The announcement by USDA Deputy Secretary Dr. Jewel Bronaugh indicates some of the funds will go toward the mass timber construction sector, but other portions will ideally “strengthen emerging wood energy markets that support sustainable forest management – particularly in areas of high wildfire risk.”
The USDA Forest Service is now accepting applications for the funds through the 2022 Wood Innovations Grant Program and the 2022 Community Wood Grant Program. The application period for both grant programs closes Wednesday, Jan. 19, 2022.
“Healthy and productive markets for wood products and wood energy are integral to supporting sustainable forest management and improving the condition of our national forests,” says Bronaugh.
The Community Wood Grant Program can provide funds toward the cost of installing wood energy systems. Grants awarded under the Wood Innovations Program address the nationwide challenge of reducing the risk of catastrophic wildfires, disease, and pest infestations by retaining or by expanding existing markets for excess biomass and low-value logs removed during forest management activities, according to the Forest Service.
“The material removed supports both new and traditional markets, as well as local economic development,” adds the agency.
For several decades, the Washington-based Institute of Scrap Recycling Industries (ISRI) has conducted a semantics campaign to stress that scrap is not waste and that recyclable materials are secondary commodities.
Recycling Today Media Group’s publications, including this one, have been a steady supporter of this message, with its editorial staff trying earnestly not to use the word “waste” interchangeably with scrap, secondary commodities and other phrases that convey discarded materials of value.
Despite considerable successes to this campaign’s credit, ISRI reportedly is considering changing or updating its phrasing concerning recyclable materials and how to best distinguish them from landfill- or incinerator-bound waste.
A suggestion from this corner is the term “circular commodities.” Like the word “sustainability,” the phrase “circular economy” seems to have staying power and be recognized as a good thing by people and governments around the world.
Unfortunately, the terms “scrap” and “secondary commodities” each have shortcomings. In many peoples’ minds, something that is scrapped is being written off. In those same minds, something secondary could be considered second rate.
A circular commodity label fends off these connotations. Gaining unanimous backing for any policy is an unlikely prospect. In the current climate, however, sustainable and circular policies tend to gain considerable support.
The rephrasing is by no means a panacea. Governments and policy advocates who want to restrict trade in, and financial support for, circular commodities (for perceived environmental or protectionist reasons) will continue to do so.
Circular commodities in 2021 are establishing new and higher price benchmarks, including in the oft-criticized plastics recycling sector. That has not stopped recycling critics from staying on the attack. China has prohibited many circular materials despite the fact their residue levels are significantly below those of metal ores or concentrates. Malaysia may essentially follow China’s lead.
Advocacy for keeping raw materials closer to home also is a trend gaining momentum around the world. It must be noted that rephrasing alone will not stop all policies or corporate decisions made in the wider economic and policy arenas.
A form of linguistic high ground, however, could be a welcome result of a term such as circular commodities. Making a public case against materials circularity—reuse and recycling and the resource conservation it entails—becomes trickier than lobbying against “waste,” “scrap” or “secondary materials.”
To those of us in the industry, all those terms may mean the same thing, and we’re comfortable with the old terminology. In the policy arena, though, words are twisted and manipulated, and recyclers and traders seem to be in need of some keener phrasing.
Aggregate production maintains steady growth in 2021
The production of aggregates has seen continuous gains throughout this year, according to data from the U.S. Geological Survey (USGS).
Beginning in the first quarter of 2021, the output of construction aggregates produced and shipped for consumption was 464 million metric tons (Mt), a slight increase compared with that of the same period in 2020.
On Sept. 7, USGS released its second quarter Mineral Industry Survey results, which once again outplaced 2020 numbers. The survey results found that an estimated 694 million metric tons of construction aggregate were produced and shipped for consumption, a gradual increase from Q1.
The aggregate production total represents an increase of 7 percent compared with Q2 of 2020, says USGS.
The five leading states, in descending order of production for consumption, were Texas, California, Missouri, Florida and Pennsylvania. Their combined total production for consumption in the second quarter of 2021 increased by 5 percent to 200 Mt and represented 29 percent of the U.S. total.
Of the 694 million metric tons of construction aggregate produced in Q2, 415 million metric tons were crushed stone—a 4 percent increase compared with the same period in 2020. In addition, crushed stone production for consumption in the first half of 2021 increased by 3 percent compared with the first half of 2020.
