As recently as three months ago, RecycleBank was threatening to pull its environmentally conscious recycling pilot program, and millions of dollars in potential savings, out of Philadelphia. But now, company co-owner Patrick Fitzgerald says that by month's end it could have a deal to expand its service, which collects all recyclable materials in one bin and rewards residents for recycling, further across the city.

Since last January, 1,500 households in Chestnut Hill and West Oak Lane have earned coupons to local and national businesses in exchange for obeying recycling laws. As part of the pilot program, some 90 percent of homes are chucking roughly 50 percent of their waste into the recycle bin. This, compared to the rest of the city, which recycles a paltry 6 percent of its trash.

Streets Commissioner Clarena Tolson said negotiations center around expanding the trial to 10,000 homes. At first, Tolson said the program had "not proven to be cost-effective" because weighing the cans takes extra time. Now, she concedes, "We in the Streets Department like the program and residents are very happy."

The city could save $17 million a year if residents recycled about 37 percent of their trash, according to a report by former City Controller Jonathan Saidel. RecycleBank hopes to do more than that. The company is negotiating municipal contracts with Boston, Atlanta, Charlotte and serves 100,000 homes in New England. While the mayor's office remains silent on the issue, recycling enthusiasts who support a 100,000-home tryout have criticized Tolson as resistant to change; she maintains she has the city's financial interests in mind. "Looking at costs, we don't want to have additional budgetary expenses," Tolson says. "We're looking for RecycleBank to provide some guarantees to the city."

Founded by two Germantown Academy grads, the program requires an upfront payment, but says it will refund the city if it doesn't hit participation targets. It typically pays to retrofit regular garbage trucks, but Tolson says RecycleBank, in this case, could buy trucks of its own. She dismissed the notion that the city's current fleet is in poor condition. (Tolson is also mum on the hiring of a new recycling coordinator—the position has been empty since the summer—except to say the city made an offer and will make an announcement in a few weeks.) At a presentation by advocacy groups joined under the Recycle NOW campaign umbrella Feb. 9 in Roxborough, Fitzgerald polled an audience of about 35 to see who might pay about $100 annually for the service.

When asked if Tolson worried about RecycleBank bailing from talks, Tolson said, "We'll continue to negotiate with them in good faith."