Home Page


Taking Out the Trash:
A New Direction for New York City's Waste

by Barbara Warren, M.S.
Organization of Waterfront Neighborhoods
and
Consumer Policy Institute/Consumers Union
May 31, 2000

About
Acknowledgements
Executive Summary
Report
Appendix A
Appendix B
Appendix C
Appendix D

 

 

CHAPTER III
THE MAYOR'S PLAN

On May 29, 1996, Mayor Rudolph Giuliani, Governor George Pataki and Borough President Guy Molinari announced that the Fresh Kills Landfill on Staten Island would close by the end of 2001. The state legislature subsequently enacted a law requiring closure, which had been moving through the legislature prior to the announcement. This decision, much needed given the fact that Fresh Kills had operated for almost 50 years without meeting even the most minimal environmental standards, changed the direction of solid waste management in New York.

Initial Proposals, 1996-1998

The Mayor and the Governor established a joint Task Force to develop a plan for closure. Released in November 1996, The Fresh Kills Closure Task Force Report, A Plan to Phase-Out the Fresh Kills Landfill:

· Established a Phase Down schedule for the Closure of Fresh Kills from its 1996 level of 13000 tons per day. Waste dumping would have to drop by 2000-3000 tons per day by the end of each year until it reached zero in December 31, 2001;

· Recommended waste reduction and recycling as preferred waste management alternatives;

· Recommended preserving and reusing the existing marine transfer station system for handling garbage on its way to final disposal;

· Cautioned that "it is important that the approach to exportation and the necessary contracts for the handling of this waste reflect both the environmental and economic concerns of the City administration, the affected communities within New York City, and the communities where the waste management facilities are located." (FK Closure Task Force Report, p. 90).

· Expressed belief in the Charter-mandated principle of 'fair share' and its application to decisions regarding siting or expansion of transfer facilities;

· Advanced the idea of borough self-sufficiency in managing residential waste, believing in the unique opportunity for borough input in citywide waste management. As a result the Administration committed to working with all five boroughs and the City Council in the planning process.

The commitment to working with the Boroughs made sense given the magnitude of the task at hand and the legal framework for solid waste planning within the state, which calls for draft plans, public hearings and a public process. Under state law the City would have to develop a new draft Solid Waste Management Plan reflecting the new direction. However the City prepared a Request for Proposals for export services, releasing it in Spring 1997, without reviewing the Borough Waste Plans, which were due at that time. This process therefore failed to incorporate prior years of work by elected officials, non-profit organizations, and individual citizens, and was undertaken without any substantive collaboration with current Borough Presidents, City Council representatives, or the public. In general, from this point on, solid waste planning has not been undertaken with the inclusiveness and transparency that we should expect in a democratic society.

In April 1998, the Administration issued its formal Draft Solid Waste Management Plan (SWMP). This Draft Plan did not refer to the 1996 Task Force report's recommendations. It also ignored the Borough plans and the City Council plan and all of the detailed, carefully crafted recommendations they contained.

The Draft Solid Waste Management plan covered only municipally collected waste despite the fact that the City was already contracting with private waste companies under the interim export plans, and that private commercial waste transfer facilities were creating enormous problems in the communities where they were concentrated. For several decades, residential and institutional garbage has been picked up by the Department of Sanitation (DOS) and taken by barge to Fresh Kills. Commercial waste has been picked up by private haulers, who take it to private waste transfer stations, many in Greenpoint/Williamsburg or the South Bronx, and then truck it out of the City to private landfills.

In December 1998, the Mayor released 2001 And Beyond: A Proposed Plan for Replacing the Fresh Kills Landfill. This Plan proposed two huge transfer stations in New Jersey, and one in Red Hook, Brooklyn, again focusing on export of garbage to private landfills, prompting the Governor of New Jersey's reply, "Drop Dead!" This plan was not part of the formal solid waste planning process and did not claim to be a Final Solid Waste Management Plan. The City Administration's proposals through 1998 were heavily criticized by community groups, experts and other states. Critics cited the following serious drawbacks with the Administration's plans:

· They placed an inequitable and unjust burden on certain communities, and in particular on low-income, minority neighborhoods, for processing waste. The South Bronx, Greenpoint/Williamsburg and Red Hook in particular were targeted for large private transfer facilities for containerization of garbage.

