Although pay-as-you-throw (PAYT) has a surprisingly long history, today its momentum is increasing. Word-of-mouth is spreading far and wide, with communities hoping PAYT lives up to its promise to reduce waste and increase recycling. Additionally, communities that adopt fee-based waste collection systems are banking on PAYT's claims to generate revenue to cover rising management costs.

PAYT works, according to the U.S. Environmental Protection Agency, Washington, D.C.

"It's a simple and basic concept," says Janice Canterbury, environmental scientist with the EPA's Office of Solid Waste in Arlington, Va. "The more waste you throw, the more you pay. The more you recycle, the more you help the environment. Research findings from a 1996 through 1998 study indicate the country now enjoys a 14 percent to 27 percent reduction in waste, and a 32 percent to 59 percent increase in recycling rates."

While Canterbury says there currently are 4,000 U.S. communities with PAYT programs on record, the fact that it has taken 60-plus years for to get the ball rolling may lead some to believe that a fee-based system is not that simple.

PAYT actually began in the 1920s when a few communities in California decided there was a better way to handle residential waste. Yet despite the hindrances to implementing a PAYT program, the communities that have stuck with it say overall, it pays off.

PAYT Brings Equality "With PAYT, the incentive to compost, recycle and use less trash makes people think about how they'll manage their waste," says Mick Mercer, manager of streets and solid waste services for the city of Loveland, Colo. "[PAYT] added some equity to rates because now people know they're charged for only what they throw. It makes good common sense, and works under that same analogy as water and electric bills."

A community of 50,000 people, Loveland began its citywide PAYT program in 1993. Prior to that, households, on average, were setting out slightly more than two an a half traditional sized garbage cans weekly, and the city was charging a flat monthly fee to fund its waste collection program.

Mercer says he and the city's leaders liked the idea that PAYT could save money, but they didn't understand how the rate system worked. "We wanted to introduce curbside recycling, and we knew if we charged people on the amount of waste, it would encourage them to recycle," he says.

After examining the options, city officials opted to charge residents for trash collection by the bag - the more bags, the higher the charges - because they felt it was the most equitable system.

"If you charge a flat monthly fee, it fails to inspire people to make a strong effort to recycle," Mercer says. "Some people set out lots of trash every week, while some have very little - so it wasn't fair. Now everyone can do their own math and learn that if they continue to be wasteful, it's going to cost them." And, he adds, "the amount of recyclable materials is much higher than before."

According to city figures, in 1999, 59 percent of Loveland's residential waste stream was recycled instead of landfilled. Prior to PAYT all waste was landfilled.

The city now charges a flat monthly fee to fund its waste diversion program for curbside recycling, drop-off recycling, yard waste recycling, household hazardous waste recycling and the annual spring cleanup program. Loveland also accepts used automobile oil for free and takes it to refining recyclers.

Residents who put out a lot of trash initially balked at the change, Mercer says. But everyone now realizes the fairness of PAYT.

"People who didn't care before have taken on a new attitude," Mercer adds. "Even if their pocketbook was the initial incentive, they ultimately realized what they're doing for the economy. PAYT is a great tool for educating the public. We now have an environmentally aware community where everyone is proud of what they're helping to accomplish. We think they then try to do other things that are good for environment."

Mercer says Loveland continually tries to tweak its program by selling backyard compost bins, holding workshops to teach residents how to mulch mow and implementing other projects. "We're considering [buying] about nine dual collection trucks and deciding whether we want dual trucks or separate units to keep trash separated from recycle waste," he adds.

EPA Bullish on PAYT The EPA supports PAYT because it encompasses environmental stability, equity and economic stability [see "Three 'Es' to PAYT Success" on page 55]. Communities can reap economic rewards with PAYT, but the EPA recommends full-cost accounting so everyone can see cost breakdowns, says Joseph Lambert, PAYT and grants manager for the Department of Environmental Protection Agency (DEPA) for the Commonwealth of Massachusetts in Boston.

"The biggest problem [with PAYT] is getting the program across to the public in a way they'll understand," Lambert says. "By sharing the cost breakdown, it helps them understand how much good the program does."

Lambert conducts community outreach to encourage PAYT in his state, as well as nationwide. "It's my function to encourage cities to adopt a PAYT program," he says. "I also oversee grants to help new municipalities engage in the program. We present conferences, hold presentations and workshops here and in other states to encourage the [PAYT] program."

Massachusetts has 6.2 million residents in 351 municipalities, of which 91 have implemented PAYT. "Two more are coming on board now," Lambert adds.

The state began PAYT in 1995 with a two-tier system that encourages either a tax based or flat fee system. "It includes fixed cost; contracts, salaries, recyclables and equipment," Lambert says. "The actual waste disposal cost, the tipping fee, is based on tonnage and covers variables in transportation expenses. Communities commonly use a bag or container system, which the resident pays for. The revenues go toward education, literature and other program overhead."

State grants also can help fund PAYT, he adds. For example, in Massachusetts, "The Clean Environment Fund comes from unredeemed cans and soda bottles. This money comes back to the state, and then goes to the environment. Last year alone, Massachusetts distributed $10.2 million to municipalities and businesses to establish or upgrade recycling programs. Some communities used this money to start a PAYT system.

According to Lambert, the Massachusetts DEPA offers $5 per household to towns and cities who implement PAYT. If a town has curbside service, they receive $10 per household. The state also gives cities and towns $100,000 recycling trucks, and provides containers for every participating household.

"This incentive helps us get more cities and towns involved," Lambert explains. "We're now working with 25 municipalities who hope to begin a PAYT program. Our goal for 2001 is to have 140 municipalities involved."

Providing PAYT Funds The town of Seekonk, Mass., is one beneficiary of Massachusetts DEPA funding. Home to just under 14,000 people, the town's PAYT program began in 1993 to meet state waste bans.

Patricia S. Vieira was the first recycling coordinator in 1990, when investigation into the PAYT program began. She later served on the town's board of selectmen, at which time she consulted with the state's DEPA about PAYT issues. Although she currently works in public affairs, she remains devoted to the program's benefits.

According to Vieira, Seekonk originally had a comprehensive curbside trash program paid for by a tax-based system, which it instituted to meet state waste bans. "We moved to a flat fee per household in 1991," she says. "Everyone paid the same amount for the full cost accounting method, and the fee directly reflected the cost of providing total service to all residents."

However, Vieira says residents complained that some didn't recycle at all, others conserved more, yet everyone paid the same bill.

By 1993, "we realized the economic structure of PAYT was the way to go," Vieira says. "To meet the state's waste bans, we instituted a comprehensive curbside trash program. To inspire residents to participate, we moved to PAYT."