Tire Stewardship Project Julie L. Rhodes, Product Stewardship Institute contractor Sacramento, California - July 28, 2004

Action Plan Overview Issues & Strategies for Tire Stewardship Dialog

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 3 Research to develop Action Plan  Phone interviews with 20+ stakeholders Tire manufacturers Recyclers Haulers End use manufacturers TDF/Cement kilns Government Trade associations Transportation officials Other technical resources  Developed set of questions  Conducted interviews in March and April 2004

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 4 Research to develop Action Plan  Published reports Extending the Lifespan of Tires Increasing the Recycled Content in Tires CIWMB Five-Year Plan Others  Websites  Follow-up discussions to clarify issues  Stakeholder comments on initial draft  Action plan is intended to be a brief education piece on each topic to provide stakeholders with a foundation of the variety of concerns and support for tire related issues

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 5 Comments on Action Plan  Solicited comments on initial draft of action plan from all primary stakeholders.  Received and incorporated comments - balanced competing comments  Surveyed stakeholder to seek agreement/disagreement on issues and strategies

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 6 Survey Responses  Based on 15 surveys received from: Manufactures/RMA - 6 Retailers/TIA - 2 Government Agencies - 3 Haulers/Processors/Recyclers - 2 Other - 2  Two surveys were not properly completed and could not be used  Respondents ranked issues for the dialog: “1” highest priority to “12” lowest priority  Respondents ranked strategies: 2 - strongly agree; 1 - agree; 0 - neutral; -1 disagree; -2 strongly disagree.  Respondents could also add strategies and comments

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 7 Issue Prioritization  Based on 13 surveys  Top Tier #1 - Waste Tire Markets (Issue 2) #2 - Tire-derived Fuel (Issue 10) #3 - Recycled Asphalt Concrete (Issue 7)  Second Tier #4 - Shredded Tire Markets (Issue8) #5 - Crumb Rubber Markets (Issue 5) #6 - Collection and Transportation (Issue 4) #7 - Waste Tire Generation (Issue 1) #8 -Tire Reuse, Retread, Remold (Issue 3)

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 8 Issue Prioritization, continued  Third Tier #9 - Recreation Markets (Issue 9) #10 - Sustainable Financing (Issue 12) #11 - Landfill Disposal (Issue 11) #12 - Recycled Content in New Tires (Issue 6)

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 9 Breakdown of Strategies Issue Overall Rank GovernmentManufacturers and RMA Retailers and TIA RecyclersOther 1. Waste tire generation Waste tire markets Tire reuse Collection and transportation Crumb rubber markets Recycled content in new tires Rubberized asphalt concrete Shredded tire markets Recreation markets Tire-derived fuel Landfill disposal Sustainable financing Number of Responses

Issues and Strategies

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 11 Issue 1: Waste Tire Generation  California generates 33.5 million tires annually  California interested in reducing the number of tires generated before recycling, stockpiling or disposal  75% are diverted annually from stockpiling or disposal  25% still end up in landfills

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 12 Issue 1: Waste Tire Generation  Solution: Increase the lifespan of tires 1. Increase consumer education on tire maintenance at retail and other locations 2. Provide free and convenient pressure gauges and air for tire maintenance 3. Install “smart tire” systems on new vehicles Federal requirements likely under TREAD 4. Manufacture longer lasting tires 28,000 miles in 1981; 43,000 miles in 2001

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 13 Issue 1: Waste Tire Generation 5. Encourage consumers to buy longer lasting tires Higher cost, better lifecycle costs 6. Develop a unified approach to optimal tire pressure Auto manufacturers currently recommend pressure 7. Additional strategy - nitrogen inflation systems 8. Additional strategy - incentives and education strategies for fleets