· They failed to adequately use and develop City-owned infrastructure, particularly the City's Marine Transfer Stations, thereby leaving the City in an economically vulnerable situation. Instead of compacting and containerizing at these stations, the City proposed using the Marine Transfer Stations only as pass-throughs on the way to large private waste containerization facilities, which meant that the waste would be handled twice, at two separate facilities. Double handling raises the costs of the export program.

· They relied too exclusively on export, rather than advancing a diverse set of responsible, environmentally sound options including waste reduction, reuse, recycling and composting. The City has failed to propose any new city-owned recycling and composting infrastructure which could reduce the volume of waste and associated costs of export.

· They relied extensively on private companies despite recent waste industry consolidation and the possible impacts of limited competition. The large proposed containerization facilities would be built at City expense, but would be the property of the operating corporation. Once these facilities were built, the City would be at the mercy of the companies owning and operating them-it would be impossible to request bids from competing companies, because there would be no other companies with viable containerization facilities in or near the City. Long term this could put the City at the economic mercy of a few large multinational waste companies.

· Finally, they did nothing to address the desperate problems associated with the commercial waste stream, which is even larger than the residential waste stream. The commercial waste stream is already handled by private haulers, a number of whom have been bidding for the residential waste contracts. They currently operate waste transfer facilities in the South Bronx, Greenpoint/Williamsburg and Red Hook, which frequently do not meet environmental standards, create enormous garbage truck traffic problems in surrounding neighborhoods, and have had unacceptable worker accident rates.

THE NEW MAY 2000 PLAN

In May 2000, the Administration released yet another new plan for export of the City's residential waste stream in the form of its Draft Solid Waste Management Plan (SWMP) for the City and Environmental Impact Statement. This plan has as its centerpiece a large garbage containerization facility to be built and operated in Linden, New Jersey by Browning Ferris Industries/Allied Waste Industries, Inc., which would process over half of the City's garbage and send it to an out-of-City landfill. However, the Plan also presents a diverse array of possible options, from which the City may select for future disposal. The City is not legally bound to any of these proposals, and could substitute other options. Until the New York City Council approves the Administration plan, it cannot be called a City Plan, nor can it be forwarded on to the New York State Department of Environmental Conservation for final approval.

The Administration's latest proposals, released in May 2000 are an improvement over previous plans. They address some of the worst social inequities in previous proposals. No borough would have to handle another borough's residential waste. Waste movement out of the City would be by rail or barge, rather than by polluting and congestion-generating trucks. However, they still fail to meet a number of important sustainability criteria.

According to the Administration, the Major Advantages of the Proposed Plan are the following:

· "It is borough-based. Specifically, all Department generated waste generated within a borough will be delivered to a transfer facility or to transfer facilities within the borough.

· It will reuse a substantial portion of the MTS-based waste transfer station system that for over 50 years has enabled the Department to provide highly reliable and cost-effective waste collection, transfer and disposal services.

· It will enable all Department-managed waste to be exported to out-of-City disposal sites by barge or rail.

· The in-City facilities proposed will likely be or replace on the same site, existing solid waste management facilities.

· The proposed procurements may provide an economic incentive to the owners of existing truck based commercial waste transfer facilities to convert them into facilities that will include the ability to export waste by barge or rail. "(Draft SWMP, May 2000,p.5) (The basis for this last statement is unclear since it is not discussed anywhere in the Solid Waste Plan or the Environmental Impact Statement.)

The essence of the Mayor's approach is to contract with private firms to receive waste within the City, package it, and transport it to distant landfills and incinerators.

