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Home My WebLink AboutRESPONSE - RFP - 7576 RESIDENTIAL REFRIGERATOR/FREEZER RECYCLING SERVICESProposal for RFP 7576: Residential Refrigerator/Freezer Recycling Program for The City of Fort Collins Utilities December 17, 2013 Submitted by Appliance Recycling Centers of America, Inc. A. Table of Contents A. TABLE OF CONTENTS B. PROJECT DESCRIPTION ...................................................................................................... 1 OVERVIEW ................................................................................................................................ 1 QUALIFICATIONS ....................................................................................................................... 1 MARKET DIFFERENTIATION ........................................................................................................ 3 C. PROJECT TEAM .................................................................................................................... 4 MANAGEMENT STRUCTURE ....................................................................................................... 4 EMPLOYMENT ........................................................................................................................... 5 ARCA’S CURRENT PROGRAMS .................................................................................................. 6 D. PROJECT MANAGEMENT AND REPORTING PLAN .......................................................... 7 PROJECT MANAGEMENT ............................................................................................................ 7 DATA MANAGEMENT AND REPORTING ........................................................................................ 7 E. REFRIGERATOR AND FREEZER RECYCLING SERVICES .............................................. 10 APPLIANCE RECEIVING ............................................................................................................ 11 APPLIANCE PROCESSING ......................................................................................................... 12 EPA’S RESPONSIBLE APPLIANCE DISPOSAL (RAD) PROGRAM ................................................. 15 ARCA’S COMMITMENT TO SAFETY ........................................................................................... 15 F. ENVIRONMENTAL COMPLIANCE ...................................................................................... 16 G. APPLIANCE STORAGE AND TRANSPORTATION ............................................................ 18 REGULATORY COMPLIANCE ..................................................................................................... 18 COLLECTION PERSONNEL ........................................................................................................ 18 COLLECTION VEHICLES ........................................................................................................... 19 PROCEDURE ........................................................................................................................... 20 H. COLLABORATIVE RETAILER PROGRAM MODELS ........................................................ 20 I. PRICING ................................................................................................................................ 22 ATTACHMENTS 1. Résumés of Key Personnel 2. Licenses and Permits 3. Sample Waste Manifests and Reporting Forms 4. Sample Program Reports 5. Sample Invoice RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 1 of 22 B. Project Description Overview Appliance Recycling Centers of America, Inc., through its wholly owned subsidiary ARCA Recycling, Inc. (collectively referred to as ARCA), is pleased to respond to Request for Proposal 7576 for the Residential Refrigerator/Freezer Recycling Program sponsored by the City of Fort Collins Utilities (Utilities). Throughout 24 years of serving energy efficiency programs, ARCA has responded to our clients’ steadily increasing need for an expanded scope of services to support their appliance recycling programs. As a result, we have developed a package of services that allows us to tailor programs to give our clients the flexibility needed in their individual markets. ARCA has been privileged to provide turnkey appliance recycling services for Xcel Colorado’s Refrigerator and Freezer Recycling Program since 2009, illustrating ARCA’s experience in serving utility service territories in Colorado. ARCA would be pleased to provide the services below for the Utilities’ Residential Refrigerator/ Freezer Recycling Program: • Superior data management, auditing and reporting capabilities with ARCA’s ATO (Appliance Turn-in Order) system, which offers dashboard data and reporting 24/7 to program managers via a secure Internet connection. • Collection of the appliances from a designated location in Fort Collins to be agreed upon with the Utilities’ collection contractor and transportation of the units to ARCA’s regional recycling facility at 5750 East 58th Avenue, Suite A, in Commerce City, Colorado. • Innovative, environmentally sound appliance processing and recycling systems and methods to remove and properly manage hazardous components and materials, including: o PCB-containing capacitors. o Mercury-containing components. o CFC/HFC/HCFC refrigerants and oil. o Polyurethane foam insulation. o Recyclable materials such as ferrous and nonferrous metals, plastics and glass. • Ongoing quality assurance monitoring and auditing of all aspects of the operation. • All business insurance, including pollution legal liability coverage. Qualifications ARCA, a publicly traded corporation (NASDAQ: ARCI) based in Minneapolis, Minnesota, is a pioneer in the field of providing turnkey appliance recycling and replacement services to RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 2 of 22 sponsors of energy efficiency programs across the U.S. and Canada. ARCA currently handles over 150 energy efficiency programs as well as a RAD-sponsored initiative with General Electric’s GE Appliances business component. Over the past 37 years, ARCA has demonstrated the expertise to operate comprehensive appliance recycling programs in terms of design, scope and operation. Throughout our history, we have been the leader in the appliance recycling industry by developing equipment, processes and systems to lessen the negative impact of appliance disposal on the environment. We are proud of our three decades of preventing the release of ozone-depleting and high global- warming-potential refrigerants and foam-blowing agents while properly handling other environmentally damaging materials found in appliances. Our philosophy has always been to maximize recycling and minimize disposal in landfills. With our innovative technology and comprehensive network of environmental services contractors, we are able to prevent the recyclable materials in old appliances from entering the waste stream. ARCA has extensive experience in designing programs and efficiently scaling operations due to a variety of program factors. Examples of ARCA’s capabilities in providing tailored services and rapid response to program variables include: • Immediate start-up capabilities where appliance recycling programs have begun within just a few weeks after signing an agreement. For example, the Ameren Missouri appliance recycling program agreement was signed in early July 2010 and by August 2010, ARCA’s call center and collection/transportation services were ready for operation. Similar scenarios occurred with Efficiency Smart, Baltimore Gas & Electric, and Northern Indiana Public Service Company. • Immediate deployment of ARCA’s back-up systems and effective management of call center personnel to handle more than 9,000 utility customer calls in the week following a major West Coast newspaper’s unexpected publication of a front-page article and photo about a statewide appliance recycling program. • Designing and implementing marketing plans, graphics and media placement within a matter of days, and generally less than one week. • Increasing the number of drivers and collection vehicles from four to thirty-eight in less than sixty days to accommodate the high volume of customer demand experienced during the summer of 2007 when Ontario Power Authority kicked off their refrigerator recycling program. • Designing and implementing umbrella programs that coordinate appliance recycling services for multiple utilities under one administrator with one set of program parameters. We have successfully operated programs for Great River Energy, with 22 participating electric cooperatives in Minnesota, Efficiency Smart, with 47 participating communities/utilities in Michigan, Ohio and Pennsylvania, and GreenCo Solutions, with 13 participating cooperatives in North Carolina, among other utilities across the U.S. and Canada. • Designing our Compton center with a capacity to manage a volume of 100,000 units annually to meet the requirements of an RFP issued by Southern California Edison and RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 3 of 22 Los Angeles Department of Water and Power in 1993, but responding to much higher appliance volumes due to the implementation of additional energy efficiency programs. Milestones that illustrate ARCA’s capabilities to serve electric utility programs include: • Northern Indiana Public Service Company’s (NIPSCO) held its 5,000th unit milestone event at a local Valparaiso customer’s home in July 2012. The U.S. Environmental Protection Agency (EPA) also supported the event due to NIPSCO’s membership in the voluntary Responsible Appliance Disposal Program (RAD). • Nineteen-year client Southern California Edison recycled its 1 millionth appliance in April 2012 and is North America’s highest-volume energy efficiency recycling program in terms of total units recycled. The recycling efforts have avoided emissions of over 4 metric tons of carbon dioxide, the equivalent of removing over 800,000 cars from the road. • Long-standing client San Diego Gas and Electric, which has more than 3.4 million consumers, recycled its 150,000th appliance in March 2012. As an ENERGY STAR® partner, ARCA also provides appliance replacement, or change-out services for multiple utilities in the U.S. One current replacement program contract is with Southern California Public Power Authority (SCPPA), an organization composed of twelve public power agency members in the counties of Los Angeles, Orange, San Bernardino, Riverside, San Diego and Imperial. For this program, we deliver and install new ENERGY STAR® refrigerators in the homes of customers served by SCPPA member companies and recycle the old units. SCPPA’s program reaches both single-family and multi-family homes of low-income and hard-to- reach customers. Market Differentiation Through ARCA’s unrivaled turnkey services, Utilities will benefit from: • Efficiency and convenience of dealing with an experienced Colorado contractor to reduce the carbon footprint associated with transporting appliances long distances for recycling. • Superior systems and processes for recycling appliances collected through Utilities’s program. • Guaranteed, permanent appliance disposal, as ARCA does not engage in any business directly or through any affiliated organization in which the company pays retailers for appliances that are sold in the domestic used-appliance market or exported. We strongly believe a conflict of interest exists in mixing appliances for resale with those that are required to be permanently removed from service through utility programs. • Professional financial auditing and Sarbanes-Oxley compliance. As a publicly traded company that produces annual