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 14 Issue 3: Tire Reuse and Retread  Reuse, Retreads and Remolds Reuse allows for a used tire to be reused as is 1.5 million tires reused in California (2001) Estimated that 2-5% of generated tires are segregated for for reuse Estimated that up to 10% could be reused Price must be very low to compete with low-cost new tires Retread allows for casing to be reused, but new tread is added Retreads most often apply to light and large, commercial truck tires In California, 59 companies and retailers sell retread tires Estimated that 737,500 retread tires are sold in California annually Remold allows rubber to be molded into new tires New technology in US, but used in Europe

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 15 Issue 3: Tire Reuse and Retread  Challenges: New tires can be very expensive - used tires cannot compete Concern over liability of selling/using used tires - void warrantees or insurance Retreads must overcome quality/perception concerns - tread on the side of the road

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 16 Issue 3: Tire Reuse and Retread  Solution: Increase reuse and retread markets for tires 1. Promote use of retreads among local government and commercial fleets Cost savings Equal performance County, city and commercial fleets 2. Reduce liability concerns over reused tires Insurance barriers More reuse and export opportunities

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 17 Issue 4: Collection and Transportation  Tires collected by retailers and local governments Retailers have limited space Some local ordinances do not allow outdoor storage  All generators must register - 16,000 registered in California  Contracted haulers Ensure proper management and/or disposal of tires Must meet state and federal laws on storage, transport and management Registration with state - 10 or more tires  Tire manifest program In effect since 1995 Strengthened in 2001 (more oversight) Allows for electronic filing of paperwork (2 haulers)

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 18 Issue 4: Collection and Transportation  Solution: Reduce regulatory barrier to lower costs of tire collection 1. Streamline tire manifest system New system effective July 1, 2003 Increased enforcement Requires generators to report 2. Develop cooperative collection contracts New system and enforcement has forced some recyclers out of business Cooperative contracts could help collectors be more competitive

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 19 Issues 5: Crumb Rubber Markets  Crumb rubber results from the ambient or cryogenic processing of a scrap tire Removes the metal and fluff Clean ground rubber product Varies in size Used directly or as a raw material feedstock for new product manufacturing - mats, liners, tires, etc.  Challenges Each tire by type or manufacturer has unique recipe Tires are expensive to process Must compete with low virgin rubber prices Specifications for crumb rubber not well known Each potential product has it’s own challenges

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 20 Issues 5: Crumb Rubber Markets  Solution: Develop sustainable and diversified crumb rubber markets 1. Promote existing specifications for crumb rubber Little known ASTM standard ISRI also developing standards 2. Increase government and business purchase of tire- derived products Model procurement policies Marketing plans 3. Overcome perception related to inferior quality of recycled content tires Education on price, quality and availability Point of purchase advertising when buying tires

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 21 Issues 5: Crumb Rubber Markets continued 4. Research and develop strategies to overcome technical barriers to using crumb rubber as a raw material Devulcanization Generic MSDSs on chemical properties 5. Equipment grants for crumb rubber manufacturers Expensive capital investment Seed funding instead of on-going subsidies 6. Provide marketing assistance for California tire-derived product manufacturers Assistance with trade shows and international trade marketing

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 22 Issues 6: Recycled Content in New Tires  Currently tires contain between 0 - 5% recycled rubber Post consumer or industrial scrap?  Potential for %  Challenges: Chemistry of tires Vulanized rubber properties Without technological breakthrough, adding recycled rubber to tires can impact tire longevity and performance Cost

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 23 Issues 6: Recycled Content in New Tires  Solution: Increase percentage of recycled content in new tire manufacture 1. Increase recycled tire rubber in new tire manufacturing and other molded products 0-5% currently used 10-15% potentially feasible Impact on tire longevity and performance 2. Conduct research on technologies to increase recycled content in tires Devulcanization 3. Provide financial incentives to increase demand for recycled rubber Level the playing field with virgin rubber Short term incentives - procurement grants

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 24 Issues 6: Recycled Content in New Tires 4. Develop recycled-content tire procurement specifications along with strategy for procurement of recycled content tires and molded products. 5. Additional strategy - Government procurement of recycled-content tires (would require tire manufacturers to disclose amount of recycled-content in tires).

