# Presentation: 028034

## RECYCLING INTRAVENOUS (IV) SOLUTIONS TO PRODUCE ETHANOL

## BACKGROUND

- VA Pharmaceutical Cache Program
- Utilized in the event of a significant emergency, such as a terror attack or national disaster.
- Movement and activation of the cache is strictly monitored.
- Rotation of stock with expiration dates is clear, tedious, and require a significant level of accountability.

## BACKGROUND cont.

- Louisville VAMC used the government-contracted vendor, Guaranteed Returns to managed the disposal/destruction of expired IV solutions.
- The charge per pound on IV solutions is $0.32.
- Facilities could spend $13,000 or more on solutions sent for destruction.
- The recommended destruction method for expired IV solutions is to cut the bags open and drain them.

## PROGRAM DESCRIPTION

- In the 2006 President's State of the Union Address, President Bush made the following statement. *"We must also change how we power our automobiles. We will increase our research in better batteries for hybrid and electric cars, and in pollution-free cars that run on hydrogen. We'll also fund additional research in cutting-edge methods of producing ethanol, not just from corn, but also from wood chips and stalks, or switch grass. Our goal is to make this new kind of ethanol practical and competitive within six years."*

## PROGRAM DESCRIPTION cont.

- FY 2005, The Green Environmental Management System was launched by the VA.
- Required facilities to maximize resources by implementing and expanding waste reduction and recycling programs.
- Contacted Parallel Products about the cost of recycling ethanol in our laboratories. We were able to be reclassified as a Conditionally Exempt Small Quantity Generator by recycling the ethanol.

## PROGRAM DESCRIPTION cont.

- Identified a concern that other VHA facilities were experiencing with the disposal/destruction of expired intravenous (IV) solutions.
- Contacted Parallel Products again to request they evaluate the feasibility of recycling the IV solutions as a new product stream.
- Alternatives to the expensive contract with Guaranteed Returns for recycling the expired IV fluids in the pharmacy cache was explored.

## PROGRAM DESCRIPTION CONT.Alternatives

- Rotation into the medical center IV stock.
- Employees to cut open and drain the bags
- 	1. Destroying the packages on site would require the use of two or more employees, have great potential for injury and require acquisition of an Unusual Discharge Permit.
- 	2. Modification of our discharge permit and increased monitoring requirements would increase facility cost to $450.00 per month.

## PROGRAM DESCRIPTION cont.

- Parallel Products Inc. is a company that uses a special process to transform alcohol-bearing or sugar-based waste material into 200-proof fuel-grade ethanol.
- Utilization of this company's services provides a significant cost savings to VA.
- Credit for the recycling of the cardboard, plastic and the creation of a new fuel-grade ethanol source on our Waste Minimization Report.

## PROGRAM DESCRIPTION CONT.

- The program began with the recycling of ethanol in 2005, D5W in October 2006 and expanded to include Lactated Ringers, Normal Saline and Ciprofloxacin/D5W in 2007.
- The destruction and distillation process is used to produce 200-proof ethanol that is used in fuels such as jet fuel, gasoline additives and racing fuel.
- The plastic and cardboard is baled and sold as a recycled commodity.

## Cost Comparison

**Guaranteed Returns – Disposal Cost**
-   Cost per pound = $0.32
-   Weight per case of 14
-   1-Liter bags is 35 lbs (62 cases per pallet)
-   Cost to process 8 pallets (62 cases/pallet) @ $0.32 = $5,555.00

**Parallel Products – Recycling Cost**
-   Cost per case= $1.25
-   Weight per case of 14      1-Liter bags = 35 lbs  (62 cases per pallet)
-    Cost to recycle 8 pallets (62 Cases/pallet) @ $1.25 = $620.00

