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Viewing Organics Recycling as an Economic

Development Tool

Craig CokerCraig Coker

NC Dept. of Environment and NC Dept. of Environment and Natural ResourcesNatural Resources

Summit 2000 – The Future of Composting and Organics Recycling

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NC Recycling Business Study

1997 study showed over 8,700 jobs in 1997 study showed over 8,700 jobs in recycling in North Carolinarecycling in North Carolina

More than 500 NC companies call recycling More than 500 NC companies call recycling their primary business activitytheir primary business activity

NC recycling businesses add new jobs at six NC recycling businesses add new jobs at six times the rate of all private industry (last 4 times the rate of all private industry (last 4 yrs)yrs)

4 of 5 recycling companies are small 4 of 5 recycling companies are small businesses - annual revenues average $1.1 businesses - annual revenues average $1.1 milmil

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NC Strategic Economic Development Plan

Prepared by Economic Development Board in 1999Prepared by Economic Development Board in 1999 Goal 5: Sustainable Economic Growth and Goal 5: Sustainable Economic Growth and

Development – Development – “Foster environmentally sound “Foster environmentally sound development while promoting, preserving and development while promoting, preserving and protecting North Carolina’s natural and cultural protecting North Carolina’s natural and cultural assets”assets” Objective 2: Recruit and birth companies that Objective 2: Recruit and birth companies that

provide new environmental products, services provide new environmental products, services or technologiesor technologies

Objective 4: Recruit and birth companies that Objective 4: Recruit and birth companies that provide markets for recycled materialsprovide markets for recycled materials

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Tools Available Solid Waste Management Trust FundSolid Waste Management Trust Fund Self-Help BankSelf-Help Bank Sustainable Jobs FundSustainable Jobs Fund Tax Credits for Recycling OperationsTax Credits for Recycling Operations Community Development Block GrantsCommunity Development Block Grants Industrial Development FundIndustrial Development Fund Business Energy LoansBusiness Energy Loans Industrial Road Access FundIndustrial Road Access Fund Rail Industrial Access ProgramRail Industrial Access Program Industrial Revenue BondsIndustrial Revenue Bonds

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Organics Recycling Program Program started in March, 1998 to stimulate Program started in March, 1998 to stimulate

infrastructure developmentinfrastructure development Focus on changing perceptions – organics Focus on changing perceptions – organics

recycling is a manufacturing process recycling is a manufacturing process producing a value-added productproducing a value-added product

De-emphasize concept of “waste De-emphasize concept of “waste management”management”

Elements of ProgramElements of Program Technology development and transferTechnology development and transfer Market demand stimulationMarket demand stimulation Pilot ProjectsPilot Projects

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Organics Recycling in NC

Nine public sector, thirteen private sector Nine public sector, thirteen private sector composting facilities (not including yard waste composting facilities (not including yard waste mulching sites or on-farm composting)mulching sites or on-farm composting)

Annual compost production estimated at Annual compost production estimated at 150,000 cubic yards per year150,000 cubic yards per year

Most facilities produce less than 20,000 cubic Most facilities produce less than 20,000 cubic yards/yearyards/year

Estimated demand (excluding agriculture) = Estimated demand (excluding agriculture) = 225,000 yds/yr (1995 est.)225,000 yds/yr (1995 est.)

Two anaerobic digesters (excluding on-farm Two anaerobic digesters (excluding on-farm biogas) - food waste & yard wastebiogas) - food waste & yard waste

