United States
Environmental Protection
Agency
Solid Waste
and Emergency Response
(5306W)
EPA530-F-98-004
September 1998
www.epa.gov/jtr
JOBS
THROUGH
RECYCLING
Maryland
DepartmentofBusiness&
Economic Development
JTR Grantee Series
Maryland
n 1994, county recycling collection programs were fairly well established in the
state of Maryland as a result of the 1988 Maryland Recycling Act. In addition, the
state mandated the procurement of recycled-content products and conducted
numerous procurement training seminars for local and state government agencies.
Glance
Grant Type: REDA
Office Awarded:
Maryland Department of
Business and Economic
Development
To build upon this foundation and provide leadership in the state on recycling market
development issues, Maryland received a Jobs Through Recycling (JTR) grant in 1994 to
establish a Recycling Economic Development
Advocate (REDA) position within the Maryland
Department of Business and Economic
Development (DEED).
During the grant period, the REDA offered
information to businesses about available state
resources and provided access to a network of
market development contacts. In addition, the
REDA was an active member of the Maryland
Market Development Task Force, helping to
develop a strategy to promote recycling market
development in the state.
Targeting wood, drywall, mixed paper, roofing
shingles, and produce residuals, the REDA
helped create a thriving recycling industry in
Maryland, providing assistance to more than 340
companies. The REDA's efforts helped create
more than 230 jobs, build more than 60,000
tons in additional processing and manufacturing
capacity, and generate more than $12 million in
capital investments for recycling businesses.
PROGRAM ACTIVITIES
The REDA created the Recycling Industry
Development Program in conjunction with the
Maryland Department of the Environment
(MDE) to assist existing recycling businesses and
attract new companies to Maryland. As part of
this effort, the REDA established the Resource
Availability Packaging (RAP) program for busi-
nesses. RAP program services included financing
assistance, workforce training, siting, product
marketing, technology transfer, and productivity
and quality management assessments.
PrqjeotPf
Maryland Department of the
Environment
Year Awarded: 1994
Fu-Kflncp
$ 74,000 in EPA funding
$ 56,000 in state funding,
$130,000 in total funding
Materials
Wood
Drywall
Mixed Paper
Roofing Shingles
Produce Residuals
Contact Information
Virginia Lipscomb
Maryland Department of
the Environment
2500 Broening Highway
Baltimore, MD 21224
Phone: 410 631-3315
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JOBS THROUGH RECYCLING
ASSISTANCE PROVIDED
Business Management and Technical
Assistance
When assisting a business, the grantee
typically assembled a team of experts to
identify the company's needs and present
state resources for assistance. Through
the RAP program, the REDA reviewed
business plans, offered permitting guid-
ance, and matched recyclable material
suppliers with manufacturers. The
grantee also provided additional infor-
mation on recycling laws and programs,
data on recycling collection, key public
and private contacts in the industry,
and waste management services.
Assistance ranged from in-depth onsite
visits to consultations over the phone.
Financial Assistance
RAP program staff assisted businesses
with locating financing through a series
of state-based funding sources available
to Maryland businesses that generate
employment and create capital invest-
ment in the state. Financing options
include tax-exempt revenue bonds, loan
insurance programs, and matching
funds for research and development.
The grantee also provided businesses
with access to regional resources and
federal programs.
Publication and Promotion
The REDA operated an outreach and
education program called Operation
Market-Ed. As part of this broad-based
campaign, the grantee frequently spoke
at conferences and seminars. In fact, the
REDA participated in more than 26
events and used a variety of tools
including a market development
brochure, a recycled products display,
and a recycling market database. The
display contained photographs of recy-
cling facilities and technologies, recy-
cled product samples, and economic
development program information.
During the grant period, the REDA
distributed more than 2,000 brochures.
CHALLENGES OVERCOME
• Difficulty in tracking information.
To address the difficulty in tracking
progress, the REDA developed a data-
base with information on the processors
and manufacturers in the state, includ-
ing contact information, facility size,
capacity (in tons), utilization rate, and
details on communication with the
company. The database served as a flex-
ible tool to track both routine and
more in-depth assistance. It also was
used to generate various reports on spe-
cific recycled materials.
Through the RAP program,
the REDA provided financing
assistance, workforce training,
siting, product marketing,
technology transfer, and
productivity and quality
assessments.
Keeping recycling a priority.
Raising awareness about the success
of recycling was a major challenge
for the REDA. According to the
grantee, you can never do enough
marketing, outreach, and education.
It is difficult to keep the attention of
key audiences, such as elected offi-
cials, in light of so much other com-
peting information. The REDA also
found it critical to continually edu-
cate colleagues and attract attention
to the success of the state's program.
Being creative and thinking strategi-
cally helped the REDA achieve success.
LESSONS LEARNED
• Recycling market development takes
time. Attracting new prospects to the
state required significant staff time
and resources. The grantee consid-
ered the time an investment, howev-
er, because efforts do not always
show immediate results. The REDA
estimated that the state's program,
beyond what was accomplished to
date, will result in an additional $25
million in new investment and 181
new jobs after the grant expiration.
• Network. The REDA used interper-
sonal networks for outreach. Links
with interested groups, such as the
Institute for Scrap Recycling
Industries, created opportunities for
speaking engagements and network-
ing with members. These contacts
eventually became clients or made
referrals to the REDA. Knowing the
trade organizations, participating in
trade shows, and attending confer-
ences provided opportunities for the
grantee to talk with business and
industry to learn about their issues.
