CRP Recycling Market Development & Commodity Markets 2 — Questions and Answers
Question 1: What is a 'tip fee' or 'processing fee' that a MRF may charge municipalities?
- A per-ton fee charged to the municipality to process collected recyclables (Correct answer)
- A fee paid by residents to recycle
- A tax on recycling equipment
- A permit fee paid to state agencies
Correct answer: A per-ton fee charged to the municipality to process collected recyclables
When commodity revenues are insufficient to cover MRF operating costs, the facility charges municipalities a tip fee per ton of material delivered for processing.
Question 2: Which of the following best describes a 'secondary materials' market?
- The trading market for post-consumer and post-industrial recovered materials (Correct answer)
- A retail store selling second-hand goods
- A backup supply chain for raw virgin materials
- A government-run surplus materials auction
Correct answer: The trading market for post-consumer and post-industrial recovered materials
Secondary materials markets involve buying and selling post-consumer and post-industrial recyclable commodities that will be reprocessed into new raw materials.
Question 3: What is 'basis weight' and why does it matter in recovered paper grading?
- The weight of paper per unit area that determines its grade classification and pricing (Correct answer)
- The heaviest bale weight a truck can carry
- The moisture level at which paper is graded
- The age of the paper in years
Correct answer: The weight of paper per unit area that determines its grade classification and pricing
Basis weight (pounds per 500-sheet ream at a standard size) helps classify recovered paper into grades like OCC, ONP, or mixed paper that carry different market values.
Question 4: What does 'domestic market preference' mean in sustainable procurement for recycling?
- Prioritizing US-based buyers for recovered materials to reduce transport costs and market risk (Correct answer)
- Buying only American-made recycling trucks
- Requiring all recyclables to be processed in-state
- Preferring local residents as recycling workers
Correct answer: Prioritizing US-based buyers for recovered materials to reduce transport costs and market risk
Domestic market preference policies encourage selling recovered materials to US-based manufacturers to support local jobs and reduce dependence on volatile export markets.
Question 5: Which metal is considered the highest-value commodity in typical curbside recycling streams?
- Aluminum cans (Correct answer)
- Steel/tin cans
- Lead
- Copper wire
Correct answer: Aluminum cans
Aluminum cans command the highest per-pound value among common curbside recyclables due to the significant energy savings from recycling aluminum versus virgin production.
Question 6: What is a 'revenue-sharing agreement' in the MRF–municipality relationship?
- A contract where the MRF pays the municipality a portion of commodity sales revenue (Correct answer)
- A government grant split between cities and private haulers
- A profit-sharing plan for MRF employees
- A tax arrangement between state and local governments
Correct answer: A contract where the MRF pays the municipality a portion of commodity sales revenue
Revenue-sharing agreements specify that the MRF remits a percentage or fixed amount of commodity revenue to the contracting municipality, often based on market price benchmarks.
CRP Recycling Market Development & Commodity Markets 2
What is a 'tip fee' or 'processing fee' that a MRF may charge municipalities?