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 25 Issue 8: Shredded tire markets  Shredded tires can be substituted for other fill material, such as aggregate, sand and gravel  Used for a variety of applications: Landfill application Civil engineering applications Embankments Bridge embankments Road base Septic/drainage fields  Challenges: Design specifications Proper installation Past performance Logistics

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 26 Issue 8: Shredded tire markets  Solution: Increase the civil engineering applications for shredded tires 1. Provide education and information on benefits of using waste tire shreds in landfill applications Drainage in leachate collection Landfill liners Alternative daily cover 2. Educate transportation officials about ASTM specifications for tire shreds Bridge embankments, subgrade fill, retaining walls Writing standards into state and local contracts 3. Allow for, and promote, waste tire use in local septic fields/drainage through local ordinances and state rule 4. Educate about specifications to increase the use of tires in road base Specifications to reduce risks

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 27 Issue 9: Recreation Markets  Loose fill crumb rubber or poured in place for recreation and outdoor uses Playground cover Running tracks Sports fields Horse arenas Golf courses Walking trails Mulch  Advantages: Safety - Absorb impact Drainage  Challenges: Cost State grants Public perception

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 28 Issue 9: Recreation Markets  Solution: Develop sustainable and diversified recreation markets 1. Promote benefits of crumbed and chipped rubber over traditional materials used in sports fields, playgrounds, horse arenas, golf courses, walking trails, and as mulch Overcome negative perceptions Promote use and proper installation 2. Develop a market development plan for recreational uses Grants help, but need more to move into the mainstream Demonstration projects, evaluation, testimonials Involve parks departments, schools, daycare centers As market develops, costs and concerns decrease

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 29 Issue 11: Landfill Disposal  25 million tires still landfilled in California annually  Tires must be shredded before legally disposed of in a landfill  Most of California’s 152 solid waste landfills accept tires for disposal  Cost of landfilling $2.61 per tire $ per ton of shredded tires  Landfilling is least expensive management option available in California

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 30 Issue 11: Landfill Disposal  Solution: Reduce tire landfilling through incentives and disincentives 1. Phase in a landfill ban on tires Current law allows shredded tires to be landfilled Other states have complete ban 2. Increase landfill tipping fees Level playing field between landfilling and recycling 3. Provide incentives for retailers and haulers Financial incentive to recycle over landfilling 4. Require storage and marketing of tires before landfilling Discourages landfilling and provides incentive for recycling Concerns over stockpiling tires for any reason

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 31 Issue 12: Sustainable Financing  Tire fee of $1 per tire is collected at retail and given to state to run tire programs (up from $.25 per tire before 2000) Market development Regulatory Enforcement Tire pile clean-ups Education  $33 million collected annually  An additional fee is often charged to actually pay for the cost of managing and disposing of a tire (administrative and hauling)  Fee scheduled to be reduced to $.75 per tire on December 31, 2006

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 32 Issue 12: Sustainable Financing  Solution: Develop agreement on long-term funding strategy 1. Develop a third party organization that can provide cost- effective system management Examples of other successful third party systems Pays for actual recycling costs Fees collected are guaranteed for use on tire programs 2. Distribute funding according to negotiated priorities Setting priorities with input from all stakeholders Ensuring those priorities are funded

Tier One Issues and Strategies

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 34 Issue 1: Waste Tire Markets  Markets: Crumb Rubber Recycled Content in Tires Loose Fill Crumb Rubber Products Molded Products from Crumb Rubber Rubberized Asphalt Concrete Shredded tires Civil Engineering Applications Landfill Applications Lightweight Fill Road Base Tire Derived Fuel Whole or chipped

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 35 Issue 1: Waste Tire Markets  Challenges: Technological Economical Institutional Logistical Environmental Lack of Information/Education Perception or Past Performance Highest and Best Use Lack of Experience

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 36 Issue 1: Waste Tire Markets - Ideal World  Short-term and long-term performance goals exist for reuse/recycling programs that are measurable and aggressive, but attainable  Projects and programs include evaluation mechanisms for mid-course improvements when data show that programs are not meeting performance goals.

