EGLE flap leaves 150,000 tons of waste headed for Michigan landfills

As tractors lined the streets around the Michigan Capitol, legislators heard testimony last month that the state’s environmental agency had abused its power and had unnecessarily caused waste to be sent to landfills.

A renewable energy company that converts organic waste into electricity left the state in 2023, a witness told lawmakers at a March 18 hearing at the House Oversight Committee, adding that state regulators had pushed the company out of Michigan.

Up to 150,000 tons of waste that would have been processed each year through anaerobic digestion will now be sent to landfills or directly applied to land, said Dan Meccariello, vice president of operations at Generate Upcycle.

The company operates 24 organic waste management facilities in four countries, including the U.S. It converts 2 million tons of organic waste annually into renewable electricity, natural gas and organic fertilizers.

Meccariello said his company’s operation should be a poster child for Gov. Gretchen Whitmer’s green energy initiatives.

The Michigan Department of Energy, Great Lakes and Energy “has from very early on, outwardly demonstrated and expressed bias against anaerobic digestion on many occasions,” Meccariello told lawmakers. “EGLE has at times marginalized our business and made intimidating comments to employees.”

Meccariello told the committee that the state environmental department revoked crucial operating permits in 2020 and 2023 based on unverified complaints.

Departmental employees have acted unprofessionally, Meccariello said, before speaking about an incident at a Generate Upcycle facility in Fremont, Michigan. A state employee asked an Upcycle site manager to travel with him in an official vehicle to inspect a lagoon on the company’s land. Instead, the state employee took the Upcycle manager to the home of a disgruntled local resident, and encouraged that person to confront the site manager. This incident and other interactions with the state led Upcycle to close the facility, lay off approximately 20 employees, and write off a $25 million investment, he said.

Generate Upcycle operates in nine states where it doesn’t face similar problems with officials, Meccariello said. Michigan’s unstable and unpredictable regulatory environment has caused the state to lose other opportunties, he added.

Neither the environmental department nor Meccariello responded to an email seeking comment.

Clients of Generate Upcylce in the state included Nestlé, Gerber, Coca-Cola, Kraft, and Heinz.

Reps. Luke Meerman, R-Coopersville, a member of the committee, was out of the country and could not be reached

Rep. Laurie Pohutsky, D-Livonia, who also sits on the Oversight Committee, did not respond to emails seeking comment.