Waste Management 2007 Annual Report Download - page 42

Recycling. Our WMRA Group focuses on improving the sustainability and future growth of recycling
programs within communities and industries. In addition to our WMRA Group, our four geographic operating
Groups provide certain recycling services that are embedded within the Groups’ other operations and, therefore, are
not included within the WMRA Group’s financial results.
Recycling involves the separation of reusable materials from the waste stream for processing and resale or
other disposition. Our recycling operations include the following:
Collection and materials processing — Through our collection operations, we collect recyclable mate-
rials from residential, commercial and industrial customers and direct these materials to one of our material
recovery facilities (“MRFs”) for processing. We operate 99 MRFs where paper, glass, metals and plastics are
recovered for resale. We also operate six secondary processing facilities where materials received from MRFs
can be further processed into raw products used in the manufacturing of consumer goods. Specifically, material
processing services include data destruction, automated color sorting, and construction and demolition
processing.
Plastics and rubber materials recycling — Using state-of-the-art sorting and processing technology, we
process, inventory and sell plastic and rubber commodities making the recycling of such items more cost
effective and convenient.
Electronics recycling services — We provide an innovative, customized approach to recycling discarded
computers, communications equipment, and other electronic equipment. Services include the collection,
sorting and disassembling of electronics in an effort to reuse or recycle all collected materials.
Commodities recycling — We market and resell recyclable commodities to customers world-wide. We
manage the marketing of recyclable commodities for our own facilities and for third parties by maintaining
comprehensive service centers that continuously analyze market prices, logistics, market demands and product
quality.
During 2006, we also provided glass recycling services. However, we divested of our glass recycling facilities
in 2006 as part of our continued focus on improving the profitability of our business.
Fees for recycling services are influenced by frequency of collection, type and volume or weight of the
recyclable material, degree of processing required, the market value of the recovered material and other market
factors.
Our WMRA Group purchases recyclable materials processed in our MRFs from various sources, including
third parties and other operating subsidiaries of WMI. The cost per ton of material purchased is based on market
prices and the cost to transport the finished goods to our customers. The price our WMRA Group pays for recyclable
materials is often referred to as a “rebate” and is based upon the price we receive for sales of finished goods and local
market conditions. As a result, higher commodity prices increase our revenues and increase the rebates we pay to
our suppliers.
Other. We provide in-plant services, in which employees of our Upstream organization work full-time inside
our customers’ facilities to provide full-service waste management solutions. Our vertically integrated waste
management operations allow us to provide customers with full management of their waste, including identifying
recycling opportunities, minimizing waste, and determining the most efficient means available for waste collection
and disposal.
We also develop, operate and promote projects for the beneficial use of landfill gas through our Waste
Management Renewable Energy Program. Landfill gas is produced naturally as waste decomposes in a landfill. The
methane component of the landfill gas is a readily available, renewable energy source that can be gathered and used
beneficially as an alternative to fossil fuel. The United States Environmental Protection Agency endorses landfill
gas as a renewable energy resource, in the same category as wind, solar and geothermal resources. At December 31,
2007, landfill gas beneficial use projects were producing commercial quantities of methane gas at 108 of our solid
waste landfills. At 80 of these landfills, the processed gas is delivered to electricity generators. The electricity is then
sold to public utilities, municipal utilities or power cooperatives. At 21 landfills, the gas is delivered by pipeline to
industrial customers as a direct substitute for fossil fuels in industrial processes. At seven landfills, the landfill gas is
processed to pipeline-quality natural gas and then sold to natural gas suppliers.
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