Projo 7 to 7 News Blog

By Mark Reynolds
Journal staff writer

JOHNSTON -- The overseer of the state's Central Landfill has dodged almost $10 million in stock market losses simply by complying with federal requirements.

Earlier this year, the Rhode Island Resource Recovery Corp. moved $32 million out of stock-market investments and put the money in short-term government securities, according to the landfill corporation's executive director, Michael O'Connell.

The transaction put Resource Recovery in compliance with requirements from the U.S. Environmental Protection Agency, O'Connell said. Plus, he added, it protected the trust money from a sharp 30-percent plunge in the stock market.

"All we did was comply with what we were supposed to do," O'Connell said. "We're not supposed to be playing the stock market."

Under federal law, Resource Recovery has amassed a trust fund to pay for the closure of the landfill and the facility's upkeep for the next 30 years following its permanent closure, which is expected more than a decade from now.

 Tags  Central Landfill economy Johnston stock market

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