Rialto Bioenergy Enters Chapter 11

by Bob Gaetjens (Waste Today) ... As a result of a lack of feedstock available to the facility, RBF has been unable to produce sufficient revenue to cover its costs and debt service. Anaergia says the feedstock shortfall is due to a delay in the implementation and enforcement of laws requiring organic waste diversion from landfills by the city of Los Angeles as required under its contracts with private waste management companies, as well under California’s SB 1383. The company says feedstock ramp-up is slow industry-wide.

Anaergia says Los Angeles is operating under a corrective action plan stemming from its delayed efforts to adopt and enforce the law’s waste diversion requirements. SB 1383’s implementation was previously delayed because of the effects of the pandemic. Los Angeles adopted an implementation ordinance in late 2022, which is fully enforceable in January 2024, according to the company.

Anaergia Spokesperson Melissa Bailey says the company is not sure exactly when Rialto will exit restructuring, but it’s tied to feedstock.

“This is directly related to the rate of the roll-out of organics collection by commercial and multi-family generators in Los Angeles, and the faster LA will get compliant, the faster we can be operating in full as was planned by us and the state for the facility,” she says.

Recycling Today Media Group has reached out to the city of Los Angeles and CalRecycle for comment.

The League of California Cities sent a letter to the state legislature and Gov. Gavin Newsome to "honor the $345 million allocated for organic waste recycling grants in recent state budgets."

The organization representing California cities says the bill cannot implemented without state support, adding that the California Department of Recycling and Recovery (CalRecycle) has estimated putting SB 1383 into action could cost local governments up to $20 billion over the 10 years.

Anaergia Chief Operating Officer Yanic Scherson, who also serves on the RBF board and as a vice president of the subsidiary, says the facility is needed by the state to help SB 1383 succeed. READ MORE