Background

In 2005, North Carolina enacted House Bill 1465, which bans the disposal of wooden pallets in municipal solid waste landfills by October 2009. Pallets may be sent to construction and demolition landfills if they are generated as C&D waste (as defined by the NC Solid Waste Management Rule 15A NCAC 13B .0532). Pallets from an industry other than construction of homes and buildings would not be allowed in any landfill.

The legislation recognizes many management methods are available to pallet generators other than disposal. This fact sheet is designed to give local governments information on options to help generators divert pallets from disposal.

Evaluate Current Services and Infrastructure

Local governments should first evaluate the current services they offer and the locally available infrastructure. Information on the following questions may prove useful in determining which options a local government can pursue:

• Do you currently manage a yard waste facility, landfill or transfer station?
• If so, is there additional space available to designate for pallet recycling?
• What recycling or composting services do you currently offer?
• Could pallets be integrated with current yard waste or other recycling operations?
• Are there private pallet or wood waste management companies active in your area?

If you currently have a yard waste or clean wood waste recycling program, you may be able to easily add pallets to the mix. If you have space available at an existing site, you may be able to easily designate an area for pallet drop-off. If you don’t have an existing facility or site availability, you can still assist commercial pallet generators by simply providing recycling market contacts and other information (see below).

North Carolina has a number of local governments that offer pallet recycling services. A few examples of these programs are described as case studies and can be found at: http://www.p2pays.org/BannedMaterials/WoodenPallets/CaseStudies.asp.

In short, an inventory of current services and infrastructure will help in choosing the management options discussed below.

Markets/Recycling Services

If your local government decides to offer a pallet recycling program, a critical next step is securing a market for the materials. Pallets can be “recycled” by a number of different type markets, ranging from reuse and repair to grinding for mulch or boiler fuel.

Depending on size and quality, some pallets are more recyclable and reusable than others. Pallet recycling companies are good sources of information regarding the most desirable types of pallets. Generally, the most attractive is a standard “GMA 48 x 40 pallet” - see the Grocery Manufacturer Association Pallet Resource Center Website at http://www.gmabrands.com/publications/palletres.cfm.

Pallet Recycling
Most pallet recycling companies are interested primarily in receiving immediately reusable or repairable pallets. These pallets represent the highest value for pallet recyclers and generate the best deal for suppliers (local governments). Many pallet recyclers also work to restore broken pallets to working condition to get as much value as they can from the product.

Recyclers may pay for pallets, take them for free or charge to take them, depending upon the amount and kinds available from any given generator. Large supplies of GMA pallets will generally yield revenues to the generator, whereas small supplies of odd-sized pallets will cost the most to recycle.

Since using pallets as pallets is the highest value option, local governments should examine if and how any service they offer can be integrated with a pallet recycling company’s needs. A list of pallet recyclers is available at: http://www.p2pays.org/dmrm/start.aspx?id=233.

If pallets are not suitable for reuse or repair, they can be processed for other uses. This processing usually entails grinding the pallets for use as landscape mulch, playground cushion bedding, animal bedding, compost and soil amendments or biomass fuel. Many companies that offer pallet repair services also are capable of this type of processing. In addition to companies specifically involved in pallet recycling, other types of recycling firms such as commercial composters, wood waste grinders and construction waste recyclers are possible outlets for discarded pallets.

Again, North Carolina keeps an extensive list of pallet recyclers and other companies able to accept and manage wooden pallets on its recycling markets directory, searchable on-line at www.p2pays.org/dmrm or at http://www.p2pays.org/dmrm/start.aspx?id=233. As of March 2006, the directory contained more than 60 companies providing pallet recycling services.

Setting Up a Collection Program

After a recycling market or vendor has been secured, an appropriate pallet collection program can be designed

Pallet collection programs typically require very little equipment or supplies. A separate area for pallets can be designated at most existing local government solid waste or yard waste facilities. Pallets can be stacked in a pile or containerized for shipping, depending on the requirements of the recycling vendor. Minimal signage is typically required for such collection sites. Commercial businesses and haulers can be asked to stack the pallets, minimizing the labor required to maintain the site.

If the collected pallets are unsuitable for reuse or repair, they may be simply mixed with existing yard waste, clean wood waste or construction and demolition recycling operations. This method typically requires no change in current operation beyond advertising the new recycling service to the public.

To provide a financial incentive to recycle pallets, a reduced tip fee may be implemented for separated loads of pallets and other yard or wood waste.

Prices/Costs of Pallet Recycling

The cost of pallet recycling programs can range from inexpensive to very expensive depending on program design and corresponding infrastructure and equipment needs to support the program.

In most cases, however, the cost of establishing a pallet collection program is marginal. Potential costs may involve purchasing signs, advertising costs, containers to hold the pallets and transportation to haul the pallets to the market. Pallet recyclers may take on some of these costs, depending on the quality of the materials available.

If pallets are integrated into an established yard waste-processing program, the cost is minimal since major capital expenses have already been realized with the yard-waste processing program. The cost of adding pallets to an existing program may involve advertising costs, new signs and optional containers to hold the pallets.

If a new program is established, costs can be significant depending on the design of the program. If grinding material will be done in-house and on-site, costs will involve purchasing a grinder, land preparation, equipment operation and maintenance and labor. To avoid the cost of purchasing a grinder, operation and maintenance costs and labor, contract grinding can be a cost-effective way to implement a program. DPPEA has a Contract Grinding fact-sheet available at http://www.p2pays.org/ref/26/25003.pdf for those considering this option.

Regardless of the collection method, costs to manage a pallet recycling program can be offset by revenue generated from tip fees and possibly from the sale of any resulting products like mulch or compost.

Information Brokering

If current programs and infrastructure do not allow for a pallet collection program, local governments can simply provide recycling market and information to commercial pallet generators. Providing this information will likely prove very useful to small pallet generators looking for recycling management options as the landfill ban is implemented.

Local governments can direct pallet generators to the North Carolina recycling markets directory, searchable on-line at www.p2pays.org/dmrm or the http://www.p2pays.org/dmrm/start.aspx?id=233. In addition, a pallet management fact sheet for private generators is available at: http://www.p2pays.org/ref/38/37880.pdf.

Conclusion

The ban on the disposal of wooden pallets in landfills takes effect in Oct. 1, 2009, which allows local governments and commercial pallet generators time to assess their service needs and make arrangements with pallet recycling service providers. The recycling of wooden pallets will help North Carolina capture thousands of tons of wood waste for economic use. For more information on the wooden pallet disposal ban and options for pallet recycling, please call DPPEA at (919) 715-6500.

March 2006

For a PDF of this fact sheet, click here.