On Jan. 27, President Biden signed a series of executive orders focused on mitigating climate change, building infrastructure and promoting environmental justice.
As part of the orders, the president directed federal agencies to “develop programs, policies and activities to address the disproportionate health, environmental, economic and climate impacts on disadvantaged communities.”
To enforce these directives, a new White House Environmental Justice Interagency Council and a White House Environmental Justice Advisory Council have been formed to prioritize environmental justice and ensure a “whole-of-government approach” to addressing environmental injustices and promoting better monitoring and enforcement in these areas. New or bolstered offices at the Environmental Protection Agency, Department of Justice, and the Department of Health and Human Services have been created to aid in these efforts.
The orders also established the Justice40 Initiative, through which government institutions have the goal of delivering 40 percent of benefits of federal investments to disadvantaged communities. President Biden also announced the development of a Climate and Environmental Justice Screening Tool that will be used to identify disadvantaged communities and “inform equitable decision-making across the federal government.”
At the heart of these policies is the desire to take the burden of housing facilities like landfills, factories, power plants, waste incineration and wastewater treatment plants away from “fenceline communities” populated by minorities.
“It’s hard,” President Biden said, discussing the disproportionate number of these facilities that are built and run in areas of the country where brown, black, Native American and poor whites reside. “That’s why we’re going to work to make sure that they receive 40 percent of the benefits of key federal investments in clean energy, clean water and wastewater infrastructure.”
Operators know the difficulties of siting, permitting and running waste facilities all too well. And while regulation and red tape already pose significant challenges for those overseeing these sites, it is safe to say the industry will be keeping a close eye on how these new provisions might further exacerbate compliance issues. NIMBY (not in my back yard) is a sentiment waste industry stakeholders are used to dealing with in the communities in which they operate. What will the fallout be if government-mandated intervention brings about a new acronym: NITBY (not in their back yard)?
Of course, it will take time before the specifics and ramifications of President Biden’s orders are understood; however, it would seem an obvious result will be that the responsibility of being a good neighbor will be thrust onto the shoulders of operators over the next four-plus years—even more than it already is.
Can the industry overcome additional compliance and regulatory hurdles by more thoughtful design, greater community engagement, an embrace of innovation and technology, and more proactive emissions testing?
However these orders are interpreted and enforced, it is a good bet that the companies that are able to lay out their plans for equitable and safe waste operations (and show a track record of doing so) are the ones that are going to be the beneficiaries of new government policy.
Interstate of mind
Features - Cover Story
Michael DiBella’s longstanding relationships have helped to build Interstate Waste into the largest privately held solid waste hauler in the New York City, northern New Jersey market.
You don’t become the largest privately held, vertically integrated provider of solid waste services in the New York City and northern New Jersey markets by accident.
For Michael DiBella, the founding of Interstate Waste in 1999 was three generations in the making.
DiBella’s grandfather, Frank, formed Frank DiBella Sanitation Inc. in 1947 to serve northern New Jersey and New York state. Michael DiBella’s father, Philip, and uncle, Steve, took over the one-truck operation in the 1960s and developed it into a 100-truck company doing $50 million a year in business when it was sold to Waste Management in 1998.
By the time the family business was sold, Michael had already leveraged years of experience growing up in the industry to establish his own footprint in the space.
Michael started driving trucks for DiBella Sanitation after graduating high school in 1985. After working as a driver for several years, he advanced in various positions from sales to operations. At the time the business was sold, DiBella was working as the company’s general manager.
Along the way, Michael ventured out to Albany, New York, to start his own commercial and industrial waste business, Environmental Waste Industries Inc., in 1991. Michael kept his roles at both companies until both entities were sold to Waste Management in 1998.
After both businesses were sold, Michael founded Interstate Waste and started operating in Rockland County, New York. At the time, he says it was approximately a $2 to $3 million business.
According to DiBella, the decision to form Interstate was born out of the realization that there might be an opening for a private waste company with familiarity with the community in the region.
“By the time my dad sold the business in ‘98 to Waste Management, new entrants, mainly publicly traded waste companies were busy buying up the industry in New Jersey in particular,” he says. “And I felt there was going to be an opportunity to start back up in the business and be competitive with the public companies in our marketplace. They took a big chunk of the private sector out and now it was dominated by public companies, and I thought I would have a good opportunity to build a business there.”
He says that the company’s boots on the ground, organic approach to building business and servicing customers helped propel Interstate’s rapid growth in those early years.
