DSNY announces contracts for commercial waste zones

The New York Department of Sanitation (DSNY) has announced the next steps in its overhaul of the city’s commercial waste industry mandated under Local Law 199.

DSNY has established new no-cost contracts with carters authorized to operate in a designated “commercial waste zone” within the five boroughs. Three carters were selected in each of the 20 zones to provide small businesses with service choices and competitive pricing, DSNY says, and five carters were given citywide contracts to pick up containerized waste from compactors and businesses that have loading docks.

DSNY has listed the awardees by zone and says the first zone, Queens Central, will come online in the fall. Queens Central includes the Jackson Heights, Corona and Elmhurst neighborhoods and contracts with Basin Haulage Inc., MRT BWR Corp. and Waste Connections of New York Inc. DSNY says Queens Central was selected as the pilot district because of its “wide variety of business types.” This pilot zone will inform the rollout timeline and methodology of subsequent zones.

RELATED: NYC delays commercial waste zone implementation | NYC Department of Sanitation takes additional steps to implement commercial waste zones

Other awardees include Action Carting Environmental Services Inc., Royal Waste Services Inc., Cogent Waste Solutions LLC, Filco Carting Corp. and Recycling Track Systems NYC LLC. A full list of private carting awardees by zone can be viewed here.

One of the driving forces behind this overhaul was the creation of stronger legal protections for waste workers, DSNY says. As the program rolls out, DSNY rules will take effect requiring carters to install safety equipment, including backup cameras, auxiliary exterior lighting and cross-over mirrors as well as an integrated system for monitoring and recording GPS data.

Each awardee and subcontractor will be required to provide annual certifications of worker safety training to DSNY, including training on collision avoidance, vehicle and equipment inspections, container management, safe collection stops and staffing plans.

The current list of awardees and subcontractors contains a mix of small, medium and large carters, which DSNY says addresses concerns from advocates that this reform would lead to large companies dominating the industry. Seventy percent of the awardees or subcontractors currently hold less than 3 percent market share each, and 14 of the 30 hold less than 1 percent market share each.

Under these agreements, carters must charge their customers less for the collection of recyclables and compostables than they do for the collection of refuse.

A DSNY analysis found that when fully implemented, this program will achieve the legislative goal of reducing commercial carter vehicle miles traveled by 50 percent. Carters also submitted plans to use zero-emission vehicles to provide their services.

To avoid substantial price increases for businesses, one of the three carters in 18 of the 20 zones will operate at a maximum rate below the current Business Integrity Commission (BIC) rate cap for commercial carters. All awardees will operate at a maximum price above the current BIC rate cap in two zones: 5 percent in Bronx West and 2 percent in Upper Manhattan.

A proposed rule published by DSNY lists Sept. 3 as the implementation start date for Queens Central and Jan. 2, 2025, as the final implementation date.