audited reports, ARCA has demonstrated the experience RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 4 of 22 and systems that are consistent with general accounting standards. ARCA also assures its utility clients of strict compliance with all federal and state regulations regarding unclaimed property related to customer financial incentives for the program. ARCA would work with Utilities to maintain a program that is cost-effective and easy to administer. With more than 24 years of experience in helping utility clients design appliance recycling programs, ARCA can assist in suggesting strategies that have been successful for other programs, while customizing services to best meet the evolving needs of the program. Furthermore, ARCA is an experienced and motivated company that is capable of providing quality leadership and a proactive turnkey solution for achievement of Utilities’ defined energy efficiency goals within the established program budget. C. Project Team Management Structure ARCA’s team of seasoned professionals includes over a dozen key corporate employees who have been with company for over 10 years and several who have exceeded 20 years. ARCA uses a team approach in conducting business, with many individuals contributing to the completion of a specific task. The key employees below have all been active in supporting the Xcel Energy program in Colorado, among ARCA’s other utility programs across the U.S. Key individuals who would be assigned to Utilities’ program include the following (please see their résumés in the attachments to this proposal): Mark Eisenschenk, ARCA’s chief operating officer and president of ARCA Recycling, Inc., is responsible for setting the strategic direction and driving performance in the day-to-day operations of ARCA and its subsidiaries. Eisenschenk leads all aspects of ARCA’s utility program management and execution and directs the accounting, business operations services, human resources, information systems, marketing and advertising, and technical services departments. Rick Christensen, Director of Regional Recycling Operations, directs the management of ARCA’s regional processing and recycling centers in Colorado, Illinois, Texas, Kentucky and North Carolina. He provides executive-level support for Jim Blad’s daily management of field operations for Colorado utility programs, including transportation, decommissioning and recycling services. His responsibilities also include managing budget planning and reporting. Jim Blad, Colorado Regional Recycling Center Manager, manages ARCA’s regional processing and recycling center in Commerce City, Colorado, with overall responsibility for the daily operation of local utility programs. He also handles customer service and utility client communication on behalf of the Colorado facility. Blad is responsible for quality control and field audits for appliance recycling programs and oversees the departments that encompass dispatch, transportation, decommissioning and recycling services. His responsibilities also include managing center reporting and administrative functions. Tiffany Olson, Marketing and Advertising Director, directs utility program startup, ongoing communications with utility program managers and fulfillment of contract requirements. Olson is responsible for monitoring program progress and goals through analysis of program reporting. RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 5 of 22 She manages the team that provides daily support to utility programs and works to maintain consistent communication with utility representatives. Support team members include the corporate and center employees of the key personnel mentioned above. They support ARCA’s center operations and energy efficiency programs in customer service, information systems, administration, marketing and advertising, accounting, human resources, appliance processing, transportation and facilities. Although employees are assigned to one department for organizational purposes, many are cross-trained to serve in other departments as needed. Employment Because ARCA is committed to a work environment that fosters equal opportunity for all, ARCA has an Equal Employment Opportunity policy that conforms to California’s state laws, among the strictest in the nation. The company’s policies also emphasize supplier diversity. In accordance with applicable federal, state and local laws, ARCA makes all employment-related decisions without regard to race, color, creed, religion, age, sex, ancestry, national origin, sexual orientation, marital status, domestic partner status, disability, status regarding public assistance, membership or activity in local commission or status as a qualified protected veteran. ARCA makes reasonable accommodations so individuals with disabilities can apply for jobs for which they are qualified. ARCA employees with a disability are given reasonable accommodation to perform the essential functions of a particular position and to participate in all employment- related activities. ARCA is further committed to a proactive course in establishing programs and procedures that encourage the employment and advancement in employment of qualified minorities, women and veterans. ARCA’s human resources department (HR) is responsible for recruitment and helping to find qualified candidates for job openings. Dependent on the job, ARCA may require: • Pre-employment physical – Applicants who will move appliances need to be assessed by a physician to avoid injuries caused by employees unable to physically perform a job. • Controlled substance screening (CSS) test – ARCA is a drug-free workplace. Those applying for safety-sensitive positions (drivers, warehouse workers, for example) will have a CSS pre-employment test and will also be subject to ongoing random CSS tests. • Criminal background investigation, sex offender registry search and social security trace – Any employee who enters a customer home must successfully pass the criminal background check. During the criminal background process, we also validate social security numbers to see if the name matches the number and verify that it is a valid social security number. Additional information through the social security trace provides all names and addresses historically associated with the applicant. • Motor vehicle report (MVR) – Some positions require an MVR to verify that our insurance carrier can cover the employee and that the employee has met other company driving standards. • Reference checks – Reference checks are performed on every candidate ARCA desires to hire. RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 6 of 22 ARCA’s Current Programs In Colorado, ARCA provides turnkey services for: Client Name: Xcel Energy Contract Value: Confidential due to contract requirements Contract Duration: 2009-Present Program Overview: ARCA has successfully provided turnkey services for Xcel Energy since the program commenced in 2009. Services include marketing support services; customer and refrigerator/freezer eligibility verification; telephone and website scheduling; in-home appliance collection; permanent disabling of eligible units; appliance processing and recycling; fulfillment of incentive; and data management, auditing and reporting. Benefits Realized: Approximately 12,350 refrigerators and freezers recycled to date Program Contact: Christmas Ramirez, Associate Product Portfolio Manager, (303) 294- 2432, christmas.r.ramirez@xcelenergy.com Location: Xcel Energy service territory across northern and south central Colorado Additional references for ARCA’s services nationwide include: Client Name: Central Hudson Gas and Electric Contract Value: Confidential due to contract requirements Contract Duration: 2010-Present Program Overview: ARCA has successfully provided turnkey services for Central Hudson since the program commenced in spring 2010. Services include full- scale marketing; customer and refrigerator/freezer eligibility verification; telephone and website scheduling; in-home appliance collection; permanent disabling of eligible units; appliance processing and recycling; fulfillment of $50 incentive; and data management, auditing and reporting. ARCA also manages a retailer room air conditioner program, which includes rebate processing and turn-in events, and also provides turnkey services for a referral program. Benefits Realized: Approximately 14,200 refrigerators, freezers and room air conditioners recycled to date Program Contact: Barry Henck, Energy Efficiency Marketing, (845) 486-5210, bhenck@cenhud.com Location: New York’s mid-Hudson River Valley Client Name: Ameren Missouri Contract Value: Confidential due to contract requirements Contract Duration: 2010-Present Program Overview: ARCA has successfully provided turnkey services for Ameren Missouri since the program commenced in fall 2010. Services include full-scale marketing services; customer and refrigerator/freezer RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 7 of 22 eligibility verification; telephone and website scheduling; in-home appliance collection; permanent disabling of eligible units; appliance processing and recycling; fulfillment of $50 incentive and data management, auditing and reporting. Benefits Realized: Approximately 19,500 refrigerators, freezers, room air conditioners and dehumidifiers recycled to date Program Contact: Cara Dolly, Program Manager – Residential Energy Efficiency, (314) 554-2052, cdolly@ameren.com Location: Northeastern to southeastern Missouri D. Project Management and Reporting Plan Project Management ARCA uses a team approach to designing and operating every utility program and relies on key members of the operations staff. With some of these employees having served ARCA’s energy efficiency appliance recycling programs since 1989, the breadth of experience of ARCA’s team is unparalleled among service providers in the field. With professional expertise in utility operations, energy efficiency, call center, customer service, environmental regulations, appliance recycling best practices, marketing and advertising, IT systems and other related activities, ARCA’s support personnel have consistently provided the highest levels of design and implementation proficiency in helping utilities achieve their energy savings and unit goals. Should Utilities desire ARCA to participate in more aspects of the program, we would be pleased to discussion options with Utilities. A series of program-year-end reports are generated at the conclusion of each program year. Program statistics outcomes are shared with program management staff and associated program metrics revised to meet operational milestones. Progress is tracked weekly with ARCA’s marketing research associate, ensuring maximum energy savings is achieved. Data Management and Reporting ARCA has been the industry leader in providing clients with innovative systems to track, monitor and evaluate their appliance recycling programs. Our ATO (Appliance Turn-in Order) data management system has been specifically designed and enhanced for the energy efficiency industry. The ATO system allows us to operate the entire program with one database. It features secure dashboard data reporting available 24/7 to utility program managers via the Internet. Using our industry experience, we have developed and evolved our ATO system internally using the latest development tools (Cold Fusion/Java using a relational database engine) to assist us in keeping pace with client requests and more important, all regulatory changes that continue to be imposed. ATO is a web-based application that can be accessed from any desktop given the proper security credentials. Data Security and Confidentiality ARCA’s ATO system