1. (a) The department may not designate a nominated area as a recycling market development zone unless it has first determined from an application submitted by the governing body or bodies within whose jurisdiction(s) the area is contained that:

   1. (1) the area is a state-designated enterprise project-eligible enterprise zone, or meets the requirements for designation as an enterprise project-eligible state enterprise zone. No additional distress criteria is required other than for enterprise project-eligible enterprise zone designation;
   2. (2) a waste-stream analysis for the area to be affected by the recycling market development zone is provided;
   3. (3) a survey of dependable markets for recyclable materials and sources for post-industrial/post-consumer secondary materials has been conducted; and
   4. (4) the governing body or bodies demonstrate the ability to executive their commitments by outlining the administrative and promotional and operational procedures to develop the zone.

2. (b) Recycling market development zones will be eligible for recycling-related low-interest loans and grants from the department as funds become available from grants or other allowable sources. The purpose of the grants or loans to the governing body of an enterprise zone designated as a recycling market development zone is to fund an activity that initiates, sustains or increases recycling efforts. Administration costs related to the recycling market development loans will be reimbursed from applicable recycling market development loan funding sources including a percentage of grants and/or fees. Loans may be a minimum of $10,000, and a maximum of $500,000, the most any zone could have outstanding at any time. Pursuant to Government Code, §481.374, under this section:

   1. (1) a grant may not exceed $30,000;
   2. (2) a grant recipient must match the amount of the state grant with an equal amount of cash or an in-kind contribution which is acceptable to the department from another source; and

   3. (3) the department may make loans or grants from appropriated funds or from any special fund. Funds granted or loaned under this section may be used to:

      1. (A) add or upgrade infrastructures within a recycling market development zone;
      2. (B) provide or improve utilities within a recycling market development zone;
      3. (C) make loans to recycling businesses for asset financing or working capital;
      4. (D) fund for-profit and not-for-profit organizations for the purpose of establishing recycling programs; or
      5. (E) fund any other activity mutually agreed upon between the department and the enterprise zone governing body or bodies which leads to sustainable, increased recycling activity.

Source Note:The provisions of this §176.5 adopted to be effective January 13, 1994, 19 TexReg 68; amended to be effective July 18, 1994, 19 TexReg 5087; amended to be effective September 11, 1995, 20 TexReg 6621.