United States
                                 Environmental Protection
                                 Agency
                           Solid Waste
                           and Emergency Response
                           (5306W)
        EPA530-F-97-039
        August 1997
        http://www.epa.gov
                                JTR  Grantee Series
                                Minnesota
        JOBS
   THROUGH
  RECYCLING
     Minnesota Office
of Environmental Assistance
       Prior to the creation of the Recycling and Reuse Business Assistance Center
       (RBAC), Minnesota had already made a substantial financial commitment to
       recycling market development. The Minnesota Office of Environmental
       Assistance (OEA) applied for a Jobs Through Recycling (JTR) grant to build
on existing efforts with the goal of developing an RBAC to focus on elements of the
waste stream not yet recovered. OEA planned to significantly expand existing market
development programs by:

• Targeting industries important to Minnesota's
  economy through more focused market devel-
  opment efforts.

• Expanding cooperative activities among the
  state's recycling and market development pro-
  grams and state and local economic develop-
  ment programs.

• Implementing a program to provide profes-
  sional assistance (via contract) to developing
  recycling and reuse manufacturing businesses.

Specifically, OEA targeted efforts on the wood
fiber, plastics, and composites (e.g., fiberglass
reinforced plastic and wood fiber reinforced ther-
moplastics) industries in Minnesota—which had
the potential to boost the state's use of recycled
materials, improve economic competitiveness,
and increase the number of jobs in Minnesota.

The RBAC, fully staffed with four professionals
and one team leader, began outreach in April
1995. Staff came from different private sector
backgrounds, allowing for a new level of diversity
in recycling market development expertise.


PROGRAM ACTIVITIES

The RBAC provided assistance to local businesses
in five specific areas:

Business Assistance

The RBAC helped companies review business
and marketing plans and located technical
resources (e.g., small business development
offices) to  assist the companies in preparing these
plans. They also inventoried state and regional
Grant Type:  RBAC

Office Awarded:
Office of Environmental
 Assistance

Project Partners:
Minnesota Technical Assistance
 Program (MnTAP)
Department of Transportation
Department of Trade and
 Economic Development

Year Awarded:  1994

Finding:
$462,375 in EPA funding
$152,125 in state funding
$614,500 in total funding

Materials Targeted:
Wood fiber
Plastics
Composites

Contact Information:
Timothy Nolan or
Chris Cloutier
Minnesota Office of
 Environmental Assistance
520 Lafayette Road, North,
Second Floor
St. Paul, MN 55155-4100
Phone: 612 215-0259
Fax: 612 215-0246
E-Mail: tim.nolan@
 moea.state.mn.us

-------
               JOBS  THROUGH  RECYCLING
business assistance organizations and
programs, and educated state economic
development personnel about the recy-
cling industry. The RBAC assisted nine
companies with business management,
by reviewing or helping to develop
strategic plans  and by conducting
research on tax laws, zoning require-
ments, and other related issues.
   The RBAC assisted nine
  companies with business
 management, by reviewing
    or helping to develop
    strategic plans and by
 conducting  research on tax
 laws, zoning  requirements,
  and other  related
Technical Assistance
RBAC staff provided technical assis-
tance to businesses and other agencies
to identify and remove barriers to the
use of recovered materials by dissemi-
nating technical information and con-
ducting customized research for target-
ed recycling businesses. This assistance
ranged from researching the recyclabili-
ty of coated latex paper to the develop-
ment and publication of specifications
for the use of organic shingle scrap in
roadway asphalt. Staff assisted 25 busi-
nesses by conducting onsite visits and
meeting facilitation, by researching a
variety of topics, and by actively refer-
ring businesses to other sources of tech-
nical assistance.
Financial Assistance
The RBAC funded 12 businesses
through contracted assistance for engi-
neering, research, testing, and business
services. Staff also assisted in preparing
grant applications and locating other
sources of funding.
Product and By-Product Marketing
Assistance
The RBAC provided product and mar-
keting assistance to nine companies,
helping them with preliminary research,
testing, and securing markets.
Promotion and Publicity
Staff promoted the RBAC program to
targeted industries and worked to
develop emerging and expanding recy-
cling ventures in the state. They  also
developed and disseminated economic
and environmental business profiles for
recycling and reuse organizations.

