Inspector General Report Finds MTA Recycling Oversight Lapses Cost Agency $800K

The Metropolitan Transportation Authority (MTA) has faced criticism following an investigation by its Office of the Inspector General (OIG), which concluded that the agency lost approximately $800,000 over a five-year period due to inadequate oversight of its recycling operations.

According to the OIG report released this week, the agency failed to ensure that its waste management contractor adhered to contractual obligations regarding the separate collection of recyclables. Investigators observed that at all 40 transit facilities surveyed, the contracted hauler—identified in previous board documents as New Jersey-based Action Environmental Services—consistently collected trash and recyclables in the same vehicle.

Furthermore, the report noted that internal compliance was also lacking. At 21 of the 40 inspected sites, MTA personnel did not properly separate paper and cardboard from general waste. In several instances, recycling bins were either improperly labeled or entirely absent.

Financial data highlighted in the report suggests a sharp decline in reported recycling activity. While the contractor reported an average of nearly 800 tons of recycled materials in 2018, that figure plummeted to an average of 162 tons annually between 2020 and 2024. Investigators estimate that this lack of oversight resulted in annual losses between $150,000 and $200,000, stemming from missed recycling credits and potential overcharges for waste removal services.

In response to the findings, MTA spokesperson Laura Cala-Rauch stated that the agency is committed to improving its environmental practices. The MTA has begun implementing corrective measures, including the retraining of staff on proper waste sorting procedures and the introduction of stricter requirements for future contracts, such as mandatory electronic billing and verified weight tickets.

While the OIG report does not confirm the status of the current contract, public records indicate that Action Environmental Services is among the firms bidding on a new waste removal contract that opened for proposals last month. Representatives for the contractor did not immediately provide comment regarding the allegations of co-mingled waste collection.