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Success Stories
San Jose, California
"Sustainability means finding ways to reverse the harmful
effects of traffic congestion, pollution, wastefulness, and
environmental degradation on our urban landscape. It also means
developing a healthy economy and an improved quality of life
for all who live and work in San Jose."
- San Jose Environmental Services Department
ABSTRACT
The City of San Jose is pioneering a number of local government
and natural-resource programs as part of its sustainability efforts.
These programs range in focus from community development and air
pollution reduction, to waste minimization, and energy conservation.
Through its Integrated Waste Management Program and its Source
Reduction and Recycling Procurement Policy, San Jose has become
a national leader in stimulating markets for recycled products.
The San Jose strategy requires that the city consider the recycled
content and recyclability of products and packaging in its procurement
decisions. San Jose wisely recognizes that discouraging discrimination
against recycled products speeds acceptance of such products in
the marketplace, reinforcing municipal recycling programs.
Saving One and All: Recycled-Product Procurement, Source
Reduction, And Integrated Waste Management
The city of San Jose, California has become a leader in the expansion
of markets for recyclable materials and recycled-content products,
winning state and national recognition for its efforts. Recognizing
that cities must be active in stimulating and sustaining demand
for recycled products, San Jose has instituted a Source Reduction
and Recycling Procurement Policy that supports the three major
emphases of its waste management plan: prevention, recycling,
and reuse.
By taking an integrated approach to managing waste, the city
has reduced its operating costs both directly and indirectly.
On the waste-management side, recycling programs save valuable
landfill space and tipping fees. On the demand side, "buy recycled"
as well as product reuse and refurbishing programs in city departments
have cut some procurement costs significantly. When large volume
purchasers like the city of San Jose demand recycled content from
their vendors, the market for recyclables expands (ensuring the
continued viability of municipal recycling programs), the availability
of recycled-content products soars, and the cost of such products
drops.
The city's Source Reduction and Recycling Procurement Policy
will play an instrumental role in helping San Jose increase the
recycled content of products purchased and used by the city itself,
its contractors, and its grantees; reduce waste in the manufacture
and use of products and packaging of its purchases; and provide
guidance to its staff in evaluating products purchased for city
use.
Controlling Growth and Managing Resources
San Jose's holistic approach to resource management was born
in the late 1970s when the city of San Jose began in earnest to
control its rapid growth. As part of this early urban planning
process the city commissioned a report entitled Toward a Sustainable
City: A Report on Natural Resources and the City of San Jose.
The report has become a cornerstone of San Jose's sustainability
efforts. One of its first outcomes was a strengthening of the
city's resource-management capacity. San Jose's city council,
observing the report's recommendations, created an energy office
within the office of the city manager. Since that time the city's
energy, water, and solid waste departments have been brought together
in what is now the San Jose Environmental Services Department
(ESD).
San Jose's decision to consolidate these resource-management
functions underscores the city's focus on the principle of interconnectedness.
At the March 1991 New Environmental Strategies for Urban Prosperity
Workshop, San Jose's EDS Director told participants, "To waste
one is typically to waste several; to conserve one may be to conserve
them all." Recycling, for instance, saves more than landfill capacity:
it also saves energy, water, forest, and mineral wealth. No philosophy
could be truer.
The ESD extends this notion of interconnectedness to its Integrated
Waste Management Program. Waste management is a high priority
for San Jose. Like all California cities, San Jose is required
by state law to recycle 50 percent of the total solid waste it
generates by the year 2000. The city recognizes that recycling
is only part of the picture. In addition there must be conservation,
and a market for recycled materials. In August 1989, San Jose
adopted the Market Development Strategy Workplan to complement
the city's recycling collection programs and close the recycling
"loop" with the purchase of recycled-content products. This effort
was the basis for San Jose's Source Reduction and Recycling Procurement
Policy, which the San Jose City Council approved on August 28,
1990.
