United States      Solid Waste
          Environmental Protection and Emergency
          Agency         Response (5306W)
November 1999
&EPA   MarketShare:
          Tips and Advice from
          The Jobs Through
^^^H Recycling  Experience

  Developing a Sustainable Program	I
  Building Infrastructure and Networks .....  5
  Outreach	,,...11
  Business Assistance	 15
  Financing	„	 19
  Measurement  ....-,	25
  Sustainable Funding Options	29
  Putting It All Together	33
  MarketShare Contributors	35
              EPA would like to thank the following
       individuals for providing photographs for this publication:
G. Ted Baldwin, Bethlehem Steel Corporation; Dobbin Caliahan, Collins &Aikman,,
   Floorcoverings; Ted Campbell, South Carolina Department of Commerce;
 Rebecca Davio, Texas Department of Transportation; Todd Ellis, New Hampshire
   Governor's Recycling Program; Matt Ewadinger, North Carolina Recycling
 Business Assistance Center; Kent Foerster, Kansas Department of Health and
    Environment; Brenda Grober, New York State Department of Economic
 Development; Lee Guthrie, eel Productions; Mitra Khazai, Arizona Department of
 Commerce; Pat Langan, Nebraska Department of Economic Development; Carol
 Novak, ENVIPCO; Michael Owens, Clean Hawaii Center; Rachelle Shendow, Trex.

           MARKETS HARE:
   Recycling market development is a dynamic and

evolving field. Every day, state and local officials try

new ideas to spar investment in recycling and expand

markets for collected recyclables. At the same time,

these officials also have to consider the future and sus-

tainability of their own market development programs.

To capture tips and strategies for developing sustainable

and effective programs, this booklet documents the les-

sons learned by organizations that received grants

through the U.S. Environmental Protection Agency's

(EPA's) Jobs Through Recycling (JTR) program.
                     JOBS THROUGH RECYCLING
                    Through the JTR program, EPA offers grants to
                    states, tribes, and multistate organizations to pro
                    mote recycling market development across the
                    country. The projects, designed to enhance busi-
                    ness development, technical assistance, and
                    financing efforts for recycling-related industries,
                    include establishing recycling business advocates
                    and assistance centers, conducting demonstratior
                    projects, and holding investment forums.


             Many JTR grantees have learned that getting off on
             the right foot is critical. When a market develop-
             ment program is being set up, it is important to
             anticipate how the program will grow and evolve.
This helps lay the groundwork for a program that is both effective
and sustainable over the long term. Below are some ideas from
existing grantees for those just getting started:
  Start with a sound and realistic strategic plan.
   As part of its initial planning efforts, the New York grantee set
   specific milestones and benchmarks and determined how to
   measure success. A professional organizational development
   firm was hired to help craft a mission statement, set the pro-
   gram's priorities, and identify six commodities on which to focus.
  Establish an advisory committee.
   An advisory committee can help grantees secure important con-
   tacts, leverage resources, and stay clued in to changes and oppor-
   tunities in the marketplace. In New Hampshire, for example, a
   legislatively appointed steering committee supports the JTR
   grantee. The committee includes representatives from the state
   departments of transportation and administrative services, the gov-
   ernor's recycling program, a senator's office, a municipal recycling
   association,  and a private waste hauler. This diverse group meets
   every other month to provide guidance as the program evolves.
  Get the word out that the program is up and running.
   During the first few months, consider making outreach a priori-
   ty. In Minnesota, a fact sheet was distributed about the program
   and its services to contacts listed in a state directory of busi-
   nesses and to recycling officials. The grantee found this to be
   an efficient and cost-effective
   way to raise awareness  and
   increase name recognition
   among companies and
   potential partners. The
   grantee in Colorado invited
   the press and had high-pro-
   file leaders—including the
   EPA Regional Administrator,
   business leaders, and the
   director of the state's Office       ' -r .„•".,/,,,,      ':.,--
   of Energy Conservation—
   speak during its project kickoff meeting. The event was held at
   a high-technology paper processing firm to demonstrate the
   sophistication of recycling businesses. The resulting newspaper
   articles and other press coverage brought  dozens of calls from
   recycling business entrepreneurs requesting assistance.