“We just organically grew from going out, chasing the business, working on sales, going and seeing customers— residential commercial and industrial businesses—we were going after it all,” he says.
Within two years, DiBella’s aggressive approach helped develop the company into a $25 million player in the region.
With its footprint established, DiBella wanted to begin pursuing smaller acquisitions as a way to accelerate Interstate’s growth. However, without the capital to make the moves he wanted to make, DiBella made the strategic decision to partner with Summer Street Capital and Ironwood Capital.
Interstate’s first private equity deal involved buying a small divestiture from Waste Management in its marketplace after the company was forced to sell off assets from an Allied Waste deal. The result was approximately $9 million in collection business and two transfer stations coming into the Interstate fold.
“We had the opportunity to take on Waste Management’s assets, and we were successful in integrating the operations,” he says. “It really catapulted Interstate Waste and made the company a real player in the market. Up to that point, we were a collection-only business, which is extremely challenging, especially in our marketplace where there are no landfills. Having transfer station capacity is essential in the northern New Jersey market. After acquiring the Waste Management transfer assets, we went on a real run, acquiring mom-and-pop-type businesses that were really very similar in operations to the business my father built.”
DiBella says armed with the capital backing of Summer Street and other private equity investors, his familiarity and established relationships with the people working in the industry helped grease the skids in terms of pursuing acquisitions of local companies.
“Being around my father’s business growing up, I got to know the industry players pretty well through those day-to-day business dealings. So, when walking in the door of a competitor to pitch the idea of buying their family business, it wasn’t coming from a stranger. And I think that contributed to our success of acquiring a bunch of companies,” he says.
After completing a string of deals and building Interstate into a $150 million company, DiBella sold the company to Highstar Waste Holdings in 2006, which later became part of Advanced Disposal.
A new chapter
DiBella says instead of continuing to work for Interstate after selling to Highstar, he purchased a controlling interest in Action Carting’s New York City operations in partnership with Ironwood in 2006, and shortly thereafter, acquired the New York City collection assets from Waste Management, who was looking to exit collection operations in NYC.
“Action was a $25 million a year business at that point, and we bought about $40 million of collection business from Waste Management,” DiBella explains. “So, it really grew the company quickly. We ended up doing the same thing we did in New Jersey prior, which is work to acquire mom-and-pop businesses throughout the city.”
In 2010, in collaboration with Summer Street, Action Carting and DiBella purchased the New York City transfer and collection assets of Republic Services, further building the Action footprint in the five boroughs. As DiBella was busy growing Action Carting, he got word that Highstar Waste Holdings may be interested in divesting Interstate Waste after struggling to gain footing in the region. In 2013, he bought back the company he started a decade and a half earlier.
"Being around my father’s business growing up, I got to know the industry players pretty well through those day-to-day business dealings. So, when walking in the door of a competitor to pitch the idea of buying their family business, it wasn’t coming from a stranger.” –Michael DiBella, CEO, Interstate Waste Services
“Summer Street Capital and its Managing Partner Brian D’Amico have been supporting the growth of Interstate Waste since their original investment in 2003,” DiBella says. “They financed our growth through acquisition strategy [including with] Action Carting and the subsequent acquisitions of the New York City collection assets of Waste Management, the New York City transfer and collection assets of Republic Services, the buy-back of Interstate Waste in 2013 and many other tuck-in acquisitions over the last 17 years. Summer Street’s industry knowledge and financial support aided our growth … and they have been great partners for many years now.”
DiBella says after doing “a lot of rehab” to strengthen the company over the last several years, the opportunity to vertically integrate its services became a reality when it purchased Apex Environmental in 2020. The company partnered with Littlejohn & Co. to finance the acquisition. This deal yielded two rail-served transfer stations, one rail transloading yard and a rail-served landfill in Amsterdam, Ohio. Subsequently, DiBella integrated Action Environmental and Apex Environmental under the Interstate Waste Services brand.
“The Apex deal is just a game-changer for us because we are a sizeable collector in the five boroughs and northern New Jersey, but up until the Apex deal, we didn’t control our own destiny in terms of disposal,” he says. “We all viewed it as a key element to continuing to grow the business, and it was a necessity, quite frankly. We worked hard at getting the deal done, and now we’re in the middle of integrating services, so it’s been an exciting run over the last 20 years.”