Private companies would containerize a total of 10,400 tons per day (TPD) of waste:

a) The City would sign a 20-year contract with BFI/Allied Waste to build and operate a 7000-10,000 TPD containerization facility in Linden, NJ and to dispose of the waste at a landfill. The Linden facility would receive a total of 6430 tons of NYC residential waste: 2390 tons of waste daily from Manhattan's three Marine Transfer Stations (MTSs), 1860 tons from Brooklyn's Hamilton Ave MTS, and 2180 tons from the Queens North Shore MTS. No modifications will be needed to the MTSs. Garbage will need to be handled twice, once at each MTS and once in Linden.

b) An unspecified private company would build a 1080 TPD new truck-to-container-to-barge-or-rail facility in Queens near the shore line of Newtown Creek. The site is currently owned by Waste Management, Inc.

c) The Greenpoint MTS would be modified to containerize 990 TPD, OR a new truck-to-container-to-barge-or-rail facility would be built nearby. It appears from the plan that the City will turn over operations and possibly ownership of the MTS to a private company.

d) In the Bronx, 1900 TPD capacity would be contracted to an existing or new truck-to-container-to-barge-or-rail facility. Waste Management, Inc. and Republic both operate existing facilities which could handle this volume; AMR has applied for a permit to build a new facility.

City owned facilities would containerize 2100 TPD:

a) A 1150 TPD new City-owned truck-to-container-to-truck-to-barge-or-rail facility would be built at the Fresh Kills landfill to handle Staten Island waste. The site currently lacks rail access but it is hoped that rail would be available in the future. The site is barge accessible.

b) A 950 TPD City Marine Transfer Station in Southwest Brooklyn would be modified to containerize a portion of Brooklyn waste, to be exported by barge.

The May 2000 Plan proposes creating a total of 12, 500 tons per day of waste disposal capacity, although the City projects only 11, 441 TPD of residential waste output for 2000, and further declines in subsequent years.

Drawbacks of the May 2000 Plan

The May 2000 proposal unfortunately still does not meet many criteria of long-term environmental, social and economic sustainability. Despite the improvements over previous plans, the following remain as drawbacks of this proposal:

1. Exporting for disposal all mixed solid waste that is municipally collected and currently not being recycled.
Despite staggering export costs, the city is "putting all its eggs in the export basket." Such reliance on export also leaves the City vulnerable to efforts in importing states and in Congress to restrict waste flows.

2. Developing no new programs to prevent waste or increase recycling as alternatives to export despite being out of compliance with existing state and city laws that mandate greater efforts. Increased recycling could reduce export costs and contribute to economic development that revitalizes communities.
The Administration plans for solid waste ignore and violate the requirements of two existing laws. The State Solid Waste Management Act of 1988 requires that solid waste management plans be prepared by municipalities to meet the goals of 10% waste reduction and 40% recycling by 1997 and that local laws be adopted. The City Recycling Law was adopted in 1989 to meet the requirements of the state law. The Administration is severely out of compliance with the City's Recycling Law. The Administration is under a Court Order to produce a formal Recycling Plan by July of 1998 and progress reports; neither have been produced. The Court Order also requires the City to recycle 4,250 tons per day by July 14, 2001, approximately six months before Fresh Kills closes. To reach this mandate, recycling tonnage will have to almost double. However, the City avoided examining sound alternatives to export, claiming that all waste to be exported was "unrecyclable."

3. Issuing private contracts to handle containerization and disposal for the majority of the City's waste.
Private companies will handle a total of 10,400 tons per day of waste, building one huge containerization facility in Linden and one new facility in Queens. A private company will also process all of the residential Bronx waste at a new or existing facility. A private company would modify the Greenpoint MTS for containerization or build a new facility at a nearby site, possibly in Williamsburg. Five city marine transfer stations -- three Manhattan MTSs, North Shore Queens MTS, and the Hamilton Ave., Brooklyn MTS--will continue to serve merely as pass-throughs for garbage going to the huge BFI/Allied waste processing facility in Linden. This excessive reliance on private companies leaves the City potentially at the economic mercy of these companies in the future, particularly in the face of recent considerable industry consolidation.

4. Developing little city-owned infrastructure for waste handling.
In contrast the City will build and operate only one new containerization facility on Staten Island, and will modify only one city marine transfer station to containerize waste in Southwest Brooklyn. These two will handle a total of 2100 tons per day of waste. The City has not pursued its own landfill capacity. The City had previously rejected all proposals for modifying or retrofitting the existing city-owned marine transfer stations for direct export, on the grounds that it was physically impossible to modify them in this way, although it now plans to do this at the Southwest Brooklyn MTS.