Defining a Policy
The policy explicitly recognizes that "improving the economics
of recycling is also essential to guarantee the long-term health
of the city's recycling investment." The city realized that by
assuming a leadership role in the recycled-products market, it
could accelerate a shift to the purchase of recycled materials
in the private sector and the general public. To San Jose's environmental
program manager, the policy "is a matter of practicing what we
preach."
The policy makes the source of materials used to manufacture
products the city purchases a key criterion in procurement decisions.
Its object is to ensure that no product manufactured with recycled
or "secondary" material is discriminated against for reasons other
than function. Further, the policy directs that recycled-content
products are to be preferred over goods made strictly with virgin
material when such products can meet the necessary standards of
performance.
Specifically, the policy requires that, the city purchase products
that contain in order of preference, the highest percentage of
post-consumer recovered material and the highest percentage of
pre consumer recovered material available in the marketplace.
When a city agency finds procurement of a recycled-content item
utterly impracticable, a specific explanation for that finding
must be included in the purchasing record. The policy also requires
that city staff consider the ability of a product and its packaging
to be reused, reconditioned for use, or recycled through existing
recycling collection programs. The volume and toxicity of waste
and by-products generated in the manufacture, use, recycling of
a given product and its packaging and disposal are important criteria
as well.
Implementing the Policy
Implementation of the policy did present a few difficulties.
In the initial phases of the program, city employees were skeptical
of the new recycled products. Recycled paper, for instance, at
first did not work as well as virgin paper in copiers and printers.
However, minor adjustments to copiers and printers remedied the
problem. As a result of this experience, the procurement office
has learned to test recycled products thoroughly before distributing
them city-wide. Recycled products must perform as well as or better
than virgin products before they become mandatory, ensuring employee
acceptance.
The higher cost of some recycled-content products presented
an obstacle as well. Avoiding short sighted cost comparisons of
recycled and virgin products, the city has focused on bottom-line
savings and expenditures across the range of recycled products
it uses. Savings achieved by the procurement of recycled-content
products that are cheaper than their alternatives offset the added
cost of those that are more expensive than their virgin counterparts.
In cases where recycled products are more expensive, the city's
large purchase volume allows it to negotiate for better prices,
mitigating the added cost. When San Jose faced rising costs of
both recycled and virgin paper, for example, its procurement office
negotiated a contract with a vendor to supply recycled-content
paper to the city for one full year at a locked-in low price.
Coordinating procurement activities among various city departments
presents an ongoing challenge. Each department designates a representative
who works with the joint coordinators of the program, the EDS
and the General Services Department's Purchasing Division, in
the "buy recycled" efforts. These representatives help review,
test, and evaluate recycled-content products for possible procurement,
share information and assist, as needed, in the in-house recycling
program. These representatives are also called upon as needed
to assist in the in-house recycle program. Unfortunately, personnel
transfers and city reorganization have required frequent changes
of departmental representatives, impeding policy coordination.
As the program matures and as organizational stability is restored,
however, this problem should abate.
Data collection and management present another problem. To gather
information on recycled products at each phase of the purchasing
process, the Purchasing Division's Request For Quotation and Requisition
Tracking Forms seek details on product content and recyclability.
The division also uses forms to record purchases of recycled-content
products. Currently, the city compiles this information manually;
San Jose is cooperating with other cities implementing similar
programs to develop a more automated data management system.
Despite these difficulties, San Jose staff continue to explore
new products and purchasing methods. Membership and participation
in various recycling organizations, as well as cooperative research
with other cities and counties, facilitate this effort, and keep
purchasing staff up-to-date on all aspects of recycling. The city
shares what it learns with contractors and local businesses. San
Jose has hosted a conference featuring vendors of recycled products,
maintained a list of recycled-products vendors, published educational
materials; and offered technical assistance to firms.
San Jose's EDS has administered its recycled-product procurement
program at minimal cost, hiring only one additional staff member.
That staff member acts as a recycling coordinator, sourcing new
recycled products, researching markets for recycled city surplus,
and enhancing the city's in-house recycling program, among other
responsibilities. General Services, in turn, identifies new products
identification for city purchase, maintains records and prepares
annual reports.