is secure at physical, server and virtual levels. The servers are physically housed in a secure, off-site, co-location center (SAS 70 type II) with full UPS protection. All RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 8 of 22 systems are in a private, locked rack and are protected by a firewall that is monitored for unwarranted access or attacks. The public internet facing pages of the ATO system carry Secure Socket Layer (SSL) registration. Access to the server, ATO application and data are granted according to ARCA management approval. The list of personnel with access to the ATO system is monitored and audited quarterly. Application level security is designed to require specific password standards defined by roles within the program code. Passwords for all approved users require a minimum of six alphanumeric characters with at least one alpha and one numeric character. The password is required to be changed at a minimum of every ninety days. ARCA uses an SSL FTP site or PGP encryption for the secure transfer of sensitive data, such as customer information. Other methods for sending encrypted data back and forth are supported on an as-needed basis. Disaster Recovery In the event of a natural disaster or other unforeseen incident, ARCA facilities act as emergency backups for each other. All telephone numbers, including toll-free numbers, can be redirected to any location within minutes, minimizing service interruption while upholding our professionalism and program customization. Secure online backup of all ARCA data, including daily backup of the Appliance Turn-in Order data management system (ATO system) and Microsoft Exchange, is provided by Data Protection Services, LLC (DPS), a nationally recognized business backup specialist located in Mandeville, Louisiana. Data is available for online restoration at any time, with emergency restoration assistance available 24 hours a day, 7 days a week. ARCA’s MIS team maintains the ATO server, Internet-based architecture and program code at an off-site server at Data393 in Denver, ensuring that the principal components of the ATO system are never compromised. Their network is monitored 24 hours a day and uses multiple GigE connections to several Tier 1 providers to deliver ARCA’s applications and data quickly and accurately. Data393’s support program includes guaranteed response times and an online support dashboard staffed 24/365. Secure File Transfer Protocol Site ARCA fully understands that each client has different reporting and analytical needs, and for this reason, we typically provide our clients with a robust electronic data file — with every invoice run — that enables the client to potentially feed this information into its own internal analytical tool or simply analyze it from the Microsoft Office Suite. File Management We typically offer the following options to our clients for exchanging and securing any data being exchanged. The file management activities that typically surround this type of exchange can be administered on either side or by a combination of both. • SFTP — With SFTP, the files are encrypted as they are passed over the Internet. • FTP — With FTP, the files are not encrypted as they are passed over the Internet. RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 9 of 22 • Email — If comfortable with this process, ARCA utility clients can provide and receive files via email. If files are greater than 5MB, FTP or SFTP is recommended. • Encryption — PGP is ARCA’s preferred encryption mechanism. PGP can be utilized to encrypt any file, document or data prior to it being transmitted via email, SFTP or FTP. Web-Based, Password-Protected Program Tracking and Reporting Our ATO system is specifically designed to collect and display data in a real-time format for program management monitoring. The ATO system is web-based and password protected. Utilities has the option of selecting one or multiple user IDs and passwords to access and monitor program statistics. Each user ID includes access to a series of real-time reports regarding appliance data. Sample reports can be found in the attachments to this proposal. Features built into ARCA’s ATO system enable advanced unit information tracking and reporting. When we unload appliances at our recycling center, size, color, brand, amps, defrost type and specific model type are collected for entry into the ATO database. This appliance-specific data is reported through the ATO system’s program manager portal. The following are samples of unit data reports. 06/01/2012 to 06/23/2012 Current Period Refrigerators Number of Units % of Subtotal Average Cu. Ft. Average Amps Average Age Manual 18 3.28 15.44 3.53 23.56 Frost Free 525 95.80 20.22 6.77 14.10 Partial Frost Free 5 0.91 19.80 6.30 15.40 Unidentified 0 SubTotal 548 100.00 20.06 6.66 14.43 06/01/2012 to 06/23/2012 Current Period Freezers Number of Units % of Subtotal Average Cu. Ft. Average Amps Average Age Manual 37 52.86 16.59 4.22 18.73 Frost Free 33 47.14 19.82 6.11 15.73 Unidentified 0 SubTotal 70 100.00 18.11 5.11 17.31 Reports are generally run by a user-defined date range and show year-to-date and program-to- date numbers in addition to the timeframe specified. Program managers can gather data on types and quantities of appliances collected, invoices and other critical data for program monitoring and evaluation. RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 10 of 22 Because all appliance information is collected in our ATO system, energy savings can be calculated by incorporating Utilities’ savings multipliers, including energy usage by appliance type, the appliance’s estimated remaining useful life and cost per kWh, in a formula within a report for program management staff. E. Refrigerator and Freezer Recycling Services The state-of-the-art recycling services ARCA offers are designed to guarantee that every appliance collected through the energy efficiency programs, such as Utilities’ appliance recycling program, are fully demanufactured, and hazardous materials and components are removed, stored, transported and disposed of in an environmentally responsible manner and in accordance with all applicable federal, state and local rules and regulations. ARCA operates an appliance processing center in Commerce City, Colorado, that recycles appliances for Xcel Colorado and Xcel New Mexico’s Refrigerator and Freezer Recycling Programs. The facility is located in an appropriately zoned area and holds permits and licenses to conduct all activities conducted at the site. The warehouse space is in close proximity to major roadways and is equipped with dock doors for the loading and unloading of appliances. By using ARCA’s Colorado recycling facility, Utilities could reduce the program’s carbon footprint by greatly reducing the emissions created from transporting appliances to another state for processing and recycling. The following flowcharts illustrate the major steps involved in processing refrigerators; similar processes are followed for freezers, room air conditioners and dehumidifiers, should those appliances be included in the program. All of these activities take place at ARCA’s facility in Colorado; no appliance processing and recycling activities occur on customer premises. RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 11 of 22 Overview of ARCA’s Refrigerator Processing System for Foam Refrigeration Units Appliance Receiving Using two-wheel handcarts, our warehouse personnel unload incoming Utilities’ appliances from our trucks and place them into the receiving/holding area of the facility. Before the appliances are moved into the center’s processing areas, we complete our receiving records, audit the accompanying paperwork and inspect and categorize each appliance for materials handling. At this stage, the size, color, brand, amps, defrost type and specific model type of each appliance are collected for entry into the ATO database. ARCA’s appliance processing center personnel are trained to identify foam and non-foam units and properly handle all materials in major household appliances, including refrigerants, foam RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 12 of 22 insulation, metals, used oil, and PCB- and mercury-containing components. Appliances are placed in an upright position on 3-foot-square plywood slip-sheets, each about ¾-inch thick, on a roller conveyor system. Appliance Processing Hazardous Components Because ARCA’s processing and recycling facilities are registered as Conditionally Exempt Small Quantity Generators, we keep records of PCB- and mercury-containing components collected, transported and disposed of. A hazardous waste manifest is included in the attachments to this proposal. Our processing technicians are trained to identify hazardous components in all makes and models of major household appliances. Technicians remove appliance panels to perform a thorough inspection, ensuring that all harmful components are found and removed. This occurs at the component removal station, a specially constructed area with a barrier that encloses a floor made of leak-proof materials. Many appliances manufactured in the U.S. between 1929 and the early 1980s may have electrical capacitors that contain PCB dielectric fluid, which is suspected as a carcinogen and endocrine disrupter and is resistant to degradation in landfills. Our technicians remove every capacitor suspected of containing PCB fluid. Technicians place these capacitors into clearly marked, impermeable containers at the component removal station. Throughout the workday, technicians empty the containers into 55-gallon storage/transport drums approved by the U.S. DOT. Capacitors that they are unable to verify as non-PCB plus capacitors that clearly contain PCBs are destroyed through high-temperature incineration at a licensed and permitted hazardous waste disposal facility. In order to reduce risks associated with the removal and storage of capacitors, we follow a detailed list of precautionary measures. Special impermeable containers at the component removal station and the 55-gallon storage/transport drums have a layer of absorbent material to contain any oils or fluids that may leak from damaged or ruptured components. If there is a cracked or leaking capacitor, we place it in a self-sealing plastic bag and put it into a U.S. DOT- approved drum for shipment to the hazardous waste disposal center. The drums are stored in a separate, secure area that is clearly marked and posted for PCBs as required by the U.S. EPA and the U.S. Occupational Safety and Health Administration (U.S. OSHA), and the storage area floor is constructed of leak-proof materials and surrounded by a six-inch barrier. Old freezers may have mercury-containing switches in their lids that are used to turn the freezer light on and off. These switches are located in the door or lid liner or are in the light bulb socket itself. When no switch is found, the light socket contains mercury and must be removed. Fluorescent bulbs in freezers are also removed and collected for proper management according to governmental regulations. RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 13 of 22 At high temperatures, mercury vaporizes, forming extremely toxic fumes. Components containing mercury are collected at the component removal gate and stored in drums in a secure area until the quantity is large enough to send to a licensed mercury reclamation/recycling facility. Some older model freezers may also contain batteries that power an alarm that is activated when electric power is disrupted. We remove all batteries and have them destroyed through high- temperature incineration at a licensed company using approved practices. CFC/HCFC/HFC