CalRecycle Expands Recycling Business Incentive Program: State-Local Partnership Helps Combat Global Challenges

Office of Public Affairs
For Immediate Release: July 17, 2018
News Release #2018-17
Media Contact: Lance Klug

SACRAMENTO – The California Department of Resources Recycling and Recovery has named Calaveras County the state’s 40th Recycling Market Development Zone. CalRecycle’s RMDZ program combines recycling with economic development to fuel new businesses, expand existing ones, create jobs, and divert valuable material from landfills.

The RMDZ program provides loans, technical assistance, and product marketing to businesses that use recyclable materials to manufacture their products within one of California’s 40 designated recycling market development zones.

“Using California-generated recyclables to make new products within our state creates jobs, benefits our environment, and reduces our dependence on unstable foreign export markets for this material,” CalRecycle Director Scott Smithline said. “CalRecycle’s RMDZ loan program helps California build the infrastructure and domestic markets we need to successfully manage our own recyclable materials.”

Cities, counties, or a coalition of regional governments interested in creating a new Recycling Market Development Zone must:

  • Submit completed materials to CalRecycle, including an application, letters of support, and resolutions from the lead and participating agencies.
  • Commit to provide resources and business incentives to complement those offered by CalRecycle.
    • Local government incentives vary by jurisdiction, but may include relaxed zoning laws, streamlined local permitting processes, and reduced taxes and licensing fees.

Since the first RMDZ loans were awarded in 1993, the RMDZ program has provided more than $153 million in financing to more than 145 California businesses. Collection of outstanding loan principal and interest helps to fund new loans.

NEW – At its July 2018 public meeting, CalRecycle approved its latest RMDZ loan for $1.5 million to American Tire Recycling LLC for the following project within Merced County’s Recycling Market Development Zone.

Applicant: American Tire Recycling LLC (Merced County RMDZ)
New Jobs: 16-20*
Tires Diverted (Annually): 24,000 tons**
Project Description: Purchase manufacturing equipment and real estate to produce crumb rubber from waste tires for use in road pavement/repair projects. 
Loan Amount: $1.5 Million

*Projections by fiscal year ending Dec. 31, 2019 **Projected annual recycled tire diversions by fiscal year ending Dec. 31, 2019

For more information about CalRecycle’s RMDZ program, including new zone designations, the RMDZ loan process, and local recycling manufacturing incentives, visit the Frequently Asked Questions page or email


For more information contact, the Office of Public Affairs,

CalRecycle logo
Home Page | News Releases | Public Meetings | Event Calendar | Videos | PublicationsOrganics | Bottles and Cans
CalRecycle provides oversight of California solid waste handling and recycling programs to protect human health, develop sustainable solutions that conserve resources, and reduce greenhouse gases that contribute to climate change.