1. Global Overview: Legislative & Regulatory Environment
Global Overview: Legislative & Regulatory Environment. Scrap Tyre Management in the United States and the EU
Michael Blumenthal
Marshay, Inc.
Scrap Tyre Summit, Auckland, New Zealand, June 2, 2015

2. Scrap Tyre Management in the USA
Pre-1985 no state or Federal legislation or regulations on scrap tyres
Accepted management practices were to landfill or stockpile tyres
No activity on market development
1985: Minnesota enacts legislation and develops regulations on scrap tyres
By 1990, 48 states have enacted legislation & regulations on scrap tyres
EPA conducts research on air emissions (TDF) and water quality (1990 – 1992)
EPA market report estimates there are 2-3 billion tyres in stockpiles in the USA
US Congress takes an interest in scrap tyres: considering fee on tire manufacturing and/or a mandate on the use of rubber modified asphalt
New Zealand Scrap Tyre Summit, June 2, Marshay, Inc.

3. Scrap Tyre Legislation & Regulation
Scrap tyres considered the most significant solid waste/recycling problem in the USA ( )
48 states, 48 sets of regulations (1990) In 2000, 50 sets of regulations
In general, consistency in regulating who can transport tyres, where tyres can be taken, storage requirements
44 states had scrap tires fees, but not all were dedicated fees
Most state scrap tyre programs focused on market development and stockpile clean up
Patchwork of regulations caused non-logical flow of tyres to occur
Markets responded to incentives and adapted to regulations
Off road (non DOT) tires not regulated
New Zealand Scrap Tyre Summit, June 2, Marshay, Inc.

4. Understanding US Solid Waste/Recycling Policy
The Environmental Protection Agency (EPA) sets minimum standards which states must comply with on air quality, water quality, landfill construction and hazardous waste management
States are responsible for developing their own program, using EPA regulations as a minimum but can make their regulation more stringent that EPA’s minimum standards
EPA has no standards or minimum requirements for solid waste management (other than landfill construction) or recycling
Development of solid waste & recycling programs are a state issue
Overall approach to waste management is command and control
Free market conditions apply for all solid waste/recycling industries (as long as they comply with the legislation and regulations)
New Zealand Scrap Tyre Summit, June 2, Marshay, Inc.

5. Industry Approach to Scrap Tire Management
Tyre manufacturers supported a “shared responsibility” model: all who have responsibility must do their part. Tire Manufacturers created Scrap Tire Management Council to assist industry and coordinate efforts (1990)
Tire manufacturers, tire retailers, state regulatory agencies, transporters, processors, end users and the public
EPA, Federal and state government did not oppose this approach
Not everyone agreed or accepted their assumed responsibility
US system worked relative well
End use markets increased from 11% in 1990 to 55% in 1995 to 92% in 2013
Tires in stockpiles decreased from 1 billion, in 1994 to 70 million (2014) (never were 2-3 billion in piles)
Tire dumping probably less than 5% of generation
New Zealand Scrap Tyre Summit, June 2, Marshay, Inc.

6. Scrap Tyre Management in the EU
Each country responsible for creating their own ELT program
All EU members developed nationwide ELT program: tyre manufacturers involved
3 general types of programs: Extended producer responsibility; ELT program selects a market; free market
All programs have fees, either internalized or fee based
Funds generally used for collection and paying end users
Not all programs are similar or effective
Counties which selected end use markets (Sweden, Finland) are less expensive programs & manage all ELTs
New Zealand Scrap Tyre Summit, June 2, Marshay, Inc.

7. New Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.

8. New Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.
EU Scrap Tire Programs
Programs with sufficient markets: Germany, Sweden, Denmark, Finland, Belgium, Netherlands
Country programs vary:
Germany: TDF & recycled products
Sweden: TDF
Finland: TDA
Belgium & Netherlands: Recycled rubber products
Denmark: Recycled rubber products & TDF
New Zealand Scrap Tyre Summit, June 2, Marshay, Inc.

9. New Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.
U.S. Scrap Tire Trends
New Zealand Scrap Tyre Summit, June 2, Marshay, Inc.

10. New Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.
U.S. Scrap Tire Disposition 2013 (percent of total tons generated annually)
Numbers may not add due to rounding.
New Zealand Scrap Tyre Summit, June 2, Marshay, Inc.

