Covanta Recycling Deal Approved

Indianapolis is adopting a new way to recycle.

The Board of Public Works voted 4-1 in favor of allowing Covanta to build a $45 million facility to sort out recyclables before trash goes to the incinerator.

Currently, all residential trash picked up in Indianapolis is taken to the Covanta trash incinerator on Harding Street where it is burned to generate steam energy. The company produces about 50 percent of steam used for heating and cooling in the city.

Those in favor think it will increase participation, but opponents are concerned about the contract and impact on curbside service.

James Regan with Covanta says the facility will capture up to 90 percent of recyclable materials and increase the city’s recycling rate by 500 percent.

"So, plastic, metal, cardboard, and paper, 80 to 90 percent of those things that are recyclable we'll be able to recover with state of the art technology at this new facility," he said.  "We are really excited to bring next generation sustainable waste management to Indianapolis."

The contract runs through 2028. The city could be on the hook for paying Covanta $4 million a year if it opts out early in favor of another program.

"Review of the contract fine print shows if the city finds a better way to recycle more material Indianapolis will have to pay Covanta $4 million a year through 2028 as a penalty,” said Council Vice President John Barth, earlier this week. “Personally, I believe in our city and its residents – and I am confident we can find new ways to improve recycling in Indianapolis. But under this contract, our achievement would come with a penalty. We should reward ingenuity and innovation, not penalize it.”

Jeremiah Shirk with the Department of Public Works says that’s unlikely to happen because it benefits Covanta to keep up with technology changes.

He believes the program is needed to give Indianapolis residents options.

"It gives them chances and it gives those folks that don't have the opportunity to pay for a curbside program or maybe not have a vehicle to take them to a drop off location - for us to start recycling more material in this city," said Shirk.

Covanta still has to get permits approved, but expects the facility to open in 2016.