Waste Management 2013 Annual Report Download - page 98

Plastics materials recycling — Using state-of-the-art sorting and processing technology, we process,
inventory and sell plastic commodities making the recycling of such items more cost effective and
convenient.
Commodities recycling — We market and resell recyclable commodities to customers world-wide. We
manage the marketing of recyclable commodities that are processed in our facilities by maintaining
comprehensive service centers that continuously analyze market prices, logistics, market demands and
product quality.
Fees for recycling services are influenced by the type of recyclable commodities being processed, the
volume or weight of the recyclable material, degree of processing required, the market value of the recovered
material and other market factors.
Some of the recyclable materials processed in our MRFs are purchased from various sources, including third
parties and our own operations. The cost per ton of material purchased is based on market prices and the cost to
transport the processed goods to our customers to whom we sell such materials. The price we pay for recyclable
materials is often referred to as a “rebate.” Rebates generally are based upon the price we receive for sales of
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 from operations margins.
Other. Other services we provide include the following:
We provide recycling brokerage services, which involve 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 minimal 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.
Our WM Sustainability Services organization offers our customers in all Areas a variety of services in
collaboration with our Area and strategic accounts programs, including (i) in-plant services, where our
employees work full-time inside our customers’ facilities to provide full-service waste management solutions and
consulting services; (ii) specialized disposal services for oil and gas exploration and production operations and
(iii) services associated with the disposal of fly ash, residue generated from the combustion of coal and other fuel
stocks. 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 the amount of 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, 2013, we had 137 landfill gas beneficial use projects
producing commercial quantities of methane gas at 124 of our solid waste landfills and four third-party landfills.
At 109 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 17 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 10
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.
8