United States Environmental Protection Agency Solid Waste and Emergency Response (5306W) EPA530-F-98-005 September 1998 www.epa.gov/jtr JTR Grantee Series Delaware JOBS THROUGH RECYCLING The U.S. Environmental Protection Agency's (EPA's) Jobs Through Recycling (JTR) grant awarded to the state of Delaware in 1994 was the beginning of a new era for environmental programs in the state. Prior to receiving the JTR grant, Delaware did not have resources to promote recycling markets or indi- vidually assist businesses in manufacturing products from recycled materials. Despite the signing of a statewide executive order in July 1990 recommending recycling as a means of reducing waste materials and mandating the establishment of a comprehensive recycling pro- gram, the state did not set measurable goals until it received the JTR grant. At the outset, the Delaware Recycling Economic Development Advocate (REDA) established the following goals: • Double the number of Green Industries Initiative (Gil) businesses statewide. Gkiftce Types REDA Office Avuarctect Delaware Economic Development Office • Create 125 new jobs. • Facilitate the investment of $5 million in recycling capital. • Gain a statewide consensus on recycling market development. Under the JTR grant, the REDA expanded the state's Gil to retain and create more than 150 quality jobs, generated capital investments for recycling-based businesses worth over $10 million, and increased business participation from 7 to 24 approved applicants. PROGRAM ACTIVITIES The Delaware REDA provided assistance to busi- ness in the following two primary areas: Technical and Financial Assistance Established prior to the JTR grant, Gil embod- ied the first real attempt to promote recycling- related industry in Delaware. Begun as a coopera- tive effort between the Department of Natural Resources and Environmental Control (DNREC) and the Delaware Economic Development Office (DEDO) in 1992, Gil was strengthened through the 1994 JTR grant. PrqfedtP* Delaware Department of Natural Resources and Environmental Control Year Awarded: 1994 Fu-Efincp $74,000 in EPA funding $25,000 in state funding $99,000 in total funding Materials Targeted: Organics and Compost Waste Tires Plastics Evadne Giannini Delaware Economic Development Office 99 Kings Highway Dover, DE 19901-7305 Phone: 302 739-4271 Fax: 302 739-5749 E-mail: egiannini@state.de.us Web site: www.state.de.us/ dedo ------- OBS THROUGH RECYCLING The technical and financial assistance provided by the grant fostered recycling markets and promoted the further establishment of Gil businesses. Gil requires businesses to demonstrate a serious commitment to recycling and environmental issues in exchange for technical and financial assistance. Businesses provide information to the REDA on what efforts are being made to increase recycling, including adding recycled-content feedstock to a manu- facturing process or opening a recy- clable commodity processing facility. Through Gil, the REDA provided technical assistance including siting, employee training, expedited environ- mental permitting, and marketing assis- tance. In addition, the REDA provided assistance in obtaining tax abatement and credits, loans, and financing. The REDA assisted scrap tire processor Magnus Environmental, for example, with siting, locating feedstock, and per- mitting. As a result, Magnus added 21 full-time employees to its staff. That facility also helped alleviate stockpiles of waste tires throughout the state. The REDA believes that outreach changed industry's perception of the state and enhanced the profit-making capability of the recycling industry. In addition to recycling market devel- opment information, the REDA assist- ed businesses with equipment, sourc- ing, and commodity information and, thus, became Delaware's designated state recycling expert. Promotion and Publicity The REDA promoted available recy- clable commodities to businesses that could use them in their manufacturing processes. In addition, the REDA helped develop all facets of the recy- cling business (i.e., collection, process- ing, and marketing). The REDA's abili- ty to network with state businesses and create new alliances allowed a building of trust that facilitated significant gains in recycling market development statewide. CHALLENGES OVERCOME • Strained public and private relation- ships. Prior to the grant, Delaware business and industry organizations had difficulty finding reliable infor- mation on recycling issues. Slow response to that issue by the state left strained relations between the public and private sectors. The REDA addressed the issue by offering tech- nical assistance to businesses request- ing information. The REDA believes that outreach changed industry's per- ception of the state and enhanced the profit-making capability of the recycling industry. • Lack of tracking tools. Once at the Economic Development Office, the REDA had no means of tracking recycling efforts electronically. The REDA understood, however, the need to keep track of assistance and core measures and kept a diary of contacts and activity to help track assistance and followup. The con- tact diary formed the basis of the networking database the REDA now uses to gather the data neces- sary (e.g., jobs, investment, arid recovery rates) to measure success. Partners The REDA partnered with the fol- lowing organizations to promote economic development opportuni- ties with recycling: • DNREC—DNREC was the grantee's primary program partner, providing permitting support for Gil businesses and prospects. The REDA worked with several sec- tions of DNREC, including solid waste, air quality, and wetlands, to find recycling options or markets for waste materials. Successful cooperative efforts ranged from permitting to identifying compost supplies for wetlands mitigation projects implemented due to road projects in the state. • University of Delaware (UD) Extension—UD Extension worked with the grantee on the creation of the Composting Association of Delaware (CAD). CAD is dedicat- ed to promoting composting in Delaware and is composed of 35 active organizations representing commercial, municipal, university, and other