New York Reshapes Commercial Waste Collection: Five Key Takeaways

New York City recently announced 65 commercial waste collection contracts, marking a significant milestone in the reform of its waste management system. However, the real challenge lies in completing the construction of the new system by 2026.

The complexity of shifting from an open market that allowed licensed haulers to operate anywhere across the five boroughs to a zoned model where designated haulers can only operate in specific areas is self-evident. Many unresolved questions remain regarding the specific implementation path of the system and how to achieve the expected environmental and safety benefits.

The New York City Department of Sanitation (DSNY) declined interview requests and stated it cannot provide more details at this time. The New York City Council's Sanitation Committee is expected to discuss the issue at future budget and oversight hearings, but specific dates have not yet been set.

Against this backdrop, here are five key areas worth watching in the early stages of the process.

Initial reactions

Unlike other waste-related announcements, neither DSNY nor Mayor Eric Adams held a press conference on the matter in recent years. Aside from a supportive statement issued by the New York League of Conservation Voters after the contracts were announced, environmental and business groups have largely remained silent.

Labor and environmental organizations within the Transform Don't Trash Coalition, which actively pushed for the 2019 legislation that serves as the legal basis for the system, have also largely remained quiet since the contracts were announced. Teamsters Local 813, a coalition member, had viewed this as an opportunity to expand its influence. Laborers Local 108, which is not a coalition member, had previously expressed concerns about the current system in New York. Neither union responded to requests for comment.

Brooklyn Borough President Antonio Reynoso, a lead sponsor of the 2019 legislation, issued a statement welcoming the project's progress but did not directly comment on the specific list of winning bidders.

Some observers attribute this to DSNY not yet publishing the complete list of subcontractors, as well as the ripple effects of a February 6 Crain's New York article about outstanding violations at one winning company.

New York City regulates waste collection operations more strictly than many other markets, and violation tickets issued by the Business Integrity Commission (BIC) are not uncommon. But some observers say the large number of alleged violations at Cogent Waste Solutions is particularly notable. The article also mentioned that other companies, including two of the largest winning bidders in the system, have received violation notices in the past.

"We are reviewing the materials to evaluate each allegation," Cogent spokesperson David Vermillion said via email. "Cogent takes this matter very seriously. Serving New Yorkers is of utmost importance to us, and we are actively communicating with BIC to discuss the details of their allegations. We are confident we can resolve this matter promptly."

Newly appointed Sanitation Committee Chair, Council Member Shaun Abreu, said on X that he would discuss the matter at oversight hearings. "Who manages our waste is a critical issue of safety and consumer protection, and the public deserves to know how these decisions are made," he wrote on the day the article was published. Abreu's office did not respond to requests for further comment or hearing dates.

Joshua Goodman, DSNY Deputy Commissioner for Public Affairs, said proposals from all vendors holding valid BIC licenses were eligible for review.

"Every winning hauler holds a BIC license, and if their BIC license is revoked, they immediately lose eligibility to operate in the commercial waste zone program. Additionally, DSNY has the authority to require independent monitors at any hauler whenever it deems necessary," he said via email.

Fleet plans

The latest calculations based on winning bidders' plans confirm again that the program will reduce commercial waste collection vehicle miles traveled by 50%. With numerous companies' trucks currently traversing Midtown Manhattan every night, the reduction in vehicle miles traveled in that area is expected to be even greater, reaching 70%.

These calculations are not expected to account for the possibility of haulers using DSNY marine or rail transfer stations, although that is a long-discussed idea. Former Sanitation Committee Chair, Council Member Sandy Nurse, recently reintroduced legislation calling on the agency to make that possibility a reality.

Advocates have also previously been optimistic about the potential to move away from diesel vehicles. In the template contract, DSNY included provisions requiring fleets to have at least 50% "zero-emission vehicles" by 2030 and 100% by 2040. When these vehicles will actually hit the road remains to be seen. DSNY itself has ordered at least seven electric vehicles.

Brian D'Amico, Executive Chairman of Interstate Waste Services, said its subsidiary Action Environmental has placed "significant new orders" for various equipment, although an electric truck it ordered long ago has still not been delivered.

Cogent Vice President Nino Tristani said via email that the company is "actively working on implementing zero-emission vehicles" and that "timelines may vary depending on various factors such as vehicle availability, infrastructure readiness, and technological developments." Mr. T Carting said it cannot fully transition until charging infrastructure is further developed and trucks can meet standard shift operational demands.

Andy Moss, Northeast Region Government Affairs Manager at Waste Connections, wrote that the company "will pilot zero-emission vehicles before zone implementation and evaluate their performance." The company has previously piloted hybrid electric trucks in at least one market.

Safety standards

Safety concerns were another major point of debate that led to the creation of the system. ProPublica's high-profile investigation into the death of a worker at Sanitation Salvage Company highlighted the issue, which also led to the closure of that major company. Concerns about overall worker safety protections and public safety were also at issue.

Although the local industry has implemented updated safety requirements in recent years, the implementation of zone contracts takes this to a new level. The system imposes multiple requirements on vehicle standards, safety technology, and worker training.