Refrigerants Refrigerators, freezers, room air conditioners and dehumidifiers typically contain chlorofluorocarbon (CFC), hydrochlorofluorocarbon (HCFC) or hydrofluorocarbon (HFC) refrigerants [all three collectively referred to as CFCs] in their cooling systems. The U.S. EPA mandates proper evacuation and management of each of these refrigerant types. Our processing technicians are trained to identify each type of refrigerant and to separate appliances according to the type of refrigerant used. Refrigerants present health and safety concerns for workers. Injury, including lung damage from inhaling refrigerants and tissue damage from direct contact, can result when refrigerants are improperly handled. At each processing center, we use fans and cross-ventilation to provide air movement to disperse and potential pockets of refrigerant gas that may accumulate because of leaks in sealed refrigeration units or during the recovery process. Temporary storage cylinders and portable refrigerant cylinders are filled only to an 80 percent level to eliminate the potential of overfilling and activating the cylinder’s pressure relief valve. Appliances proceed from the refrigerant identification area to the appropriate refrigerant recovery workstation for each type of refrigerant. ARCA has been engaged in research and development efforts in the area of CFC recovery since the late 1980s. At that time, we evaluated a number of refrigerant recovery machines available commercially and determined that we needed a system capable of recovering refrigerants from 10 to 20 appliances at one time. The system also needed to be designed to reduce the amount of air, moisture and oils that are mixed with the CFCs. In 1988, ARCA built its prototype JS-90 CFC recovery unit. Over the course of several months and after several refinements, our technical services division built a multi-unit CFC recovery system and installed it at one of our appliance recycling facilities in 1989. In 1993, ARCA’s JS-91 became ARI-certified. The JS-91 CFC recovery unit and RC-10 manifold work together to create and maintain a 10-inch vacuum during the refrigerant recovery process to recover refrigerants and some of the oil from the appliance. Each JS-91 and RC-10 system is capable of recovering refrigerants from 10 to 20 appliances at a time at a rate that exceeds EPA standards for recovery equipment. We temporarily store recovered refrigerants in separate, DOT-approved 1,000-pound reusable steel cylinders. Used Oil Recovery and Degassing Used oil found in compressors of cooling appliances is removed and managed according to applicable regulations. ARCA’s technicians drill a hole in the refrigerator’s compressor in order to evacuate CFCs and oil simultaneously and prepare it for degassing using a commercial degassing system. Degassing removes refrigerants so the used oil can be either reused onsite for heating and air conditioning or sent to third parties for reclamation or reuse. RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 14 of 22 Polyurethane Foam Insulation The EPA estimated that polyurethane foam insulation in appliances contained roughly the equivalent amount of ozone-depleting substances as was likely to be found in the refrigeration system. According to studies conducted by Oak Ridge National Laboratory, shredding the foam, which would take place at the metal processor, would release up to 50 percent of the CFC-11 contained in the polyurethane foam insulation if the CFC-11 was not recaptured. However, citing the existence of significant technical obstacles and the negative economic impact on recyclers if the recovery of CFC-11 from polyurethane foam insulation would be required, the EPA elected to defer the promulgation of regulations regarding the retrieval of foam insulation from appliances. Now, with the Responsible Appliance Disposal (RAD) program, discussed below, the EPA encourages proper management of rigid polyurethane foam insulation in appliances although the technologies available and feasible are few. In the last few years, foam insulation from some large-scale appliance early retirement programs has been destroyed at reasonably accessible municipal solid waste incinerators. ARCA’s technicians cut the refrigerator into pieces, remove polyurethane foam insulation from the units and transport the rigid insulation panels, sealed in plastic to prevent release of CFC-11, to a waste incinerator. The insulation foam is bagged and transported to the facility for incineration in full compliance with all applicable air quality and hazardous waste regulations. Metals, Plastics and Glass Following the completion of all processing procedures, we deliver the remaining ferrous and non- ferrous (aluminum and copper) metals, plastics and glass to licensed recycling facilities. Beyond the legal and environmentally sound handling of the refrigerants and hazardous materials in appliances and keeping appliances out of landfills, all recyclable materials recovered from the appliances through the proposed services create a supply of raw materials for the manufacture of new products, including appliances. For example, by recycling one ton of steel (about 10 refrigerators), 2,500 pounds of iron ore, 1,400 pounds of coal and 120 pounds of limestone are conserved, as is the fuel that would have been used to harvest the raw materials to manufacture new steel. The value of byproducts is considered when ARCA determines pricing for any recycling program. Byproduct value is generally considered to help offset the costs of disposing of unrecyclable materials and substances that can damage the environment if not disposed of properly. Materials Subcontractors ARCA has an established national network of licensed materials transportation and management vendors, including those that handle recovered mercury, used oil, plastics and glass. Local metal processing companies manage steel, copper and aluminum byproducts; contractor selection is based on, among other factors, environmental compliance and proximity to our recycling facility. RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 15 of 22 EPA’s Responsible Appliance Disposal (RAD) Program In October 2006, the U.S. Environmental Protection Agency (EPA) kicked off the voluntary RAD partnership program to encourage the management of unwanted household appliances that contain ozone-depleting substances. The intent of RAD is to help protect the earth’s ozone layer and reduce emissions of greenhouse gases while keeping other damaging substances out of the air, soil and water. RAD partners commit to and report on the recovery of ozone-depleting chemicals from old refrigerators, freezers, and dehumidifiers. Using best practices, RAD partners ensure that: • Refrigerant is recovered destroyed • Foam blowing agent is recovered and either reclaimed or destroyed through incineration at a waste-to-energy facility • Metals, plastic and glass are recycled • PCBs, mercury and used oil are recovered or properly disposed of ARCA appliance management services fully and consistently comply with the requirements of EPA’s RAD program. ARCA will prepare the annual reports for Utilities to submit to the EPA. The reports will quantify the materials, energy and cost savings data achieved by Utilities’ program during the preceding year. In 2007 ARCA prepared some of the first RAD reports to EPA for our clients, including Baltimore Gas and Electric, Southern California Edison, San Diego Gas and Electric, and Austin Energy. ARCA’s Commitment to Safety Employee health and safety is ARCA’s foremost operational concern. The company devotes significant resources to developing and implementing training plans, procedures and policies to ensure that ARCA’s employees are aware of any occupational hazards present in their jobs and practices to prevent on-the-job injuries and illnesses. The primary responsibility for employee safety lies with every manager and supervisor. ARCA’s technical services department is tasked with providing training materials, performing annual and unannounced facility and training log audits, and ensuring that all licensing and permits are current and complete. ARCA implements federal and regional employee right-to-know standards by compiling inventories of all hazardous substances in the facility, keeping up-to-date Material Safety Data Sheets readily available, ensuring that all containers holding hazardous or harmful materials are properly labeled, and providing ongoing training. ARCA instructs employees to immediately report to their supervisor or other management any unsafe condition or practice, faulty equipment or other potential hazard. Facility managers also conduct monthly inspections to assess the site for hazards, conduct training on issues raised and make necessary equipment or facility modifications to correct any safety problem. To ensure proper personal protection, ARCA provides safety glasses and other necessary equipment for jobs involving the handling of hazardous materials. The company reimburses RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 16 of 22 employees for their purchases of steel-toed safety shoes and boots. All employees are covered under workers’ compensation laws. ARCA has a comprehensive system in place to report and investigate work-related accidents and injuries and assist employees throughout the process, should an incident occur. We have an injury and illness prevention program in place and conduct monthly safety meetings. ARCA’s employees are required to know a wide range of safety and environmental procedures. To ensure that employees are kept up to date on changing rules and regulations in their field and to encourage safe work habits, ARCA conducts thorough training of new employees, followed by ongoing and periodic training conducted by center and corporate staff. F. Environmental Compliance ARCA has been at the forefront of environmentally sound appliance recycling on a large scale since 1989. The key to full compliance with regulations as well as best practices in management of appliances at end of life is knowledge of appliance types and construction and implementation of thorough procedures and training for personnel in taking apart the appliances and handling their components properly to protect people and the environment. ARCA has not had any regulatory violations or infractions within the past three years at any of the company’s facilities. Regulatory oversight for ARCA’s Commerce City facility is performed by: U.S. EPA Region 8, 80C-EISC, 1595 Wynkoop St., Denver, CO 80292 800-227-8917 or 303-312-6312, r8eisc@epa.gov Having operated in California since 1993 where regulations, permits and licenses are among the most comprehensive of any state in the U.S., ARCA is well versed in research and communications with involved parties to identify and address all applicable requirements for each recycling center. All ARCA operations meet or exceed all applicable federal, state and local transportation, environmental and other related laws, rules and regulations. The services ARCA offers are designed to guarantee that every appliance collected through the energy efficiency programs of its clients is fully demanufactured, and hazardous materials and components are removed, stored, transported and disposed of in an environmentally responsible manner and in accordance with all applicable federal, state and local regulations. ARCA’s appliance processing center personnel are trained to identify and properly handle all materials in major household appliances, including refrigerants, foam insulation, metals, used oil, and PCB- and mercury-containing components. The primary responsibility of ARCA’s technical services department is to properly equip the