For sand and gravel, the estimated output reached 279 million metric tons. USGS says this represented an increase of 11 percent when compared with Q2 of 2020. Sand and gravel production for consumption in the first six months of the year increased by 9 percent compared with the first half of last year.
This upwards trend in 2021 can be credited in part to an anticipated recovery from a dip in crushed stone production last year. As reported by Pit & Quarry, the nation’s crushed stone production decreased in 2020 for the first time since 2017 due to effects of the COVID-19 pandemic.
Crushed stone production (404 million metric tons) dropped 2.3 percent in the second quarter. Meanwhile, sand and gravel production (255 million metric tons) slipped nearly 5 percent compared with the second quarter of 2019.
Pandemic-related aftershocks carried through the third quarter, with crushed stone production (416 million metric tons) dropping 6 percent and sand and gravel production (290 million metric tons) down 4 percent compared with the third quarter of 2019.
As the nation begins to recover from pandemic-related impacts, some project that the mineral industry will maintain this growth.
Burgex Mining Consultants, a Sandy, Utah-based mining consultancy that provides market analysis and technical reports for clients in the mining and mineral exploration industry, forecasts that these production surges will continue for the next five years.
According to a Feb. 9 release, the company says it projects a 14 percent increase in U.S. aggregates production by the end of 2025, or an average annual increase of 2.7 percent year over year.
Californians, agriculture industry, local governments and businesses now have more options to dispose of treated wood waste with the passage of recent legislation.
California Gov. Gavin Newsom signed AB 332 into law on Aug. 31 after it was approved unanimously by the California Legislature. The bill had an urgency clause, permitting it to go into effect immediately. AB 332 statutorily incorporates the former Alternative Management Standards (AMS) for treated wood waste, which allowed preservative treated wood waste to be disposed in the composite-lined portion of an approved solid waste landfill.
“The passage of AB 332 is a huge win for homeowners, contractors, builders, environmentalists and our infrastructure,” Dallin Brooks, executive director of Western Wood Preservers Institute (WWPI) says. “The broad support for this bill reaffirms treated wood waste can safely be disposed while providing environmental benefits.”
In Dec. 2020, C&D recyclers in the state talked with Construction & Demolition Recyclingmagazine about the complications the previous legislation imposed on California businesses.
The AMS had been in effect for nearly 15 years before the program expired on Jan. 1, creating significant difficulties for everyone needing to dispose of preserved wood. As a result, for the first three months of 2021, the disposal of treated wood was only authorized at a hazardous waste landfill. In March, the California Dept. of Toxic Substance Control (DTSC) created a variance program where those disposing of treated wood could purchase variances allowing disposal in approved composite-lined landfills per the provisions of the AMS.
With the adoption of AB 332, all treated wood waste variances become inoperative and are no longer in effect. However, this should not be an issue as the new law creates more disposal options with previously approved handling provisions. For more information on the disposal of treated wood waste, interested parties can consult the DTSC website.
Brooks credited the passage of the bill to an extensive industry coalition, which included wood preservers, local jurisdictions, waste haulers, contractors, building material distributors, agricultural associations and environmentalists, as well as many other affiliated industries.
“We showed over the past two decades a proven record of responsibly and safely disposing of treated wood in a way that protects the environment while allowing for simple compliance. We’re pleased that legislators and the governor agreed the AMS is the wisest way to dispose of treated wood at the end of its service,” Brooks says.
WWPI says it will be working with stakeholders such as DTSC, landfills, transfer stations and haulers to provide a smooth reimplementation of disposal options and offer disposal handling education.
LRS, an independent waste diversion, recycling and portable services provider based in Morton Grove, Illinois, announced Sept. 9 that it has completed a significant equity investment to accommodate and scale its growth. The investment was made by Macquarie Infrastructure Partners (MIP) V, an Americas-focused, $6.9 billion unlisted infrastructure fund managed by Sydney-based Macquarie Asset Management (MAM). Financial terms were not disclosed.
According to LRS, the resulting ownership structure will accelerate the company’s growth trajectory and solidify its leadership position as the largest privately held waste, recycling and portable services provider in the Midwest and one of the largest in North America. Additionally, the company says the investment will have no impact on its existing services, operations or executive leadership team.
“At this juncture in our corporate evolution, we couldn’t be more delighted to receive this sizeable investment from MIP V,” LRS CEO Alan Handley says. “With their deep knowledge of the space and the capital and support dedicated to our team, we will be an even more disruptive force in the waste and recycling industry. This partnership will propel our competitive leadership position throughout the Midwest, enable future-focused investments in technological innovation and allow us to continue our rapid growth both organically as well as through M&A.”