5. Dealing only with municipally collected waste, leaving commercial waste and associated transfer stations out of the planning process, missing a key opportunity to upgrade the substandard commercial system.
Chapter II describes in some detail the historical problems with private transfer stations and commercial waste handling. A study of commercial waste handling and private stations was actually required under two state laws related to Solid Waste Management Planning and State Environmental Quality Review, but has not been completed.

Detailed Discussion of Drawbacks of May 2000 Plan

A fuller discussion and analysis of the drawbacks of the May 2000 Plan is presented below.

1. Excessive reliance on waste export

Pennsylvania and Virginia, which already host landfills receiving a large portion of New York City's commercial waste, are leading the charge to limit the waste shipped to them from out of state. A study by the Congressional Research Service reports that the top three waste importing states are Pennsylvania, almost 7 million tons; Virginia, 3.7 million tons; and Michigan, 1.6 million tons. The top three exporting states are New York, 4.2 million tons; New Jersey, 2.9 million tons; and Illinois at 2.3 million tons. Nationally, imported waste nearly doubled in five years from 14.5 million tons in 1993 to 28.4 million tons in 1998. According to Waste News, industry consolidation contributes to this trend because the top companies tend to send waste only to their own landfills, even if they have to cross state lines to get to them. (Duff, Waste News , Feb. 14, 2000)

The City's plan to export over 11,000 tons of residential waste per day, once Fresh Kills closes, engendered anger in these states not only because of the sheer scale of the proposed amount. Many also had the perception that instead of managing our own waste in an environmentally sound manner, New Yorkers have opted simply to dump it elsewhere. In 1996, Public Advocate Mark Green warned that NYC's failure to recycle would encourage legislation to restrict interstate export of waste. (Green, Trashing Jobs And the Environment,, p. 19)

Communities in upstate New York are also responding to NYC's export plans. A proposal for a Newburgh marine-to-rail transfer station resulted in the ouster of some elected officials who were willing to just review the idea. In Wallkill, NY, a landfill proposal resulted in posters on telephone poles proclaiming the town as Wallkill, not Fresh Kills.

If our ability to export is seriously curtailed, NYC could be forced to keep Fresh Kills open, violating state law. Given our limited available land and existing environmental problems, NYC is not well situated to develop disposal facilities within the City.

Alienating public officials in other states hurts the long-term viability of a plan that relies primarily on export. Concrete actions by New York City officials to reduce the overall waste stream to be exported by pursuit of environmentally sound options would go far to demonstrate that the City is acting responsibly.

2. Failure to invest in and expand more sustainable waste management options.

NYC is missing a vital opportunity to diversify its waste management options and at the same time foster pollution reduction and community revitalization, as well as economic development. We are at a dangerous juncture because the huge annual expenditure necessary to export waste threatens to siphon funds from programs, still in their infancy, which offer the most potential for achieving a rational, sound and sustainable solid waste system. The City would be in a better position to adjust to escalating export and disposal costs if it had a recycling infrastructure and a management system that could expand prevention, recycling and composting programs as necessary.

If money invested in export were invested in recycling, it could generate a host of indirect economic development and job benefits in the City. In simple economic terms, the choice is to invest with no potential for return on the money, or to invest where there is great potential for a multiplier effect of benefits for businesses, jobs and for the City.

The Administration plan has not adequately considered waste reduction and recycling, on the grounds that all waste to be exported was "unrecyclable." However this is clearly not the case.

The 1988 New York State Solid Waste Management Act required municipalities to adopt local ordinances requiring source separation of recyclables by September 1, 1992. "All residents and businesses must separate recyclables at the point of generation . . . the local law . . . must apply to both municipally and privately contracted garbage haulers." (Legislative Commission on Solid Waste Management, 1988, P.7) Solid waste shall be separated into recyclable, reusable or other components for which economic markets for alternate uses exist.

The City Council passed New York City's Recycling Law to meet the requirements of the State law. Its purpose was to "establish the most environmentally sound and economically desirable waste reduction, recycling and reuse programs possible and [to] be consistent with or surpass the reduction, recycling and reuse goals established by New York State."

