San Francisco refuse rates administrator trims Recology request, proposes new oversight and pilot funds

San Francisco''—The Refuse Rate Board on May 30 heard the refuse rates administrator's proposed rate order that would reduce portions of Recology's requested 2026'2028 increases, add new regulatory controls and service-level agreements, and fund small pilots for diversion and outreach while deferring major capital choices such as a full trash-processing facility.

Refuse rates administrator Jay Liao, of the Controller's Office, told the board the office's proposal would lower Recology's initial 2026 collections increase from 18.18% to 12.59% and produce smaller cumulative increases over three years than Recology proposed. He described a package of regulatory improvements including 26 service-level agreements, a new variance-reporting trigger and a 100% balancing-account rebalance policy intended to strengthen oversight and transparency.

Why it matters: The proposal affects monthly bills for residential and commercial customers across San Francisco and would finance both continued services and modest program enhancements for zero-waste goals. The hearing produced disagreement about how aggressively to fund new environmental work and infrastructure; the board did not vote and scheduled a follow-up hearing for June 25 to consider adjustments and additional details.

Liao summarized differences between Recology's application and the administrator's adjustments. "These 3 mechanisms combined, service level agreements, cost controls, balance account, create the basis for rate administration for the next 3…