Item 002 - Qualified Processors Presentation — original pdf

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C&D Committee Meeting October 9th, 2025 Overview 1. Qualified Processors vs Registered Evaluators 2. Review objectives identified in past meetings 3. Refresher on RCI presentation from 2021 4. Amendment options Processors vs Evaluators Qualified Processors Registered Evaluators • Located in the Austin Metro Area; • Can weigh inbound mixed materials; materials reclaimed for use from mixed materials; and residual material disposed • Authorizes inspections of its facility by the department • Makes records available for audit by the department • Has average diversion rate validated by RCI or a registered evaluator • Once registered, submits a report each six months with the average diversion rate, the types of materials recovered, and the beneficial uses for the materials. • Registration is valid for two years • Third-party individual or organization that ARR approves to: • Validate average diversion rates through review of QP’s application • Conduct onsite inspections and onsite audits of QPs • Must have operational or consulting experience • Must complete City-approved training • Registration is valid for one year ARR Comprehensive Plan NEAR-TERM GOAL (0-5 YEARS) Assess potential changes to the Qualified Processor rules. 1. Consider requiring all projects to use a Qualified Processor to improve accuracy of contractor reports and incentivize processors to increase diversion rates. 2. Consider policy changes to remove material that is burned from diversion calculations. 3. Align Qualified Processor rules with any changes made to the C&D Ordinance diversion requirements. Source: ARR. 2023 Comprehensive Plan. Chapter 13, "Construction and Demolition" Committee Considerations 1. Require all projects use a Qualified Processor 2. Change how Qualified Processors report and apply 3. Increase the number of Qualified Processors and Registered Evaluators 4. Remove wood derived fuel / biofuel from RCI diversion rate calculations to align with the City’s definition of “Beneficial Use” in § 15-6-1(3) RCI Meeting Review Thorough Process to Become Certified • Registration Application → Onboarding → Application for Certification (desk audit, prequalification, on-site evaluation by RCI evaluator to verify what was found in audit) → Final Certification Certification • Costs ~$8k to get certified + $629/month subscription fee – RCI Rate Structure • Lasts for five years; initial certification is year one • Recertification required each year for years 2 through 5 • New certification happens in year 6 RCI Benefits • Transparent, consistently accurate reporting • Accurate - requires use of scale weights rather than estimated volumes Potential Amendment Changes Committee Consideration Potential Change(s) 1. Increase the number of Registered Evaluators Increase approval period to 2 yrs (currently 1) 2. Change how Qualified Processors report and apply 3. Require all projects use a Qualified Processor • • • Extend registration to 5 years instead of 2 Change window to submit 6-month report to 60 days (currently 30) Require submission of registration renewal within 60 days of registration expiration (currently 90) • Amend code and rules to require projects deliver mixed loads to a facility with a verified diversion rate. • Consider who verifies diversion rates: city registered evaluators vs RCI Potential Amendment Change 4. Remove wood derived fuel / biofuel from RCI diversion rate calculations to align with City’s definition of “Beneficial Use” in § 15-6-1(3) Mixed C&D Processed at RCI-Certified Facility 1500 Recovery Rate w/ ADC & no Biofuel = Recovered Commodities (A) 600 Processed Biofuel (B) 250 Alternate Daily Cover (C) 200 (A + C) ÷ E (600 + 200) ÷ 1200 = ~67% Trash/Disposal (D) 150 Recovery Rate w/o ADC or Biofuel = -------------------------------------------------- Total Tons Processed / Sorted (E) 1200 A ÷ E 600 ÷ 1200 = 50% How could Austin calculate a diversion rate that excludes biofuel from RCI certified facilities? Code Review § 15-6-160 – REGISTRATION REQUIRED (A) The department may register a facility that meets the requirements in Section 15- 6-161 (Qualified Processor Requirements) as a qualified processor. (B) A registration is effective for two years. (C) To remain registered, the facility owner must submit a renewal application at least 90 days before the expiration of the registration. Code Review § 15-6-161 – QUALIFIED PROCESSOR REQUIREMENTS (A) A facility is a qualified processor if it meets the following criteria: (1) complies with all federal, state, and local regulations, including any permit requirements; (2) weighs the items described in Subsection (B); (3) provides the information described in Subsection (C); (4) is located in the Austin Metro Area; (5) authorizes an inspection of its facility by the department; and (6) agrees to the requirements described in Section 15-6-163 (Audit Requirements). (B) A qualified processor must be able to weigh: (1) inbound mixed materials; (2) materials reclaimed for use from mixed materials; and (3) residual material disposed. Code Review § 15-6-161 – QUALIFIED PROCESSOR REQUIREMENTS (C) A qualified processor must be able to provide customers with documentation that shows the date, quantity of materials, and the disposition of materials, mixed or separated, received from projects subject to this Article. Amounts may be calculated based on tons, or in a manner provided for in the Rules. (D) A qualified processor must submit a report each six months to the director that includes the average diversion rate, the types of materials recovered, and the beneficial uses for the materials. The report is due no later than 30 days after the end of each six month period. (E) A qualified processor must have its average diversion rate validated in accordance with Section 15-6-162 (Average Division Rate Calculation and Validation). Code Review § 15-6-162 – AVERAGE DIVERSION RATE CALCULATION AND VALIDATION (A) A qualified processor's average diversion rate is calculated as the tons of materials reclaimed divided by the tons of materials processed and multiplied by 100 percent. (B) A person is authorized to validate a qualified processor's average diversion rate if the person: (1) has operational or consulting experience in waste management, building design, construction, demolition, renovation, environmental protection, or accounting; (2) completes City-approved training, as may be required by the director, on construction and diversion material recycling, Zero Waste, or other related topics; and (3) is approved by director. Admin Rule Review 12-5 Qualified Processor 12.5.1 Average Diversion Rate Validation. A qualified processor applicant shall provide one of the following to validate its average diversion rate: 12.5.1.1 Certification of Real Rates (CORR) by the Recycling Certification Institute; or 12.5.1.2 Affidavit from a registered evaluator that meets the requirements of Section 12.5.2 During an audit, City personnel may not copy or remove from the qualified processor's premises a customer list; route information; price information; or other business information deemed confidential. Admin Rule Review 12-6 Registered Evaluator 12.6.1 A registered evaluator is a third-party individual or organization that the department approves to validate average diversion rates through review of the application, onsite inspections, and onsite audits of a qualified processor applicant. 12.6.2 To receive approval, a registered evaluator shall provide the department with information that demonstrates operational or consulting experience and relevant certifications in waste management, building design construction, demolition, renovation, environmental protection, or accounting. 12.6.3 Approval by the Department is effective for one year. Admin Rule Review 12.7.2 Project Diversion Rate Calculations 12.7.2.2 Tons of materials diverted by a qualified processor for beneficial use shall be calculated as the tons of materials delivered to the qualified processor times the average diversion rate for the qualified processor at the time of delivery. Material diverted by qualified processor = tons delivered × ADR, where ADR is the average diversion rate for the qualified processor. 12.7.2.3 When measurement by weight is not practical, a permittee may convert volume measurements to weights according to Section 12.7.4 (Volume-to-Weight Conversions). Admin Rule Review 12.7.3 Average Diversion Rate Calculations 12.7.3.1 Average diversion rate is calculated as 100 percent times the tons of material diverted for beneficial use divided by the tons of inbound comingled material the facility processes over a period of time. Average diversion rate = 100% x tons of diverted material Tons of inbound comingled material processed 12.7.3.2 For transfer operations, the average diversion rate is the weighted average of the average diversion rates of the qualified processors that receive commingled material from the transfer operation. The weighting is the percentage share of the material transferred by the operation and received by a qualified processor.