Recent studies indicate that recycling creates jobs and tax revenue.

That's good news for Siskiyou County and the local economy, according to Siskiyou County Economic Development Council executive director Joan Smith.

"The Siskiyou County Recycling Market Development Zone, or RMDZ, was recently expanded to include all of Siskiyou County," Smith said. "The RMDZ provides incentives and services to recycling-based businesses."

Low interest loans for businesses to expand and improve services provided is the primary incentive offered, Smith said.

The RMDZ revolving loan program provides direct loans to eligible businesses and non-profit organizations that manufacture recycled materials, produce new recycled products or reduce the waste resulting from the manufacture of a product.

With the expansion of the county RMDZ, administered by the the county's economic development council, more businesses can take advantage of the program.

As an RMDZ, Siskiyou County is provided funding, in the form of a revolving loan fund from the California Integrated Waste Management Account. Landfill operators contribute to the account for each ton of waste disposed. Revenues from interest and principal payments go back into the loan fund to make subsequent loans.

"It's a very good program," Smith said. "Businesses reap the economic benefits through the loans provided and Siskiyou County communities benefit from the creation of new jobs in a time when we're faced with increasing unemployment. It's a win-win situation for everyone."

The loans may be used for real property, equipment, working capital or refinance of a current debt. Eligible recycling-based businesses may borrow up to 75 percent of the project costs, up to $2 million. The current interest rate is 5.1 percent.

Smith said one of the first local companies to take advantage of the newly expanded zone was Terra Mai, a wood recycling business in McCloud.

The state's RMDZ program was created following enactment of the Integrated Waste Management Act in 1989. The act mandated that, by 1995 all cities and counties reduce solid waste material by 25 percent and by 50 percent by 2000.

Even though communities have been doing more recycling, there was a need to create markets for the collected material or it would ultimately become waste material again, Smith said.

"The RMDZ creates a market for materials such as wood waste, plastic, aluminum glass and tire scraps, a major waste problem," Smith said. "Not only does it help the local economy and create jobs, it also helps protect the environment."

The county RMDZ program has been in operation for 10 years. Initially, it included the incorporated cities of Mount Shasta, Weed, Dunsmuir, Yreka and Montague as well as the Shasta Valley Enterprise Zone. Last month, the California Waste Management Board, which oversees the operation of the state's RMDZ programs, approved the expansion to include Dorris, Etna, Fort Jones, Tulelake and all of the unincorporated areas of the county.

"Partnership is the key ingredient in successful economic development and our board is strongly committed to furthering the good work of this Recycling Development Zone," said California Integrated Waste Management Board chair Rosario Marin. "State and local cooperation in Siskiyou County will help the RMDZ to positively impact waste diversion, job creation and the local economy. We encourage more companies to locate here to take advantage of all the services the zone has to offer."