11. US Ground Rubber Markets
2009*
2011*
2013*
2014 estimates**
2015 estimates**
Sport Fields
520 MM lbs.
277 mm lbs.
225 mm lbs.
Asphalt
240 mm lbs.
220 mm lbs.
90 mm lbs.
mm lbs.
Automotive
115 mm lbs.
60 mm lbs.
75 mm lbs.
50 mm lbs.
Playground &
Mulch
282 mm lbs.
230 mm lbs.
400 mm lbs.
400 mm lbs.
mm lbs.
Molded
Extruded
440 mm lbs.
373 mm lbs.
430 mm lbs.
450 mm lbs.
475 mm lbs.
Exported
45 mm lbs.
80 mm lbs.
25 mm lbs.
Total
1,702 mm lbs.
1,205 mm lbs.
1,300 mm lbs.
1,240 mm lbs.
1,285-1,315 mm lbs.
* Source: RMA
**Marshay, Inc.
New Zealand Scrap Tyre Summit, June 2, Marshay, Inc.

12. U.S. Stockpiled Scrap Tires 1990 - 2011
New Zealand Scrap Tyre Summit, June 2, Marshay, Inc.

13. New Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.
Scrap Tire Fees
Since 1985, 44 states have enacted laws placing a user fee on scrap tires
Fees are placed onto tires at:
Sale of a new tire (30)
Auto registration (4)
At wholesaler (3)
Fees range from $0.25 to $2.50 for passenger/light truck tires & up to $10 for heavy truck tires
No fee on retreaded tires, agricultural, bicycle tires or off-road tires
New Zealand Scrap Tyre Summit, June 2, Marshay, Inc.

14. New Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.
Fee Programs
Fees on tires are not a tax
When fee accessed at retail level most states allow retailers to keep a percentage
Most state programs allow retailers to charge their own fee
4 states do not allow tire retailers to charge any additional fees
Fees are not taxed
Most state programs send a percentage to state finance agency for their assistance
Fees used to fund stockpile abatement (1 billion in 1990: less than 100 million in 2014)
Fees are usually fixed termed & need to be legislatively continued
New Zealand Scrap Tyre Summit, June 2, Marshay, Inc.

15. Uses for Scrap Tire Fees
Market Development Research Grants/loans Incentives Stockpile abatement Pile abatement & amnesty days Staffing & Enforcement of scrap tire regulations
New Zealand Scrap Tyre Summit, June 2, Marshay, Inc.

16. Conclusions on Scrap Tyre Fees
Fees on scrap tires made stockpile abatement possible
Scrap tire funds were the original growth engine for end use markets
States w/o fees or diverted fees have very limited scrap tire programs
No state has initiated a fee since late 1990’s (Delaware & Alaska were last 2)
Fees are usually continued
Tire fees, when used for the scrap tire programs, can be an effective tool
New Zealand Scrap Tyre Summit, June 2, Marshay, Inc.

17. Quick History of the Scrap Tire Industry
US scrap tyre industry is a function of state legislation & regulations
Industry began as a series of small, local companies
Companies have grown into large-scale, regional players
Industry is driven by government policies
End use markets have developed over time: TDF (1979); TDA (1992) ground rubber (1992); terminal blend asphalt (2002) infill (2005); playground cover (2005); warm mix asphalt (2013)
Different markets in different regions results in varying economic success for companies
companies: 2015: 50 companies
New Zealand Scrap Tyre Summit, June 2, Marshay, Inc.

18. What has worked: What has not worked
What Hasn’t Worked ?
Tire fees used for abatement, market development
No fees or Raided fees
Development of regulations
Variations between state regulations
Diversity of end use markets
Regional differences
State agency involvement
Reduced state agency involvement
Enforcement of the regulations
Not enforcing the regulations
State programs that focus on creating demand
State programs that pay to process tires
Removing institutional obstacles
Mandates
Free market
Subsidies
Tyre industry involvement
Rejection of information provided by tyre manufacturers
New Zealand Scrap Tyre Summit, June 2, Marshay, Inc.

19. New Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.
Conclusions
US scrap tyre management approach is a free-market, command/control system
Industry has taken a “shared responsibility” approach
Tire manufactures were involved, but not financially (to the industry)
States have responsibility for legislation, regulations, fees and enforcement
Overall, scrap tyres are one of the most recovered materials in the USA
Overall system is not perfect: some serious limitations (off road)
Industry continues to evolve
The management system used is only as effective as the level of markets obtained
New Zealand Scrap Tyre Summit, June 2, Marshay, Inc.

20. New Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.
Contact Information
Michael Blumenthal
Marshay, Inc.
A Scrap Tire Consulting Company
New Zealand Scrap Tyre Summit, June 2, Marshay, Inc.