Waste Management 2011 Annual Report Download - page 87

processed goods and on market conditions, but in some cases are based on fixed contractual rates or on defined
minimum per-ton rates. As a result, changes in commodity prices for recycled fiber can significantly affect our
revenues, the rebates we pay to our suppliers and our operating income and margins.
Other. Other services not managed within our Groups include the following:
We provide recycling brokerage services which involves managing the marketing of recyclable materials for
third parties. The experience of our recycling operations in managing recyclable commodities for our own
operations gives us the expertise needed to effectively manage volumes for third parties. Utilizing the resources
and knowledge of our recycling operations’ service centers, we can assist customers in marketing and selling
their recyclable commodities with little to no capital requirements. We also provide electronics recycling. We
recycle 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. In
recent years, we have teamed with major electronics manufacturers to offer comprehensive “take-back” programs
of their products to assist the general public in disposing of their old electronics in a convenient and
environmentally safe manner.
WM Sustainability Services provides a variety of sustainability services to businesses and organizations.
This includes in-plant services, where our employees work full-time inside our customers’ facilities to provide
full-service waste management solutions and consulting services. Our vertically integrated waste management
operations enable us to provide customers with full management of their waste. The breadth of our service
offerings and the familiarity we have with waste management practices gives us the unique ability to assist
customers in minimizing waste they generate, identifying recycling opportunities and determining the most
efficient means available for waste collection and disposal.
We develop, operate and promote projects for the beneficial use of landfill gas through our WM 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 EPA endorses landfill gas as a renewable energy resource, in the same category as
wind, solar and geothermal resources. At December 31, 2011, landfill gas beneficial use projects were producing
commercial quantities of methane gas at 131 of our solid waste landfills. At 102 of these landfills, the processed
gas is used to fuel electricity generators. The electricity is then sold to public utilities, municipal utilities or
power cooperatives. At 18 landfills, the gas is used at the landfill or delivered by pipeline to industrial customers
as a direct substitute for fossil fuels in industrial processes. At ten landfills, the landfill gas is processed to
pipeline-quality natural gas and then sold to natural gas suppliers. At one landfill, the gas is processed into
liquefied natural gas and used as vehicle fuel.
Although many waste management services such as collection and disposal are local services, our Strategic
Accounts program works with customers whose locations span the United States. Our Strategic Accounts
program provides centralized customer service, billing and management of accounts to streamline the
administration of customers’ multiple and nationwide locations’ waste management needs. On July 28, 2011, we
acquired Oakleaf Global Holdings and its primary operations (“Oakleaf”), which provides outsourced waste and
recycling services through a nationwide network of third-party haulers. Oakleaf has increased our national
accounts customer base and enhanced our ability to provide comprehensive environmental solutions.
Our WM Healthcare Solutions subsidiary offers integrated medical waste services for healthcare facilities,
pharmacies and individuals. We provide full-service solutions to facilities to assist them in best practices,
identifying waste streams and proper disposal.
We also have begun investing in businesses and technologies that are designed to offer services and
solutions ancillary or supplementary to our current operations. These investments include joint ventures,
acquisitions and partial ownership interests. The solutions and services include the collection of project waste,
including construction debris and household or yard waste, through our Bagster®program; the development,
operation and marketing of plasma gasification facilities; operation of a landfill gas-to-liquid natural gas plant;
solar powered trash compactors; and organic waste-to-fuel conversion technology. Part of our expansion of
services includes offering portable self-storage services; fluorescent bulb and universal waste mail-back through
our LampTracker®program; and a sharps mail return program through which individuals can safely dispose of
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