Dive Brief:
- Macquarie Asset Management has been trying to sell DTG Recycle for months, according to multiple sources. The Washington-based C&D recycler has faced regulatory and financial hurdles since Macquarie purchased it in late 2022. Macquarie declined to comment on whether a sale process was underway.
- DTG CEO Jordan Reber recently departed after about a year and a half in the role. Seth Kaulfuss, DTG’s COO, is now interim CEO. This change comes amid an estimated 100 layoffs, including frontline and back office roles in different locations, which is in part due to reduced C&D volumes in the winter.
- Meanwhile, the company is awaiting the finalization of a settlement with the state’s Utilities and Transportation Commission, which may allow DTG to avoid any fines for allegedly transporting waste for disposal without the proper certificate in 2023.
Dive Insight:
DTG became a major C&D player by buying up much of the Washington market. It’s considered one of the more challenging waste investments in Macquarie’s current portfolio, according to outside sources.
While DTG has a fleet of more than 300 vehicles and over a dozen facilities, certain assets have been complex to manage.
This includes the company’s Rocky Top Environmental site in Yakima, comprising a limited purpose landfill and a MRF. The Yakima Health District recently declined to renew DTG’s MRF permit in August, citing unmet permit conditions.
DTG reopened the landfill, its only one, earlier this year after it was previously closed by regulators. The company invested in liner updates and other changes over a period of 18 months before reopening.
Neighboring residents have also been pushing back against the site due to concerns about odors and other environmental effects, including an unsuccessful attempt to challenge the facility’s air permit. A subsurface fire has also been smoldering at the landfill for many months, though the latest monthly consultant report indicated continued improvement, a trajectory expected to continue in the winter.
The landfill’s solid waste permit is currently set to expire at the end of the year. The Yakima Health District confirmed that DTG submitted a renewal application, which it’s reviewing along with the state’s Department of Ecology.
Earlier this year, Gov. Bob Ferguson signed a law giving Ecology and jurisdictional health districts more oversight over local landfills. The legislation was directly inspired by issues with two landfills in Yakima County, including DTG’s site. Ecology recently released draft regulations as part of a rulemaking process that is scheduled to be complete by the summer of 2027.
Throughout the year DTG has also been working to improve its image, including reportedly appointing former Gov. Jay Inslee to a company advisory committee. This followed the company’s hiring of a new vice president of government relations and communications who previously worked for the Inslee administration.
The company has also been dealing with regulatory issues in Snohomish County. Last year, the Utilities and Transportation Commission filed a complaint alleging that DTG transported an estimated 73,270 tons of residual waste from its MRF operation during January to June 2023 without proper certification. This could have led to a penalty of nearly $3.4 million.
Other players in the local industry filed as intervenors, including the Washington Refuse & Recycling Association and Rabanco.
A proposed settlement this fall laid out seven required terms of agreement, but would see no penalty for the company. This includes requiring DTG to implement two-bin sorting at customer job sites, additional reporting expectations for DTG, the initiation of a state rulemaking process to codify residual management processes and other items.
The UTC held a hearing in October, during which all parties involved reached general consensus, but the case is not finalized. A UTC spokesperson said the next step is for the commission to decide whether to approve the settlement. So far a commission meeting has not been announced.