  Learn about economic development if it is new to you.
   This effort might involve learning financing mechanisms or
   discovering where assistance is available for evaluating busi-
   ness plans. The Northeast Recycling Council (NERC) rec-
   ommends signing up for an economic development training
   course; courses are currently offered through the National
   Development Council, Dunn and Bradstreet, TRW, and
   Robert Morris Associates, among others. Conversely, learn
   about recycling if your specialty is economic development.
   Self-Help, a nonprofit community development bank in
   North Carolina, developed a briefing packet to help train fin-
   anciers on the recycling industry.
  Assess the waste stream.
   An assessment of a state or region's waste stream might help
   identify what materials are available locally. Arizona, for
   example, had little or no information about recycling markets
   until its Arizona Recycled Market Development Study was
   completed in  1996. The study, funded by a JTR grant, pro-
   duced a recycling market directory, economic impact study,
   and recycling market prospectus. As another example, the
   North Carolina grantee recognized that construction is a major
   industry in the state. As a result, staff worked with a company
   that was processing gypsum wallboard to manufacture new
   products such as industrial  spill absorbents and cat litter, and
   hosted a series of construction and demolition (C&D) recy-
   cling roundtables across the state.
  Target priority materials.
   Materials that comprise a major portion of the waste stream,
   add significant recycling capacity and economic value, and
   can be successfully collected offer the best chances for suc-
   cess. In Minnesota, the Recycling Business Assistance Center
   (RBAC) developed a very defined scope of work at first and
   targeted wood, plastics, and composites. Once established,
   the grantee expanded its focus to include other materials such
   as postindustrial wastes.

Commodity Targeting and Strategic Planning

   The Clean Washington Center  (CWC) uses a step-by-step
approach to commodity targeting  and strategic planning:
1.  Opportunity assessment. Thoroughly assess the opportunities
   for different materials. This should account for trends in the
2.  Stakeholder development. Build industry advocates and
   "make a broad circle" by involving a lot of stakeholders. In a

   Colorado demonstration project, for example, CWC brought
   stakeholders together to discuss the opportunities for pelletiz-
   ing plastic. The group decided that doing so would have no
   net impact on the markets so it abandoned the project before
   significant time and resources were wasted.
3.  Prioritization. Carefully  prioritize which products to focus on.
   Develop both short- and long-term strategies. A lot will
   depend upon available resources.
4.  Pilot projects.  In real life,  projects never work like they do "on
   paper." Conduct a pilot  project first to test out new ideas.
5.  Process. Have a process in place that can be revisited and
   refined. Make the critical links throughout the recycling chain
   from generators to end markets.
  JTR grantees in North Carolina,
  Nebraska, and Arizona advocate
  learning the right "language" to talk
  with economic developers—using
  terms such as  "entrepreneurs," not
  "recyclers." Economic development
  officials view the recycling industry as
  they do other industries—in terms of
  jobs, productivity, and balance
  sheets—not in terms of landfill space
  savings or tons diverted.
  To learn the right language, the North
  Carolina RBAC notes its staff mainly
  learned "on the job" by talking and
  networking with people. The grantee
  also held a series of workshops for
  economic development officials on
  recycling market development, which
  helped RBAC  staff become more
  familiar with the views and perspec-
  tives of the economic development




      JTR grantees are maximizing their resources by joining
      forces with those who have similar programs or goals. Many
      have found these contacts important for sustainable funding
      as well as for providing technical and financial assistance to
clients. A wide network of partners helps attract potential clients,
garner resources, and enhance  credibility in the eyes of funders.
   Tips and strategies to build  a strong infrastructure and net-
work include:
  Consider joint implementation of projects.
   The Arizona grantee brought members of the Arizona
   Department of Commerce (DOC) and Department of
   Environmental Quality (DEQ) together at the outset of the
   grant, forging a new partnership. Over the life of the grant,
   DEQ focused on collecting recycling market data and infor-
   mation, while DOC used its networks to communicate this
   information to recycling businesses. DOC worked through its
   regional contacts as well as local economic development
   agencies such as the Greater Flagstaff Economic Council.
  Learn the terrain.
   According to the Oregon grantee, knowing to whom to refer
   companies is often the most efficient approach to providing
   assistance. When assisting a business in siting a facility, for
   example, he did not learn where all of the vacant buildings
   were in the state, but rather who had access to this informa-
   tion. In addition, the demand for one-on-one business assis-
   tance in Oregon was higher than originally anticipated. In fact,
   businesses began asking for assistance the first week of the
   project. As a result, the grantee served as the primary link to
   other service providers in the state. The Delaware Recycling
   Economic Development Advocate (REDA) put together focus
   groups consisting of recycling industry and economic develop-
   ment professionals to learn about their jobs and current issues.

