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Solid waste as a fuel must compete with other sources of energy such as coal, <br />natural gas and oil. Low fuel prices discourages the use of solid waste as a <br />fuel. The effort needed to produce ROF and the inherent difficulty in assuring <br />a known waste supply, has also discouraged the use of RDF. Similarly, compost <br />has not been available for use and testing by potential users. The low cost of <br />peat, nitrogen fertilizer and other soil amendments have hindered the develop- <br />ment and use of composted solid wastes. <br />MARKET DEVELOPMENT <br />Overview <br />Market development is any activity undertaken by business or government that <br />will directly or indirectly result in expanded or new consumption by end users <br />of materials and energy derived from solid waste. Market development should be <br />comprised of many strategies aimed at increasing both supply and demand of mate- <br />rials and energy. It is very important that equal consideration is given to <br />the need for expansion and development of materials and energy markets along <br />with the collection and processing of solid waste. <br />There are a wide variety of existing market development efforts around the <br />country and in Minnesota. In addition, the recent amendments to the Minnesota <br />Waste Management Act authorize several market development incentives and <br />research activities. The amendments provide two tax incentives 1) an invest- <br />ment credit of ten percent of the cost of equipment used for solid or hazardous <br />waste processing at a resource recovery facility, and 2) an exemption from <br />sales tax on the same type of equipment. It will be very important to publi- <br />cize the investment opportunities made available by the tax credit and to <br />monitor the extent of its application. <br />The Council has initiated preliminary research on the constraints and opportu- <br />nities for market development in the region. Energy market conditions are con- <br />strained by certain technical, economic and institutional barriers. The <br />relatively low cost of competing conventional fuel supplies, especially coal, <br />is one of the more important economic constraints. There are a variety of <br />other complex factors which inhibit demand for secondary materials including <br />constraints on end users and suppliers. <br />Each specific industry must be examined as an individual case to adequately <br />understand the problems and opportunities for growth. Indications are that <br />specific materials markets should receive emphasis on the development of demand <br />(plastics, magazines, rubber, and compost) and other materials markets should <br />receive emphasis on collection and processing (glass, old corrugated contain- <br />ers, high grade papers). Other materials are more borderline suggesting a need <br />for both development of supply and demand (newspaper, mixed waste paper, fer- <br />rous, aluminum, other non-ferrous). Certain specialized materials have a more <br />uncertain status including: housewares, demolition debris, tree and brush <br />wastes, waste oil, and batteries. <br />Proposed Roles and Responsibilities <br />Table 4-10 displays the proposed roles and responsibilities for the various gov- <br />ernment agencies, levels of government and solid waste markets. The market <br />development activities proposed for the Council, in some cases, are the same <br />activities proposed for the Council in the regional solid waste communications <br />program. <br />5% <br />