company’s new and existing regional processing centers and train employees to ensure compliance with all applicable regulations in force by the regulatory, permitting and licensing entities pertaining to that center. This department also performs annual and unscheduled facility and practices audits to ensure compliance by correcting any deficiencies that are found. The primary U.S. federal, state and local regulations implemented as a result of the federal Clean Air Act (CAA), Health and Safety Code (HSC) and Resource Conservation and Recovery Act (RCRA) apply to managing major household appliances at end of life. For the most part, RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 17 of 22 these regulations pertain to management of hazardous substances and waste in appliances: refrigerants, compressor oil and PCB- and mercury-containing components. Recordkeeping and reporting are key provisions in these regulations. The EPA issues regulations in Title 40 of the Code of Federal Regulations Parts 50 through 95 (40 CFR 50–95) to implement the CAA and all of its amendments. Most relevant to appliance processing and demanufacturing is 40 CFR Part 82 (Protection of Stratospheric Ozone), Subpart F (Recycling and Emissions Reduction). Section 602 of the CAA identifies certain Class I (e.g., chlorofluorocarbons) and Class II (e.g., hydrochlorofluorocarbons) ozone-depleting substances. The protocol and sections 604 and 605 of the CAA impose limits on the production and consumption of Class I and II substances according to specified schedules. Title VI and regulations issued thereunder also call for reduction in the use and emission of Class I and II substances to the lowest achievable level [§608(a)(3), 40 CFR 82 Subpart F]. RCRA requirements apply to any company that transports, treats, stores or disposes of hazardous waste. Subtitle C of RCRA addresses “cradle-to-grave” requirements for hazardous waste from the point of generation to disposal, and Subtitle D of RCRA contains less restrictive requirements for non-hazardous solid waste. Regulations implementing Subtitle C of RCRA for hazardous waste management appear in 40 CFR 260–279. Although RCRA is a federal statute, many states implement the RCRA program. In addition, many states have state-level hazardous waste requirements that go above and beyond federal RCRA requirements. Regulated entities that generate hazardous waste are subject to waste accumulation, manifesting and recordkeeping standards. These regulations, found in 40 CFR 262, include: • Becoming knowledgeable with applicable regulations. • Training appropriate personnel about these requirements. • Identifying all sources of hazardous waste and obtaining a facility ID number, if necessary. • Establishing a waste minimization program to reduce or eliminate hazardous wastes. • Appropriately packaging, labeling and manifesting all hazardous waste generated. • Meeting standards for hazardous waste accumulation. • Complying with recordkeeping and reporting requirements. ARCA’s refrigerant recovery technicians hold certificates from a qualified issuing authority. Forklift operators also hold certification of training. Additional certifications are acquired as needed. ARCA uses its ARI-certified JS-91 CFC recovery unit to reclaim R-12, HFC-134a and R-22 from refrigerators, freezers, room air conditioners and dehumidifiers. For recovery of refrigerants in smaller quantities, we typically use portable refrigerant recovery equipment that is certified by Underwriters Laboratories, Inc. to meet minimum requirements for recovery equipment intended for use with appliances containing medium, medium-high and high-pressure refrigerants. RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 18 of 22 When ARCA evacuates refrigerants from the cooling circuit of appliances, some refrigerant is also extracted from the oil. EPA’s used oil management requirements are detailed in 40 CFR Part 279. Used oil is defined as any petroleum-based or synthetic oil that has been used and as a result of such use is contaminated by physical or chemical impurities. Once oil has been used, it can be collected, recycled and used many times. State laws typically apply to used oil as well. ARCA has implemented stringent environmental procedures and best practices since beginning to recycle appliances in the 1980s. Rick Christensen, ARCA’s Director of Regional Recycling Operations, currently maintains overall responsibility for ensuring the Colorado operation secures and maintains all appropriate licenses and permits for performing appliance collection and recycling services. He is assisted by Regional Recycling Center Manager Jim Blad, who also holds responsibility for training and auditing employees at the facility. G. Appliance Storage and Transportation Regulatory Compliance ARCA strictly adheres to all United States Department of Transportation (U.S. DOT) Drug and Alcohol regulations mandated by the Federal Motor Carrier Safety Administration (FMCSA). ARCA follows all applicable regulations of the FMCSA in 49 CFR and any additional requirements implemented at the state and local levels. Although not required except for Class A drivers, ARCA conducts drug testing on all new hires as well as random drug testing. ARCA’s human resources department and insurance company pull drivers’ Motor Vehicle Reports (MVRs) once a year to be sure drivers do not have unacceptable numbers or types of violations. Collection Personnel Hiring All transportation services for Colorado utility programs are provided by ARCA’s experienced collection teams who currently serve the Xcel Colorado and New Mexico Refrigerator and Freezer Recycling Program. All employees are local, maintaining green jobs in the community. Driver candidates must meet standards established by the government, their qualified insurance carrier and ARCA to be considered for contracting for a utility program. Drivers undergo MVRs and periodic analysis of traffic violations or combinations thereof that would automatically result in disqualification for employment as a driver with ARCA. Drivers must also undergo controlled substance screenings, pre-employment physicals with a qualified medical center, and criminal background checks. Any individual with a felony conviction or misdemeanor conviction for crimes of dishonesty who would enter customers’ homes as part of his or her job duties is disqualified. Responsibilities The collection personnel used by ARCA and its employees are highly trained drivers and refrigeration appliance movers. ARCA’s collection personnel are trained to: RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 19 of 22 • Exhibit a professional, courteous demeanor and practice efficient and safe work habits when collecting appliances on behalf of the utility. • Adhere to all program procedures for collecting appliances. • Complete appliance collection records in an accurate and timely manner. • Perform truck and trailer equipment inspections and maintenance, including cleaning the trailers after each load to ensure that oil and other materials found in damaged appliances will not be introduced to another location. • Recognize hazardous materials and knowing which emergency response procedures are required should their release occur. • Adhere to all applicable transportation and driving regulations. Training Transportation personnel receive on-the-job training, riding with experienced ARCA drivers for a specified period before assuming responsibility for their own vehicles. Drivers also undergo U.S. DOT training and MVR checks. ARCA’s drivers acknowledge in writing their receipt and understanding of ARCA’s Driver Vehicle Accident Policy and Procedure. This document specifies driver responsibilities immediately following any accident in a company-owned vehicle and disciplinary procedures for traffic violations and driver-preventable accidents. To ensure that employees are kept up to date on changing rules and regulations in their field and to encourage safe work habits, ARCA conducts thorough training of new employees, followed by ongoing and periodic training conducted by center and corporate staff and unscheduled and annual internal compliance audits. Additionally, through ARCA’s business ethics and standards of conduct policies published on the company’s intranet and in the employee manual. Collection Vehicles Each subcontractor driver conducts a safety inspection of the vehicle every day; a truck that does not pass the inspection is not used until it has been properly serviced. This minimizes the consumption of fuel and emission of greenhouse gases from transportation associated with recycling the appliances. ARCA uses trailers or enclosed-box vehicles with heavy-duty hydraulic lift-gates for safe and convenient appliance loading and unloading. Enclosed-box trucks are far more conducive to utility program operations than trucks with open-style boxes because they eliminate the possibility of loose materials, such as shelving, bins, toe plates, and other debris, falling from a truck to create hazardous conditions for other drivers. Enclosed-box trucks also reduce the chance of fraud by minimizing the possibility of individuals approaching the vehicle and soliciting to purchase appliances that are in view. Enclosed trucks, which can be secured with a lock, also maintain security, thereby decreasing the possibility of theft or vandalism of appliances that would be visible on open trucks. RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 20 of 22 Procedure ARCA anticipates using one or more of the vehicles currently in its utility fleet for collecting appliances from Utilities’ collection agent. ARCA will work with Utilities’ agent to find a mutually acceptable location for collection of the appliances. Appliances will be floor-loaded onto a trailer (no stacked appliances) for safe transport. ARCA will collect these units and deliver them to our Commerce City facility as often as necessary based on storage limitations. H. Collaborative Retailer Program Models Appliance retailer partnerships in the form of point-of-sale programs are a sensible, cost-effective way to prevent additional units from entering the used-appliance market, where many of them will return to the local grid. The remainder will often be processed improperly—if at all—to remove hazardous components and materials at end of life. ARCA has included appliance retailer promotion and participation elements in its programs since supporting California’s statewide SBX1-5 Appliance Recycling Program in 2001-2002. ARCA has extensive experience in the U.S. and Canada in providing collection and recycling of household refrigeration appliance take-backs from, most notably, Lowe’s retail stores in Toronto, Ontario; several retail stores in Los Angeles, Calif.; Bernie’s retail stores in Conn.; Standards of Excellence (formerly McPhail’s) in Northern Calif.; Daugherty’s Hardware and Appliance in Duluth, Minn.; and Prime Appliance retail stores in Duluth, Minn., and Superior, Wisc. We have also managed appliance recycling programs with Santee Cooper in South Carolina and CPS Energy in Texas that include participating retailer programs. Participating Retailer Program Participating retailers that promote the appliance recycling program to buyers via point-of-sale marketing materials enroll the customer in Utilities’ program and collect the replaced appliance if it qualifies for recycling in the program when a new refrigerator or freezer is delivered. ARCA would transport these appliances from the retailer’s site to ARCA’s regional facility in Commerce City for processing and recycling. ARCA will provide personalized in-store training for retail sales personnel to explain how the