                             KEY      TTR
ina ousmess development groups, among Diners, eeiow is a nsi OT
Dossible project partners:
•  State commerce and economic development agencies
              grantee advocates learning "who's who" wr
   state economic development agency and identifying inc
   involve. In particular; it is key that the agency's upper management
   fully understands the contribution of recycling businesses to state
   economic development. Learning about available resources—both
   within and outside of the agency—also is important. The Ohio
   grantee, for example, examined the resources available and found
   the Ohio Department of Development helps administer at least
   two recycling-related grant and loan funds. North Carolina's
   Department of Commerce provided many agency resources to
   the grantee such as air and ground transportation to tour facilities
   and sites across the state.
•  Legislators. Since legislative decisions can often determine
   financial resources for state programs, fihdirigj eh£twr>lnn in thp
   state legislature  can go a long way towStPdifiMe^ifig, sybiamauie
   program funding. The Minnesota RBAC notifies1 legislators of
   projects in its districts and  invites them to media events and
   facility tours. South Carolina's Department of Commerce sug-
   gests sharing successful recycling  market development programs,
   in state or out, with legislators. When dealing with legislators,
   ensure they are aware of the  benefits of such programs includ-
   ing efficiencies, jobs, and capital formation.
•  Other state agencies. Both the Minnesota and North Carolina
   "3ACs successfully partnered with their state departi
   transportation to find markets for asphalt shingle was
   South Carolina grantee worked  with the state energ;
   among other partners, when conducting its investme
   Another option is to partner with state departments OT agricul-
   ture for compost-related projects.
•  Local businesses. Local industry can be an ally of the program,
   according to the South Carolina grantee, if they perceive it to
   be beneficial to them. For this reason, the grantee recommends
   helping local industry with waste  management and recycling
   issues and publicizing the results.

     •   Nonprofits and trade associations. These groups have a
        wealth of technical and commodity knowledge. The California
        RBAC works closely with the Community Environmental
        Council, a nonprofit organization involved in environmental
        education, research, and technical assistance. Many grantees
        work with their state recycling organizations (SI
        National trade associations, such as the American Plastics
        Council (ARC), also have played a role in JTR projects. ARC
        assisted the Vermont grantee with  improving the efficiency of
        agricultural film plastics collection.
     •   Local agencies. In Maryland, local solid waste management pro-
        grams helped the grantee link to residential sources of supply
        for recyclable materials. Other ootions include small business
        development centers (
        zone administrators, ar
     •   Universities. Hiring a                 instead of an outside
        contractor can save significant resources. The Rhode Island
        grantee, for example, teamed up with the University of Rhode
        Island  (URI) to research a new electronics disassembly center.
        The arrangement also allowed the state to work with URI's
        engineering department, a national  leader in design for the
        environment issues. University extension services can offer
        assistance, as well. The University of Vermont Extension
        Service worked with the Vermont  grantee to develop a cost-
        effective plastics recycling program. These services often pro-
        vide onsite visits, group workshops, and publications-.
        Environmental Careers Organization  and
        AmeriCorps  volunteers also can be helpful in
        leveraging assistance.
        Other partners. Investors sat on the Selection and ste.
        committees of the investment forums conducted by N
        planning the investment forums, these partners helped
        improve NE
        expect from businesses. Trade associations provided funding
        and assisted in finding businesses to participate. Also, 15
        investor networks helped to distribute brochures and promo"
        the investment forums.

Increase your involvement.
 Joining boards of SROs and other groups helps build a contact
 base and strengthens relationships. The Iowa grantee, for exam-
 ple, is a board member of the Iowa Recycling Association. She
 credits that participation with learning recycling information and
 data and reaching recycling businesses. Also, become familiar
 with the agendas of community development corporations.
 When attending trade shows, make it a point to meet more peo-
 ple and ask lots of questions.
Avoid or minimize turf issues through a memorandum
of understanding.
 Memorandums of understanding (MOOs) can help define the
 roles of different organizations and clarify who's doing what.
 The North Carolina RBAC, for example, developed an MOO
 with the state department of commerce at the outset of the
 grant to clarify how the two would work together to meet their
 overall goals. Subsequently, the RBAC has entered into a simi-
 lar MOO with the North Carolina Small Business and
 Technology Development Center. This strategy helped the
 RBAC lay the groundwork for collaboration.