interests. • Delaware Manufacturing Alliance (DMA)—DMA worked with the REDA to promote recy- cling options for manufacturers in Delaware. The REDA developed business waste assessment pro- gramming for DMA members using EPA WasteWise program materials. The REDA also worked with DMA to find answers to a pallet waste issue that plagued Delaware manufacturers. Waste reduction opportunities included pallet repair and reuse as well as composting of scrap pallets. ------- JTR GRANTEE SERIES: DELAWARE LESSONS LEARNED • Find your network. It is important to expand business and industry contact networks to ensure successful recycling economic development programs. Networks can educate, generate leads, and set up potential outreach opportunities. • Position the recycling industry as a legitimate enterprise. The needs of the recycling industry must be taken seriously by the state. The REDA's approach was to "only talk about commodities, not solid waste." This approach put the REDA in a better position (by avoiding the use of the terms "trash" or "waste"), because of the emphasis on the value of recy- clable materials and recycling's viabil- ity for Delaware industries. Networks can educate, generate leads, and set up potential outreach opportunities. I Gather and maintain quality data. Accurate assessment of recyclable commodity ton- nages within the state is essential for the recruit- ment of new businesses. Without accurate avail- able feedstock informa- tion, new prospects cannot assess actual market status and opportunities. Prospects are more likely to invest in recycling opportu- nities within a state that maintains accurate information. ACCOMPLISHMENTS The REDA believes that the institu- tionalizatiori of Gil was the greatest accomplishment of the 1994 JTR grant. In addition, the REDA notes two major environmental benefits dur- ing the 1994 grant period. First, help- ing site a processing facility for waste tires addressed the nagging problem of tire stockpiles, which had caused tire fires in the past. Second, increasing recyclable materials diversion from Delaware landfills benefited the state by extending landfill life and promoting more efficient use of resources. PROGRAM FUTURE The REDA's position received state funding in June 1996. The position is now being sustained within the Economic Development Office, which continues to advocate the Green Industries Initiative and recycling mar- ket development. The REDA now plans to search for another niche in which to develop quantifiable results. With state backing assured, the REDA will contin- ue to prove the importance of recycling market development in Delaware. Prospects are more likely to invest in recycling opportunities within a state that maintains accurate information. Delaware also received a 1997 JTR grant from EPA. Several major activities are planned under the new grant includ- ing development of a recycled commod- ity resource information system, market development efforts for construction and demolition waste material, and a plastics conversion project. Full-Time Equivalents Created: Part-Time Jobs Created: Amount of Capital Invested: Volume of New Capacity Created: Paper Plastics Wood Tires Total: Weight of Waste Diverted From Disposal: Short-Term Assistance In-Depth Assistance 154 jobs 4Ojobs $1(X1 nrillicnin new capital investment SO^OOOtons per year 1QOOO tons per year 15,000 tons per year SQOOOtons per year 1O5,OOO tons per year 228,508 tons per year 68 businesses assisted 15 businesses assisted ------- JOBS THROUGH RECYCLING CHRYSLER CORPORATION CHRYSLER CORPORATION, NEWARK ASSEMBLY PLANT Chrysler Corporation manufactures automobiles at its Newark, Delaware, assembly plant. Gary Eberhard, Solid Waste Specialist for Chrysler, began coordinating the waste management effort at the Newark plant in 1990. At that time, Chrysler was spending $1.2 million annually for disposal of waste materials. Within the first year, Chrysler saved $800,000. In 1997, Chrysler spent only $240,000 on disposal charges. The Delaware REDA assisted Chrysler in the following ways: • Finding Wooden Pallet Markets and Durable Pallet Manufacturers. The REDA worked to find reuse, recycling, and durable pallet options. Prior to the REDA's assistance, Chrysler disposed of 3,000 pallets daily. The REDA helped trim that number down to 900 outsourced for repair and reuse. The REDA found Chrysler a pallet refurbisher, which now receives 33 tons of pallets daily from Chrysler. The exchange created two new jobs at the pallet processing facility. • Finding Tire Disposal Alternatives. One notable waste reduction effort transforms waste tires into a commodity. Six hundred tires per year are sent to a tire reprocessing facility. "The REDA is an important part of Chrysler's efforts to find markets for recyclable commodities." GARY EBERHARD Solid Waste Specialist, Chrysler Corporation, Newark Assembly Plant CONTACT Gary Eberhard Solid Waste Specialist Chrysler Corporation 550 South College Avenue RO. Box 6040 Newark, DE19714 Phone: 302 453-5251 Fax: 302 453-5122 alist e FIRST STATE RECYCLING F irst State Recycling is a processor arid broker of preconsurner plastics and other materials including film and corrugated containers. The REDA assisted First State with the following two major tasks: "The financing assistance the REDA helped us find was cru- cially important to our decision to locate in Delaware." RICHARD BASTIAN President, First Stale Recycling Siting and Funding. The REDA met two entrepreneurs interested in starting a recycling business in New Jersey or Delaware in 1995. The REDA helped them apply for the Gil and secure a state subsidized loan of $65,000, which provided important startup capital. The REDA also worked with the entrepreneurs in finding their first location and working out the details to make their startup relatively smooth. Markets and Promotion. The REDA assisted First State in expanding its base of markets by net- working the company with the REDA's in-state contacts. The REDA also helped promote the company in the state business journal. CONTACT Richard M. Bastian President First State Recycling 36 Germany Drive Wilmington, DE 19804 Phone:302777-1177 Fax:302777-1166 ------- |