WMI Monopoly "Kills"New York

Fresh Kills (Creek) Landfill Closing

In 1996 New York Mayor Rudy Giuliani announced the closing of the largest landfill in the world, Fresh Kills on Staten Island. Waste Management Inc. (WMI) stands as a monopoly to land many contracts from the city through corrupting long-term twenty year contracts. The city has been phasing out the use of Fresh Kills and in 1998 provided the city with a permanent implementation plan.

This plan places the main burden for future barge facilities on Brooklyn and New Jersey. Brooklyn residents are resisting with their plan to upgrade certain present marine transport facilities instead of a huge new facility which will impact Brooklyn detrimentally. The plan relieves Queens, Manhattan and the Bronx of present transfer stations. The Mayor announced that all boroughs will share responsibility but Brooklyn residents strongly resist unfair treatment. http://pratt.edu/~jmccrory/bags/

The Fresh Kills plan appears to be following its schedule. By 1998 the 13,000 tons per day waste was to be reduced to 8500, by 2000 to 4,000 tons and closing in 2001. Waste Management (WMI) obtained the first phase three year contract to dispose 1,750 tons per day at $51.72 per ton, a contract valued at more than $80 million.

Having hired the former state attorney general to head their NYC operation and also former Deputy Mayor as a consultant, WMI has gained an inside track on all of the future contracts which will eventually be for twenty years. By controlling most of the landfills in Virginia and Pennsylvania WMI is able to negotiate contracts without serious competition. They appear to hold a monopolistic position that breaks antitrust laws. Through the use of host community fees (legalized bribery) WMI has gained Virginia and Pennsylvania local jurisdiction approval for new or expanded landfills. In both states, legislation has been slowly responding to the growing protest by local citizens that their communities are becoming massive dumps for New York City.

The entire Fresh Kills crisis came about because of the election of Republican Rudy Giuliani as Mayor. The New York Times reported (8/30/99) that Staten Island borough President Guy Molinari provided massive support for Giuliani's candidacy and collected his "I owe You" by gaining a city decision to close Staten Island's landfill. The Mayor also got Republican Governor George Pataki's support, probably with an agreement to not move the waste up the Hudson.

It appears that Virginia and Pennsylvania will be the permanent receivers of the NYC waste unless state and Federal legislation stops Waste Management's importing operations. Many Eastern and Midwestern states fear this importing of NYC waste and are seeking Federal legislation. But the Republican Commerce Committee chairman has pledged to block any legislation. The major issue is one of whether waste is really commerce and thus covered by the interstate commerce clause of the constitution. The Supreme Court has upheld that question. Whether states and localities have any rights to regulate private waste firm Waste Management is the issue.

The Brooklyn protests have evolved into lawsuits led by the Borough President. One case is now on appeal. Ultimately, the permanent arrangements with Waste Management and with new barge facilities will not be completed and built until after the Presidential and Senate election. Political control of the President, Congress and the New City Mayor will be key in the final implementation of the New York plan. Environmentalists can hope that this crisis will increase the pressure to reduce the amount of massive waste produced by manufacturers and citizens in order to reach a no waste society in the 21st century, a prediction envisioned by the Pennsylvania Governor's 21st Century Environment Commission.

dated: November 1, 1999

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