    A   targeted outreach campaign is critical to the success of any
   / \  market development effort. Staff of the California RBAC,
  /  \ for example, attended 241 conferences and workshops—in
JL    mJhe course of the JTR grant—to  promote its services to the
recycling and economic development communities. Be sure to identi-
fy partners, such as state public information staff or others in the
economic development community, to help get the word out. Below
are some other outreach ideas that have worked for JTR grantees:
  Develop an outreach strategy.
    Identify the target audiences and how best to reach them.
    Options include outreach materials (e.g., brochures, newslet-
    ters, market directories, job and business studies), presenta-
    tions (e.g., seminars, conferences, legislative sessions, special
    commissions), and the general media (e.g., newspaper, jour-
    nals, TV, radio). Other options range from incorporating infor-
    mation into an existing state Web site to sending e-mails or
    posting list server messages. The North Carolina RBAC even
    launched its own Web site at  

Be creative in reaching businesses.
 According to the Wisconsin Department of Commerce, target-
 ed marketing efforts (e.g., ads in computer and electronics
 publications) and fact sheets work well. The California grantee
 suggests reaching businesses by focusing on the supply chain
 instead of manufacturers—especially since many companies
 are beginning to outsource materials. Another suggestion is
 working through other service providers such as
 Manufacturing Extension Partnerships (MEPs).
Focus your outreach efforts on the business community
instead of "recyclers."
 The JTR grantee in Virginia suggests joining and participating in
 economic development groups, trade associations, chambers of
 commerce, and other business organizations. Avoid "preaching
 to the recycling choir" type presentations. Finding a business to
 "champion" your program also can be an effective strategy.
Recognize and seize opportunities.
 Take advantage of issues in the news or the companies that
 make it. The North Carolina RBAC, for example, capitalized
 on the recent media attention on hog farming by initiating a
 new research and development project designed to neutralize
 hog waste using gypsum drywall scrap. In addition, working
 with a high-profile national company can make program pro-
 motion easier. The Delaware REDA worked with the Chrysler
 Corporation to find alternative markets for its waste tires.
 Dealing with waste tires in a positive way generated a lot of
 support, since the issue of tire disposal had captured the
 attention of many in the  state, including legislators.
Keep outreach materials clear and concise.
 NERC publishes an engaging one-page newsletter for
 investors and the financial community highlighting the eco-
 nomic and financial benefits of recycling. The New Hampshire
 grantee publishes a companion newsletter that is sent with the
 NERC bulletin to targeted groups in the state. The New
 Hampshire newsletter highlights new publications, upcoming
 meetings and conferences, and funding opportunities. Sending
 both together reduces mailing costs and provides recycling
 businesses, legislators, and other contacts with one package
 containing both regional and state recycling news.
Consider the Small Business Administration and Small
Business Development Center networks.
 Another way of reaching out to businesses is through these
 networks, as these are places small- and medium-sized busi-
 nesses commonly go for assistance.

      ^VS SI STAN
'" J>-4~,U/' H.W *l!~^>

   A    t times, assisting recycling businesses can seem like a
  / \  juggling act—trying to meet the needs of a large, yet
  /  \  diverse set of companies in light of budgetary con-
JL     m^traints, changing market dynamics, and emerging
trends in the recycling industry. JTR grantees provide the fol-
lowing suggestions to help address some of the day-to-day
  Prioritize business assistance.
   Based on the market development experience of Metro, a
   regional government in Oregon, for every 500 entrepreneurs
   you make contact with, only 5 have a legitimate chance of
   success.  Metro recommends targeting the top 20 percent
   rather than spending superficial effort with a larger number of
   companies. Focus on companies that have done the following:
        •  Completed significant market research.
        •  Attained sufficient equity.
        •  Completed a well-developed business plan.
  Be patient when working with companies.
   It takes time to identify prospective
   companies and work through the
   recruitment process. An Ohio grantee
   notes it can take more than 3 years
   for a business to get established and
   begin to make sales. Stay in touch
   with businesses along the way; con-
   ducting site visits helps identify prob-
   lems. On his  second day on the job,
   the Oregon grantee visited a compa-
   ny considering building a recycling
   facility in the state. After 2 years,
   when the JTR grant period ended, the
   company was still considering mov-
   ing to the state.
  Help companies focus efforts.
   The Maryland REDA found that recy-
   cling companies tend to deal with new
   materials as they become available rather than developing a
   consistent business with the same material and customers
   over time. As a result, providing information on supply, pric-
   ing, and changes in the regulatory environment was key to
   success. Also, help companies focus on the product they are
   producing, not the source of supply.

