CRRF is an interagency project involving the State Prison Industry Authority and the California Integrated Waste Management Board. The CRRF material recovery and composting operation uses State prison inmate labor to process the wastestream of local municipalities. The CRRF applies an unprecedented level of labor to the sorting process, separating the entire wastestream into distinct categories, including market high-grading into specific market grades. Implementation of the Folsom CRRF began in May 1993. A demonstration during the spring of 1993 revealed that the facility could separate more than half the waste into material types; about 30-40 percent was separated into marketable types. Four issues involved in the implementation are the design of the vessel to conduct municipal-scale, anaerobic digestion of organics derived from municipal solid waste, humus characteristics and end-use implications, source separation demonstrations, and permitting and regulatory issues. Tables and appended worksheets