1. Tyre Stewardship in Canada Presented to New Zealand Tyre Industry Summit 2015 Glenn Maidment, Tire and Rubber Association of Canada

2. Tire and Rubber Association of Canada Tire Company Membership

3. Hagersville Tire Fire Feb 1990 Tire Fire in Ontario 14 Million Tires burned for 17 days A wake-up call to all provinces to create a tire program 3 The Rubber Association of Canada

4. Canada CDN Pop.: 33.5 million 10 Provinces and 3 Territories 10 million square kilometers 23 M registered vehicles.69 vehicles/person NZ Pop.: 4.1 Million 2 Islands.268 million sq. kms. 3.4 M registered vehicles.83 vehicles/person

5. ELT Issues and Challenges in Canada Huge Land mass and relatively small population makes it difficult to achieve economies of scale ELT management is not a Federal responsibility We have 10 Provincial authorities, each with their own political approach and needs, which can create very different ELT models and program and pricing strategies Grey market and ease which consumers can bring tires in from U.S.A or from other provinces

6. Tire Stewardship Programs in Canada ProvinceProgram Operator Funding ModelTire Types Included PEIGovernmentRetail FeePLT, MT NewfoundlandNon-Crown Agency Retail FeePLT, MT New BrunswickNon-Crown Agency Retail FeePLT, MT Nova ScotiaNon-Crown Agency Retail FeePLT, MT QuebecCrown AgencyRetail FeePLT, MT OntarioIndustryFee on Manufacturers & Importers PLT, MT, OTR ManitobaIndustryRetail FeePLT, MT, OTR SaskatchewanIndustryRetail FeePLT, MT, OTR AlbertaNon-Crown Agency Retail FeePLT, MT, OTR British ColumbiaIndustryRetail FeePLT, MT, OTR YukonGovernmentRetail FeePLT, MT NWTGovernmentRetail FeePLT, MT NunavutN/A

7. Tire Stewardship Programs in Canada ProvincePass/LT FeeMedium Trk Fee OTR Fee PEI$4.00$11.25None Newfoundland$3.00$9.00None New Brunswick$4.50$13.50None Nova Scotia$4.50$13.50None Quebec$3.00 None Ontario$4.75$12.95$5.88 – $1,311.24 Manitoba$3.75$9.00$4.00 - $135.00 Saskatchewan$4.00$14.00$25.00 -$140.00 Alberta$4.00$9.00$0.00 - $200.00 British Columbia$5.00$9.00$15.00 - $35.00 Yukon$5.00 None NWTNone NunavutNone

8. Total Revenue From Fees Collected 2010$152,202,000 2011$158,076,000 2012$157,082,000 2013$171,830,000 DEFINITIONS Recycling: crumb, molded, TDA, mulch, blasting mats, steel/fibre, other uses; TD: TDF uses; Disposed: as a by-product of the recycling process or the energy recovery process that is disposed of in landfill Managed: Recycling + TDF + Disposed Recycling % = recycling tonnes/collection tonnes; TDF% = TDF tonnes/collection tonnes Disposed % = disposed tonnes / collection tonnes Managed % = (recycling tonnes + TDF tonnes + disposed tonnes) / collection tonnes DEFINITIONS Recycling: crumb, molded, TDA, mulch, blasting mats, steel/fibre, other uses; TD: TDF uses; Disposed: as a by-product of the recycling process or the energy recovery process that is disposed of in landfill Managed: Recycling + TDF + Disposed Recycling % = recycling tonnes/collection tonnes; TDF% = TDF tonnes/collection tonnes Disposed % = disposed tonnes / collection tonnes Managed % = (recycling tonnes + TDF tonnes + disposed tonnes) / collection tonnes

9. How the Money is Spent DEFINITIONS Recycling: crumb, molded, TDA, mulch, blasting mats, steel/fibre, other uses; TD: TDF uses; Disposed: as a by-product of the recycling process or the energy recovery process that is disposed of in landfill Managed: Recycling + TDF + Disposed Recycling % = recycling tonnes/collection tonnes; TDF% = TDF tonnes/collection tonnes Disposed % = disposed tonnes / collection tonnes Managed % = (recycling tonnes + TDF tonnes + disposed tonnes) / collection tonnes DEFINITIONS Recycling: crumb, molded, TDA, mulch, blasting mats, steel/fibre, other uses; TD: TDF uses; Disposed: as a by-product of the recycling process or the energy recovery process that is disposed of in landfill Managed: Recycling + TDF + Disposed Recycling % = recycling tonnes/collection tonnes; TDF% = TDF tonnes/collection tonnes Disposed % = disposed tonnes / collection tonnes Managed % = (recycling tonnes + TDF tonnes + disposed tonnes) / collection tonnes Eco fee based on the retail sale of a new tire ($3-5/tire) The eco fee is sent from the retailer to the ELT Board, which uses all the monies to: Pay the tire hauler for the collection of retailer’s scrap tires once he delivers to processor (helps to eliminate illegal dumping) Pay the tire processor a fee to cover two things: The processor’s ‘tip fee’ (help reduces illegal dumping) A processing incentive to produce higher value products Public Education // Promotion of Recycled Products R&D Funding // Stockpile Abatement Track scrap tire collection from retailer to hauler to processor

10. Scrap Tire Collection Tonnage (000’s) YearPLTMTOTRTotal 20102469345384 20112509429373 20122479436377 20132539136380

11. Recycling and TDF Usage (Tonnes) Market2013 Tonnes2012 Tonnes2011 Tonnes Moulded Products103,18792,14788,517 Crumb128,121130,64085,418 Blasting Mats5,6567,5509,295 TDA80,27264,91975,200 TDF21,33730,48124,367 Other40,07322,60049,507 TOTAL378646348337332304

12. RECYCLING & TDF 2013 (TONNES) Province/ Territory CollectionRecyclingRecycling %TDFTDF %Total Recycling/ TDF Recycling/ TDF % YT559 100%00%559100% BC39,33926,04166%8,95223%34,99389% AB62,56467,685108%2,5924%70,277112% SK21,78219,60990%00%19,60990% MB14,52614,18898%00%14,18898% ON139,933140,825101%00%140,825101% QC72,67365,13690%1,8783%67,01492% NB10,262 100%00%10,262100% PE2,4642,34195%1978%2,538103% NS10,664 100%00%10,664100% NL5,504-0%7,719140%7,719140% NATIONAL380,269357,30994%21,3376%378,646100%

13. Provincial Follies…

14. Summary of ELT Programs in Canada Each Canadian province has its own specific focus on markets for recycled tires, depending on provincial priorities. All Canadian Tire Stewardship Programs collaborate on tire stewardship issues through a voluntary organization called CATRA (Canadian Association of Tire Recycling Agencies). Examples of shared initiatives include: Recycling data / cost sharing Tire definition harmonization Financial and recycling KPI (key Performance Indicator) development Policy and Communication messaging Common program challenges include: Ensuring revenue completeness (i.e. that all responsible parties are remitting the appropriate fees) Grey market imports Used tire import / export impacts Managing political expectations and concerns Developing sustainable markets Specific focus on OTR tire processing/market options

15. Tire Stewardship Programs in Canada Questions? Comments? For further information: Glenn Maidment President, Tire and Rubber Association of Canada Chairman, CATRA gmaidment@tracanada.ca Andrew Horsman Executive Director, Ontario Tire Stewardship ahorsman@rethinktires.ca Bob Ferguson CATRA Program Manager Bob.ferguson@catraonline.ca