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 37 Issues 2: Waste Tire Markets  Solution: Develop performance metrics for program success 1. Set measurable goals for market development and reduced disposal. Set long-term goals for reuse, retread, recycling and reduced disposal Benchmarking/setting timelines/follow-up Resource Conservation Challenge Tire Cluster goals Divert 85% of waste tires to reuse, recycling or energy recovery by 2008 Reduce by 55% the number of tires stockpiled by Reduce regulatory barriers to market development Do people want to identify any barriers and propose solutions to resolve them? “Waste tire”

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 38 Issue 10: Tire-derived Fuel  Tire-derived fuel Whole tires - 2 of 17 cement kilns burning tires Tire chip fuel - 2 co-generation plants burning tires  Cement kilns, co-generation plants, industrial boilers and others  Substituted in part for coal or coke  Generates 14,000 BTU of energy per pound compared to 12,500 BTU’s of energy per pound for coal  Can reduce air pollutants (NOx and SOx)  Reducing the transportation impacts of fuel sources from out of state  No state funding can be used for TDF under current state law

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 39 Issue 10: Tire-derived Fuel  Challenges: Perception of “tire burning” Could increase some air pollutants Not the highest and best use of the resource - initial resources are gone forever Conversion of plant is expensive Permitting of tire burning is expensive and takes time Logistically not every facility is cost-effective Potential contaminants Tire chip fuel has costs of processing

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 40 Issue 10: Tire-derived Fuel - Ideal World  Absolutely no TDF use OR  Maximize TDF use as part of a diversified market development strategy OR  Develop TDF markets initially, but move more tires towards more value-added end use markets

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 41 Issue 10: Tire-derived Fuel  Solution: Increase tire-derived fuel markets 1. Overcome perception related to environmental hazard of burning tires for fuel EPA support for TDF Lowers NOx and SOx Not highest and best use, but is a proven market 2. Provide financial assistance for facility conversion or other start-up costs Expensive capital investment Not currently allowed under California funding programs 3. Additional strategy - research into combustion technology and emissions control technology (less theory, more science)

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 42 Issue 7: Rubberized Asphalt Concrete Markets  Blending crumb rubber in the liquid asphalt on road construction projects, parking lots, other  CalTrans, local highway departments, contractors, private sector  Challenges: Concerns over patents and mix designs Climate Proper Installation Cost Material costs could add to project costs Thinner layers of material with improved performance (AZDOT) Getting material to jobsite CalTrans project scheduling delivery of 660,000 tires Need for greater incentives to motivate use

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 43 Issue 7: Rubberized Asphalt Concrete Markets continued  CalTrans established 15% internal goal  Proposed legislation would require % goal by 2012 (AB 338)  Proposed legislation also requires use of US tire rubber only

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 44 Issue 7: Rubberized Asphalt Concrete Markets - Ideal World  Every appropriate paving project includes rubberized asphalt.

July 28, 2004Tire Stewardship Project - Stakeholder Meeting, Sacramento, CA 45 Issue 7: Rubberized Asphalt Concrete Markets  Solution: Develop sustainable and diversified rubberized asphalt concrete markets 1. Use standardized asphalt mix designs and paving standards for RAC AZDOT 2. Train and educate state and local highway engineers, and others, on RAC use, costs, and benefits CalTrans, country highway departments, contractors Lifecycle analysis Reduced cracking Noise reduction 3. Require CalTrans and others receiving state funding to purchase California derived tire rubber Pending legislation requires US tire rubber use 4. Develop infrastructure and logistics for material delivery Storage, transport, scheduling Long-term contracts

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