shall ensure that 75% of the unclaimed deposits and fines from containers collected per the above provision be earmarked for the waste prevention fund, with balance earmarked for processing of recyclables and for encouraging recycling markets.
D Products initiatives
1. Disposables
a. The City shall establish an advance disposal fee payable by manufacturers of $2 on each individual package of disposable diapers sold to retailers in New York City. Violators shall be subject to fines of up to $5,000. Consumer Affairs shall enforce this provision.
b. The City shall require that retailers charge 5 cents on each unit of disposable plates, cups, cutlery and condiments in individual packages) if the food is to be consumed on the premises. Violators shall be subject to fines of up to $500. Consumer Affairs shall enforce this provision.
c. The City shall require that retailers phase out by 1997 the sale of food in disposable packaging and the provision of disposable cutlery, condiments in individual packages, and paper napkins, if the food is to be consumed on the premises. Violators shall be fined $500 for first offense; $1000 for subsequent offenses. Consumer Affairs shall enforce this provision.
d. The City shall establish an advance disposal fee payable by manufacturers of 5 cents on each disposable product sold to retailers in New York City. Violators shall be fined $500 for first offense; $1000 for subsequent offenses. Consumer Affairs shall enforce this provision.
e. The City shall establish an advance disposal fee payable by manufacturers of 50 cents on each product which contains parts (e.g., batteries) which are not replaceable or otherwise serviceable. Violators shall be fined $500 for first offense; $1000 for subsequent offenses. Consumer Affairs shall enforce this provision.
2. Reuse
The City shall require that retailers provide a minimum percentage of retail shelf space to be set aside for reusable products, adjacent to where the counterpart disposables are sold. Such percentage shall be determined by the Packaging and Product Review Board. Violators shall be fined $50 for a first offense; $100 for subsequent offenses. Consumer Affairs shall enforce this provision.
3. Durability/Repairability
a. The City shall establish an advance disposal fee payable by manufacturers of $1 on each reusable product sold to retailers in New York City which contains parts which are not removeable, serviceable, replaceable, or repairable at facilities in the local area.
b. The City shall establish an advance disposal fee payable by manufacturers of $1 on each product which is designed for early obsolescence or which is designed to fall apart quickly (as determined by the Packaging and Product Review Board).
4. Environmental Impact of Disposal -- Toxics content
a. The City shall establish an advance disposal fee payable by manufacturers of $1 for each product containing more than 2% sum total of the following pollutant precursors (nickel, cadmium, mercury, lead, manganese, chromium, arsenic, copper, beryllium, silver, gold, radioactive elements, organic solvents, hazardous substances (Subtitle C), CFC, iron, chlorine, fluorine, sulfur, and nitrogen). Exceptions would include products with a manufacturer's warrantee of at least three years or if manufacturer has an established program to take products back for reuse or recycling. Consumer Affairs shall monitor and enforce this provision using product/packaging labelling information and spot testing.
b. The City shall establish an advance disposal fee payable by manufacturers of $2 on specific products known to cause problems in the disposal/waste stream due to high pollutant precursor content (over 10% by weight) (e.g., batteries, metals-based paints, products with batteries sealed inside, products containing household hazardous wastes, etc...). Such problem products shall be determined by the Packaging and Product Review Board.
III Administering and Regulating Authority
A The Comptroller's office shall be the authority which levies advance disposal fees and distributes funds remaining after agencies' administrative costs are extracted to the Waste Prevention Fund.
B Any regulations engendered by this statute shall be promulgated by the NYC Department of Sanitation, Department of Consumer Affairs, or Department of Buildings in consultation with the InterSWAB Waste Prevention Advisory Committee, the CRAB, each borough SWAB, and subject to input from public hearings conducted by the appropriate agency.
IV Enforcement
A. Enforcement of the statute shall be the responsibility of the Department of Sanitation (unless otherwise indicated in the provision) and the Comptroller (the latter's responsibility includes enforcement of provisions applicable to NYC DOS itself).
B. Manufacturers found to be in systematic violation of this statute will be liable to pay a fine amounting to 5 times the value of the fees established by this statute due on each package or product. The original fees shall also be paid.
C. Citizens and citizens groups shall have the right to enforce this legislation via suits, and receive 25% of the penalties collected. They shall be liable to pay costs of false suits.
V Severability
The provisions of this act shall be severable and if any phrase, clause, sentence or provision of this act, or the applicability thereof to any person or circumstance shall be held invalid, the remainder of this act and the application thereof shall not be affected thereby.