Sanchez asks about exemption mechanics and specific facilities

So you said we've hit all of the all of the reduction markers, but

Can you explain again?

So first you took out all the exemptions.

Can you talk to us about what these exemptions were and what that means to the actual number in reduction that we're talking about?

Yeah, so the law required us to go transfer station by transfer station and take the existing permitted capacity.

Then take any exemptions that were set forth in the law very explicitly Remove those from the existing permitted capacity

Take the reduction as a percentage basis and then add back the exempted permit So if you take and I'm just going to use an example here to make it more concrete

But if you take, let's say, the action environmental, now it's IWS, transfer station in Bronx Community District 1, their initial permitted capacity was 2999.

Their new permitted capacity was 2101.

The reason that that's not

1999 or 2000 depending on how you round is because they had existing recyclable materials that they were processing through that facility demonstrated in previous

transfer station reports to sanitation and to DEC and so under local law 152 that

that amount of recycling, the average amount of recycling, I think it was a, I think a one year, maybe two year look back, was set aside prior to the 33% reduction being applied and then added back after the 33% reduction.

Okay, seems.

And so when you go facility by facility,

There are exemptions for many, not all, of the facilities that had reductions taken.

So talking about those facilities, I do want to highlight waste management in DX1 and in BK1.

It doesn't look like they had, from the data that we have, that there have been any reductions whatsoever there.

And so can you help explain why these facilities didn't go through any required capacity reductions, especially when there's no reported capacity reserves at these stations for organics?

What other exemptions did they receive?

Yeah, so there's an exemption in Local 152 for any facility that exports the majority of its waste by rail, and both of those waste management facilities export nearly all of their waste by rail.

Some facilities like the Metropolitan Transportation and BX2 actually received capacity increases in 2025.

Why was that?

Yeah, so again, there was a provision in Local 152 that allows for facilities that want to add additional capacity for organics processing or for recyclable material processing to take a one-time

credit for that investment in new processing infrastructure.

And so they applied for and received that one-time credit.

And that's all that process is laid out in local law 152 as well.