Michigan’s Opportunity to Cash In on Waste

Governor Gretchen Whitmer has proposed increasing the disposal surcharge from $0.36 per ton to $5 per ton to bring Michigan’s fee in line with the average fee in most other midwestern states. If Michigan’s disposal surcharge were raised to $5 per ton, it is estimated the state could raise $80 million, which could be used to fund recycling, reuse, food rescue, and waste prevention efforts. 

Revenue from the solid waste disposal surcharge should be reinvested in recycling and waste prevention programs and infrastructure like the Michigan Community Pollution Prevention Grants Program. In 2022, Indiana’s equivalent program—funded by both disposal surcharges and the state’s general fund money—invested $2.5 million in community recycling and market development, increased the amount of materials recycled by nearly 100,000 tons, and created almost 300 new jobs.  

In 2020, Pennsylvania’s Food Recovery Infrastructure Grant program, funded by the disposal surcharge revenue, funded 145 projects totaling $9.6 million to rescue nearly one million pounds of food and redistribute it to more than 25,000 residents. Ohio’s disposal surcharge funds numerous grant programs, including a Source Reduction Grant that promotes reuse practices rather than disposables and a recycling and litter prevention program that funds local government- and nonprofit-led recycling programs.  

Waste importers, businesses, residents, and anyone else who sends waste of any kind to a landfill or incinerator would pay the increased disposal surcharge. Those creating the most waste would see the greatest change in their disposal cost, including out-of-state generators that account for 20 percent of Michigan’s landfill content. Households might expect to see an increase in their garbage bill of $5 per year. A small restaurant could expect an increase of $100 per year. However, improved recycling and waste reduction could easily reverse these costs since 65 percent of Michigan’s waste stream is easily recyclable or compostable. 

Furthermore, the return on investment of implementing waste reduction strategies are well documented. Michiganders have proven their interest and commitment to increased recycling—and their ability to send less garbage to landfill and incineration—as the statewide recycling rate has hit record levels for four years in a row, though recycling is still trailing the national average and established state targets.  

Additionally, according to a 2024 report by Michigan Sustainable Business Forum, Grand Valley State University, and the Michigan Department of Environment, Great Lakes, and Energy (EGLE), up to $825 million per year could be gained and 4,500 jobs added by recovering recyclable and compostable materials from Michigan’s municipal solid waste. The economic potential of the materials themselves is vastly underutilized, but an investment in market development and infrastructure could have a multiplying effect. 

One significant opportunity for waste reduction and improved recycling is through composting and diversion of food waste, yard debris, and other organic materials, because nearly 40 percent of Michigan’s waste stream is food and other organic materials, yet very little is composted. A U.S. Environmental Protection Agency report estimated food waste costs $728 per person each year. Boosting efforts to reduce waste, including wasted food, could make a difference in saving Michigan residents and businesses money at the cash register and on their trash bills.  

Investing in composting can be a driver of local economic growth and job creation. The Institute for Local Self-Reliance investigated the impact of increased composting in Maryland and found that composting creates more jobs: twice as many as landfilling and four times more than incineration for each 10,000 tons of organic material processed. The Institute’s report also found that for every $10 million invested, composting facilities created twice as many jobs as landfills and 17 more jobs than incinerators. Furthermore, additional jobs may be created downstream as finished compost is applied for stormwater management, erosion control, land remediation, or other beneficial uses.  

Michigan has committed to a goal of cutting food waste in half by 2030 as part of its efforts to achieve carbon neutrality and has published a statewide Food Waste Roadmap to help guide the way. One of its primary recommendations is for the EGLE to boost its investment in reducing food waste with expanded grant programs, community engagement, and technical assistance, which will require significant new funding. Meeting this funding gap with a higher trash disposal surcharge is one commonsense solution.  

Revenue from disposal surcharges can and should be invested in programs benefiting communities most impacted by the siting and activities of the waste industry. Black, Indigenous, and lower-income communities are on the frontlines of environmental pollution from waste facilities and their truck traffic, noise, and odor.  

Funds derived from the waste system should be used to mitigate the impact of the waste system on local communities, improve the health and safety of neighborhoods, and spur waste reduction activities across the state so that less waste—and the corresponding pollution—is funneled into environmental justice communities in the future. Community investments could include establishing community composting for a circular economy for food scraps and building community engagement; green space beautification; providing youth engagement or small business job training; and community gardens for improved healthy food access.  

Governor Whitmer’s 2026 budget proposal indicates that 30 percent of revenues from a disposal surcharge increase would be directed to communities to offset higher costs for trash services and another 15 percent would provide grants for communities near landfills and coal ash impoundments. Michigan is already home to vibrant composting operations, and there is an opportunity for significantly more.