CHALLENGES OVERCOME
The RBAC encountered and overcame
the following obstacles:
• Initial startup was difficult. To over-
  come this challenge, the RBAC used
  the first 6 months to hire staff, hold
  training sessions, and get organized.
  The center staff also became familiar
  with potential goals and issues pertain-
  ing to Minnesota recycling markets,
  and targeted activities.
• Getting the word out about RBAC
  services was difficult. Making busi-
  nesses aware of the RBAC was ini-
  tially difficult, because it was a new
  idea for many businesses and partner
  agencies. To get the word out, the
  RBAC created a tip sheet listing a
  brief description of its available ser-
  vices.  RBAC staff also conducted
  outreach, including meetings and
  presentations, to targeted industries
  and partners. This helped formalize
  the RBAC's identity.
• Time and resources were limited.
  The RBAC had to conduct initial
  research and prioritize potential pro-
  jects to maximize limited time and
  resources. Finally, the RBAC had to
  combat businesses' fear of getting
  involved with the government. To
  overcome this, staff used a strong
  outreach campaign to present the
  RBAC in a positive light.

LESSONS LEARNED
RBAC staff learned from their experi-
ence and provided the following advice
to new grantees:
• Spend the first few months on
  internal planning and getting the
  word out. Prepare and distribute  a
  fact sheet about the RBAC and its
  services. Make outreach a priority.
• Target priority materials. In target-
  ing wood, plastics, and composites,
  the RBAC had a very defined scope
  of work. Once established, the
  RBAC expanded its focus to include
  miscellaneous materials.
• Network! Active referrals are the  key
  to success. Make an effort to get
  business clients the information they
  need—not necessarily by conducting
  the research yourself, but rather by
  finding an expert in another organi-
  zation who already has the informa-
  tion. Make onsite visits and establish
  a solid working relationship with the
  businesses you assist. Facilitate con-
  nections to resources and expertise by
  using staff networking abilities.
• Focus on customer service. Try to
  get businesses the information they
  need in a timely and effective man-
  ner. If you know a project has poten-
  tial, you can do some of the legwork
  for it, but do not try to provide this

-------
JTR GRANTEE  SERIES: MINNESOTA
  level of assistance to every business.
  First, prioritize businesses by their
  level of potential or the level of assis-
  tance they need. Working from that
  list, provide the highest level of ser-
  vice  appropriate to the specific needs
  of each business. Continue to
  increase the level of service you pro-
  vide  to organizations. Try to add new
  elements and increase your list of
  resources. Don't get bogged down with
  internal processes and evaluation.
  Do not reinvent the wheel. There is
  a wealth of technical information out
  there. The key is to learn how to
  locate that information without hav-
  ing to  do all the research. Customize
  existing research to serve the needs of
  each business.
  Do not dictate  to businesses; work
  on their level as colleagues. Working
  with businesses  in a professional man-
  ner, instead of dictating to them, helps
  earn their respect. Visiting the
  companies demonstrates
  an added dedication to
  serving their needs and
  makes them more comfort-
  able  with the  working
  relationship.
ACCOMPLISHMENTS
During the 1994-1995 grant period,
the RBAC significantly expanded exist-
ing market development programs by
targeting key industries, expanding
cooperative activities among state agen-
cies, and  implementing a program to
provide assistance to startup businesses
in the recycling industry. By focusing
efforts  on wood fiber, plastics, and
composites industries, the RBAC suc-
cessfully expanded existing efforts. The
center  assisted more than 250 business-
es, which led to the creation of more
than 800 jobs in Minnesota.
The RBAC found the team approach
most effective. Pooling the  backgrounds
of staff members and partner agencies
provided  the highest possible level of
assistance to  local businesses. The center
focused on providing valuable
customer service, and tried to integrate
both waste prevention and recycling.
RBAC staff used innovative ideas, main-
tained a broad and interesting scope of
work, and conducted projects with the
help of a range of partner agencies and
organizations. Staff members were pleased
with the number of businesses provided
with long- and short-term assistance.