Assessing Performance and Replicating Results
The Source Reduction and Recycling Procurement Policy has reshaped
San Jose's procurement activities. The city currently purchases
over 40 types of recycled-content products, ranging from office
supplies, janitorial papers, and trash-can liners to compost for
city parks. According to a 1992 publication of the Resource Renewal
Institute, "Saving Cities, Saving Money," San Jose saves $10,000
a year by recycling one product alone: laser printer toner cartridges.
Rather than buying new cartridges, the city returns used ones
for refilling. San Jose continues to seek new recycled content
procurement opportunities. Recently, the city has tested asphalt
made partly of recycled tires, and park equipment made of recycled
plastic. Both products are potentially more durable than their
conventional counterparts.
Thanks to San Jose's adoption of tens of common recycled products,
city employees are willing to try more innovative products, such
as recycled diskettes, street signs, and ink-jet cartridges. In
fact, a new firehouse recently installed cellulose insulation
made from 100 percent recycled newspaper. Response to these "cutting-edge"
products has been very positive. By prohibiting exclusion of or
discrimination against recycled-content products in city procurement
decisions, and by tipping the city's "corporate culture" in favor
of eco-friendly materials, San Jose's policy has expanded both
outlets for recyclables and markets for recycled content products.
The city's demand for good-quality recycled products over virgin
material has put pressure on vendors to adjust quickly to maintain
contracts with the city. Expanded local distribution of recycled-content
products has, in turn, made such products more easily and cheaply
available to private purchasers as well.
For its efforts, San Jose has garnered much positive publicity.
In 1995 San Jose received the first annual Buy Recycled Campaign
Award for large cities from the U.S. Conference of Mayors and
the U.S. Environmental Protection Agency. The award recognized
San Jose for its significant contributions in expanding markets
for recycled materials. The Global Cities Project also named San
Jose one of the leading municipal purchasers of recycled products
in the state of California.
Nationwide recognition has enhanced the potential for replication
of San Jose's policy. The city's awards have generated extensive
interest in its policies and programs from cities and counties
all over the country. San Jose staff actively promote replication
of the Source Reduction and Recycling Procurement Policy through
participation in conferences, workshops, procurement fairs, and
recycling organizations, as well as through technical assistance
to hundreds of public agencies, private businesses, and residents.
Already the cities of Sunnyvale and Oakland, California, have
developed recycled-product procurement policies, using San Jose's
as a model.
While San Jose's efforts can be replicated by most cities and
counties interested in changing their purchasing patterns, city
officials caution that size may matter in some procurement orders.
Thanks to its capacity to purchase large volumes of recycled-content
materials, San Jose has managed to keep costs down. This has not
been as easy for smaller towns following San Jose's example. In
some instances, these towns have been allowed to piggy-back on
San Jose's purchases to achieve the same savings. Towns in other
major metropolitan areas should explore this rich opportunity.
About San Jose
LOCATION
In northern California's Bay Area, at the southern tip of the
San Francisco Bay
SIZE
443.6 square miles
POPULATION
835,500
PER CAPITA INCOME
$20,423
FORM OF GOVERNMENT
Mayor/City Council
CONTEXT
In the latter half of this century, urban development has transformed
the San Jose area from a largely agricultural valley into a major
metropolitan area. Between 1960 and 1980, San Jose more than doubled
in population. It has seen a corresponding increase in industrial
development, consistently attracting high-tech industries over
the last 15 years. Today, San Jose is home to over 4000 high-technology
firms, which employ more than 200,000 people. The city has been
ranked among the top five most entrepreneurial cities in the United
States, and one of the country's top ten locations to conduct
international business. California officials have projected that
diverting 50 percent of the municipal waste stream from disposal
could add $2 billion to the state's economy and create over 45,000
new jobs in manufacturing and processing by the year 2000. New
York City estimates that 3,000 to 4,000 new jobs could be created
through new and expanded recycling-related businesses over a five
year period. San Jose's recycling initiative focuses on a diversity
of waste items. Quantifiable savings estimates are available for
the city's toner cartridge recycling and the 300 tons of waste
paper recycled annually.