Most familiar to the public is the Recycling Law's "25% goal" to recycle 4250 tons per day of DOS-collected waste materials by April 1994. As recently as December of 1999, DOS reported recycling 2200 tons per day, just over half of the required tonnage. (The law actually did not contain percentage figures, but tonnage figures, to enable better accounting for recycling.)

The public may be less familiar with how comprehensive the City recycling law is. It calls for detailed analysis and planning. It requires the City to do a waste composition analysis by district, to establish a plan for waste reduction, and to establish a recycling plan with annual updates. The recycling plan would include a five-year strategy for collecting, processing and marketing recyclables and a strategy for procuring recycled goods for the City ("buying recycled"). Under the law, the City was to open ten Recycling Centers, including a "buy-back" center in each borough, by January 1991. The City is supposed to work with different agencies, like the Metropolitan Transit Authority, and Port Authority, and with schools, hospitals and prisons, to foster recycling collection.

If the Administration had made a serious effort to comply with the City Recycling Law's major provisions, it would now have important alternatives to waste export already in place. However, few of the law's requirements have been fully met. A coalition of environmental groups, elected officials, Staten Island residents and others in 1997 won a suit to force NYC to comply. After losing all of its appeals, the Administration was under Court Order to produce a Recycling Plan by July 14, 1998. However, it has submitted neither the Recycling Plan nor progress reports. The Court Order also requires the city to recycle 4,250 tons per day by July 14, 2001, approximately six months before Fresh Kills closes. The Administration plans to recycle only 3003 tons per day in FY 2002, according to the May 2000 Plan. Not diverting that mandated 1247 tons per day to recycling will cost the city more than $37 million in export fees, not to mention the missed revenues from sale of the recyclables to a remanufacturer.

In 1999, Waste Management backed out of a NYC transit contract which required 40% diversion of the waste stream for recycling. The company had dismantled recycling equipment in its Brooklyn facility and therefore no longer found the contract profitable. (Brown, Waste News, June 28, 1999)

Since the removal of this large facility's recycling equipment, the amount of commercial waste recycling is down from 233,300 tons in 1998 to 77,500 tons in 1999. (Draft SWMP, May 2000, Table 2.1-1.) There are in fact, significant problems related to commercial recycling in the City. Those generating waste are forced by the Department of Sanitation to source separate. However, often waste haulers, against whom DOS rarely takes enforcement action, then proceed to mix it all back together again. Private carters are supposed to provide information about differential rates for recycling to their customers and assist them to reduce their hauling bill. However, the reality is that tenants in commercial buildings are generally provided with no information on recycling options. The Department of Sanitation claims enforcement against haulers is the responsibility of the Trade Waste Commission and the Commission has not as yet accepted the responsibility. The Department of Sanitation in the May 2000 Plan suggests amending the recycling rules for the commercial sector, but does not appear to be recommending applying the rules to private carters.

Under its current plan NYC will not realize important environmental and economic benefits of waste reduction and recycling. The White House Task Force on Recycling analyzed these benefits for the nation in 1996, and they are as follows:

· Saved energy: 408 trillion BTUs of energy were saved by recycling.
· Conservation of raw materials: The dollar value of materials recovered from solid waste was $3.6 billion.
· Reduced greenhouse gas emissions: Recycling prevented the release of 33 million tons of carbon into the air, roughly the equivalent of 25 million cars.
· Reduced need for polluting incinerators and landfills: Recycling and composting diverted 130 million cubic yards of material, equivalent to 64 more landfills, each large enough to serve the combined populations of Dallas and Detroit. Composting organic wastes instead of landfilling avoids the creation of methane, a gas with more global warming potential than carbon dioxide.
· Employment in remanufacturing amounts to approximately 1 million jobs and over $100 billion in revenues. (White House Task Force on Recycling, 1998).
 

NYC is also missing an opportunity to work with Congress on legislative efforts to reduce waste. One key area of potential legislation addresses the amount of waste generated in the production of consumer goods. Once these goods are purchased, the waste is shifted onto the public sector for collection, processing and disposal. Other nations, like Germany, have put the burden on the producers, making them responsible for cutting down on unnecessary waste in packaging, and for taking back products like refrigerators and computers for recycling (Fishbein, p. 43-55).
 