A closer look
Today, Interstate Waste has approximately 1,200 employees. The company boasts around 375 collection trucks and counts 20 transfer stations (including two with direct rail service), one rail transload facility, three material recycling facilities (MRFs) and one rail-served landfill as assets.
The company’s collection customers weigh heavily towards commercial accounts (approximately 90 percent of its business), with the balance comprising residential and specialty industrial customers.
As Interstate’s history suggests, the company’s composition doesn’t remain stagnant for long.
In January, Interstate acquired a 57-year-old family business, Bernardsville, New Jersey-based Rubinetti Disposal, which will help establish the company in the central New Jersey collection market, DiBella says.
Despite some of the obstacles of operating in the competitive New York City/New Jersey markets, DiBella says Interstate has embraced these difficulties as it plans for future development.
“New York City is a unique market for collection companies,” he says. “Most of the activity takes place between 9 p.m. and 6 a.m. and consists primarily of loose bags on the street served by rear load collection trucks. Only the larger facilities are served through traditional containers such as roll-off compactors. Operating in a densely populated urban city at night with constant and heavy traffic presents unique challenges for service and safety. It’s a constant focus for our team. We enjoy that challenge, and serving one of the greatest cities in the world is a real source of pride.
“Northern and central New Jersey are highly populated and growing markets where Interstate Waste is excited to continue to expand its market share—both commercial and residential. By having strong collection coverage, a network of transfer stations and MRFs, and the ability to move waste by rail, we feel Interstate is uniquely positioned to serve the growing New Jersey market.”
While DiBella says the vision for the business is to focus on providing a full range of customer service solutions for commercial, residential and industrial customers, the company’s high concentration of commercial accounts makes New York City’s pending Commercial Waste Zone guidelines a central concern for the company.
The New York City Department of Sanitation (DSNY) originally released its Commercial Waste Zone plan in November 2018, citing safety, environmental and nuisance concerns as the impetus for reducing the number of waste service providers in the city. Under the plan, DSNY will divide the city into 20 zones, each served by only a few carters selected through a competitive process.
"Interstate Waste is engaging with all stakeholders. ... Given the impact of COVID on New York City, in particular, the timing of implementing such a disruptive change for commercial establishments is concerning.” –Michael DiBella, CEO, Interstate Waste Services
According to DiBella, though the plan is noble in its aim, the current plans for implementation could put undue stress on haulers and their customers, especially during the COVID pandemic and its aftermath.
“Interstate Waste is engaging with all stakeholders in an attempt to have a positive impact on the continued development of the rules. Given the impact of COVID on New York City, in particular, the timing of implementing such a disruptive change for commercial establishments is concerning. It may take 12 to 24 months for the region to recover, and adding new regulation and substantive change during this crisis and pending recovery is not ideal. We would certainly support an extended timeline for rulemaking, RFP and implementation. We remain hopeful that Commercial Waste Zones will ultimately have a positive impact on the collection industry in New York City, but much work needs to be done on improving the rules, the implementation timeline and overall transition plan.”
DiBella says that ensuring greener waste collection in the region through reduced truck traffic is something that is a core focus of Interstate. Thanks to the company’s new rail access, DiBella says they’ll be able to significantly cut emissions for collection and disposal.
“Similar to the objectives of the Commercial Waste Zones initiative, moving waste by rail significantly reduces truck traffic and vehicle miles traveled. For example, a single train can handle the freight of approximately 280 long-haul trucks. We move a train each day of the week, saving approximately 2,000 truck movements, or 390,000 truck miles in a single week,” he says. “With our rail infrastructure, Interstate is now able to provide curb collection to final disposal in an efficient, environmentally friendly manner. We have made significant investments in our rail infrastructure and we are excited for the impact it will have in the coming years.”
In addition to being a conduit for integrating its operations and limiting its environmental output, DiBella says the company’s rail infrastructure is anticipated to play a major role as the company looks to grow throughout the region via M&A.
“Without question, we plan to continue to grow the Interstate footprint throughout the Northeast and leverage our rail infrastructure,” he says. “We have an active pipeline of target businesses with many providing a great strategic and cultural fit, especially in our core markets of New York and New Jersey.”
While the company looks to grow beyond its New York City and northern New Jersey roots, it’s the relationships and lessons learned through these partnerships that will guide the company as it builds on its past successes.
