Future of MRFs: New contract terms, more tech, ongoing stress
December 11, 2018
December 11, 2018
Cole Rosengren of Waste Dive Magazine attended NERC's Fall 2018 Conference In Rocky Hill CT. Here is his account of the many subjects covered in depth. The original article can be found here.
It's well-documented by now how challenging operations have been at U.S. MRFs recently, especially in the wake of China's scrap import restrictions. Last week, at the Northeast Recycling Council's fall conference in Rocky Hill, Connecticut, multiple presentations even went so far as to include images of MRFs getting struck by lightning bolts or being targeted by aircraft bombs. Amid this siege mentality, however, there were still signs of hope for how the industry can move forward.
Under Pressure
Few, if any, areas of the country have been immune to tight commodity markets. The largest publicly-traded players in U.S. recycling have discussed it ad nauseam during earnings calls, interviews and conference appearances since last summer. They touched on many of the usual points during an opening panel, with a few variations on running messages.
- Susan Robinson, Waste Management's director of federal public affairs, made her signature presentation on the potential emissions benefits of recycling certain materials, noting the current scenario of an inelastic supply chain puts MRFs under "extreme stress." She described as unrealistic the concept some have of MRFs being a "black box" that can handle whatever comes their way. “We’re asking them to basically work magic with something that’s a very complex stream coming in the door."
- Frank Chimera, senior manager of municipal services for Republic Services, delivered his company's own message about why cost expectations need to be adjusted. “We believe strongly that you can’t have sustainability without economic viability," said Chimera. The fact that Republic has invested $1.5 million in new technology at its Seattle MRF was held up as a sign that similar upgrades could be possible elsewhere when contract terms are favorable.
- Bob Cappadona, vice president of recycling for Casella Waste Systems, described the scrutiny on bale quality as unlike anything he's seen in a 30-plus year career. Cappadona said "we’ve done it all" when it comes to improving quality, motivated in part by the specter of highly expensive container rejection fees. However, he questioned how feasible proposed uniform audit standards would be at large facilities such as the company's Boston MRF, which produces around 1,000 bales per day.
Evolutions and Changes
As all of these recycling cost pressures play out, there have already been numerous changes in the way that industry and local government interact. This has manifested itself in a variety of examples around the country and will continue to do so for months — if not years — to come. Presentations from multiple consultants in the field covered a few key trends currently underway and made the case for no longer thinking about recycling as a purely profit-driven enterprise:
- Michael Timpane, vice president of process optimization and recovery at RRS, said he was aware of roughly 100 contract conflicts around the U.S. These include multiple instances of force majeure being invoked and ongoing disputes over who should bear various costs. He recommended rethinking single-stream as a "convenience service" and decoupling it from a traditional commodity value mindset.
- Mitch Kessler of Kessler Consulting agreed that contract structures need to move away from local governments or companies counting on commodity revenue. “It was never meant to be budgeted; it was never meant to be a revenue generator," he said. Kessler also said that blaming long-running trends — such as the evolving ton, changing oil prices and, above all, Chinese trade policy — lacked perspective. "This has been going for a while. We chose to ignore it to some extent."
- The need to invest significantly in new MRF tech was also a running theme, with multiple speakers saying the industry could do more. Nat Egosi, president of RRT Design & Construction, said counting on revenue alone to cover capital costs wouldn't be sufficient. “Huge investments need to be made, and I mean huge investments," he said. According to Egosi, ideal technology for the "MRF of Tomorrow" will include new OCC screens, auger screens, anti-wrapping screens and more optical sorters.
2019 and Beyond
Now that the industry is more than a year into this new post-China reality, there is a sense of tentative stability and occasionally even cautious optimism about what comes next. Many local governments will continue to struggle with rising costs, but speakers at the NERC event saw reason for hope in the Northeast. They also touched on a few potential changes that have yet to materialize, but are either being discussed or could come up in the years ahead:
- Multiple speakers urged against suspending or canceling recycling programs. Gregory Anderson, chief of staff at New York's Department of Sanitation, said participation rates suffered for years after the city temporarily cut certain items. “The solution today isn't to to take drastic steps to cut entire products out of our recycling program because of current day situations, unless we’re prepared to never have those products back in our program in the future."
- Despite a few examples around the country, no one expects to see dual-stream make a big comeback. Convenience and capital costs were listed as key reasons. “You’re going to get a better quality stream out of dual stream, there’s no doubt about it, but the cost to collect is exorbitant," said Chimera, adding that in many areas “those trucks are gone."
- Eileen Berenyi of Governmental Advisory Associates predicted the industry might see more public-private partnerships, increasing automation and possibly even new mixed waste concepts. Projects by Fiberight in Maine and RePower in Alabama were cited as recent examples. “I really think in the future we’re going to see more attempt to capture the energy component of the waste," she said.
- Chaz Miller, formerly of NWRA, said he was heartened by the amount of news about recent paper mill investments but expects markets to remain tight for at least the next 24-36 months. “There’s clearly light at the end of the tunnel, but you don’t build these facilities overnight."
NERC welcomes Guest Blog submissions. To inquire about submitting articles contact Megan Schulz-Fontes. Disclaimer: Guest blogs represent the opinion of the writers and may not reflect the policy or position of the Northeast Recycling Council, Inc.