Accompany businesses during meetings with financial
 The Nebraska grantee learned the importance of being
 involved when it's time for businesses to present their loan
 application to a lending institution. It can help companies
 ensure their loan applications are presented clearly and effec-
 tively, since a banker's first reaction to something unknown or
 not fully understood might be to deny funding. By offering
 third-party expertise, and being there for the presentation, you
 help give startup companies added credibility.
Be flexible in light of changing market dynamics.
 The prices of recyclables, like many commodities, vary great-
 ly from year to year. The New York JTR grantee conducted
 detailed annual assessments of New York's recycling markets
 to track market dynamics and adjust its yearly project priori-
 ties accordingly. In addition, factor in the strength or weakness
 of local recycling markets. The Vermont grantee encountered
 a major barrier trying to secure end markets for recycled plas-
 tics because of price volatility.
Conduct targeted workshops.
 The California RBAC conducted workshops focusing on differ-
 ent recycling issues, such as deconstruction, which brought
 together local governments, recyclers, financiers, and other
 stakeholders. Targeted workshops can help grantees build a
 market infrastructure, establish a network of service providers,
 and become better educated about a particular sector of the

The Clean Washington Center
  :WC) recommends understanding
material quality and the technical issues
involved with recyclables. It identified,
for example, the engineering proper-
ties (e.g., strength,  compaction, pro-
cessing capabilities) of dozens of types
of glass to assist the glass industry. It
also notes that many products must
undergo a rigorous process of
American Society for Testing and
Materials (ASTM)  product testing.
As one example, CWC worked with a
company that manufactures basketball
courts made from recovered materials.
Several NBA teams have played on
the surface and all liked it. Even so, the
product is currently going through the
ASTM process, which could take years
                                        ,. MtW
                                    •to '


       For JTR grantees, increasing investment in recycling busi-
       nesses is a high priority. Potential sources of capital
       include individual investors, commercial banks, commu-
       nity development banks, and venture capital and equity
financing. Grantees suggest the following to help businesses navi-
gate the various alternatives:
  The more developed the business plan, the higher the
  chances for funding.
   The key to obtaining funding is to have the most solid, thor-
   ough, and well-prepared business plan possible, regardless of
   the industry, according to the JTR grantee in Nebraska. Banks
   are primarily concerned with one thing—getting paid back. If a
   company can show it is credible, stable, and has the collateral
   and potential to pay the loan back in the specified amount of
   time, it is likely to obtain funding.
  Diversify funding sources.
   The financial community is less likely to fund projects (espe-
   cially startups) that lack funding from a number of sources.
   Banks are more likely to participate if their risk is lowered. A
   bank will be more interested in
   lending money, for example, if
   it is asked to fund less than 50
   percent of a project but hold
   the first lien on buildings and
   During the North Carolina
   Recycling Financing Project,
   Self-Help, the state's commu-
   nity development bank,
   approved more than $1.6 mil-
   lion in direct loans and lever-
   aged an additional $2.6 million
   in private capital for recycling-oriented businesses.
  Hire a staff member with financial community work
   A new Minnesota staff member knew from past experience
   which banks in the area tended to loan money to startup
   companies and at which banks recycling projects would have
   the best chances for approval. His experience helped the
   RBAC assess startup companies through the eyes of lending

Offer investment forums.
 To date, the South Carolina Department of Commerce has
 conducted three investment forums to introduce entrepreneurs
 to potential investors. In addition to possible financing, the
 forums offered media exposure, training, and networking
 opportunities. Below are a variety of tips and strategies:
      •  Set realistic expectations.
      •  Establish a selection committee early with represen-
         tatives from banking and investor communities.
         Begin identifying sponsors and set a date at least
         1  year prior to the event. Sponsors can provide valu-
         able financial support.
 The North Carolina grantee developed
 a valuable partnership with Self-Help to
 provide financing to the recycling indus-
 try The bank often  acts as a sounding
 board for businesses, providing business
 counseling. Self-Help, unlike traditional
 lending institutions, is willing to spend
 more time with  recycling businesses
 because it has a  better understanding
 of the industry It also can afford to be
 more speculative since, as a nonprofit
 organization, it can borrow at lower
 rates than traditional banks.
 Working with Self-Help, the grantee is
 establishing a dedicated loan fund for
 recycling businesses. The fund is
 designed to help recycling companies
 that have difficulty obtaining financing
 from other sources. Self-Help has
 found that its loans also can help lever-
 age other loans. Commercial banks are
 increasingly willing to sponsor loans
 with Self-Help's  involvement, as it lends