“Many managers and employees at our company have 20 to 30 years of experience working together in this business. Very few companies have that level of continuity from management to driver to mechanic,” DiBella says. “Our employees have grown up together servicing customers in their own back yard. Maintaining that continuity long term, as we grow, is one of our key objectives.”
The author is the editor of Waste Today and can be reached at aredling@gie.net.
Gaeta Recycling touts Sennebogen material handler’s ease of use, durability
Gaeta Recycling Co. Inc. in Paterson, New Jersey, is a fifth-generation waste and recycling business whose roots date back to 1935. To serve its client base of roughly 30 municipalities and 6,000 commercial customers, the company boasts 180 employees and a fleet of 120 trucks.
The company also operates its own material recovery facility and transfer station for the municipal waste, bulky waste, dry industrial waste, vegetative waste and construction & demolition materials it processes. And while the company is licensed to process 400 tons per day out of its existing transfer station, Gaeta has been routinely handling more than 700 tons per day over the last several months thanks to COVID-related exemptions.
With the high volume of incoming material the company has to contend with, the right equipment is essential for facilitating smooth and seamless operations, which is something Gaeta Recycling President Michael Portannese learned the hard way.
A new solution
Gaeta has long relied on excavators for its material handling operations at its transfer station, but after buying a new unit three years ago only to be let down with nonstop maintenance issues, the company decided to go in another direction.
Mr. Portannese says that a friend at a nearby scrap recycling and auto wrecking company recommended Gaeta give Sennebogen material handlers a try due to their positive experiences operating them at their facility. After testing some of Sennebogen’s competitors’ equipment, Mr. Portannese says the Sennebogen machine stood out right away when they finally got a chance to operate one.
“[The other equipment] couldn’t pick up the loads that we were hoping for, the grapple size was just wrong, it wasn’t working out,” Mr. Portannese says. “I was then introduced to a salesman at Komatsu Northeast who offered to bring the Sennebogen 818 material handler for us to test out, and we loved it.”
Wanting added hydraulic power and weight, Gaeta made the decision to invest in the larger Sennebogen 821 wheeled material handler. The company also decided to upgrade to a longer boom and a three-over-two-grapple attachment as opposed to a rotating clamshell grapple.
After taking possession on Oct. 22, 2019, Mr. Portannese says the company wasted no time in putting the Sennebogen into action, deploying it to the facility’s operating floor the very next day.
New and improved
After dealing with repetitive service issues with the company’s older excavators, often stemming from software diagnostic issues, Mr. Portannese says that the scaled back design of the Sennebogen gives the company all the functionality it needs without the superfluous gadgets and technology it doesn’t.
“What really sold us on the machine is the fact that there’s only one computer that runs the injectors on the engine, besides that, the entire machine is not computerized. Sennebogen has simplified the machine and they’ve made it very, very user friendly,” Mr. Portannese says. “They’ve made it for the basic user. Our model has a Cummins engine, and [when we need to service the software], we can plug our laptop into the computer, which makes it so easy. You don’t have to worry about a tech coming out and having to work on it. We can do it all in house.”
Beyond better uptime, the switch to the wheeled Sennebogen material handler has allowed for safer, more efficient operations thanks to its design and more responsive joystick control that facilitates easier sorting and handling.
“We were used to the tracked excavators and having to drive on the piles of waste to move our incoming volumes. Now with the wheeled Sennebogen, we can simply work next to the piles because that material handler has a longer reach and it also makes it easier to pick up a bigger scoop, a heavier payload, which in return, allows us to load a trailer that much faster, a lot safer and we don’t have to get on top of a pile,” Mr. Portannese says.
Mr. Portannese also says that since the material handler isn’t built for digging like excavators are, operators don’t have to worry about trying to manage the downward force of the boom. This allows operators to quickly collect material and load it into the on-site trailers. The Sennebogen 821 also has an elevated driver’s cab, which makes it easier for drivers to see what they’re doing and cut down on the possibility of accidents. Plus, Sennebogen upfitted the unit with a reversing fan, allowing the radiator to be cleaned periodically and the machine to stay cool.
Looking to grow
Mr. Portannese says that since taking possession, his Sennebogen 821 has been in operation from 6 a.m. to 10 p.m. six days a week with little exception outside of routine maintenance to keep up with demand.
Despite this workload, Gaeta Recycling is currently looking to expand and renovate its transfer station to allow the company to process even more material. According to Mr. Portannese, the company is awaiting approval to take in an additional 500 tons per day.