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ID Composter City Telephone Cu. Yds/Yr1 City of Shelby Shelby (704) 484-6850 50002 Mecklenburg County Charlotte (704) 588-9070 150003 City of Greensboro Greensboro (336) 375-4100 200004 City of Sanford Sanford (919) 775-8247 75005 McGill Environmental Systems Rose Hill (910) 532-2539 700006 Professional Services Group Newton (828) 465-1401 240007 East Coast Compost Leicester (828) 628-4340 20008 City of Morganton Morganton (828) 438-5376 12009 Town of Valdese Valdese (828) 879-2131 900010 Coastal Partnership Cove City (252) 633-1564 600011 City of Lexington Lexington (336) 243-2489 200012 Progressive Soil Farm Lexington (336) 731-3418 2000013 City of Raleigh Raleigh (919) 250-2728 3500014 Mountain Organic Materials Candler (828) 665-9899 240015 Wallace Farms Huntersville (704) 875-2975 2500016 Brooks Contractor Goldston (919) 837-5914 4000017 Smith Farms/Rondeli Corp. Princeton (919) 736-4336 20018 City of High Point High Point (336) 883-8514 500019 Mattamuskeet Seafood Swan Quarter (252) 926-2431 20020 Parker's Products, Inc. Rose Hill (910) 289-3672 20021 East Coast Growers Brevard (828) 862-4070 20022 J ennings Trout Farm Canton (828) 648-3012 200

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Coordinator Responsibilities

Provide technical, non-regulatory advice to Provide technical, non-regulatory advice to businesses, industries, communities and businesses, industries, communities and citizens on organics recyclingcitizens on organics recycling Facility siting and permittingFacility siting and permitting Facility and process designFacility and process design Facility operations and trainingFacility operations and training Feedstocks acquisitionFeedstocks acquisition Product marketing and salesProduct marketing and sales

Administer portion of Solid Waste Trust Fund Administer portion of Solid Waste Trust Fund dedicated to organics recycling programdedicated to organics recycling program

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Solid Waste Management Trust Fund Created in 1989Created in 1989 Funded by Advance Disposal FeesFunded by Advance Disposal Fees

New tires, white goods (appliances) and virgin New tires, white goods (appliances) and virgin newsprintnewsprint

Approx. $800K/yr available for waste reduction Approx. $800K/yr available for waste reduction Purpose of Fund – Help State meet 40% waste Purpose of Fund – Help State meet 40% waste

reduction goal by 2001reduction goal by 2001 R&D projectsR&D projects Educational activitiesEducational activities Market development activitiesMarket development activities Technology developmentTechnology development

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Organics Recycling Grants

Intent - provide seed money Intent - provide seed money Grantee provides 25% cash matchGrantee provides 25% cash match Focus on diverting landfilled organic solid Focus on diverting landfilled organic solid

wastes and/or stimulating market demand for wastes and/or stimulating market demand for compostscomposts Biosolids considered, but second priorityBiosolids considered, but second priority Animal wastes becoming higher priorityAnimal wastes becoming higher priority

1998 – funded 11 projects with $183,5431998 – funded 11 projects with $183,543 1999 – funded 8 projects with $180,2371999 – funded 8 projects with $180,237 Diversion (to date) - 23,000 TPYDiversion (to date) - 23,000 TPY

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1998 Organics Grant Round Technology Development Technology Development

Vermicomposting at Sampson CorrectionalVermicomposting at Sampson Correctional Rotary Drum InVessel at Brown Creek Rotary Drum InVessel at Brown Creek

CorrrectionalCorrrectional Innovative aerated compost bins at dairy Innovative aerated compost bins at dairy

farmfarm Mechanical compost bins at UNC-AshevilleMechanical compost bins at UNC-Asheville

Pilot ProjectsPilot Projects Special Olympics Food Waste CompostingSpecial Olympics Food Waste Composting

Market Demand StimulationMarket Demand Stimulation Effects of compost on Christmas Tree farmEffects of compost on Christmas Tree farm Compost vs. methyl bromide in plasticulture Compost vs. methyl bromide in plasticulture

strawberriesstrawberries Hydroseeding large volumes of compostHydroseeding large volumes of compost