         Be selective. Maintain a high standard of quality for
         participating businesses. Place an emphasis on
         business plan development and work with other
         service providers in the state to help businesses
         develop solid plans.
         Train businesses in their presentations beforehand.
         Many forums offer opportunities for businesses to
         rehearse their presentations and receive construc-
         tive feedback from two or three investors and fellow
         presenters. NERC found this to be a valuable exer-
         cise whether a company has been in business 30
         years or is just getting started. Many businesses are
         initially reluctant to participate, but later say how
         rewarding it was to get direct feedback.
         Promotion and outreach are key. Be sure to provide
         ample lead time and work closely with partners to
         get the word out. Conduct joint advertising with
         other forums and secure advertising support from
         trade journals.
         Use speakers at the event to educate recycling busi-
         nesses and investors.
         Establish a database to target businesses and
         investors. The biggest challenge is getting investors
         to attend.
         Follow through by publishing the proceedings and
         tracking the level of investment generated as a result
         of the event.
Document results.
 The North Carolina RBAC found it is not enough to speak to
 financiers in broad terms of job creation, resource conserva-
 tion, and landfill space savings. The grantee recognized the
 importance of providing the financial community with con-
 crete economic and financial information. One option is con-
 ducting a study to collect and document this information. The
 following state and regional economic impact studies might
 serve as useful guides: Massachusetts (1992), Maine (1993),
 NERC (1994), Florida (1996), Southern States Waste
 Management Coalition (1996), North Carolina (1996),
 Washington (1996), Arizona (1997), Iowa (1997), Nebraska
 (1997), and Minnesota (1997). For more information on a
 particular study, contact the appropriate state official listed in
 the back of this booklet.



            ,,,., iij-

       Strong program results help create promotional opportuni-
       ties and are crucial to requests for funding. Positive
       results also play a key role in recruiting new businesses
       to the state. There are a variety of options for measuring
the success of market development programs. Possible
approaches include documenting results in stories and anec-
dotes, using economic models, and examining environmental
measures such as energy savings and reduced pollution. A lot
can be learned by looking to other JTR grantees with measure-
ment experience.
  Experiment with data collection.
   NERC suggests exploring different data collection options to
   find the one that works best for you. Options include using
   forms and surveys (e.g., via fax, phone, or e-mail), conduct-
   ing repeated followups, getting a signed commitment from
   businesses upfront, setting performance targets, taking advan-
   tage of leverage (i.e., money or even credibility), networking,
   and using media contacts.
               JTR  PROFILES
   The New Hampshire Department of Resources and Economic
   Development was awarded a JTR grant in  1995 to establish a REDA
   position. Since that time, the grantee has been working to craft a
   practical and effective approach to measuring success. The grantee
   first tries to obtain data through casual conversations. She recom-
   mends sharing the questions with companies upfront and helping
   them measure by walking them through the process. Next, the
   grantee counts only those measures related to manufacturers and
   directly resulting from in-depth assistance. Every 6 months she pulls
   together core measures or results by reviewing her notes, contacting
   referral agencies, and calling companies directly. To  save time, she
   focuses on those companies she thinks will have results to report.
   The grantee has experienced difficulties in trying to reach small
   companies with limited resources, dealing with concerns about
   proprietary technology, and overcoming  a general reluctance by
   companies to share information. Despite these barriers, she
   offers a variety of helpful strategies: take  time to foster relation-
   ships, give respect to get respect, and learn to listen.

Develop a client-tracking database.
 A good database is key to measuring level of effort, progress,
 and results. It also  can greatly enhance business recruitment
 and assistance efforts. Use a client-tracking database to
 record assistance provided, store technical information, and
 generate reports on specific recycled materials or clients. The
 North Carolina RBAC uses a tracking form to record assis-
 tance provided and stores the information in a database. The
 team sends the tracking form with referrals so other organiza-
 tions can continue  to track progress with clients.
Track core measures.
 EPA's "core measures" can provide a helpful gauge of the
 success of JTR market development programs. The four core
 measures are jobs created, capital investment, volume of new
 recycling capacity created, and volume of secondary materials
 actually  used.  When making presentations to upper manage-
 ment and potential funders, the Minnesota RBAC recom-
 mends providing the core measures in aggregate to make a
 statement, but having the figures broken down by commodity
 as well. Minnesota further recommends presenting the meas-
 ures as economic, as well as environmental, achievements.
Foster strong relationships.
 With no grant or loan programs and limited funding, some
 states have no "carrots" to work with. In these cases, grantees
 must take time to foster strong relationships in order to gather
 information incrementally.
Anticipate possible barriers.
 There are a variety of challenges to measurement, which
 include finding the time, establishing a baseline, getting busi-
 nesses to report results, overcoming apprehension toward
 government, verifying numbers, defining measures in a stan-
 dardized manner,  and interpreting vague information from