Under the banner of the MIP series of funds, MAM-managed funds have invested over $2.9 billion in the waste industry in the Americas since 2007, including investments in Waste Industries, WCA, GFL Environmental, WIN Waste Innovations, Solví and now LRS.
“We are excited to partner with Alan and the rest of the LRS management team in supporting their next stage of growth. MAM has significant experience supporting waste businesses like LRS and invests in people, processes and systems to strengthen existing platforms, support future growth and improve performance,” Paul Mitchener, senior managing director of MAM, says.
The investment follows a year of aggressive growth for LRS, as evidenced by the acquisition of 12 waste, recycling and portable toilet companies in Illinois, Wisconsin, Michigan, Indiana, Minnesota and Iowa. Additionally, the company has experienced significant organic growth through being awarded numerous large municipal contracts, including the entire city of Chicago’s Blue Cart recycling contract.
Since its formation in 2013, LRS has grown from a single location with 200 employees and annual revenues of less than $50 million to a $375 million regional leader in waste diversion and recycling. Handley said LRS’ rapid rise has helped the company compete in municipalities and states throughout the greater Midwest, and the company will continue to seek best-in-class acquisition opportunities.
Goldman Sachs, New York City, served as lead investment banker on the deal; Much Shelist, Chicago, provided legal representation; and Capstone Partners, Boston, led financial advisory services for LRS.
J.P. Morgan, New York City, acted as exclusive financial advisor to MIP V, and White & Case, New York City, acted as legal counsel.
Waste Connections acquires E.L. Harvey
Waste Connections Inc., Ontario, announced Sept. 1 that it has acquired E.L. Harvey & Sons Inc. With a 110-year history dating back four generations, E.L. Harvey is the largest family-owned and -operated solid waste services company in Massachusetts, with total annualized revenue of approximately $110 million.
E.L. Harvey, based in Westborough, Massachusetts, provides solid waste collection, recycling and transfer services to commercial, industrial, municipal and residential customers primarily in central and eastern Massachusetts, as well as southern New Hampshire. The company operates a single-stream material recovery facility that processes 7,000 to 8,000 tons per month and offers confidential document destruction, food waste and product destruction and electronics recycling services. It operates a fleet of 120 collection vehicles.
“The Harvey family has established one of the most respected companies in our industry, and we are honored to welcome Harvey to the Waste Connections family. Together with their continuing leadership team, we look forward to carrying on the Harvey name and further expanding its market position, as well as enhancing its strong culture of support for its employees, customers and communities,” Worthing F. Jackman, president and CEO of Waste Connections, says.
Waste Connections also announced the closing of one of its two previously announced signed acquisitions, with approximately $50 million of annualized revenue from franchise operations in Northern California and Nevada.
According to Central Illinois Proud, PDC Municipal Marketing Manager Eric Shangraw confirmed the sale of the company’s landfills, transfer stations and hauling services on Sept. 24. The deal went into effect Oct. 1.
Shangraw said the company’s employees were notified of the sale Sept. 22 and noted that the company’s employees will be retained by GFL. Matt Coulter, a vice president at PDC, will stay with GFL as an area vice president.
Founded in 1928, PDC is a vertically integrated waste management solutions provider operating throughout central Illinois and eastern Missouri. The company’s end-to-end waste management solutions include four solid waste landfills; four transfer stations; a material recovery facility; a RCRA (Resource Conservation and Recovery Act) Part B transfer, storage and disposal facility; a centralized wastewater treatment facility, and 16 transportation terminals that support a fleet of more than 300 collection and hauling vehicles.
Cleveland-based Brown Gibbons Lang & Co.’s Environmental & Industrial Services investment banking team served as the exclusive financial advisor to PDC in the transaction.
“We continue to demonstrate our ability to successfully execute on our growth strategy of pursuing strategic and accretive acquisitions,” GFL founder and CEO Patrick Dovigi says. “The acquisition of PDC provides us with a unique opportunity to acquire one of the best family-owned and -operated vertically integrated set of assets in the United States while expanding our solid waste footprint within the U.S. Midwest. PDC has a leading market position in a secondary market with some of the strongest operating margins in our industry. The acquisition of PDC also provides us with the opportunity to advance our sustainability initiatives by unlocking significant value from landfill gas to energy projects at the PDC landfills, as part of GFL Renewables.”
Brian Taylor
