NYC releases study on benefits of commercial waste collection zones

According to a study released by the New York City Department of Sanitation (DSNY) and the city’s Business Integrity Commission (BIC), establishing collection zones for private waste collection firms would reduce truck traffic and greenhouse gas emissions associated with waste collection dramatically The proposal, however, has been greeted with skepticism and initial opposition from a trade association representing the majority of the waste collection firms who would be affected.

The study, first proposed in One New York: The Plan for a Strong and Just City, found that establishing commercial waste collection zones could reduce truck traffic associated with commercial waste collection by 49 to 68 percent and reduce greenhouse gas emissions by 42 to 64 percent.

Following the completion of the study, over the next two years, DSNY and BIC say they will work stakeholders, including businesses, the private carting industry and environmental justice advocates, to develop an implementation plan for commercial waste reform in New York City. The plan will lay out a framework for establishing commercial waste collection zones that will improve customer service standards, achieve the city’s environmental goals, set clear standards for worker safety and allow for new investments in recycling infrastructure and cleaner trucks, the partners say.

In response to the study, the National Waste & Recycling Association (NWRA), Washington, released a statement saying that while it appreciated the city’s efforts toward a forward-thinking approach to handling waste and recyclables, the association is concerned about the impact it would have on the waste and recycling industry in New York City.

“The member companies of our New York City Chapter are dedicated to – and deliver every day – a vital service based on providing high quality, efficient service in an open and competitive market that benefits city businesses and industry,” says NWRA. “No organization matches the track record of our members in helping communities nationwide in implementing and delivering on environmental management goals and objectives.”

New York City Sanitation Commisioner Kathryn Garcia is emphasizing air quality. “The magnitude of the improvements in air quality and reduction in truck traffic, coupled with the projected stable pricing for businesses, the study found, are compelling reasons for implementation of commercial waste collection zones,” she comments. “This study is the first step toward developing a more efficient and effective commercial waste collection system in New York City for businesses, employees and the public at large.

“We are excited to work with City Council and industry partners to develop a comprehensive plan to achieve these environmental benefits while also improving safety standards for workers and achieving our zero waste goals,” she adds.

“The trade waste industry has made great strides in the last 20 years since the Business Integrity Commission was formed," Garcia continues. "However, the results of the study released today are compelling. It is clear that we should move ahead in our examination of how a zone collection model for commercial waste removal in the city could help reduce truck traffic and vehicle emissions, achieve greater recycling rates, especially for organic materials and create greater uniformity in the trade waste industry as a whole.”

The study was conducted by a team of consultants that included BuroHappold, Sam Schwarz Engineering, Appleseed and Paul Carpenter Associates. The study reveals that the current open-market commercial waste system generates excess truck traffic, is highly concentrated among a few carters, has little transparency in pricing and prevents private carting companies from achieving efficiencies that allow investments in recycling initiatives or cleaner trucks.

The study finds that today commercial waste trucks travel more than 23 million miles per year to collect refuse and recyclables from more than 108,000 businesses. Meanwhile, a commercial waste collection zone system would divide the city into several geographic zones and assign private carters to serve businesses within each zone through a competitive bidding process.

According to one source, the initial plan is to create around 20 commercial zones in the five boroughs of the city.

Other findings of the report include:

• Nearly 90 private carters serve about 108,000 customers in the city.

• The market is highly concentrated, with the five largest carters serving 46 percent of all customers and collecting 55 percent of all revenue, and the 20 largest carters serve 81 percent of customers and collecting 84 percent of all revenue.

• Private carters are geographically dispersed, and 38 percent of carters with fewer than 1,000 customers operate in three or more boroughs.

• Half of the carters reported an operating loss in 2013.

• There is little transparency on how rates are established, but commercial customers pay on average about 30 percent less than the rate cap set by BIC.

• Large customers pay on average 38 percent less than small businesses.

• With the exception of Staten Island, there is little connection between geography and rates paid by customers.

The study includes case studies from three other cities that have moved to implement commercial waste zones: Seattle, San Jose and Los Angeles.

The NWRA is not as convinced by the precedents, saying, “Our experience nationwide shows that proposals such as these unfairly limit competition, and limited competition can lead to negative consequences. That is why the city of Chicago rejected such proposals in order to maintain an open, competitive marketplace that best serves the community, its residents and its businesses," the statement concludes. 

In a similar vein, NWRA’s New York City Chapter also released a statement touching on the impact of creating waste and recycling zones in the city. In its statement, the chapter says, “Shifting to a district-based system of commercial waste services would constitute a major change with a multitude of impacts – both known and unknown; the next phase of discussions must give due consideration to alternate paths to achieve mutual goals, as well as carefully assess the trade-offs between various options.

Kendall Christiansen, manager of NWRA’s New York City Chapter, remarks, “New York City is well-served by a robust and competitive marketplace that already is substantially consolidated and efficient, with customer choice the keystone of that system. We welcome the opportunity to review the city’s initial analysis, and work with the city and interested stakeholders to consider options for further improving the performance of the city’s waste and recycling sector.”

Christiansen also says that while the chapter has not yet had ample time to fully research and comment on the study, he says the plan will not in any way significantly increase recycling levels in the city.

Finally, Christiansen says that while the city hopes to bring together different stakeholders together to implement the program, it could take much longer than two years to complete the project, ample time to develop strategies to ensure the involvement of the private waste management side in the city.