The Guam Solid Waste Authority has submitted proposed rules and regulations to the Guam Legislature as it moves toward implementing Islandwide Garbage Collection and establishing a Customer Assistance Program pursuant to law.
Under the proposal, owners and lessees of single-family homes and buildings with four or fewer units would be required to register with GSWA or subscribe to a private hauler. Existing Guam Waterworks Authority customers would be enrolled with GSWA.
Exemptions would be available to residential property owners who petition annually if a building is vacant or if a tenant is responsible for subscribing to garbage collection services. Other grounds for exemption include not generating trash, subscribing to a private hauler or self-hauling waste to transfer stations. The Layon Landfill is not open to the general public.
"Customers shall present their GSWA account information at the time of disposal to ensure that GSWA properly records their compliance with Public Law 38-39," the proposed rules and regulations state.
Those who fail to subscribe to GSWA would face a $50 monthly penalty. The general manager could waive or reduce the penalty based on financial hardship or good-faith efforts to comply. Customers also could appeal the penalty.
GSWA would not discontinue service over unpaid bills. Instead, customers would receive a notice after 30 days. After 60 days, the agency could pursue debt collection remedies, including civil action and recovery of attorney fees.
As part of the Islandwide Garbage Collection implementation, GSWA also is proposing a Customer Assistance Program. Households would qualify if a member receives benefits through the Supplemental Nutrition Assistance Program, Medicaid, Supplemental Security Income or the Women, Infants and Children program.
Customers enrolled in the assistance program would be required to renew annually and provide proof of continued eligibility.
GSWA proposes that the Customer Assistance Program be funded through legislative appropriations, grants or other subsidies, rather than agency revenues, unless specifically authorized by the Public Utilities Commission.
The proposed rules also include reduced residential rates under Islandwide Garbage Collection. The monthly residential rate would decrease from $38 to $20. Existing customers would save $18 per month, while about 19,600 additional households would pay the proposed $20 monthly rate.
According to Utility Financial Solutions LLC's residential rate analysis supporting the proposed rules, the economic impact at full implementation would be a $4,380 decrease in monthly residential billings.
"On an annual basis this is a decrease of $52,560," Utility Financial Solutions said in its analysis. "In aggregate, this proposal has essentially no economic impact on residential customers."
Utility Financial Solutions also analyzed GSWA's projected cash balances for fiscal years 2026 through 2030, factoring in the reduced residential rate beginning in 2028.
The projections show cash balances remaining above proposed minimum levels during the period. However, the timing of reimbursement for garbage carts could affect those balances.
According to Utility Financial Solutions, the projections include a $4 million cart expense in fiscal 2027, with $2 million expected to be offset by GovGuam reimbursement.
"The cash projections depend on receipt of this reimbursement. If it is not received, projected cash balances would fall below the proposed minimum cash levels beginning in fiscal year 2027," the firm said.