program works. Areas of emphasis during the training include: • Consumer benefits of purchasing an ENERGY STAR® appliances and recycling old appliances. • Program guidelines, including customer and appliance eligibility. • Familiarity with POS materials. • Procedures for customer participation. The training sessions with retail sales representatives will stress that the program goal is to promote energy efficiency through appliance replacement and recycling. Therefore, ARCA will emphasize to retailers that we will test a random selection of units from each retailer to verify that units being turned in are in working condition to ensure that the program is not used as a free haul-away service for nonworking appliances. RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 21 of 22 Follow-up visits with each retailer will be made to replenish POS materials, answer questions and train employees who had not participated in the initial training. Project managers from Utilities will have approval on all retail training materials. A flow chart below depicts the basic retailer participation process. ARCA understands the major household appliance business and the role of used appliances and recycling in the marketplace. ARCA ensures that all collected appliances are permanently removed from service. Such appliances will never be resold into domestic or export used- appliance markets and are disposed of safely and properly in the most environmentally sound manner. ARCA does not engage in the used-appliance business, and we believe that this is a matter of integrity. Selling used, energy inefficient appliances through the retail sector of a company is a business philosophy that is incompatible with the purpose of conserving electricity through removal of energy inefficient appliances from the market. Contractors that choose to do both damage the impact of energy efficiency appliance recycling programs. Should Utilities be interested in sponsoring a participating retailer program, ARCA would be pleased to discuss the implementation and operation with Utilities’ program team. RFP 7576 for City of Fort Collins Utilities Residential Refrigerator/Freezer Recycling Program Page 22 of 22 I. Pricing All proposed pricing is based upon a per-unit recycled basis. ARCA’s pricing includes all costs associated with designing and implementing the program, including buildings, labor, supervision, administration, materials, tools, trucks, equipment, performance of all operations, incidentals, and necessary licenses or permits. ARCA’s operations are structured to maximize the cost- effectiveness of programs that we conduct for the electric utility industry. Straightforward invoicing with per-unit charges, which can be easily verified through ATO (Appliance Turn-In Order) system reports. ARCA’s pricing for Utilities is as follows: 1. Cost Item 1. Storage and transportation charge. Quote a fixed price-per refrigerator/freezer- recycled for the storage and transportation of all materials ................................................ $15.00 2. Cost Item 2. Appliance recycling and CFC-11 removal. Quote a fixed price per refrigerator/ freezer for removal, recycling of all materials including destruction of CFC-11 from foam insulation, for units which contain such substance ............................................................. $40.00 Price includes all aspects of program implementation; collection and transportation of appliance; U.S. EPA RAD-compliant processing and recycling in compliance with all laws, including removal and recycling or destruction of hazardous components and materials, recovery of CFC/HCFC/HFC refrigerants, removal and incineration of polyurethane foam, recycling of metals and other recyclable materials; programming, IT services and reporting; and program accounting and auditing services as outlined in this proposal. 3. Cost Item 3. Exceptions. .................................................................................... No Exceptions Presented by Appliance Recycling Centers of America, Inc. ATTACHMENTS Presented by Appliance Recycling Centers of America, Inc. Résumés of Key Personnel Mark Eisenschenk, COO of ARCA, Inc., President of ARCA Recycling, Inc. Rick Christensen, Regional Recycling Operations Director James Blad, Colorado Center Manager Tiffany Olson, Marketing & Advertising Director Presented by Appliance Recycling Centers of America, Inc. MARK EISENSCHENK Chief Operating Officer, ARCA, Inc. President, ARCA Recycling, Inc. Appliance Recycling Centers of America 7400 Excelsior Blvd. Minneapolis, MN 55426-4517 Phone (952) 930-9000 ~ Fax (952) 930-1800 meisen@arcainc.com ARCA Energy-Efficiency Program Responsibilities Mark Eisenschenk, ARCA’s chief operating officer and president of ARCA Recycling, Inc., is responsible for setting the strategic direction and driving performance in the day-to-day operations of ARCA and its subsidiaries. Eisenschenk leads all aspects of ARCA’s utility program management and execution and directs the accounting, business operations services, human resources, information systems, marketing and advertising, and technical services departments. Eisenschenk also works in conjunction with the president of ARCA, Inc. to develop new business opportunities, investors and contacts. Eisenschenk is an innovative leader with a track record of consistently delivering operational excellence while building high-performance teams. He is known for being adept at initiating and implementing positive change, generating strong bottom line results and promoting cultures where excellence, integrity and fun prevail. Eisenschenk has served as a director of the Minnesota Humanities Commission, the Ramsey County Historical Society, four publicly held corporations and one privately held company. Prior Related Experience and Training Eisenschenk spent nine years with Vanguard Graphics International, LLC, and was president of the company when it was sold to a private equity firm in March 2013. From 2001 to 2007, Eisenschenk served as chief financial officer and chief operating officer of Printware, LLC, a predecessor to Vanguard Graphics International. Prior to that, Eisenschenk held several senior level executive positions with publishing, manufacturing and consulting companies based in the Midwest. Education and Training Eisenschenk holds a B.S. in Accounting from St. Cloud State University (Minnesota) and is a Certified Public Accountant (inactive). Presented by Appliance Recycling Centers of America, Inc. RICK CHRISTENSEN Regional Recycling Operations Director Appliance Recycling Centers of America 7400 Excelsior Blvd. Minneapolis, MN 55426-4517 Phone (203) 228-9341 ~ Fax (952) 930-1804 rickchristensen@arcainc.com ARCA Energy-Efficiency Program Responsibilities Rick Christensen oversees operations for ARCA’s regional recycling centers across the U.S. Christensen provides oversight for all recycling center staff and the duties they perform, as well as for operational aspects involving transportation, processing, customer service and administration. He conducts audits to ensure that each facility’s licensing and permits are in place and that each center complies with all human resources, transportation and environmental regulations. Christensen also conducts employee training and serves as liaison to east Coast transportation subcontractors. He has been with ARCA since 2004 and previously from 1992 to 1994. Prior Related Experience and Training Christensen was previously a self-employed networking technician in Colorado and Massachusetts. He has experience in design, test, installation, configuration, administration and support of network solutions (Cisco, IP, TCP, T1, ADSL, SDSL, cable modem, RG-6, RG-11). Other experience includes project management, team management and training and support of field service technicians. Education Christensen has completed AHAM-NARDA Refrigerant Recovery Certification. He also holds IBM Certifications for ATS ADP Printers, Dell Optiplex, Bell & Howell, Point of Sale, VSAT SpaceNet. Presented by Appliance Recycling Centers of America, Inc. JAMES BLAD Colorado Center Manager Appliance Recycling Centers of America 5750 E. 58th Ave., Suite A Commerce City, CO 80022 Phone (303) 217-7988 jblad@arcainc.com ARCA Energy-Efficiency Program Responsibilities James (Jim) Blad manages ARCA’s regional processing and recycling center in Commerce City, Colorado, with overall responsibility for the daily operation of Colorado and New Mexico utility recycling programs. He handles customer service and utility client communication on behalf of the Colorado facility. Blad also maintains oversight for dispatch, transportation, processing and recycling services. His responsibilities also include managing budget planning and reporting and all center administrative functions. Prior Related Experience and Training Blad joined ARCA in 2010 as a collection driver and later assumed the responsibilities of Center Manager. Through his experience with the company, he has gained a thorough knowledge of ARCA’s appliance collection and processing procedures, as well as all aspects of managing effective regional recycling center operations. Prior to joining ARCA, Blad held several positions requiring a high level of customer service and management skills. Education Blad attended Los Angeles trade Tech and Los Angeles Valley College. He has also has attained a significant level of advanced training in hazardous materials management, employee health and safety, and environmental best practices, as well as managerial training, since being employed at ARCA. Presented by Appliance Recycling Centers of America, Inc. TIFFANY OLSON Marketing and Advertising Director Appliance Recycling Centers of America 7400 Excelsior Blvd. Minneapolis, MN 55426-4517 Phone (952) 930-9000 ~ Fax (952) 930-1800 tolson@arcainc.com ARCA Energy-Efficiency Program Responsibilities Tiffany Olson is an experienced marketing and advertising director with a strong strategic, media and promotional planning background Olson also directs utility program startup, ongoing communications with utility program managers and fulfillment of contract requirements. She manages the team that provides daily support to utility programs and works to maintain consistent communication with utility representatives. Prior Related Experience and Training Olson is an active member of the Public Relations Society of America - Minnesota Chapter, American Marketing Association, ADFED - Minnesota Chapter, and Minnesota Women in Marketing and Communications. Olson also attends the annual ESOURCE Utility Marketing conference on behalf of ARCA. Previous positions held include director of marketing and public relations for Starmark Hospitality (No. Dak.) and marketing and public relations coordinator at TimeManagement Corporation (Minn.). Education Olson earned a Masters of Business Administration with a concentration in Marketing from the University of Massachusetts - Isenberg School of Management (Amherst) and a Bachelors of Science in Marketing from Minnesota State University Moorhead. Presented by Appliance Recycling Centers of America, Inc. Licenses and Permits Presented by Appliance Recycling Centers of America, Inc. Sample Waste Manifests and Reporting Forms Presented by Appliance Recycling Centers of America, Inc. Sample Program Reports Appliance Types Billed For: 20X ABC Utility Recycling Program 06/01/2010 to 06/15/2010 Run Date: 06/15/2010 06/01/2010 to 06/15/2010 Current Period Refrigerators Number of Units % of Subtotal Average Cu. Ft. Average Amps Average Age Manual 0 Frost Free 64 100.00 20.63 6.53 16.44 Partial Frost Free 0 Unidentified 0 SubTotal 64 100.00 20.63 6.53 16.44 01/01/2010 to 06/15/2010 Contract YTD