1. Waste Tire Working Group December 3, 2013

2. Waste Tire Issues  Fee Expires June 30, 2014  Gap in Fee Collections  Regulating Used Tires  Draft Annual Report Review

3. Should the fee be extended beyond June 30, 2014?

4. Background  2002, 2006 Four year extension for $1 per tire fee  2010, 2012 Two year extension as part of budget bill  Sunsets July 1, 2014

5.  States that discontinued program: ○ Reappearance of illegal tire dumps and fires ○ Legislature faced with huge remediation costs  Los Reales Landfill Tire Fire Tucson AZ 1989 Rick Wiley

6. Fee Continuation  36 states have a fee (RMA 2011) Median fee is $1 Highest is $2.50 (AK, IL, NY) Lowest is $0.25 (IN)

7. Fee Continuation  State Experience with no fee MN: ○ Tip fee up (for disposal or recycling) ○ Monofilling WI: ○ Provided $20/ton subsidy with fee ○ TDF market crashed without fee

8. Fee Continuation  State Experience with no fee TX: ○ $9.5M general funds to clean up two piles, buy 2 TDF metering systems ○ Land reclamation MO: ○ No fee two years, no licensing ○ Several fires ○ Fee reinstated for five years in 2009

9. Recycling Rate Waste Tire Management program Closure-Precedents/Experience in Other States, 2010, TAG Resource Recovery

10. Fee Discontinuation in KY  No state-wide amnesties Counties do not have $ to clean up Rural areas adversely impacted $3,000 annual grants to counties would end

11. Fee Discontinuation in KY  No crumb rubber grants Cities, counties, schools use for playgrounds Past to present: ○ EEC awarded 315 grants totaling $6.8 M since FY 2004 ○ Awarded 20 grants for $300,854 in FY 2012

13. Fee Discontinuation in KY  No market development  Rubberized pavement pilot projects would cease  Future auto parts and rubber products market would not be initiated

14. Fee Continuation  Cabinet hopes to insert in Budget Bill 2-year extension Less controversial than separate bill

15. What can be done to collect more fees?

16. Fee Receipts Tire Fee Receipts FY$ 20062,698,852 20072,690103 20082,734,918 20092,590,443 20102,621,464 20112,621,464 20122,591,606

17. Fee Gap Revenue recovered 74% of available fee % Tire Fee Collected M Tires U.S.KY (1.5%) Replacement243.93.7 Salvage24.40.4 Subtotal3.7 Less Internet Sales (5%) 0.2 Total3.5 2012 Collections 2.6 % Collected 2012 74%

18.  Fiscal Issues: Dept. of Revenue: ○ Receives $50,000 per year flat fee ○ Not enough to collect tire fee (less than1 person) ○ No incentive, like a %, to recover tire fee DEP: ○ Could visit retailers and check records ○ Lacks audit authority

19. What can be done to regulate used tires?

20.  Used Tires: 20-25 M sold in U.S. each year per RMA 8-11% replacement tires Many may end up in dumps RMA: 88% of all tires repaired improperly http://www.rma.org/tire- safety/tire-repair/ http://www.rma.org/tire- safety/tire-repair/ 220 M flat tires per year says answers.com (about 100% lifetime rate based on 242 M vehicles)

21.  Used Tires: KY: ○ 385,000 PTEs resold annually (280,000 tires) ○ Safety Issue ○ KRS 224.50-854(2) exempts storage of waste tires for resale ○ 224.50-868(2)(c) encourages reuse of waste tire “for its originally intended purpose”.

22.  Used Tires: RMA says used tire should not be sold when the following is present: ○ Less than 2/32 inch tread depth ○ A penetration wider than ¼ inch or not sealed from inside ○ Any innerliner or bead damage ○ Bulges or local areas of irregular/fast treadwear

23.  Used Tires: RMA says used tire should not be sold when the following is present: ○ Run-flat, under inflated and/or overloaded damage ○ Any cuts, cracks, bulges, scrapes, etc. ○ Defaced or removed DOT tire identification number (TIN) ○ See http://www.rma.org/tire-safety/used-tires/http://www.rma.org/tire-safety/used-tires/

24.  Used Tires: KY Options ○ Change Transportation, EEC law ○ Retailers inspect tires stored for resale against RMA standards ○ Revise Notice to Consumer: http://waste.ky.gov/RLA/Waste%20Tires/Docum ents/Waste%20Tire%20Fact%20Sheets%20f or%20Consumer11-20-08.pdf

25. When will draft be available for review?

26.  Annual Report: Recycling and disposal numbers for January 1 to November 30, 2013 Estimate December 2013 Draft annual report available January 2, 2014 Comments needed by January 9, 2014 Final due to LRC January 15, 2014

27. Waste Tire Issues George F. Gilbert, P.E. Environmental Engineer Consultant Director’s Office Division of Waste Management (502) 564-6716 george.gilbert@ky.gov Terry Gray TAG Resource Recovery Houston TX

28. Waste Tire Report  Other Contributors: Ricky Solomon, Supervisor Recycling Section Recycling and Local Assistance Branch Division of Waste Management Lisa Evans Local Assistance Section Recycling and Local Assistance Branch Division of Waste Management