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I am familiar with a couple of waste to energy plants that burn C&D. I actually had a contract at one plant that pelletized tires and burned them.
In Germany burning C&D is getting to be a pretty big business, so much so that they are actually importing C&D from the US and still turning a profit.
There are a few companies working with c&d as a fuel source (Intrinergy is one). The problem is in the pre burn separation of debris. Treated wood, gypsum and other contaminants need to be sorted so that a reasonably clean fuel is left. I think that to ban all c&d burning without examining the options for sorting is a bit reactionary.
Burning of demolition debris
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