Refrigerators Number of Units % of Subtotal Average Cu. Ft. Average Amps Average Age Manual 24 1.56 15.08 3.50 25.96 Frost Free 1510 98.31 20.17 6.36 15.68 Partial Frost Free 2 0.13 14.00 5.00 14.00 Unidentified 0 SubTotal 1536 100.00 20.08 6.32 15.84 06/01/2010 to 06/15/2010 Current Period Freezers Number of Units % of Subtotal Average Cu. Ft. Average Amps Average Age Manual 0 Frost Free 2 100.00 16.00 5.38 22.50 Unidentified 0 SubTotal 2 100.00 16.00 5.38 22.50 01/01/2010 to 06/15/2010 Contract YTD Freezers Number of Units Materials Savings (Estimated) Report Refrigerator/Freezer Recycling Program 00/00/00 to 00/00/00 Total Unit Count Refrigerators 2,752 Material Total Amt. (estimated) Unit Assume Description Refrigerant CFC-12 coolant reclaimed 1,376.00 lb 0.5 Avg. reclaimed per unit containing CFC-12 CFC-12 coolant destroyed lb 0.5 Avg. destroyed per unit containing CFC-12 HFC-134a coolant reclaimed 0.00 lb 0.5 Avg. reclaimed per unit containing HFC-134a HFC-134a coolant destroyed lb 0.5 Avg. destroyed per unit containing HFC-134a CFC-11 blowing agent reclaimed 1,238.40 lb 1.0 Avg. reclaimed per unit containing CFC-11 foam CFC-11 blowing agent destroyed lb 1.0 Avg. destroyed per unit containing CFC-11 foam CFC-11 foam recovered 12,384.00 lb 10 Avg. foam recovered per unit Used oil reclaimed 1,293.44 lb 0.47 Avg. used oil reclaimed per unit Metal Ferrous metal recycled 410,048 lb 149 Avg. weight per unit Non-ferrous metal recycled 22,016 lb 8 Avg. non-ferrous metal recovered per unit Plastic recycled 206,400 lb 75 Avg. plastic recycled per unit Glass recycled 6,880 lb 10 Avg. glass recovered per unit Capacitors (PCB or suspicious) 0.91 lb 0.0022 Weight of total capacitors (assume pre-1980 and/or unlabeled) Materials Savings (Estimated) Report Refrigerator/Freezer Recycling Program 00/00/00 to 00/00/00 Total Unit Count Freezers 1,096 Material Total Amt. (estimated) Unit Assume Description Refrigerant CFC-12 reclaimed 548.00 lb 0.5 Avg. reclaimed per unit containing CFC-12 CFC-12 destroyed lb 0.5 Avg. destroyed per unit containing CFC-12 HCFC-22 reclaimed 2.74 lb 0.5 Avg. reclaimed per unit containing HCFC-22 HCFC-22 destroyed lb 0.5 Avg. reclaimed per unit containing HCFC-22 HFC-134a reclaimed 0.00 lb 0.5 Avg. reclaimed per unit containing HFC-134a HFC-134a destroyed lb 0.5 Avg. destroyed per unit containing HFC-134a Used oil reclaimed 515.12 lb 0.47 Avg. used oil reclaimed per unit Metal Ferrous metal recycled 163,304 lb 149 Avg. weight per unit Non-ferrous metal recycled 8,768 lb 8 Average non-ferrous metal recovered per unit Plastic recycled 82,200 lb 75 Average plastic recycled per unit Mercury-containing components 1.64 lb 0.003 Average weight of mercury-containing components per unit Capacitors (PCB or suspicious) 0.36 lb 0.0022 Average weight of capacitors (assume pre-1980 and/or unlabeled) Page 1 of 2 ENERGY SAVINGS REPORT EXAMPLE-‐RECYCLING PROGRAM This document is intended to show possible results of the Energy Savings report for recycling programs. These numbers are estimates and not based on exact figures for any program. Results Example Page 2 of 2 Results Explanation The numbers in the image relate to the definitions below. 1. The values based on appliance type 2. The values based on primary appliance types 3. The values based on secondary appliance types 4. The values based on appliance types older than the set manufacture date 5. The values based on appliance types newer than the set manufacture date OMB Control No. 20XX-XXXX Expiration Date: XX/XX/XX Responsible Appliance Disposal (RAD) Program Annual Reporting Form Office of Air & Radiation INTRODUCTION CONFIDENTIALITY INSTRUCTIONS To help you complete the worksheets accurately, some common terms used in this reporting form are described below. DEFINITIONS SEND COMPLETED FORMS TO: Evelyn Swain, Stratospheric Protection Division BURDEN STATEMENT EPA ICR NUMBER: XXXX.XX, Revised 12/09 All information provided in this report will be considered strictly confidential. No company-specific information will be disclosed to the public; all company data will be aggregated into summary reports before being made available to the public. The public reporting and recordkeeping burden for this collection of information is estimated to average 6 hours per response. Send comments on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, including through the use of automated collection techniques to the Director, Collection Strategies Division, U.S. Environmental Protection Agency (2822T), 1200 Pennsylvania Ave., NW, Washington, D.C. 20460. Include the OMB control number in any correspondence. Do not send the completed form to this address. Dispose: Mercury waste, such as switches and relays, must be recovered from appliances prior to disposal or shredding, sent to a qualified recovery facility that has appropriate hazardous waste management permits, and managed in accordance with applicable federal, state, and local hazardous waste regulations (e.g., waste must be properly packaged prior to transport). The federal hazardous waste regulations under the Resource Conservation and Recovery Act (RCRA) can be found in 40 CFR §260 - 279. Used oil must be disposed in accordance with 40 CFR §279.81. Destroy: To cause the expiration of a controlled substance. Destruction does not result in a commercially useful end product. For refrigerant or foam-blowing agent, destruction must be performed in accordance with the guidelines in 40 CFR §82.3. For PCBs, which are found in capacitors manufactured before 1980, destruction must be in accordance with 40 CFR §761. Washington, DC 20460 United States ENVIRONMENTAL PROTECTION AGENCY Energy Cost for Residential Consumers ($/kWh): the energy cost paid by consumers, which may include a customer charge, distribution charge, transmission charge, transition charge, generation service charge, or other charges based on the electricity pricing scheme in your region. The U.S. EPA’s Responsible Appliance Disposal (RAD) Program for utilities, municipalities, manufacturers, and retailers is a voluntary program that helps protect the ozone layer and reduce emissions of greenhouse gases. Through the Program, partners provide for the disposal of old refrigerators, freezers, dehumidifiers, and window air-conditioning units using the best environmental practices available. This reporting form will allow EPA to track and quantify the environmental benefits achieved by your program, and ultimately, those achieved by the RAD Program as a whole. Recycle: To extract material from an appliance and process it for reuse. Recycling durable components, such as metals, rubber, plastic, and glass, entails reprocessing them for future use in other manufactured products, and not reuse of the appliance itself. When recycling used oil, refrigerants must be recovered from the used oil to the fullest extent possible, and the used oil cannot be mixed with used oil from sources other than refrigeration units. Please provide your contact, program, and third-party information, as requested in the Step 1 and Step 2 worksheets. Based on the types of refrigerated equipment handled by your program, Step 3 worksheets will be generated as appropriate. Please enter the requested project activity data in these Step 3 worksheets to the best of your ability; this data will automatically populate the summary worksheets on Input Data , Environmental Benefits, and Gross Energy Impacts , which will be used by the U.S. EPA to aggregate data on RAD Program benefits. Before submitting the form, please review all activity data and Summary worksheets, and confirm that the information is accurate by entering your name and checking the box on the Confirmation worksheet. Recover: To remove a material (in any condition) from an appliance and then store it externally without necessarily testing or processing it in any way. Reclaim [refrigerant]: To reprocess refrigerant using specialized machinery to at least the requirements specified in the ARI Standard 700, Specifications for Fluorocarbon Refrigerants, and to verify using the analytical methodology prescribed in the Standard. For Email: swain.evelyn@epa.gov For U.S. Postal Service: U.S. EPA (6205J) 1200 Pennsylvania Avenue, NW Washington, DC 20460 For Private Courier: U.S. EPA (6205J) Contact Information P r o g r a m O w n e r : R e p o r t i n g P e r i o d : 1/1/2009 to 12/31/2009 Primary Contact : A l t e r n a t e C o n t a c t : C o n t a c t N a m e C o n t a c t N a m e A d d r e s s A d d r e s s D a y t i m e P h o n e D a y t i m e P h o n e Fax Fax E - m a i l A d d r e s s E - m a i l A d d r e s s Program Information Please select the appliance types included in your program: # # # # # # How many 45,000 1 EPA ICR NUMBER: XXXX.XX, Revised 12/2009 are in the area served by your program? OMB Control No. 20XX-XXXX United States Expiration Date: XX/XX/XX ENVIRONMENTAL PROTECTION AGENCY Washington, DC 20460 Street Client Contact 2 Utility Client Street Client Contact 1 Does your program provide an incentive (e.g., financial) to encourage disposal of old, working refrigerated appliances? City, State ZIP City, State ZIP (555) 111-1112 contact1@utility.com contact2@utility.com (555) 111-1111 (555) 111-1114 (555) 111-1113 Refrigerators-Freezers Stand Alone Freezers Air-Conditioning Units Dehumidifiers Next >>> Yes No Households Stores 2 of 9 Third-Party Information Haul-Away and Demanufacturing Companies Name Contact Name Phone Number Address Appliance Haul-Away Refrigerant Recovery Foam/Foam- Blowing Agent Recovery Mercury Recovery Used Oil Recovery PCBs Recovery Refrigerant Reclamation and Destruction Facilities Name Contact Name Phone Number Address Reclamation Destruction Foam/Foam-Blowing Agent Reclamation and Destruction Facilities Name Contact Name Phone Number Address Reclamation Destruction Hazardous Materials Recycling and Disposal Facilities Name Contact Name Phone Number Address Recycling/ Disposal of Used Oil Disposal of PCBs Disposal of Mercury OMB Control No. 20XX-XXXX Expiration Date: XX/XX/XX Type of Destruction Technology (if applicable) Facility Role Facility Role Type of Destruction Technology (if applicable) In the tables below, please indicate the names of and contact information for all companies used by your program to collect/treat appliances and recovered materials in order to fulfill the requirements of the RAD Program. Note that you may need to contact third-party providers in order to obtain the names and addresses of the companies they work with to provide the services specified. Company Role Facility Role United States ENVIRONMENTAL PROTECTION AGENCY Washington, DC 20460 Activity Data: Refrigerators-Freezers Utility Client 1 / 1 / 2 0 0 9 t o 1 2 / 3 1 / 2 0 0 9 When populating cells, please use the units provided; do not add text to specify units. This form only recognizes numbers. Units Processed T o t a l N u m b e r o f U n i t s P r o c e s s e d 7 5 3 Average Age of Appliances Collected (yrs) 16 C F C - 1 2 5 4 9 H F C - 1 3 4 a 2 0 4 T o t a l 7 5 3 C F C - 1 1 5 4 9 H C F C - 1 4 1 b 2 0 4 T o t a l 7 5 3 Fate and Quantity of Substances Recovered Actual Measurement Assumptions CFC-12 274.50 (lb) 0.00 (lb) HFC-134a 20.40 (lb) 0.00 (lb) CFC-11 549.00 (lb) 0.00 (lb) HCFC-141b 204.00 (lb) 0.00 (lb) 51.96 (gal) 0.00 (gal) 105,420.00 (lb) 5,271.00 (lb) Rubber R e c y c l e d 0 . 0 0 ( l b ) Plastic 8,283.00 (lb) Glass 2,771.04 (lb) R e c y c l e d 0 . 0 0 ( l b ) 0.00 (lb) PCB-Containing Capacitors D e s t r o y e d 1 . 