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Reaching for
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A zero waste program can be a powerful driver for economic development. A key benefit of targeting and achieving zero waste (or very close to it) is that it tends to keep material resources and dollars circulating within and benefiting New York’s economy and creating jobs. In order to achieve the economic development potential of a zero waste future, the cityCity must begin to view a zero waste program as a driver for job creation and economic development, not simply as a waste management plan. These goals should be reflected in the upcoming 20-year City Solid Waste Management Plan. The reuse centers, recycling industrial parks and composting facilities proposed in this report all generate jobs. According to the Grass Roots Recycling Network, conventional material recovery facilities (MRFs), also called recycling processing facilities, create ten times as many jobs as transfer stations, landfills and incinerators (Grass Roots Recycling Network, 2000). Actually, manufacturing new products from recyclable materials has the potential to create anywhere from 18 to 93 jobs for every one in disposal (Grass Roots Recycling Network, 2000). And, reuse companies can create even more — in some cases hundreds of jobs for every one in disposal (Grass Roots Recycling Network, 2000). The redistribution of valuable usable goods to those who need them at low cost is also a major benefit. Many studies have quantified the job creation potential of recycling. In 1994 the Northeast Recycling Councils (NERC) found that recycling firms employed more than 103,400 people, accounting for nearly 3 percent of the manufacturing jobs in the region (Weston, 1994). The study found more than 20,000 people employed in recycling processing and manufacturing in New York State, or just over 2 percent of the manufacturing job base. A study by the State of North Carolina in 1995 found that the job gains in recycling far outpaced the losses in waste carting and disposal — for every 100 jobs created by recycling, only ten were lost in disposal (Grass Roots Recycling Network, 2000). In addition to creating jobs, a zero waste approach will ensure that the money spent on zero waste programs remains circulating within the City’s economy, instead of being paid to a landfill operator in a faraway state. Waste prevention audits can save millions of public dollars — directing the dollars instead to educating our kids and providing fire protection. Similar waste prevention monetary benefits can accrue for the City’s tax exempt institutions. The income tax, sales tax and business tax generated by the zero waste programs and infrastructure will all remain within the City to help fuel its growth. And, the value added through recycling remains local. A real life example illustrates this point. In the 1980’s and early 1990’s, R2B2, a Bronx-based organization, operated a buy back center in the Bronx, paying cash for recyclable materials. One of its transactions involved about 80,000 tons per year of PVC scrap. R2B2 purchased the materials from a self-employed supplier who had purchased it from a local manufacturer. R2B2 processed the material and sold it to another local manufacturer. The manufacturer used the material to make aquarium tubing and then sold that tubing to a local wholesaler of pet supply products. The wholesaler then sold the tubing to retail pet stores. At each of these steps value was added, taxes were paid and jobs were supported, all within the City, and all activities except for the retail sales were in the Bronx. The total value of this series of transactions was $250,000. Had that scrap simply been disposed of the value would be gone. If it were sold to a processor out of the City, the value to the City would be minimal (Schedler, 2004). The City recognized the value of recycling-based economic development when it worked to attract the Visy Paper mill to Staten Island. Visy Paper, which opened in 1997, was the largest manufacturing investment in New York City in 50 years. The mill takes in the City’s mixed paper and manufactures paper used to make corrugated cardboard boxes. The plant not only uses more than 150,000 tons of the City’s paper, it supports more than 160 jobs. In summer 2003, Visy Paper announced plans to create a box factory adjacent to their recycling plant on Staten Island. It was immediately called the second biggest manufacturing investment in New York City in 50 years, right behind the original recycling plant, and is expected to support 125 additional jobs when it is up and running (Office of the Mayor, 2003). In the commercial arena, developing recycling, reuse and composting outlets for businesses will reduce their operating costs by providing cheaper alternatives to disposal. For businesses, every dollar saved is worth two dollars earned. As a result, reducing disposal costs will help to retain businesses in NYC and make them more competitive with lower cost regions of the country. So, disposal cost savings can actually lead to increases in tax revenue and job generation, as they can make it possible for businesses to expand and grow. The promise of large volumes of recyclables will encourage businesses to stay in the City. Incentives for businesses that depend upon resources that are only available here (i.e. the massive volumes of recyclables we generate) are sound investments. The following economic development program elements will support a zero waste infrastructure:
Technical and Financial Assistance for a Zero Waste Infrastructure The City should create either a zero waste program office within its Economic Development Corporation (EDC) or a new entity to plan for zero waste. In either case, the office would provide technical and financial assistance to support zero waste businesses and seed the infrastructure necessary to reclaim materials and retain their economic value within City limits. Zero waste businesses include those engaged in recycling, reuse, repair, lease/rental, remanufacturing, composting, and architectural and product design. Most recycling, reuse and remanufacturing businesses tend to be small to medium-sized. All services for these businesses would be offered through one zero waste office in the City (one- stop shopping), as well as through the internet, in a "virtual industrial park." The notion of a "virtual industrial park" recognizes that many existing businesses are already in NYC and may not wish to move to an actual industrial park (described below). The internet "virtual industrial park" could also enable new businesses to learn about NYC’s incentive programs. Recognizing that the zero waste infrastructure will most likely be made up of hundreds of smaller businesses, instead of large companies like Visy Paper, the zero waste office should plan for staff sufficient to attract remanufacturers, to target particular materials and to develop innovative incentives for existing and potential new businesses. For example, the office could study the viability of attracting a bio-diesel manufacturing company to provide both a market for used cooking oil and a local source of cleaner fuels for transportation. The staff of this office would provide in-depth technical assistance to zero waste businesses located in New York