We also are missing an opportunity to work for national legislation to remove subsidies that favor virgin, extractive materials over recycled materials in the production process. A sustainable waste system cannot exist with economic supports that provide disincentives to more sustainable options while rewarding destructive ones.
 

3. Excessive reliance on a few very large waste management companies to handle containerization for the majority of the City's waste.
 

The Administration's May 2000 Plan proposes to build containerization facilities to accommodate export of approximately 12,500 TPD of residential waste, even though the City is currently not generating that much residential waste. The City projects a total of 11, 441 TPD for FY 2000 and by FY 2002, 10,841 TPD.
 

Under the May 2000 plan, private companies will handle or process under contract a total of 10,400 tons per day of waste out of 12,500, building one huge barge unloading and containerization facility in Linden, and one new containerization facility in Queens. Private companies will also process all the garbage from the Bronx, and from a portion of Brooklyn in Greenpoint/Williamsburg. Five City Marine Transfer Stations -- three Manhattan MTSs, North Shore Queens MTS, and the Hamilton Ave., Brooklyn MTS -- will continue to serve merely as pass-throughs for garbage going to the BFI/Allied facility in Linden, much as the MTSs were previously used to go to Fresh Kills.
 

This excessive reliance on private companies leaves the City economically vulnerable, particularly in the face of recent waste industry consolidation.
 

Recently, the waste industry has undergone major consolidation through mergers and acquisitions. A few companies have come to dominate the industry. In 1998 USA Waste acquired Waste Management. The new company, now known as Waste Management Inc., is the largest waste company in the U.S. Allied Waste Industries then acquired Browning Ferris Industries (BFI) to become the second largest waste company. Republic, the third largest in the nation, recently left the NYC market because of limited nearby landfill capacity; Republic is selling its transfer stations to Allied. The top four industry players account for 85% of total industry revenues according to a Congressional Research Service study. (Waste News , Feb. 14, 2000) New York City is now primarily negotiating with the top two industry giants-Waste Management Inc. and BFI/Allied Waste.
 

So far, the Administration appears unconcerned about the emerging duopoly in waste handling in NYC. In 1997 the Administration began privatizing its municipal waste system by awarding interim three-year contracts for waste disposal from the Bronx. In 1998 it awarded additional three-year contracts for parts of Brooklyn and Queens. Waste Management Inc. has received the majority of the contracts for interim export for a grand total of $214.56 million over three years. The latest round, for Staten Island and Manhattan, awarded in 2000 gave Waste Management a grand total of $286.56 million, or 67.44% of the $424. 9 million total awarded in interim three-year contracts. BFI and Republic also received some contracts. The Sanitation Department recently had to request an additional $28 million from the City Council, as it had estimated the cost of export at $55 per ton, when it is now costing $62 per ton. (Lipton, NY Times, 2/21/00). The City is now suggesting a fourth and fifth round of interim contracts for the remainder of Brooklyn and Queens waste.
 

If New York is not worried about consolidation, other states are. Consolidation is being closely examined in Ohio after the closure of a recycling facility affected a district's ability to meet recycling goals. According to Todd Boyer of the Ohio Attorney Generals Office, "Any time there is a consolidation of competitors, there's always the potential to result in an adverse way for consumers." (Gynn, Waste News, Mar. 27, 2000). In addition, Connecticut towns have asked the Attorney General to investigate whether Waste Management is monopolizing the local trash hauling industry. According to the New York Times the company admitted that it raised prices too high after the merger (New York Times, 8/31/99).
 

According to reporter Juan Gonzalez, "Waste Management is a darling of the politicians and Wall Street financiers even though the firm has a rap sheet nearly as long as the mobsters it replaced. Since 1980 the company has faced repeated federal and local criminal indictments including price fixing and bribery. Convictions of Waste Management subsidiaries and executives have occurred in Georgia, Florida, Ohio, Illinois, and California. During the same period, the firm has paid more than $52 million in fines and settlements of lawsuits arising from its environmental practices." (Gonzalez, p. 10).
 

