Weekly News Bulletin: Jul. 28-Aug. 3, 2009

 

California to Use GHG Rule to Mandate Waste Recycling

California air and waste officials have begun rulemaking efforts to mandate commercial waste recycling as a means to reduce greenhouse gas (GHG) emissions. California is believed to be the first state in the country to do so, though individual municipalities have undertaken their own ordinances in recent years. Their success could serve as a national model as other states and the federal government look for novel approaches to improving efficiencies and reducing emissions. Officials with the California Air Resources Board (CARB), which under state law AB 32 is tasked with developing regulations and market mechanisms to ultimately reduce the state's greenhouse gas emissions by 25 percent by 2020, believe that recycling could potentially reduce 5.5 million metric tons of carbon dioxide (CO2)-equivalent emissions annually. CARB is working closely with the California Integrated Waste Management Board (CIWMB) to develop the regulation...Read More »

 

 

Electronics Industry Challenges New York City E-Waste Law

The electronics industry has filed suit charging that New York City's e-waste rules are illegal, unconstitutional and would "impose crushing costs and excessive burdens" on electronics manufacturers. The city's e-waste law, which passed in February 2008 and is scheduled to take effect July 31, requires manufacturers to take back unwanted electronics. The suit filed last week asks the U.S. District Court in Manhattan to block the rules from taking effect and seeks a "critical" preliminary injunction to bar the city from enforcing the plan.

Under the law, each manufacturer must by 2012 collect annually e-waste whose total weight is 25 percent of that of the new electronics it sells. This increases to 65 percent by 2018. The complaint charges that "these targets are completely arbitrary in that they mistakenly assume a manufacturer has the ability and legal authority to require equipment owners to relinquish ownership of their equipment, yet the city can fine a company $50,000 for each percentage point they fall below the target."...Read More »

 

 

Covanta Reports Lower Second Quarter Earnings

Covanta Holding Corp. reported lower second quarter earnings mostly as a result of the economy and the subsequent decline in prices for scrap metal. However, the results beat most analysts' expectations as the company was able to cut costs allowing it to reaffirm its 2009 earnings outlook. Net income for the second quarter was $35.3 million, or $0.21 per share, down from $44.5 million or $0.27 per share a year ago. Total revenue dropped 11% to $375.8 million. Covanta managed to reduce total operating expenses for the quarter by 9% to $314.5 million. The company still expects earnings for full year to be in the range of 65 cents to 80 cents a share...Read More »

 

 

Waste Services Reports 2Q Earnings Hurt by Foreign Exchange Rates

Waste Services Inc posted a 12% drop in its second quarter earnings, hurt by foreign exchange rates, and reaffirmed its adjusted earnings guidance for 2009. Positive revenue growth in pricing was offset by declining revenue from fuel surcharges and lower volumes of waste received. Net income for the quarter fell to $3.4 million, or $0.07 per share, from $3.9 million, or $0.09 per share, a year ago. Revenue dropped 16% to $107.5 million. Half of this drop is the result of unfavorable foreign currency translation that accounted for $9.3 million, or a 7%, reduction in revenue. The company reaffirmed its 2009 adjusted earnings outlook of $0.38 to $0.40 a share...Read More »

 

 

Work Begins on $35 Million Expansion of DOE Landfill in Oak Ridge, TN

Officials with the Department of Energy (DOE) announced that work had begun on a $35 million expansion of its nuclear landfill in Oak Ridge, TN. The year-long project is but one of dozens of projects funded with Oak Ridge's stimulus allotment of $755 million from the American Recovery and Reinvestment Act. Bechtel Jacobs is lead contractor overseeing construction of a 465,000 cubic yard expansion of the Environmental Management Waste Management Facility (EMWMF) which opened in 2002 and is permitted to receive low-level radioactive, hazardous, and mixed waste disposal facility and serves as the on-site landfill for cleanup waste from DOE's Oak Ridge Reservation. The expansion, known as Cell 5, will increase the total capacity of the facility to about 1.7 million cubic yards, equivalent to 113,000 standard dump truck loads...Read More »

 

 

Orange County CA Reaches Agreement with City to Expand Landfill

The Orange County, CA Board of Supervisors struck an agreement with the City of Brea to expand its county-operated Olinda Alpha Landfill under a deal that could be worth $30 million over the next 12 years. It would extend the life of the 5,000 ton per day landfill which would otherwise have to close in 2013 until 2021 or until the landfill reaches a vertical height of 1,415 feet above sea level. Under the terms of the agreement, the county will pay Brea $10.5 million in three equal installments for its continued use of the landfill, which is one of only three active municipal waste landfills in the county which is home to 3 million people...Read More »

 

 