"Many winning bidders will be required to provide more comprehensive safety training than ever before, including requiring every driver and helper to receive at least 40 hours of safety training," said David Biderman, President of Biderman Consulting, citing a recent email DSNY sent to haulers.

According to DSNY's template contract, this training must be completed within 180 days after winning bidders finalize agreements with the city. At least 16 of the 40 hours must be classroom training. Other training requirements also apply to new employees. Biderman said he is working with "multiple winning companies" on this matter.

Josh Haraf, Vice President of New York City Operations at Action, said the company has been strengthening its efforts in this area and is fully prepared.

"We are ahead of the curve on every requirement the city has put forward, whether it's wide-angle mirrors, backup cameras, or side guards... these are already standard for us." Action's trucks are equipped with five cameras, as well as an onboard AI system that corrects behaviors such as speeding, using a phone, or not wearing a seatbelt.

Haraf said Action now has five dedicated safety professionals in New York City and has strengthened new employee training, which has brought a "significantly different" shift in company culture, reducing its recordable injury rate by 50% in 2023.

Recycling and organics plans

When Los Angeles announced its commercial waste zone system contracts in 2016, the city said haulers' plans would bring $200 million in recycling and organics processing infrastructure investment. As of last year, the city said progress on diversion rates was still ongoing, but $175 million had been invested.

New York has not yet published similar investment statistics for its own system.

Many of the largest winning bidders in New York's system told Waste Dive they have ongoing plans to upgrade or expand recycling infrastructure. DSNY said it has no more information to share but noted that the system's pricing structure is a factor.

"Haulers must charge customers less for recyclable and compostable collection than for trash collection. This economic incentive for businesses to properly divert waste should both drive diversion rates and create a market for recycling infrastructure in the commercial waste sector," Goodman wrote.

Others say it is too early to tell.

"I want to see investment in recycling infrastructure and increased recycling rates for New York City businesses, but it's too early to judge whether commercial waste zone awards will achieve this," Biderman said.

Advocacy group New York Lawyers for the Public Interest, a member of the Transform Don't Trash coalition, told the Queens Eagle that it hopes to see greater transparency in haulers' waste reduction and diversion plans.

At least one element of the plan—allowing micro-haulers to participate in organics collection—may not scale as originally envisioned. BIC created a special license for companies in this category, but Common Ground Compost, the first company to obtain that license, decided not to participate in the zone system. Only one other company, Peat, has also obtained a micro-hauler license.

"There simply isn't enough information," said Candice Cotler, Chief Operating Officer of Common Ground, citing logistical issues with the program and the difficulty of predicting whether the company can provide service across entire zones when its tricycles can only carry 600 pounds of material at a time.

Common Ground also runs a consulting business and will participate in the system as a subcontractor, providing education and curbside waste audit services. Cotler said they have already received inquiries from businesses.

"I think CWZ presents a truly unique opportunity," she said, because many customers may have to switch haulers. Cotler encouraged large properties to begin implementing zero-waste plans and to hire sustainability managers if they haven't already.

Implementation mechanics

To date, DSNY has only published an implementation timeline for one zone—central Queens: customer transition will begin there in September and be completed by January of the following year. The specific timing for the remaining 19 zones is unknown, with only "by 2026" known. This means most of the work will come into focus in 2025, when Adams and other city officials will face re-election.

As the timeline becomes clearer, observers expect businesses may begin consolidating or swapping operations, adjusting strategies, or even selling their businesses.

Waste Connections CEO Ron Mittelstaedt said on Wednesday's earnings call that the system will replace a market with "decades of uncertain competitive dynamics," creating "growth opportunities in both organic growth and M&A within market areas."

Any acquisition would still require BIC approval as usual, and DSNY approval if it affects competition within a zone. But companies also have other options to optimize their positioning. Current BIC regulations allow companies to request reassignment of customer contracts or subcontracting work with at least 30 days' notice, which is already common practice in the current market.

"The smart play for us is to see who won central Queens and swap with them for business in our zones. That benefits haulers, the city, and customers," said Domenic Monopoli, CEO of Filco Carting, adding that the company plans to "aggressively focus on our three zones in Manhattan" to build route density before implementation begins.

D'Amico said Action will seek similar opportunities and is positioning itself now while awaiting more information.

"We are planning as if we must be ready to grow organically and quickly take on more customers at any time," he said.

Meanwhile, elected officials are also focused on ensuring the rollout is effective.

Reynoso mentioned in his statement that given the scale of the system, there may be "minor bumps in the road" along the way, and said DSNY should be prepared to adapt and adjust "so that we can achieve the best version of this program." Nurse said she will focus on how the city communicates this "massive overhaul" to the hundreds of thousands of affected businesses, especially at a time when certain budgets are being impacted.

"Given the cuts to DSNY's outreach and communications budget, this will require an all-hands-on-deck effort to spread the message," Nurse said. "I hope that during implementation, it truly reflects the vision originally envisioned—a safer, healthier, and more efficient commercial waste collection system across the five boroughs."