With the potential for greater volumes in the near future, Mr. Portannese says that should the company need help in ramping up its material handling capacity, it knows where to turn.
“Upon our expansion, if we need another material handler, it’ll definitely be a Sennebogen,” he says.
Clean Earth surpasses aerosol can recycling milestone
Clean Earth, Hatboro, Pennsylvania, announced Nov. 12 that it expects its Clean Earth Aerosol Recycling System to process 13 million aerosol cans by the end of 2020. According to the company, this would be an 85 percent increase from the company’s 2015 aerosol can recycling volumes. Specializing in aerosol recycling for pressurized steel cans, aluminum cans, plastics and glass, Clean Earth says it has already surpassed its record recycling volumes from 2017.
The company says this increase in volumes is a result of Clean Earth’s history of aerosol recycling Final Rule compliance, health and safety initiatives and the company’s specialized recycling system technology. Clean Earth commits to ensuring that 100 percent of each can goes through the recycling process, helping divert material from landfill and reduce customers’ carbon footprint.
Clean Earth boasts 19 transfer, storage and disposal facilities (TSDFs) for processing of aerosol cans. Clean Earth’s largest processing site is a hazardous waste facility in Morgantown, West Virginia, that processes aerosol cans received from across the country. Clean Earth’s network is projected to expand with additional recycling processing units by 2022.
“It’s exciting to have bypassed one of our core company goals this year for the Aerosol Recycling System, which was the processing of 11.4 million aerosol cans,” Clean Earth Vice President of Operations Hector Sanchez says. “Our mission for Clean Earth’s aerosol services directly align with our goals for sustainability—to ultimately go green as a company and for zero components to end up in a landfill. We’re committed to providing a 100 percent sustainable solution for aerosol waste for our customers and remaining a cutting-edge vendor with market-leading technology features.”
EPA aims to boost recycling rate to 50 percent by 2030
During the U.S. Environmental Protection Agency’s (EPA’s) America Recycles Summit Nov. 17, EPA Administrator Andrew Wheeler discussed the draft of the National Recycling Strategy and unveiled a national recycling goal that aims to increase the U.S. recycling rate to 50 percent by 2030.
“This ambitious national recycling goal will help guide investments and commitments from across the recycling system,” Wheeler said.
EPA Office of Land and Emergency Management Assistant Administrator Peter Wright added that the U.S. recycling rate “has lingered in the low 30 percent range for the last 20 years.”
“The economic and environmental benefits from recycling are clear, and we’ve made a lot of progress, but much more needs to be done to obtain the benefits of increasing the national recycling rate to 50 percent by 2030,” Wright said. “We appreciate every organization that has submitted comments over the last three years and every organization that has issued a public commitment to continue to help us reach the national goal.”
According to a news release summarizing this year’s America Recycles Summit, the event’s participants also discussed the National Recycling Strategy draft. EPA says that strategy identifies targeted objectives to create a stronger, more resilient and cost-effective U.S. recycling system.
At the Summit, Wheeler encouraged the public to comment on how the EPA can measure progress and actions needed to achieve the three objectives in the draft National Recycling Strategy, which include:
reduce contamination in recycling;
make recycling processing systems more efficient; and
strengthen economic markets for recycled materials.
EPA says the draft National Recycling Strategy remains open for public comment through Dec. 4. When finalized, EPA adds, this strategy will serve as a road map to achieve its new national recycling goal.
“We commend the EPA administrator for his vision of a new goal to achieve a 50 percent residential recycling rate by 2030,” says ISRI President Robin Wiener. “ISRI is grateful to Administrator Wheeler and the entire EPA team for their personal dedication to enhancing recycling as well as their vision to create a National Recycling Strategy."
The overall injury rate for the waste and recycling industry remained steady at 4.2. The injury rate at material recovery facilities (MRFs) fell sharply from 4.9 to 3.6. The injury rate for solid waste collection fell slightly from 5.9 to 5.8. The rate for landfills ticked up to 4.9 from 3.9. Approximately 65 percent of landfills in the country are owned and operated by municipalities, with just 35 percent being owned and operated by private companies.
“The recent BLS data tell us we have more work to do to reduce injuries and illness in the waste and recycling industry. Though we are pleased with the significant drop at MRFs, it is important that we work just as hard to reduce injuries and illness across the industry,” National Waste & Recycling Association (NWRA) President and CEO Darrell Smith says. “We cannot be satisfied with this report."
Adam Redling