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1999 Organics Grant Round

Technology DevelopmentTechnology Development Mechanical compost bins at UNC-CharlotteMechanical compost bins at UNC-Charlotte Anaerobic digestion of grocery/restaurant Anaerobic digestion of grocery/restaurant

food wastesfood wastes Dedicated ICI food waste collection vehicleDedicated ICI food waste collection vehicle

Pilot ProjectsPilot Projects Grocery store food waste collection and Grocery store food waste collection and

composting (Food Lion)composting (Food Lion) Market Demand StimulationMarket Demand Stimulation

NC Compost Promotional InitiativeNC Compost Promotional Initiative Compost use in watermelon, canteloupe & Compost use in watermelon, canteloupe &

sweet potato production agriculturesweet potato production agriculture

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Quantities Diverted

Program began in Nov. 1999 (416 tons diverted so far)Program began in Nov. 1999 (416 tons diverted so far)

0

20

40

60

80

100

120

Oct. Nov. Dec. Jan. Feb. Mar. Apr. (est.)

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Beyond Seed Money

Self-Help Bank, Durham, NCSelf-Help Bank, Durham, NC Loans to recycling businesses from $50K - $250KLoans to recycling businesses from $50K - $250K Partnership with NC-RBAC and EPA’s JTRPartnership with NC-RBAC and EPA’s JTR $3.8 Million in loans since 1991$3.8 Million in loans since 1991

Sustainable Jobs Fund, Durham, NCSustainable Jobs Fund, Durham, NC Community development venture capital with Community development venture capital with

$15M available$15M available Debt and/or equity participationDebt and/or equity participation Amounts available: $50K - $1 MillionAmounts available: $50K - $1 Million

Regional Recycling Investment ForumsRegional Recycling Investment Forums Sponsored by EPA’s Jobs Through RecyclingSponsored by EPA’s Jobs Through Recycling Amounts available: $1 Million - $5 MillionAmounts available: $1 Million - $5 Million

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NC Special Tax Provision

Applies to recycling & resource recovery land, Applies to recycling & resource recovery land, facilities, equipmentfacilities, equipment

Exempted from real and personal property Exempted from real and personal property taxestaxes

Accelerated depreciation (5 years) deduction on Accelerated depreciation (5 years) deduction on Corporate State Income TaxesCorporate State Income Taxes

Costs can be deducted from basis when Costs can be deducted from basis when computing NC Franchise Tax on domestic and computing NC Franchise Tax on domestic and foreign corporationsforeign corporations

Can be disincentive to local economic Can be disincentive to local economic development officials when siting new development officials when siting new composting facilitiescomposting facilities

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Other Tools PollutionControl/Solid Waste Disposal Industrial PollutionControl/Solid Waste Disposal Industrial

Revenue BondsRevenue Bonds Maximum $10 Million in any one jurisdictionMaximum $10 Million in any one jurisdiction Interest is federally tax-exemptInterest is federally tax-exempt Can be used only for manufacturing industriesCan be used only for manufacturing industries Can be used only for land, facilities and Can be used only for land, facilities and

equipmentequipment Business Energy LoansBusiness Energy Loans

For renewable energy resources/projects For renewable energy resources/projects (anaerobic digestion)(anaerobic digestion)

DOT Industrial Access/Road Access FundDOT Industrial Access/Road Access Fund Construction of roads for new/expanding Construction of roads for new/expanding

industrial facilitiesindustrial facilities

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Developing An Infrastructure

Learn how private sector companies operateLearn how private sector companies operate Know the tools available from economic Know the tools available from economic

development officialsdevelopment officials Create an information library on organics Create an information library on organics

recycling technologies, costs, and recycling technologies, costs, and compost/product utilization datacompost/product utilization data

Actively promote state and national composting Actively promote state and national composting associationsassociations

Get out of the office - visit facilities, make Get out of the office - visit facilities, make presentations, build working relationshipspresentations, build working relationships

Get your hands dirty - create/conduct pilot Get your hands dirty - create/conduct pilot projectsprojects

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