• Understand economic development
issues. The grantee found that recy-
cling market development staff
hired from environmental positions
usually understand the JTR initia-
tive from an environmental perspec-
tive, but often do not have a strong
grasp of economic development
issues. Economic developers look at
the recycling industry in terms of
jobs, productivity, and balance
sheets rather than tonnage and
diversion. REDAs need to under-
stand economic development issues
such as financing mechanisms with-
in their state and where to find
assistance with reviewing business
plans and financial data. Under-
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JTR GRANTEE SERIES: MARYLAND
standing economic development was
crucial to establishing credibility for
the program and effectively assisting
businesses.
Market development is small busi-
ness development. As the bulk of
businesses are small to medium, pay-
ing attention to the resources avail-
able to this segment of industry is
critical.
Focus on materials that matter. Use
state information on quantities of
recyclable materials collected to prior-
itize marketing efforts—but still be
open-minded. Listen to entrepreneurs
for new ideas, whether they are
"back-of-the-envelope" plans or ideas
from more established companies.
Also, look at market trends and try to
understand the market issues of dif-
ferent industry sectors. This will help
you advocate on behalf of priority
industry sectors.
Only report approved figures. In
reporting on the results of your assis-
tance, use numbers that states, local
governments, and businesses are will-
ing to issue in public. Understand
that economic development
data, such as number of
employees and
investment dollars, are variable and
subject to change. In grey areas, use
your best judgment.
Understanding economic
development was crucial to
establishing credibility for
the program and effectively
assisting businesses.
ACCOMPLISHMENTS
During the grant period, the REDA
helped businesses create and retain
more than 230 jobs, stimulate more
than $ 12 million in new capital invest-
ment, and generate 350,000 tons per
year of new capacity. In total, the
REDA provided business management,
financial, and technical assistance to
more than 340 companies. Through a
variety of outreach activities and direct
technical assistance, the REDA
provided a significant boost to recycling
market development in the state. In
addition, the REDA boosted the level
of interest in the recycling industry
among state agencies, particularly
DEED.
PROGRAM FUTURE
Based on the success of the REDA,
DEED continued to fund a position to
work on recycling market development.
This, however, is only one of several
areas on which this person will work. In
addition, EPA awarded a second JTR
grant to MDE in 1997 to fund a mar-
ket development specialist. This indi-
vidual will conduct a variety of projects
including materials matching, econom-
ic development training, and outreach
on environmental issues. For more
information on the 1997 grant, contact
Cliff Dowlingat410 631-3315.
Total Number of Businesses Assisted:
Financial and Training Assistance:
Full-Time Equivalents
Created or Retained:
Amount of Capital Invested:
Volume of New Capacity Created:
Volume of Secondary Materials
Actually Used:
342 organizations
$1.2 nrillicnin financing
237 jobs
$12.2 rrillicn
35QOOO tons per year
9Q1OO tons per year
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JOBS THROUGH RECYCLING
Partners
"The REDA helped our company manage its business for the future. "
MURRELL SMITH
Chesapeake Paperboard Company
Founded in the early 1900s, the Chesapeake Paperboard Company is a
privately held paperboard mill located in Baltimore, Maryland. The com-
pany manufactures recycled-content paperboard that is converted into fold-
ing and setup boxes, notepads, tablet backing, and other products. The
mill utilizes a range of recycled materials, including mixed paper, collected
through the city of Baltimore's curbside recycling program.
The REDA assisted the Chesapeake Paperboard Company in taking advantage of
state financial assistance options and identifying programs to upgrade the skills of
its workforce and modernize its equipment.
With the assistance of the REDA, the company was able to:
• Secure a $4 million tax-exempt industrial revenue bond through the state's
Energy Financing Administration. With the tax-exempt industrial revenue
bond, the Chesapeake Paperboard Company was able to
retain its 130 employees. Since that time, the company
has expanded by adding 20 new employees.
• Register for the state's ISO9000 consortium pro-
gram for businesses. This program focuses on how
to develop and implement an ISO9000 quality sys-
tem. The company plans to use its certification as a
competitive advantage and to establish an internal
quality assurance program.
• Receive a $10,000 training grant from the state through the Partnership for
Workforce Quality program. Under this program, a business can be reimbursed
for up to 50 percent of its costs for employee training (e.g., through courses,
seminars, and manufacturing training programs). The company intends to use
this program to train mill mechanics on skills related to pipe fitting, welding,
drive gears, and pumps through courses and laboratory exercises.
Today, the Chesapeake Paperboard Company provides significant economic bene-
fits to the community with expenditures of roughly $7 to $8 million per year on
labor, raw materials, and supplies. In addition, the company provides a strong
demand for the paper recycled by Baltimore-area citizens every day.
Maryland Department of the
Environment—This agency
served several roles in the JTR
program, including providing
recycling data to help identify
sources of supply, serving as a
key link to county recycling
coordinators, strengthening
communication between envi-
ronmental and economic devel-
opment departments, building a
database on recycling compa-
nies, assisting with market pro-
motion, and encouraging the
procurement of recycled-content
products.
University of Maryland
Technology Extension
Service—Staffed by civil,
mechanical, and electrical engi-
neers, this group worked with
the REDA to provide free,
onsite technical assistance to
recycling businesses. Through
this extension service, the REDA
also gained access to university
faculty with expertise in recy-
cling processing and facility
design.
Six Regional Technology
Councils—The REDA worked
with these councils to provide
manufacturing and technology-
based businesses with access to
educational forums, conferences,
and networking opportunities.
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