6 6 ( l b ) *Foam-blowing agent typically represents only 10% of the total foam weight. Energy Savings Additional Comments: EPA ICR NUMBER: XXXX.XX, Revised 12/2009 Number of Units Processed Containing the Following Foam-Blowing Agents OMB Control No. 20XX-XXXX Expiration Date: XX/XX/XX Please complete the table below to provide the total amount of appliance components collected by your program during the current reporting period. Refer back to the Instructions for Use for definitions of the fates for each component. For any fields that do not apply to your program, please enter "0" under "Total Amount" in column F. For every non-zero value entered in column F, indicate whether the quantity specified is based on actual measurements or on assumptions by checking the appropriate box in column H or I. If you wish to provide further information regarding your program data, please use the space for “Additional Comments” at the bottom of this worksheet. Fate of Component Number of Units Processed Containing the Following Refrigerants Total Amount Based On: Please complete the gray cells below. If you wish to provide further information regarding the units processed by your program, please use the space for "Additional Comments" at the bottom of this worksheet. Total Amount Refrigerant (including that recovered from compressor oil) Destroyed Reclaimed Summary of Input Data Refrigerators- Freezers Stand Alone Freezers Air-Conditioning Units Dehumidifiers Number of Units 753 0 0 0 Refrigerant (lb) CFC-12 0.500 NA NA HCFC-22 NA HFC-134a 0.100 NA R-407C NA NA NA R-410A NA NA Average across all units 0.392 Foam-Blowing Agent (lb) CFC-11 1.000 NA NA HCFC-141b 1.000 NA NA Average across all units 1.000 NA NA Durable Materials (lb)* Ferrous metals 140.000 Non-ferrous metals 7.000 PCB-containing capacitors 0.002 Mercury-containing components Used oil (gal) 0.069 Rubber Plastic 11.000 Glass 3.680 NA NA *Unless otherwise specified. EPA ICR NUMBER: XXXX.XX, Revised 12/2009 Appliance Type The table below presents the calculated average quantities of refrigerant, foam-blowing agent, and durable materials recovered per appliance based on the activity data reported in the Step 3 worksheet(s). Average Quantity Recovered Per Unit, Calculated Based on Reported Total Quantity and Number of Units Processed OMB Control No. 20XX-XXXX Expiration Date: XX/XX/XX United States ENVIRONMENTAL PROTECTION AGENCY Washington, DC 20460 Summary of Environmental Benefits Emissions Avoided (lb) (kg) Refrigerantc CFC-12 Reclaimed 270.38 122.64 122.64 HFC-134a Reclaimed 20.09 9.11 0.00 HCFC-22 Reclaimed 0.00 0.00 0.00 HFC-410A Reclaimed 0.00 0.00 0.00 HFC-407C Reclaimed 0.00 0.00 0.00 Reclaimed 290.48 131.76 122.64 CFC-12 Destroyed 0.00 0.00 0.00 HFC-134a Destroyed 0.00 0.00 0.00 HCFC-22 Destroyed 0.00 0.00 0.00 R-410A Destroyed 0.00 0.00 0.00 R-407C Destroyed 0.00 0.00 0.00 Destroyed 0.00 0.00 0.00 Subtotal 290.48 131.76 122.64 Foam-Blowing Agentd CFC-11 Reclaimed 540.77 245.29 245.29 HCFC-141b Reclaimed 200.94 91.14 10.03 Reclaimed 741.71 336.43 255.31 CFC-11 Destroyed 0.00 0.00 0.00 HCFC-141b Destroyed 0.00 0.00 0.00 Destroyed 0.00 0.00 0.00 Subtotal 741.71 336.43 255.31 Durable Materials Ferrous Metal Recycled 105,420.00 47,817.46 NA Non-Ferrous Metal Recycled 5,271.00 2,390.87 NA Rubber Recycled 0.00 0.00 NA Plastic Recycled 8,283.00 3,757.09 NA Glass Recycled 2,771.04 1,256.92 NA Subtotal 121,745.04 55,222.33 NA Removing Units from the Grid Subtotal Energy Savings NA NA NA TOTAL NA NA 377.95 NA = not applicable. Properly Recovered Component Total Amount Used Oil Recycled or Properly Disposed (gal) 51.96 PCB-Containing Capacitors Destroyed (lb) 1.66 Mercury-Containing Components Recycled (lb) 0.00 Disposed (lb) 0.00 EPA ICR NUMBER: XXXX.XX, Revised 12/2009 13.03 1,336.81 1,349.84 Hazardous Materials Recovered 0.00 The table below presents the amounts of hazardous materials avoided from being released to the environment as a result of your program. 1,349.84 0.00 0.00 c Refrigerant assumptions: destruction results in emissions of 0.01% (assuming destruction occurs using a TEAP-approved technology, with DRE of 99.99%); the reclamation process results in emissions of 1.5%. d Foam-blowing agent assumptions: destruction results in emissions of 0.09% (assuming destruction occurs in a municipal solid waste incinerator or waste-to-energy facility with a DRE of 99.91%); the reclamation process results in emissions of 1.5%; baseline emissions are assumed to be 100% (i.e., no anaerobic degradation of CFC blowing agent in landfills is assumed). (Current Period Dollars) Utility Client 1 / 1 / 2 0 0 9 to 12/31/2009 Appliance Type Total Saved Energy (kWh) Total Savings to Residential Consumers ($) Refrigerators-Freezers 6,189,660.0 $854,173.08 Stand Alone Freezers 0 . 0 $ 0 . 0 0 Air-Conditioning Units 0 . 0 $ 0 . 0 0 Dehumidifiers 0.0 $0.00 Total 6,189,660.0 $854,173.08 EPA ICR NUMBER: XXXX.XX, Revised 12/2009 753 OMB Control No. 20XX-XXXX Expiration Date: XX/XX/XX Note: This page will self-populate if data are entered in the Energy Savings tables in the Step 3 Activity Data worksheets. Data in the table below apply to the current reporting period. 0 Total # of Units Processed 753 0 0 Summary of Gross Energy Impacts from Removal of Old Units United States ENVIRONMENTAL PROTECTION AGENCY Washington, DC 20460 8 of 9 Confirmation N a m e D a t e 1/29/2010 EPA ICR NUMBER: XXXX.XX, Revised 12/2009 OMB Control No. 20XX-XXXX Expiration Date: XX/XX/XX I certify that I have personally examined and am familiar with the information submitted in this report, and that based on my inquiry of those individuals immediately responsible for obtaining the information, I believe that the submitted information is true, accurate, and complete. Prior to submitting this form, please review all activity data and Summary worksheets and confirm below that the information is accurate, to the best of your knowledge. The box must be checked and your name and date entered into the cells below in order for this form to be considered complete. ARCA Client Support Coordinator United States ENVIRONMENTAL PROTECTION AGENCY Washington, DC 20460 Presented by Appliance Recycling Centers of America, Inc. Sample Invoice From: Appliance Recycling Centers of America, Inc. P.O. Box 9438 Minneapolis, MN 55440-9438 Phone (952) 930-9000 Fax (952) 930-1803 Friday, January 23, 2009 To: UTILITY Attn: CONTACT ADDRESS Re: Invoices week of 11/23/2008 to 11/29/2008 Dear CONTACT: Enclosed/attached are the program billing and incentive invoices for the billing period of 11/23/2008 to 11/29/2008 for the 2008-2012 Recycling Program (PO-X555555). The reconciliation of the number of units billed to the number of incentives billed is as follows: Billing Refrigerator Incentives Freezer Incentives Invoice # Invoice # Invoice # 55555 55555b 55555c Billed Units 947 814 133 Total Units 947 814 133 Please call me at (952) 930-9000 ext. XX if you have any questions. Sincerely, /signature/ Financial Incentive Coordinator Enclosure: PO-X555555 Invoice By: Appliance Recycling Centers of America, Inc. Invoice For: CUSTOMER For Dates: 11/23/2008 to 11/29/2008 Invoice No.: 79381 To: UTILITY Attn: CONTACT ADDRESS Invoice Date: 12/6/2008 Billing Phone: (555) 555-5555 Terms: Net 30 Coverage Period: Sunday, Nov. 23, 2008 to Saturday, Nov. 29, 2008 Listing Number Service Date Units Amount 1000 11/24/2008 11 $nnnnn.50 1001 11/25/2008 147 $ nnnnn.75 1002 11/26/2008 175 $ nnnnn.00 1003 11/27/2008 173 $ nnnnn.50 1004 11/28/2008 179 $ nnnnn.50 1005 11/29/2008 262 $ nnnnn.50 947 $ nnnnn.75 947 Units Collected Per PO-X555555: First Units 904 @ $nn.nn $ nnnnn.00 Second Units 43 @ $nn.nn $ nnnnn.75 947 $ nnnnn.75 947 Units Collected Per PO-X555555: Refrigerators 814 86.0% Freezers 133 14.0% 947 100.0% PLEASE REMIT TO: Appliance Recycling Centers of America, Inc. P.O. Box 9438 Minneapolis, MN 55440-9438 Phone (952) 930-9000 Fax (952) 930-1803 4,444.18 0.00 OMB Control No. 20XX-XXXX Expiration Date: XX/XX/XX a GWP = global warming potential; the ratio of heat trapped by one unit mass of a gas to that of one unit mass of carbon dioxide. Calculations are based on the direct 100-year GWPs provided in the Intergovernmental Panel on Climate Change Fourth Assessment Report: Climate Change 2007. b ODP = ozone depleting potential; the ratio of calculated ozone column change for each mass unit of a gas emitted into the atmosphere relative to the calculated depletion for the reference gas CFC-11 (ODP = 1.0). For calculati purposes, ODPs defined in the Montreal Protocol are used. Total Amount Prevented from Being Emitted Ozone Depleting Substances (ODS) Emissions Avoided (ODP-Weighted kg)b Appliance Component 0.00 0.00 The table below presents the cumulative environmental benefits resulting from your program, calculated based on assumptions of destruction and reclamation efficiencies developed by the U.S. EPA. Note: It is assumed that removing units from the electricity grid will only result in environmental benefits if your program offers an incentive to retire old, working appliances. In addition, the estimated ozone and greenhouse gas benefits associated with avoided releases of refrigerant and foam-blowing agent are subject to change as more information becomes available (e.g., regarding loss rates associated with various recovery technologies and practices, baseline emissions, global warming potentials (GWPs), etc.) 85.63 17.37 109.02 0.00 0.00 Greenhouse Gas (GHG) Emissions Avoided (MtCO2eq)a 1,231.19 0.00 0.00 0.35 5.67 0.00 7,134.23 0.00 1,231.19 66.08 1,165.11 0.00 United States ENVIRONMENTAL PROTECTION AGENCY 7 of 9 Reclaimed Destroyed Ferrous Metal Recycled Disposed Recycled Used Oil Appliance Component Destroyed Reclaimed Foam-Blowing Agent* $0.14 Average Energy Consumed/Year/Unit (kWh) Mercury-Containing Components Recycled Recycled Average Number of Remaining Years of Useful Life Reclaimed Disposed Please complete the table below if an incentive is provided to equipment owners to encourage disposal of old, working appliances. Destroyed 822.0 Metal 10.0 Non-Ferrous Metal Recycled Average Energy Cost for Residential Consumers ($/kWh) [please provide the average cost during the current program period] United States ENVIRONMENTAL PROTECTION AGENCY Washington, DC 20460 5 of 9 1310 L Street, NW, 10th Floor Washington, DC 20005 1 of 9 6. The values based on primary appliance types older than the set manufacture date 7. The values based on primary appliance types newer than the set manufacture date 8. The values based on secondary appliance types older than the set manufacture date 9. The values based on secondary appliance types newer than the set manufacture date 10. The total number of appliance types 11. The total gross kWh of energy consumed per appliance type 12. The total gross kW of energy, or peak amount of energy consumed, per appliance type 13. The total gross MW of energy, or peak amount of energy consumed, per appliance type in Mega Watts 14. The total net kWh of energy multiplied by the NTG (Net to Gross=average annual kWh adjustment) per appliance type 15. The total net kW of energy multiplied by the NTG (Net to Gross=average annual kWh adjustment) per appliance type 16. The total net MW of energy multiplied by the NTG (Net to Gross=average annual kWh adjustment) per appliance type 17. The total lifetime energy savings based on the EUL (remaining years of useful life) and the total kWh per appliance type 18. The total lifetime $ savings based on the EUL (remaining years of useful life) and the $/kWh per appliance type % of Subtotal Average Cu. Ft. Average Amps Average Age Manual 39 54.93 16.05 4.54 20.69 Frost Free 32 45.07 17.41 5.43 19.19 Unidentified 0 SubTotal 71 100.00 16.66 4.94 20.01 06/01/2010 to 06/15/2010 Period Grand Totals Number of Units _______ _______ Average Amps Average Age ALL Units 66 6.50 16.62 01/01/2010 to 06/15/2010 Contract YTD Grand Totals Number of Units ________ _______ Average Amps Average Age ALL Units 1,607 6.26 16.03