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The Northeast Recycling Council (NERC) is pleased to announce the release of the 2026 Northeast States Policy Guide , a new regional resource that provides a comprehensive comparison of sustainable materials management policies across eleven Northeast states. “The guide serves as an excellent primer for state and industry stakeholders looking to learn about the various policy frameworks enacted across the northeast and how they have been applied,” said NERC President, Michael Nork, Environmental Analyst, New Hampshire Department of Environmental Services. Developed through a standardized survey of state government agencies, the guide serves as a practical reference for policymakers, municipal leaders, industry professionals, and researchers seeking to navigate and compare policies related to waste reduction, reuse, recycling, and circular economy initiatives. The publication includes both regional policy analyses and detailed state profiles covering product bans, product stewardship (including Extended Producer Responsibility), minimum post-consumer recycled content requirements, mandatory recycling laws, and disposal bans. “This resource provides high level insight into materials of interest that the Northeast has focused on managing for decades. For a regulatory agency, specific resources that provide clear examples of replicable or considerable policy and management strategies are useful tools--having them in one place is even more valuable,” said Shannon McDonald, Waste Diversion Division, Director at Maryland Department of the Environment. Key Findings The guide aggregates state-level data across Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont to highlight core regional policy trends: Regional Policy Prevalence: Regulatory frameworks are widely established across the region, with 10 of 11 states using product stewardship programs, 10 enforcing disposal bans, and 9 maintaining mandatory recycling laws. Broadest State Coverage: Maine and Vermont regulate the widest variety of items in the region, 20 and 21, respectively, distinct material categories through state policies, followed closely by New Jersey at 19 categories. Top Regulated Materials: Electronics are the most widely addressed material (regulated by 10 states), followed by mercury thermostats (9 states), tires (8 states), followed by paint, rechargeable batteries, beverage containers, fluorescent lighting, lead-acid batteries, mercury-added products and yard waste (7 states). Funding & Mechanism Structures: Among the region’s product stewardship programs, 47% are producer-funded, 15% rely on consumer point-of-sale eco-fees, 5% combine producer and consumer fees, and 33% utilize alternative measures such as labeling, recyclability standards, or disclosure requirements. Regulatory Gaps & Emerging Opportunities: Significant policy gaps exist in rapidly growing clean-energy waste streams. Currently, only 1 state addresses electric vehicle (EV) batteries, and zero states have statewide policy programs for solar panels. Unfilled coverage areas present distinct opportunities for cross-state collaboration, policy alignment, and regional innovation. By presenting data in a standardized format for each state, the guide enables stakeholders to easily compare regional policy approaches, identify coverage gaps, and adapt proven regulatory models. "By standardizing how we measure product stewardship, PCR mandates, and disposal bans across all eleven states, this guide allows state leaders to quickly identify where their policies align with neighbors and where transferrable models already exist," said Mariane Medeiros, Director of Strategic Engagement and Sustainability Programs at NERC. "With 10 of 11 states enforcing stewardship programs and disposal bans, the region has proven its ability to manage complex products. The next frontier is applying that same collaborative momentum to rapidly growing clean-energy waste streams like solar panels and EV batteries." Alyssa Eiklor, Board Member and Environmental Analyst at Vermont Department of Environmental Conservation, cited: “The NERC Policy Guide provides a valuable comparison of the similarities and differences in how northeastern states use policies as a tool for waste management. It also serves as a convenient short cut for linking directly to the policies.” The full 2026 Northeast States Policy Guide is available for download at: https://www.nerc.org/state-policy-guide About NERC The Northeast Recycling Council, Inc. (NERC) is a multi-state nonprofit organization committed to minimizing waste, conserving natural resources, and advancing a sustainable economy through collaboration and action. NERC's eleven member states and advisory members work together to address sustainable materials management challenges and promote solutions across the Northeast region.
Connecticut Tire Stewardship (CTS) is the nonprofit organization responsible for implementing Connecticut's Tire Extended Producer Responsibility (EPR) program. Working with municipal transfer stations, tire retailers, auto shops, car dealerships, and other collection partners, CTS helps ensure discarded tires are responsibly collected, recycled, and put to beneficial new uses. Approximately 3.5 million tires reach the end of their useful life in Connecticut each year. Through its statewide Roll Recycle Renew program, CTS provides residents with free tire recycling opportunities while giving municipalities a practical solution for managing scrap tires. By making responsible disposal more accessible, the program helps reduce illegal dumping, protect waterways and natural resources, and keep tires out of landfills. "Connecticut Tire Stewardship is pleased to join NERC and become part of a network of organizations working to advance sustainable materials management across the Northeast. We look forward to sharing ideas, learning from our peers, and expanding responsible tire recycling opportunities throughout Connecticut," said Jesse Schofield, Executive Director of Connecticut Tire Stewardship. NERC is excited to welcome Connecticut Tire Stewardship and support its mission as a Tire Stewardship Organization implementing Extended Producer Responsibility for tires and working toward a more sustainable circular economy. For more information on Connecticut Tire Stewardship visit.
Please join the Environmental Business Council of New England (EBC) in welcoming Northeast Recycling Council (NERC) as a new member of the organization. “NERC is a non-profit organization that conducts research, hands-on projects, training, and outreach on issues associated with source reduction, recycling, composting, environmentally preferable purchasing, and decreasing the toxicity of the solid waste stream. Eleven states united for environmentally sustainable materials management. We provide webinars, conferences, networking, blogs, and regional collaboration to drive the recycling economy. Special programs include: Government Recycling Demand Champions, State Electronics Challenge, Electronics Recycling Coordination Clearinghouse, and the Toxics in Packaging Clearinghouse. “ EBC members include businesses and nonprofits specializing in environmental and energy technology, services, and products. They range from one-person entrepreneurial ventures and nonprofit organizations to established corporations with thousands of employees. Explore the EBC Member Directory for a complete listing of member organizations. To learn more about Northeast Recycling Council (NERC) including their discipline and services provided, please follow the link . Read on EBCNE .
