February 7, 2012, Austin, TX By Gary Liss & Associates 916-652-7850 gary@garyliss.com ; www.garyliss.com Rick Anth

1. Businesses Building a Zero Waste Economy February 7, 2012, Austin, TX By Gary Liss & Associates 916-652-7850 gary@garyliss.com; www.garyliss.com Rick Anthony, ricanthony@aol.com, 858-272-2905 Ruth Abbe, HDR, ruth.abbe@hdrinc.com, 415-546-4325

2. Anheuser-Busch, Fairfield, CA Apple Computer, Elk Grove, CA Atlanta Zero Waste Zone Epson, OR Fetzer Vineyards Frankie’s Bohemian Café, SF Greens Restaurant, SF Hewlett-Packard, Roseville, CA Honda Mad River Brewery New Belgium Brewery Pillsbury Playa Vista, LA, CA Ricoh Electronics San Diego Wild Animal Park Scoma’s Restaurant, SF Subaru Toyota Vandenberg Air Base Vons-Safeway Xerox Corp 2800 Businesses in Japan Zero Waste Businesses are Leading the Way (>90% diversion) See www.earthresource.org

3. Saves Money Reduces GHG and emissions Reduces Liability More Efficient Marketing Edge Right Thing To Do Why would a business DO this? Source: Gil Friend, Natural Logic

4. Zero Waste Business Principles • Commitment to the triple bottom line • Use Precautionary Principle • Zero Waste to landfill or incineration • Responsibility: Takeback Products and Packaging • Buy reused, recycled & composted • Prevent pollution and reduce waste • Highest and best use • Use economic incentives for customers, workers and suppliers • Products or services sold are not wasteful or toxic • Use non-toxic production, reuse and recycling processes Source: ZW International Alliance, www.zwia.org

5. Ricoh Zero-Waste-to-Landfill Achieved Feb. 2001 Tons 100% Resource Recovery

6. Ricoh Green Procurement REFUSE REDUCE RETURN REUSE RECYCLE ZW Partnership With Suppliers

7. Toyota 10 “Zero Waste” Plants (95% reduction of waste to landfill from 1999) 1 HQ and 3 Distribution Centers are “Zero Waste to Landfill” 8 Distribution Centers > 90% Recycling Rate

8. Toyota $1.3 million in net savings on waste management Returnable shipping modules saved $5.3M in costs and 3.4M pounds of cardboard, 9.8M pounds of wood Integrated Waste Management into ISO 14001 Environmental Management Systems

9. Vons Safeway Less Fortunate Fruits & Vegetables… …are shrink wrapped and backhauled to Central Distribution

10. Hewlett-PackardRoseville, CA • 9,000 Employees • 94% Waste Diversion • Avoided Disposal Costs: $870,564 • Recycle Cardboard, Metal, Foam, Peanuts, LDPE, Instapak, PRS • Reuse and Recycle Pallets

11. Mad River Brewing CompanyBlue Lake, CA •   34 Employees, 15,000 sq. ft. •   98% Waste Diversion •   Less than two 90gal. Trash Cans/Week • Total Savings/Year: $35,654 • Recycle Scrap, Metals, Glass, Office Paper, Plastics, Pallets, and C&D • Spent Grain & Hops = Animal Feed & Composted

12. ZERI Brewery ProjectNamibia (southern Africa) • Grow Mushrooms on Spent Grain • Chickens Eat Worms in Grain • Digest Mushroom, Chicken Feed & Chicken Wastes to Generate Methane Gas for Steam for Fermentation • Alkaline Water to Fish Ponds (8 Different Types of Fish + Algae Sold) • Good Beer, No Chemicals, No Pollution, More Sales and More Jobs • Produces 7x more Food, Fuel & Fertilizer, 4x as many jobs & 12 more Products, Compared to Conventional Beer Producer • Fully Integrated BioSystem - 40 Different BioChemical Processes Reuse Everything (heat, H20, wastes, CO2)