The problems associated with consolidation are not limited to Waste Management. Attorney Generals in several states along with the Department of Justice are examining the potential for monopolies in certain areas as a result of the BFI/Allied Waste Industries Inc. deal last year. (Gynn, Waste News, Mar. 27, 2000). In 1990 Browning Ferris Industries, Inc. and Waste Management settled a civil class action suit brought by their customers that alleged a nationwide price fixing conspiracy for ten years. The customers received a total of $50 million in penalties. (Lipsett, Multinational Monitor, Jan./Feb. 1991)
 

Since 1996, the Trade Waste Commission has worked to remove the influence of organized crime in the waste carting industry in NYC. As a result, the transfer stations operated by organized crime were sold. Waste Management and Browning Ferris (now owned by Allied) bought up most of these facilities, despite the fact that they were improperly permitted and incapable in most cases of being brought up to state and city standards. Waste companies with billions of dollars in assets are thus now operating some of the worst waste facilities in the nation. Since few standards exist and enforcement has been weak, these companies have been able to earn even higher profits. They have not offered communities any compensatory benefits, such as upgraded facilities and environmental controls, living wage jobs and a safe workplace, or less polluting trucks.
 

The Trade Waste Commission has regulated hauling fees for private carters but not tipping fees at transfer stations. After Waste Management raised their fees the Commission negotiated with them to limit their fees over the next three years, going from $56 to $60 per ton in the third year. The few remaining independent local haulers could be forced out of business if tipping fees increase and the fee they are allowed to charge for hauling is limited by the City. (Johnson,Waste News Oct. 12, 1998,p.3)
 

For the City to give contracts to Waste Management Inc. also raises questions about possible conflict of interest for the public. Dennis Vacco, former NYS Attorney General, joined the Waste Management team in February of 1999 shortly after reviewing the merger with USA Waste for potential antitrust issues and finding none. Although no laws were broken, this raised many concerns. He is now President of Waste Management's New York State subsidiaries. According to the NY Times, he said he would guide Waste Management through various regulations as it competes for a contract to export NYC residential waste. (NY Times, 7/29/00, B7).
 

The ultimate economic impact of making New York City dependent on an industry with little competition could be serious. Landfill fees have increased 300% on average nationally from 1986-1996, and they are expected to increase 7% per year in the future, more than double the rate of inflation. This estimate was made before the waste industry consolidation. (NRDC, Feb. 1997, p. 45).
 

As a result of the export contracts, the overall DOS budget is projected to increase to $941 million in Fiscal Year(FY) 2004 from $578 million in FY 1997. The NYS Financial Control Board believes that NYC is underestimating waste disposal costs by $63 million in FY 2001 rising to $126 million in FY 2004. (NYS Financial Control Board, Preparing for 2001, Mar. 21, 2000). This would mean that the DOS budget would top $1 billion for an increase in the DOS budget of 84.6 % since FY1997.

Department of Sanitation spending is projected to grow at an average annual rate of 7% per year from 2000-2004, second only to city debt service in growth. (Independent Budget Office (IBO), NYC, p.18) In the face of estimated severe future budget deficits, the need for sounder fiscal choices is urgent.
 

4. Creation of little City-owned infrastructure for waste handling.
 

In contrast to the private sector, the City will own and operate only two containerization facilities, one new on Staten Island and one modified City Marine Transfer Station in Southwest Brooklyn, handling a total of 2100 tons per day of waste. Waste from both of these facilities will ultimately be disposed of in private landfills.
 

The City is proposing no other infrastructure investments either in reuse, recycling or composting or in modifying other City MTS facilities. This limited City-owned infrastructure will leave the city vulnerable to price gouging by the private sector because the City will have few options.
 

5. Dealing only with municipally collected waste, leaving commercial waste and transfer stations associated with it out of the planning process, misses a key opportunity to upgrade the substandard commercial system. As a result, communities overburdened by private facilities have continuing cause for concern.
 

As discussed in Chapter II, there are significant problems with the private sector commercial waste handling system. Two state laws actually mandate an examination of private sector waste handling. As a result the City should have included a detailed study of private transfer stations and the waste they handle in the May 2000 Draft Solid Waste Management Plan and Environmental Impact Statement. The first applicable law is the NY State Solid Waste Management Act, which requires solid waste planning for the entire waste stream, including commercial waste. The City first prepared a Solid Waste Plan in 1992. However, it was unable to complete a study of commercial waste handling. Consultants to the Department of Sanitation noted that due to the poor results of the survey they attempted, a "separate study will be necessary to accurately quantify the private sector's collection and transfer activities." (SWMP, 1992, Appendix 4.2) Such a study has not been completed to date.
 