PROGRAM FUTURE
In 1996, OEA was awarded another
JTR grant of $250,000. This money
will be used to create a targeted market
development program for glass, paint,
and polyethylene terephthalate plastic.
Activities will be coordinated within
OEAs Business Environmental Resource
Center (BERC) using methods and
expertise developed through OEAs
Market Development Program and
RBAC.
  Short-term Assistance and Referrals:
  In-Depth Assistance:
       Business Management:
       Technical Assistance:
       Financial Assistance:
       Product and By-Product
       Marketing Assistance:
  Full-Time Equivalents Created2:
  Estimated Economic Activity Indicators2:
       Total Wages and Salary Disbursements:
       Increase in value added
       (contribution to gross state product):
       Increase in Gross Economic Activity
       (Total  Sales):
        243 businesses assisted
        32 businesses assisted1
        9 businesses assisted
        25 businesses assisted
        12 businesses assisted

        9 businesses assisted
        SOSjobs

        $22,956,000

        $48,27 O,5OO

        $95,O61,5OO
                                         1. Some organizations received more than one type of assistance.
                                         2. Forecasted state-wide economic impacts for proposed new manufacturing facilities using recycled materials
                                          using Regional Economic Modeling, Inc. (REMI) model.

-------
              JOBS THROUGH  RECYCLING
 "We never would have been able to afford the services provid-
ed by RBA C staff if they had been private consultants. With-
out their assistance, we would have had to close our doors."

LEONARD  "LINDY" STOLTZ
President and CEO, Nature's Fire


           Nature's Fire, a manufacturer of organic fire
           starting products made from recycled
           materials, received RBAC  assis-
           tance just in time to prevent
their operation from shutting down. With
increasing sales opportunities, the company
needed to expand their facility  and  increase
production. The company did not,  however,
have the resources or technical knowledge to
accomplish this expansion. The RBAC assisted Nature's
Fire in the following ways:
• Researching alternative packaging options when Nature's Fire's only vendor of
  100 percent recyclable and biodegradable packaging trays discontinued their
  product.
• Researching specifications and emissions guidelines to reduce testing costs. The
  RBAC discovered that slight modifications to the product labels could eliminate
  between $108,500 and $186,000 in emission testing fees.
• Assisting Nature's Fire in securing needed funding for a dehydrator to dry the
  volumes of wood residue necessary to make product and keep up with their
  incoming orders. The purchase of this piece of equipment allowed Nature's Fire
  to expand and meet the demands of its customers, while eliminating waste at the
  same time.  The machine has the  capacity to recycle 100,000 pounds per week
  of wood and other materials that would otherwise be landfilled.
With RBAC assistance, Nature's Fire obtained funding during the grant period
from OEA. A total of $82,500 was  awarded by OEA over the course of the grant
period for various testing and purchasing costs.
Not only did  RBAC assist Nature's  Fire in securing funding, they also indirectly
helped secure  markets through their effective referral service. Lindy Stoltz,
President and Chief Executive Officer of Nature's Fire, began communications
with an RBAC contact at the World Trade Center, which eventually enabled him
to begin exporting his product to markets in Chile, Peru, Australia, and other
countries. Currently, foreign exports make up 57 percent of Nature's Fire's sales.
Publications

• Factsheet: Recycling/Reuse Business
  Assistance Center. Explains the
  goals and objectives of the
  Minnesota RBAC and provides
  contact information.

• A Business Guide to Recycling and
  Market Development. Lists and
  describes sources of financial
  and technical assistance available
  to Minnesota businesses working
  with recyclable materials.

• 1996 RBAC Program Guide.
  This "quick reference"  guide
  contains all Minnesota RBAC
  program information through
  1996, including information,
  strategies, how assistance is pro-
  vided, projects and tracking,
  measures for results, economic
  modeling, and articles  and pub-
  lications on the RBAC.

• Economic/Environmental Profile
  of Minnesota's Value-Added
  Recycling Manufacturing Industry.
  Illustrates the economic and
  environmental value of
  Minnesota's recycling and reuse
  value-added processing and
  manufacturing businesses.

• Project Summaries. Outlines all
  projects undertaken by the
  RBAC during the funding
  period.

-------