City. For example, the staff would aid in business planning, advertising, financing, market development, and in particular, could help businesses present their products and services to NYC agencies and institutions. In addition, this office would work with other city agencies, such as the Department of Business Services, the Department of Citywide Administrative Services, and the EDC Real Estate Division, to provide low cost space on City-owned properties for zero waste businesses with high overhead. Staff could also leverage significant funding for NYC companies from state and federal sources including Empire State Development’s (ESD) Environmental Services Unit, the New York State Energy Research and Development Authority, federal agency Small Business Innovation Research programs, and the US Economic Development Administration. Staff would develop full proposals for additional financing mechanisms -- a revolving loan fund, a capital pool, a tax credit program, etc. -- to address the needs of this sector. To support the efforts of this new office, the City should create a dedicated $5 million fund for reuse, remanufacturing, composting and recycling projects in New York City. The fund could be modeled on ESD 's Environmental Services Unit, or its predecessor the Office of Recycling Market Development, and could provide grants for research, development and demonstration, and capital projects with an emphasis on design, reuse, remanufacturing and waste prevention. ESD’s nationally recognized grant program has been extremely effective in developing new markets and new technologies that use reusable and recyclable materials in New York State. During its 15 year tenure, the program has invested $25.9 million in reuse, remanufacturing and recycling businesses, and leveraged more than $70 million in other funds. Those investments have created nearly 700 new jobs, retained more than 800 jobs in the state, and led to the recovery of more than 13 million tons for reuse, recycling and remanufacturing (New York State Department of Environmental Conservation, 2001-2004). If we are to attract the kind of businesses we need for a zero waste infrastructure, we need a New York City based program modeled on ESD’s. Implementation Schedule:
Developing Recycling Industrial Parks The development of recycling industrial parks located in discrete geographic areas offers numerous advantages for a zero waste future and for the City. A recycling industrial park, as we define it, would cluster recycling, reuse and remanufacturing-related businesses. Like the City’s other districts, such as the Flower District, the Garment District, and the Hunts Point Markets, clustering these businesses can aid in their growth and competitiveness. In addition, co-locating like businesses can reduce operating costs by enabling shared administration, marketing, transportation, logistics, etc. In capturing the value of materials we currently send out of the City as waste, a recycling industrial park can fuel jobs and turn what has been a burden into an opportunity for economic development. The technical assistance office described above could identify companies to include in a recycling industrial park. Regardless of its structure, the park would include both recycled material processing operations and manufacturers that can use the recycled materials to create new products. It can include one or more large firms that process several materials, like a traditional material recovery facility (MRF), as well as several smaller operations that add value to materials through repair, remodeling, refurbishing or remanufacturing. For example, in addition to a MRF, a park could have one or more companies that process the MRFs’ glass output for markets like aggregate and sandblasting medium; take the MRFs’ plastic and manufactures plastic lumber; and/or take in used tires and manufacture crumb rubber for use in playing fields or as an asphalt binder. In 2000, Bronx Borough President Fernando Ferrer issued "Report on the Feasibility of Developing A Bronx Recycling Industrial Park." The study found that Bronx businesses alone generate sufficient supplies of scrap materials to support a host of new manufacturing businesses. It also found that existing Bronx recycling companies were interested in expanding into a recycling industrial park, and several recycling-based manufacturers from outside the City were interested in launching operations here. The study projected that a Bronx recycling industrial park would generate 200-300 jobs and reclaim more than 200,000 tons of materials annually. The main barrier to the implementation of the Bronx Park has been the lack of affordable space — the complex would require 10 to 15 acres either on one site or a combination of sites (Ferrer, 2000). By serving both the residential/institutional and commercial streams of recyclables, recycling industrial parks can provide significant cost savings to the business sector. The Bronx report found that even at half its designed capacity, or 100,000 tons per year, a recycling industrial park could save Bronx businesses approximately $25 million annually in waste disposal costs (Ferrer, 2000). Based on the findings of the Bronx report, it is likely that each NYC borough would generate sufficient quantities of materials to support a recycling industrial park. To the extent possible, to be consistent with the principle of borough-based self-sufficiency, each borough should have its own park. However, because some areas of the City generate more materials than others, it is possible that the City would be well served by three or four parks fed by borough-based depots in those areas lacking a full park. The parks should be located in proximity to both barge and rail access, so that they can receive materials through the City’s marine transfer system so that recycled products could be shipped by rail or barge. The parks should be located in heavy manufacturing zones and favor recycling technologies that minimize air pollution and other environmental impacts. The City could support the parks in one or both of two ways: by providing low-cost space, enhanced technical assistance and administrative support, or by paying park tenants a certain amount per ton reclaimed to help defray cost. The first option is preferable, as it would offer greater assistance during start up, when companies may not achieve substantial diversion, and could scale down support as the businesses grow to be more self-sufficient. Implementation Schedule:
References Ferrer, F. 2000. Report on the Feasibility of Developing A Bronx Recycling Industrial Park. Bronx Overall Economic Development Corporation. April 2000. Grass Roots Recycling Network. 2000. Wasting and Recycling in the United States. Institute for Local Self-Reliance. New York City Office of the Mayor. 2003. Mayor Michael R. Bloomberg and SI Borough President James P. Molinaro Announce Agreement to Expand Visy Paper. PR —169-03. June 23, 2003. New York State Department of Environmental Conservation. New York State Solid Waste Management Plan. 2001-2004 Update. Schedler, M. Chief Operating Officer of R2B2. Personal Communication. April 2004. Weston, R.F. 1994. Value Added to Recyclable Materials in the Northeast. Brattleboro,Vermont: Northeast Recycling Council.
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