Casella Waste Amends Annual Report Having Refinanced Debt

Casella Waste Systems said that its recent success in refinancing its debt eased any worries by its independent accounting firm about the company's ability to continue as a "going concern." Consequently, they have removed the going concern opinion from the company's Annual Report filed with the U.S. Securities & Exchange Commission (SEC). According to CEO John W. Casella, "With the refinancing completed, our next significant debt maturity is now in December 2012, eliminating concerns regarding our ability to meet ongoing capital needs. We now have a capital structure in place that allows us to execute our intermediate strategy to reduce debt leverage and increase shareholder returns."...Read More »

 

 

Veolia ES Solid Waste Names New CEO

Veolia ES Solid Waste, Inc. appointed Jim Long to become the new president and CEO of the company. Long replaces former CEO Richard Burke, who was recently promoted to president and CEO of Veolia Environmental Services North America Corp. following former CEO Michel Gourvennec's recent retirement. Long was president and CEO of ATC Transportation, which was sold to Veolia Transportation North America in 2005. He also served in various finance and operational leadership roles during his 13 years with Waste Management in Europe and the U.S. Most recently he was a partner with Pebble Creek Partners, an Arlington Heights, IL consulting firm...Read More »

 

 

American Ecology Says 2Q Revenue and Earnings Decline on Lower Volume

American Ecology Corp., a provider of hazardous and industrial waste management services, posted a decline in second quarter revenue and earnings resulting from a 30% decline in waste volumes from a year ago. Revenue for the period decreased to $36.38 million from $44.52 million, reflecting a decline in both treatment and disposal revenue and transportation related business. Net income declined to $3.52 million or $0.19 per share from $6.11 million or $0.33 per share in the previous year. Steve Romano, chief executive of American Ecology, said, "Weak economic conditions and more competitive pricing adversely impacted our business through the second quarter." Disposal tonnage fell to 228 thousand tons from 325 thousand tons a year ago.

The Company reaffirmed its 2009 earnings guidance range of $0.85 to $1.00 per share. Management believes achieving the upper end of the range will be difficult without accelerated government spending and increased private sector clean up activity in the second half...Read More »

 

 

Veolia ES Opens New Landfill Gas to Energy Plant in Indiana

Veolia ES Solid Waste recently inaugurated its latest landfill gas to energy (LFGTE) project at its Blackfoot landfill in Winslow, IN. Vectren corp. will take ownership of the 3.2 MW renewable energy project, which was developed by Veolia and Energy Systems Group (ESG). The site is expected to produce gas for the next 20 to 25 years, equivalent to the removal of emissions from more than 22,000 cars per year...Read More »

 

 

Veolia Expands Production of High BTU Gas at its Greentree Landfill

Veolia ES Solid Waste recently boosted production of refined high Btu gas at its Greentree Landfill in Kersey, PA. Beacon Energy which installed the system in early 2007, is upgrading it with $5.5 million in additional landfill gas processing equipment that will boost output by enough to heat 14,000 additional homes. "Our goal has always been to go above and beyond in building a safe environment and sustainable future," said Don Henrichs, Area Manager, Veolia ES Solid Waste...Read More »

 

 

Clean Harbors to Announce Second Quarter Earnings on August 3

Clean Harbors, Inc. plans to discuss second quarter financial results during a conference call on Monday, August 3 at 9:00 a.m. (Eastern). Management will also discuss the firm's business outlook and growth strategy. The environmental and hazardous waste management services company has more than 100 locations in 36 states, six Canadian provinces, Mexico and Puerto Rico...Read More »

 

 

Industrial Services of America Expects Second Quarter Earnings Drop

Louisville-based scrap metal and recycling company Industrial Services of America Inc. said it expects to report lower year-over-year earnings for its second quarter, which ended June 30. "Based on actual results and projected trends," it expects earnings per share in the range of $0.24 to $0.26. This is down from last year's second quarter when the company reported record net income of $1.7 million, or $0.46 per share, on revenue of $34.5 million. Commodity prices have fallen sharply during that same time. However, company president and COO, was upbeat. "This has been a great quarter for ISA. We completed our shredder installation in June, expanded our banking facility to take advantage of growth opportunities at our Alloys division and continued to develop our corporate capabilities."...Read More »

 

 

In Memoriam: WRN Reporter Joe Truini Dies at 37

The extended family that is the waste and recycling industry mourns the loss of Waste & Recycling News reporter Joe Truini, who died at age 37 of a heart attack. He was an insightful and thoughtful journalist of the industry over the last ten years, having joined Waste News back in 1999. He was a graduate of the University of Akron, a native of Mingo Junction, OH, an avid marathoner, baseball fan and family man...Read More »

 

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