                    TR PROFILES
The New York grantee uses a meas-
urement approach that might be help-
ful for other states with grant or loan
programs. Like many other grantees,
New York found it difficult to follow
up with  companies and obtain core
measure results. The state had no sys-
tem in place to aggregate its numbers
and satisfy requests for specialized
data. Out of this, the Recycling
Investment Program  (RIP) was born.
Through this program, New York pro-
vides grants for technical assistance,
research and demonstration projects,
and indirect underwriting of capital
equipment investments.
In allocating its grants, New  York looks
for a return on its investments and
weighs the risk of each grant carefully.
A key component of this program is
working with contractors (i.e., its
grantees) to set targets and  measure
results. As a first step, contractors
define the need and  scope of each
project.  Contractors then identify per-
formance targets that include a sched-
ule with milestones and methods to
verify data and progress toward goals.
All of this goes into New Yorks con-
tracts. In short, the RIP involves a lot
of upfront work but makes reporting
easy by forcing all parties to settle on
a measurement strategy at the outset.
The outcome-oriented framework
changes the role of government from
funder to investor

               „,  V,
               it** ,—'•>-,, ;4i''•".<

         Although there are several options for achieving long-
         term funding, tapping into state departmental budgets
         has proven to be the most viable option for most
         grantees. The Delaware and New Hampshire REDAs
are examples of JTR projects funded by the state agency as per-
manent positions after the term of the JTR grant. In addition to
this approach, consider the following options:
  Assess the feasibility of establishing a dedicated
  revenue source.
   While this funding option might take a lot of time and legwork
   to institute, its revenue potential is high and stable. In
   Wisconsin,  for example, recycling market development efforts
   are funded through a business surcharge through 1999. This
   fund has raised roughly $300 million, with a small percentage
   allocated to market development. Similarly,  in California all
   programs are funded through a surcharge on disposal. From
   this, a recycling loan fund will receive roughly $5 million per
   year until 2002.
  Leverage money or resources from other state and local
   Partner with other affiliated programs to leverage resources
   and take on joint technical assistance or demonstration proj-
   ects. The North Carolina RBAC and Self-Help jointly commis-
   sioned the North Carolina Recycling Business Study, which
   assessed the employment, capital demands, and technical
   assistance needs of the state's recycling companies. The
   RBAC provided $10,000 in direct funding while Self-Help pro-
   vided $10,000 in labor and in-kind services. The Wyoming
   grantee reached businesses through an existing SBDC course
   for entrepreneurs on how businesses can recycle and use
   recyclables. The Appalachian Regional Recycling Coalition
   invested $5,000 in a mobile baler as part of Virginia's grant.

Merge with other groups.
 This strategy can provide access to additional resources and
 networks. Faced with budgetary uncertainties, for example,
 the CWC transitioned from being a state-funded program with-
 in the Washington Department of Community, Trade, and
 Economic Development to a nonprofit organization within the
 Pacific Northwest Economic Region. This allowed CWC to
 broaden its scope of market development activities beyond
 the state of Washington.
Charge fees to generate revenues.
 To help offset the cost of business assistance, some grantees,
 such as NERC, charge a registration fee for workshops or a
 publication fee for documents. These fees should not be so
 high that they  discourage attendance or purchase, but enough
 that they partially cover the cost associated with the activity.
 This option is probably most appropriate for nonprofit recy-
 cling organizations.
Obtain funding from other sources.
 While grants can provide funding for both general activities
 and specific projects, they are not often long-term sources of
 funding. JTR grants, in particular, are intended as seed money
 rather than long-term funding options.