13. ZERI – Natural Kingdoms • 5 Kingdoms of Nature are highly productive and adaptive system • Bacteria • Algae • Fungi • Plants • Animals

14. ZERI Design Principles • Waste is a nutrient or food for another species belonging to another kingdom • Toxin for one organism is a nutrient or neutral for one in another kingdom • In highly complex ecosystems, viruses inactive/disappear without harm if pass through at least 2 other kingdoms

15. ZERI Design Principles • More local/diverse a system, the more productive and more resilient • When species of 5 different kingdoms interact in autopoetic system, can integrate and separate all matter at ambient temperature and pressure

16. ZERI Product Cascading Source: Pauli, Gunter, Upsizing,”Output-Input Table,” 1998, p. 117, www.zeri.org

17. Facility Walk-through Systems information: Overview of operations facility layout Staff roles and concerns materials flow Types of waste materials generated Generation points Commodities Analysis

18. 9 Generating Sources in any Business • Warehousing & Distribution • Offices • Food Services • Grounds • Construction • Manufacturing • Vehicular Maintenance • Retail • Housing & Hospitality

19. Sort by functional areas • Information about discards at generation point • Types and quantities of materials produced by specific operations Commodities Analysis

20. Sort of entire facility • Info from end of materials flow • Quantities of each type of material produced in the entire facility• Commodities Analysis

22. Purchasing Records • Information from beginning of materials flow • Cost info for determining benefits of waste reduction • Precise quantities for waste materials which are purchased and then discarded within the facility Commodities Analysis

23. Purchasing for Zero Waste • Precautionary Principle • Return to Vendor • Lease, Rent and Share Equipment • Reduce Packaging • Reusable Shipping Containers • Buy Recyclable, Recycled and Compostable Items • Buy Remanufactured Equipment • Purchase Durables • Buy Less Toxic Products Source: Alicia Culver, Green Purchasing Institute

24. Production Records • Quantities of materials production data • Insights into materials flow • Numbers can be adjusted for facilities with varying levels of operation Commodities Analysis

25. Hauler Records • Information from end of materials flow • Total volumes and/or weights of waste hauled • Volumes and/or weights of recyclables hauled • Waste collection, disposal and recycling costs Commodities Analysis

26. Stewardship Practices • Reduce packaging • Provide take back options • Work with downstream buyers and users to improve your product • Improve durability

27. Extended Producer Responsibility Businesses takeback products and packaging at no cost to the public Properly reuse, recycle or compost - don’t export harm Redesign products to be less toxic & easier to reuse & recycle Use small, local businesses and nonprofits, not just multinational companies

28. Chemical came inmany small cans… …now in drums = Reduction of: • Labor time for switching cans and cleaning leftover chemicals • Water usage • Packaging material cost 6 individual cases wereput into a master carton… …no moremaster carton = Reduction of: • Packaging cost • Packaging time • Freight cost REFUSE/ REDUCE Reduce Unnecessary Packaging Material “Rs” for Refuse/Reduce The 5R Concept Applied to Packaging Optimization

29. Reuse/Return

30. RECYCLE Optimized Packaging Style & Recycle waste Recycle: Last Thing to Do Results After Before • No glue to buy and store • No drying time No glue used, but snaps on type • Much easier to separate Styrofoam from liner to recycle • No more use of a knife to cut the glued joint Styrofoam glued to the corrugated liner

31. Employee Training Effort • Total participation • Build culture from top down and bottom up • Wasting no longer tolerated • 100% compliance • Emphasis on reward, though

32. Promotion Everywhere • Every employee must participate • Everyone informed and educated • Everyone does their part • No one left behind

33. Corporate Culture • Creativity • Innovation • Sharing • Fun • Every little bit helps • Desiccant contest 1st Place Winners

34. Plus-Plus Program • + = impressive improvement • ++ = opportunities for improvement • Fun & education = efficiency • No waste cans

35. Plus-Plus Program • Education practiced internally and externally • Ricoh requires vendors to have zero waste • Ricoh works with communities world wide to achieve its goal of sustainability “The best thing is not what we planted in the ground, but what we planted in the children’s minds.” – Ricoh’s President

36. Resource Management Traditional Hauling & Disposal Contracts Contractor Compensation Unit price based on waste volume or number of pick-ups. RM Contracts Capped fee for waste hauling/disposal service. Performance bonuses (or liquidated damages) based on value of resource efficiency savings.

