Houston’s Recycling Proposal Raises Questions Of Savings, Possible Collusion

HOUSTON, TX — The recent announcement by Mayor Sylvester Turner that he’d selected FCC Environmental LLC to handle recycling services for the city of Houston in 2018, has left a number of questions about the proposed deal and drawn the ire of another Houston-based recycling company.

On June 28, Turner announced that he’d selected FCC Environmental LLC to replace Waste Management as the city’s recycling company, which still requires approval from the Houston City Council.

The deal, if it is approved by the council, would allow Houstonians to add glass to their curbside recycling bins for the first time since 2016, and according to Turner, would save about $2.9 million annually, KPRC reported.

However, this deal may not have been the cheapest option, according to a KTRK report.

The new deal brings glass back into the recycling program, but also increases costs the city paid for recycling just a few years ago.

FCC Environmental LLC has promised to build a recycling facility in Houston, which would employ up to 100 personnel once operations commenced in 2018.

The proposed agreement will be evaluated before being presented to the full council for consideration and discussion.

Meanwhile, George Gitschel, the founder of EcoHub LLC, is claiming Turner backed out of their deal when he made his announcement on June 28.

Gitschel said his company could save the city upwards of $40 million for recycling services, according to KPRC.

On July 5, Gitchel held a press conference indicating the deal had been in the works for the city's recycling program since 2011, when Annise Parker was still mayor of Houston.

Gitschel, who invented what he called an innovative "closed loop" system would only require one bin, not nearly as many solid waste collection trucks and would eliminate the need for the money needed for collecting and seaprating the recycling items.

"Our system will save the citizens of Houston $25 to $40 million per year, it will employ thousands of people and bring billions of dollars into the economy, it will reduce the carbon footprint by a million metric tons of greehouse gas emissions," Gitschel said. "I don't know what else to do."

Gitschel, who was flanked by former investigative reporter Wayne Dolcefino, said the city has stonewalled the process in favor of FCC Environmental LLC, whose shareholders include Bill Gates and Carlos Slim, two of the world's wealthiest men.

"This new contract (with FCC Environmental) is for $87 per ton for the recycling. We've been in there for thelast six years at $25 per ton for all the waste," he said.

Image: MyDoorSign via Flickr Commons

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