Economic Benefits
Although San Jose does not pay tipping fees, the city will eventually
have to pay for a new landfill. The following calculations assume
that true cost of the cities' landfill use is equivalent to the
residential rate of $26.69/ton. Many cities pay $50/ton for collection
and disposal. In these communities, the economic incentive to
recycle is even more pronounced.
- $4200 per year in avoided waste paper disposal costs
- $10,000 in annual savings from recycling of laser-printer
toner cartridges
Through its Integrated Waste Management Program, San Jose
will achieve a 50 percent reduction in the amount of residential
and commercial solid waste being landfilled by the year 2000.
Environmental and Quality of Life Benefits
The city's procurement of recycled paper conserves valuable
resources.
Each ton of recycled paper saves 4,200 kWh of electricity
and eliminates associated pollutant emissions. Using 300 tons
of recycled waste paper San Jose provides the following benefits:
CO2 emissions avoided:
6300 lbs.
NOX emissions avoided:
10,500 lbs.
SO2 emissions avoided:
24,360 lbs.
Each ton of recycled paper procured also saves:
- 17 trees
- 7000 gallons of water
California officials have projected that diverting 50 percent
of the municipal waste stream from disposal could add $2 billion
to the state's economy and create over 45,000 new jobs in
manufacturing and processing by the year 2000.
Other Communities Promoting Waste Reduction and Recycling
Austin,TX
Baltimore,MD
Berkeley, CA
Los Angeles,CA
Philadelphia,PA
Portland,OR
Richmond,VA
Washington,DC
Other Sustainable Programs In San Jose, California
Community Development
Forging the Links: Creative Partnerships in Energy, Environment
and Economic Development
Identifies tools to enable the small business community to
utilize the most cost-effective energy efficiency measures
available, and to promote cost-effective water conservation
and water management technologies.
The Sustainable City Strategy
Provides an integrated, long-term energy policy framework
that creates greater coordination among energy efficiency,
economic development, and environmental protection services.
Sets the target of a 10% energy use reduction across all sectors
by the year 2000.
Economic Development
Downtown Redevelopment Agency
Invests $96 million by the city in downtown redevelopment,
spurring $710 million in private developer commitments, and
creating 14,000 jobs.
Energy
Innovative Design & Energy Analysis Service
(IDEAS)
Provides planning and energy-efficient design assistance to
developers, architects, and engineers for new commercial building
projects. Offers conservation guidelines for site planning,
architecture, and lighting systems to local electrical and
mechanical contractors and to small business that have an
interest in energy efficiency measures.
Solar Access Design Guidelines
Adopted guidelines as part of the Residential Design Guidelines
in 1992, to encourage incorporation of energy efficient site
and building design strategies when it is most cost-effective
to do so, i.e., as the housing and housing developments are
designed.
Transportation
Fleet Operations & Alternative Fuel Vehicle Fleet Program
Introduces alternative-fuel vehicles into the City's fleet
to achieve reductions in emissions
and reduce fuel costs. Vehicles in this program run on electricity
and compressed natural gas.
Land Use
State of California Mixed Zoning
Qualifies communities for market development zone status by
providing an adequate supply of secondary materials, suitable
land and infrastructure, and regulatory as well as tax incentives
to attract manufacturers.
Waste Minimization and Pollution Prevention
Source Reduction and Recycling Procurement Policy
Defines and sets content standards for post and pre-consumer
recovered materials.
Participant in U.S. Department of EnergyClean Cities
Program
Strives to decrease urban air pollution.
Pollution Prevention Strategy for a Clean Bay
Develops and implements a comprehensive pollution prevention
program to reduce toxic pollutant loading to San Francisco
Bay from all major sources. Differs from traditional pollution
control and abatement strategies that target pollutant reductions
from only industrial and commercial "point" sources.
Water
Financial Incentives Program (FIP)
Reduces burden on wastewater treatment facilies by offering
rebates of up to $20,000 to businesses that implement water
conservation and flow reduction measures within their facilities.
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