The NY State Environmental Quality Review Act has similar requirements in that any proposed action requires a study of existing conditions into which a new project or plan will be placed. The City, however, arbitrarily refused to study private sector commercial waste handling as part of the May 2000 Solid Waste Plan Modification and Environmental Impact Statement claiming that they were only modifying how they handle DOS-collected residential and institutional waste. Yet, the May plan makes it quite clear that existing and proposed private commercial facilities will receive City garbage for waste export.
 

In the absence of a desperately needed comprehensive study and plan to upgrade private waste handling, the City alludes to some sort of partial remedy when the May 2000 Plan states, "The proposed procurements may provide an economic incentive to the owners of existing truck based commercial waste transfer facilities to convert them into facilities that will include the ability to export waste by barge or rail."(Draft SWMP Modification, May 2000). Unfortunately the plan gives us few clues regarding the meaning of this statement. The City appears to be suggesting that commercial facilities that receive contracts for residential waste will be more financially able to upgrade to barge or rail transport out of the City. However, even if this occurs for the facilities which receive residential waste contracts, there will be no change in the other transfer stations. Nor will there be fundamental change in the physical plant, equipment or environmental conditions under which all of the facilities operate.
 

Continuing concern for inequities related to garbage handling exist in Greenpoint/Williamsburg, Brooklyn and in the South Bronx. The May 2000 plan could result in worsening of the situation in these two communities.
 

In Greenpoint/Williamsburg, the City suggests that it may contract with a private company to retrofit the Municipal Marine Transfer Station so it can containerize waste, or to build a new facility somewhere nearby. If the City MTS is put in private hands, the company can use it to process commercial as well as residential waste. The potential exists to create another huge commercial waste processing facility in an already overburdened community.
 

In the South Bronx, the May 2000 proposal may lend support to development of another highly problematic proposed facility. American Marine Rail, LLC has proposed a barge-to-rail facility in the South Bronx, to containerize approximately 5200 tons per day of commercial waste. It would be built on 5.5 acres of property which would include tracks for the railcars. The NYS Department of Environmental Conservation in an astounding decision determined that an environmental impact statement was not needed for this facility because there would be no potential for negative impacts.
 

There are several serious problems with this proposal. We will highlight three of them. First the size of the site is very small for such a large operation. Second, rail service has been extremely unreliable east of the Hudson. This situation has continued unabated despite the fact that NYC is choking on truck traffic which would be relieved by improved rail freight. Despite existing rail service problems, AMR claims that it will be able to ship out 5200 tons of waste per day. It was only through an administrative hearing that people learned that AMR would be allowed to hold waste for 48 hours and CSX, the rail company, for an additional indeterminate amount of time thereafter at its adjacent rail yards. This could lead to odor problems.
 

Perhaps more importantly there is no apparent need for this facility. It would supposedly receive commercial waste by barge, but no commercial waste is picked up by barge in New York. All of the Bronx's existing residential waste is currently being processed and exported by truck through a Republic facility. Waste Management operates another large commercial facility nearby, at the Harlem River Yards.
 

The May 2000 Draft SWMP suggests giving a long term export contract for disposal of Bronx waste to an existing or proposed facility, which would leave the possibility open for AMR to receive a City contract. The City has also stated in administrative hearings on the facility that it would allow commercial waste to flow through its Marine Transfer Stations and this is how AMR might receive commercial waste by barge. However, this would involve a substantial change in the operation of City facilities and would necessitate a modification of the Solid Waste Management Plan. Since the City refused to study commercial waste handling in this draft modification of the Plan, a new modification to the Plan would need to be prepared.

 

Next Section -->
 


[ Health ] [ Finance ] [ Food ] [ Product ] [ Telecom ] [ Other ]
[ About CU ] [ News ] [ Resources ] [ Tips ] [ Search ]
[ Home ]


Please contact us at: http://www.consumersunion.org/contact.htm
All information ©2000 Consumers Union