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88 Page 152 APPENDIX K HBC/WSG Proposal for Baseline Diversion Guarantee, Incentives for Incremental Self-Haul Diversion, and Formula for Revenue-Sharing from Incremental Diversion HBCIWSG Proposal for Baseline Diversion Guarantee HBC/WSG guarantees that it will divert from landfill disposal in any given year at a minimum the same percentage of total waste inbound to the SRDC as Allied Waste diverted during the period 2005*2008. A portion of that total SRDC inbound waste is the self-haul waste stream, which HBC/WSG proposes to be the first stream targeted to further increase diversion through an incentives program as described below. Incentives for Incremental Self-Haul Diversion In addition to the Basel-ine-Diversion Guarantee, HBC/WSG will guarantee incremental diversion of self*haul waste (Incremental Self-Haul Diversion Guarantee) above and beyond the self-haul diversion achieved by Allied Waste. The Incremental Self-Haul Diversion Guarantee will be based on the results of incentives that are developed jointly by HBC/WSG and SBWMA designed to maximize diversion of self-haul waste. HBC/WSG proposes that we rethink the way self-haul material (and other waste streams) come through the gate and into the transfer station. By doing so we should be able to make the most efficient gains toward cost-effective incremental diversion of these waste streams. Rate~based incentives and disincentives at the SRDC inbound scales can begin to change the behavior of self-haulers (and also commercial haulers), to influence them to clean loads, which should facilitate them segregating their materials into bunkers, thus bypassing the TS floor and avoiding the costs of either a special sort system or floor separation. If we can attract cleaner, more segregated loads into the SRDC, and into the bunkers by using the labor of the self-haulers themselves, we will start to bring down the costs of creating more marketable materials. HBC/WSG will make its Incremental Self-Haul Diversion Guarantee based on a tested program of diversion incentives at the inbound scale. We propose that beginning in our second year of operation of the SRDC, the level of this increased guarantee will be based on two factors: (1) the composition of the inbound self-haul waste stream at the end of the first year, as verified by a waste composition audit; and (2) a mutually agreeable incentives program at the inbound scales which can be implemented when we assume transfer station operations. Once we see the impacts of the first 6 months of the incentives program, plus the waste composition audit, we will guarantee the level of incremental diversion of self-haul waste commensurate with those results. For example, if a 20% gate rate discount for self-haulers with clean loads results in a 10% increase in waste diversion during the first 6 months of the incentives program, and if the composition audit shows no appreciable reduction in certain recoverable materials, HBC/WSG will make an Incremental Self-Haul Diversion Guarantee of 10% for the following year, provided SBWMA continues the incentives program.