## Slide 11

| VHA Facility  | CASES SHIPPED
TO PARALLEL PRODUCTS | GUARANTEED RETURNS
COST  
(Cases X 35 lbs X $0.32) | PARALLEL PRODUCTS COST   
(Cases X &1.25) | SAVINGS REALIZED THROUGH RECYCLING |
| --- | --- | --- | --- | --- |
| Louisville, KY  | 775 | - $ 8680 | - $ 969 | + $ 7711 |
| Cheyenne, WY | 750 | - $ 8400 | - $ 937 | + $ 7463 |
| Tucson, AZ | 757 | - $8478 | - $ 946 | + $ 7532 |
| Denver, CO | 720 | - $ 8064 | - $ 900 | + $ 7164 |
| Boise, ID | 775 | - $ 8680 | - $ 969 | + $ 7711 |
| Columbus, OH | 774 | - $ 8669 | - $ 959 | + $ 7710 |
| Altoona, PA | 576 | - $ 6451 | - $ 720 | + $ 5731 |
| Dayton, OH | 820 | - $ 9184 | - $ 1025 | + $ 8159 |
| Lebanon, PA | 865 | - $ 9688 | - $1081 | + $ 8607 |
| Ashville, NC | 431 | - $4827 | - $ 539 | + $ 4288 |
| Beckley, WV | 960 | - $ 10,752 | - $ 1200 | + $ 9552 |
| Amarillo, TX | 565 | - $ 6328 | - $ 706 | + $ 5622 |
| Birmingham, AL | 428 | - $ 4794 | - $535 | + $ 4259 |
| Lexington, KY | 803 | - $8994 | - $ 1004 | + $ 7990 |
| NATION WIDE | 9999 | (- $ 111,989) | (- $12,490) | + $ 99, 499 |

## BENEFITS OF USING PARALLEL PRODUCTS

**Environmental Compliance** – breaks the chain of title of the alcohol received and reduces corporate exposure.
**Competitive Pricing** – cost savings based on the ability to ship alcohol on Bill of Lading as a product instead of shipping and disposal of hazardous material.
**Resource Recovery-Recycling** – reduces amount of hazardous material reporting and tracking as the material is removed from the hazardous arena
**Legal Affidavits of Destruction** – provided on all alcohol streams processed.

## BENEFITS OF USING PARALLEL PRODUCTS

**Complete Confidentiality** –uses 24-hour video and security personnel.  Perimeter fencing is required at all facilities to insure trademark protection.
**Decreased Demand for Warehouse Space** – ability to receive drums, tankers, totes, railcars at all facilities.
**Administrative Scheduling and Reporting** – due to T.T.B. /A.T.F. requirements, complete tracking and reporting is provided.  Their customer service department can provide scheduling and logistics assistance.

## Brief History of Parallel Products

- 1979- Established  in California to recycle unsaleable sugar and alcohol based case goods and convert them to Fuel grade ethyl alcohol
- 1995- Louisville, KY site purchased
- 1999- Expanded services to Pharmaceutical, Health, and Beauty companies to recycle unsaleable consumer items and spent  bulk alcohol used to purge processing  lines
- 2003- Company sold to Three Cities Investment Group
- 2004- Taunton, MA site purchased
- 2006- Bronx, NY site purchased (not currently permitted to receive IV solutions).

## Shipping IV case goods to Parallel

- VA staff calls Gus Ansback at 502-727-1210 (cell) or 502-742-5214 (office) or can e-mail him  at gusa@parallelproduct to set up account.
- Once account is established VA can have transporter call 888-883-9100 M-F 7:00am EST to 6:00pm EST and receive a delivery appointment to Parallel Products.
- VA can call our Customer Service at the same toll free number and Parallel Products will arrange for transport and delivery to Parallel Products.

## Case Good Receiving and Processing

- Truck seal is checked and sent to dock
- Load is “blind” counted under “zero” tolerance policy.
- Contact VA if load is over or under Bill of Lading
- Load is processed and paper work sent to accounting
- Sworn affidavit of recycling/destruction, copy of the BOL, and line item invoice is sent to VA customer for accounting, security, and environmental staffs

## Slide 19

## Payment for Services	

- Parallel Products is registered in the VA CCR system
- Visa, MasterCard, and Discover are also able to used for payment
- VA Customer Contact will be given choice when account is set up

## Costs to Process and Recycle

- Parallel Products will process the following expired IV case goods:
- 5% Dextrose/Water
- Normal Saline
- Lactated Ringers
- Ciprofloxacin
- All sizes $1.25 per case plus shipping cost to their nearest plant

## Parallel Products Flow Chart

## CONCLUSION

- Government agencies that choose to use this process will save money while recycling with Parallel Products.
- They have locations across the USA  to  service the VA and other Federal agencies.
- Reduces future liability and reporting of hazardous materials when ethanol containing materials are processed.
- This program will allow the federal government to take an active role in producing fuel-grade ethanol without the expensive cost associated with the conversion using corn.