           Great economic rewards can be achieved through recy-
           cling market development. As this document illus-
           trates, however, there is no "magic formula" for
           developing a sustainable market development pro-
gram. Instead, successful programs take a multifaceted approach.
   Strong programs lay the groundwork with a solid plan that
identifies both short- and long-term goals. Flexibility is key,
regardless of whether a program is focused on technical and
financial assistance, research, or testing new "cutting edge" tech-
nologies. Another key to success is building a strong network of
partners—state agencies, legislators, nonprofit and trade associa-
tions, universities, and local businesses. Strong programs lever-
age the assistance of a  whole team of supporters. As a
complementary step, targeted outreach campaigns can help pro-
mote a program's successes—jobs created, increased  revenues
for the local tax base, new  technologies developed—to key audi-
ences such as state legislators.
   Successful programs draw from a whole range of funding
sources, including dedicated revenue sources, resources from
other state  and local programs, service charges, or grants from
other sources. Recognizing the power of information, these pro-
grams also have a system  in place to collect and measure results.
Information on the success of a program can be used  in a number
of ways—to demonstrate the benefits of a program, secure addi-
tional funding, or share breakthroughs with others in the field.
Program failures have value as well, particularly as lessons
learned so that others can avoid past mistakes.
   In that spirit, EPA hopes this document—developed by
grantees for grantees—will  help strengthen market  development
efforts nationwide. Each JTR program contributes to a growing
knowledge  base of recycling market development.  By  learning
from one another, market developers can "put it all together" and
continue to seize new opportunities to close  the recycling loop.


Mr. Seth Hudson
Arizona Department of
Phone: 602280-1395
E-mail: sethh®
Ms. Ann Schneider
University of California
  Santa Cruz, Extension
Phone: 408 748-3200
E-mail: aschneid®

Ms. Joan Martfeld
California Integrated Waste
  Management Board
Phone: 916255-2441
E-mail: jmartfel®
Mr. Eric Lombard!
Eco-Cycle,  Inc.
Phone: 303 444-6634
E-mail: recycle®

Mr. Bud McGrath
Colorado Recycling
  Development Incubator
Phone: 303 988-5518
E-mail: info®
Mr. Rob Propes
Delaware Economic
  Development Office
Phone: 302 739-4271
E-mail: rpropes®
  state.de. us
Mr. David Dougherty
Phone: 206283-1311
E-mail: ddougherty®

Ms. Leisha Barcus
Recycle Iowa
Phone: 515242-4755
E-mail: leisha.barcus®

Ms. Virginia Lipscomb
Maryland Department of
  Environmental Protection
Phone: 410 631-3315
Mr. Chris Cloutier
Minnesota  RBAC
Minnesota Office of
  Environmental Assistance
Phone: 612215-0234
E-mail: chris.cloutier®

Mr. Pat Langan
Nebraska Department of
  Economic Development
Phone: 402471-3766
E-mail: langan®
  dedl .ded.state.ne.us
New Hampshire
Ms. Elizabeth Bedard
Governor's Recycling
Phone: 603 271-1098
E-mail: recycle®
New York
Ms. Linda Jacobs
New York State Office of
  Recycling Market
Phone: 518 486-6292
E-mail: Ijacobs®

North Carolina
Mr. Matt Ewadinger
North Carolina RBAC
North Carolina Division of
  Pollution Prevention and
  Environmental Assistance
Phone: 919 715-6500
E-mail: Matt_Ewadinger@

Mr. Bob Schall
Self-Help Ventures Fund
Phone: 919 956-4400
E-mail: bob@selfhelp.org

Northeast Recycling
Phone: 802 254-3636
E-mail: nerc@sover.net
Mr. Tom Davis
Ohio Department of
  Natural  Resources
Phone: 614 265-7069
E-mail: davis@dnr.state.oh.us
Mr. Bill Bree
Former Oregon REDA
Oregon Department of
  Environmental Quality
Phone: 503 229-6046
E-mail: bree.william.r®
Rhode Island
Ms. Marty Davey
Rhode Island Department
  of Environmental
Phone: 401  277-3434,
  Ext. 4407
E-mail: mdavey®
South Carolina
Mr. Ted Campbell
South Carolina
  Department of
Phone: 803  737-0477
E-mail: tcampbel®

Ms. Carolyn Grodinsky
Vermont Agency of
  Natural Resources
Phone: 802241-3477
E-mail: carolyng®

Mr. Steve Coe
Virginia Department of
  Environmental Quality
Phone: 804  698-4029
E-mail: gscoe®

Mr. Mike Murphy
Virginia Department of
  Environmental Quality
Phone: 804  698-4003
E-mail: mpmurphy®
John Hendren
Wisconsin Department of
Phone: 608264-8174
E-mail: jhendren®
John Nunley
Wyoming Department
  of Commerce
Phone: 307  777-5454

Judith Semple
Wyoming Department
  of Commerce
Phone: 307  777-7284
E-mail: sbdc@vcn.com

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