37. Resource Management • Traditional Hauling & Disposal Contracts Incentive Structure • Contractor has a profit incentive to maximize waste service and volume. • RM Contracts • Contractor seeks profitable resource efficiency innovation.

38. Resource Management • Traditional Hauling & Disposal Contracts Waste Generator-Contractor Relationship • Minimal generator-contractor interface. • RM Contracts • Waste generator and contractor work together to derive value from resource efficiency.

39. Resource Management • Traditional Hauling & Disposal Contracts Scope of Service • Container rental and maintenance, hauling, and disposal or processing. Contractor responsibilities begin at the Dumpster and end at landfill or processing site.

40. Resource Management • RM Contracts Scope of Service • Services addressed in hauling and disposal contracts plus services that influence waste generation (i.e., product/process design, material purchase, internal storage, material use, material handling, reporting).

41. Resource Management • Traditional Hauling & Disposal Contracts Contractor Compensation • Unit price based on waste volume or number of pick-ups. • RM Contracts • Capped fee for waste hauling/disposal service. Performance bonuses (or liquidated damages) based on value of resource efficiency savings.

42. RM Compensation Goals • Mutually Beneficial Business Relationship • Drive Inefficiency and Cost Out of System • Cost-effective Resource Efficiency • Share Savings Between Business and RM Contractor • Continuous Improvement in Resource Efficiency

43. RM Compensation Options • Pass-Through of Service Costs with “Shared Savings” and Performance Bonus • RM contractor provides all required services (e.g., tip fees, hauling fees, container rental) on a “cost pass-through” basis based on the bids received to take over existing services (Base Financial Proposal). • When contractor implements changes to permanently decrease costs, contractor shares in some of those savings.

44. RM Compensation Options • Examples of savings opportunities include • Diverting more materials • More efficient handling and hauling • “Right-sizing” containers for cost savings and behavioral change (e.g., smaller trash bins) • More prominent recycling stations), • Helping to reduce waste

45. RM Compensation Options • Shared Savings Options • Share 50/50 (Business/Contractor) • Business get 100 percent of savings up to predetermined level (e.g., 5%). Then split savings above that in ratio that benefits the contractor (e.g. 30/70) • Performance Bonus - increase % to contractor when business meets performance target(s)

46. RM Compensation Options Options to Tie Diversion Improvement to Contractor Performance Bonus:

47. Developing Business Zero Waste Plans • Re-convene management and employee planning team • Designate representation from all business activities • Set time frame to develop plan • Obtain needed expertise • Examine Current System • Process study, redesign, and product review • ID discards by production/generation area • Identify barriers to zero waste & solve them • Examine purchasing and vendor contracts • Assess costs and benefits • Brainstorm, prepare, review, and finalize plan • Adopt plan and modify as needed

48. Review Data, Policies and Programs Participation Strategy Service Opportunities Analysis Menu of Policies, Programs and Facilities Economics And Funding Draft Zero Waste Plan Zero Waste Plan Scope

49. Implementing Plans • Establish technical committee • Schedule regular and frequent meetings • Obtain needed resources • Establish work plan/execute tasks • Conduct education • Audit your wasting continually • Conduct +/++ programming • Continually re-evaluate work plan

50. Implementing Plans • Design wasting out of processes • Durability • Reusability • Recyclability • Compostability • Incentives • Refuse and return programs • Leasing and product stewardship for your products Waste sorting bins on the production floor