Faced with the task of developing work programs for the rapidly expanding prison populations, the California Prison Industry Authority established this pilot test-site to monitor and validate its new waste management program. Phase I entailed building a materials recovery facility large enough to handle the 100-ton daily output of garbage from the city of Folsom, with the expansion capability of handling up to 300 tons for growth over the next 10 years. The facility cost approximately $6 million to build and took 12 months to construct with the use of an inmate construction crew. More than a year later, the facility is processing more than 100 tons per day using 128 inmates from the return-to-custody center and operating one shift from 7 am to 4 pm 5 days a week. Phase II of the project is currently under way. When fully implemented, Phase II will allow the city of Folsom to divert more than 70 percent of its garbage away from the landfill, surpassing diversion goals set by State law. This means that only 20 to 30 tons out of every 100 tons of garbage generated will be returned to the landfill. In Phase III, the local electrical company plans to monitor the quality and quantity of biogas given off from this process. If feasible, it intends to install a molten carbon fuel cell to convert the methane/carbon gas mixture into electricity in its ongoing efforts to develop alternative energy sources. The first phase of the program, the manual recycling effort, has demonstrated its benefits during a 2-year trial period.