global overview: legislative & regulatory environment. scrap tyre management in the united...

Global Overview: Legislative & Regulatory Environment.Scrap Tyre Management in the United States and the EUMICHAEL BLUMENTHAL

MARSHAY, INC.

SCRAP TYRE SUMMIT, AUCKLAND, NEW ZEALAND, JUNE 2, 2015

NEW ZEALAND SCRAP TYRE SUMMIT, JUNE 2, 2015 MARSHAY, INC.

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


Scrap Tyre Legislation & Regulation

Scrap tyres considered the most significant solid waste/recycling problem in the USA (1990-95)

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


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)


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


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


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

© Rubber Manufacturers Association, 2014. May not be used, reproduced or cited without proper attribution.

U.S. Scrap Tire Trends 2005 - 2013

2005 2007 2009 2011 20130

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

0%

20%

40%

60%

80%

100%

120%

82.0%89.3% 85.3% 85.9%

95.9%

Total to Market Total Generated Market %

Thou

sand

s of

Ton

s

Perc

ent

Util

ized

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

© Rubber Manufacturers Association, 2014. May not be used, reproduced or cited without proper attribution.

U.S. Scrap Tire Disposition 2013(percent of total tons generated annually)

Tire-Derived Fuel53.1%

Ground Rubber24.4%

Land-Disposed8.2%

Exported6.2%

Civil Engineering4.3% Electric Arc

Furnace1.6% Reclamation Projects

1.2%

Misc. Uses1.0%

Numbers may not add due to rounding.


New Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.© Rubber Manufacturers Association, 2014. May not be used, reproduced or cited without proper attribution.

US Ground Rubber Markets

2009* 2011* 2013* 2014 estimates**

2015 estimates**

Sport Fields 520 MM lbs. 277 mm lbs. 225 mm lbs. 225 mm lbs. 225 mm lbs.

Asphalt 240 mm lbs. 220 mm lbs. 90 mm lbs. 90 mm lbs. 90-100 mm lbs.

Automotive 115 mm lbs. 60 mm lbs. 75 mm lbs. 50 mm lbs. 50 mm lbs.

Playground &Mulch

282 mm lbs. 230 mm lbs. 400 mm lbs. 400 mm lbs. 420-440 mm lbs.

Molded Extruded

440 mm lbs. 373 mm lbs. 430 mm lbs. 450 mm lbs. 475 mm lbs.

Exported 115 mm lbs. 45 mm lbs. 80 mm lbs. 25 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.

19901992

19941996

20012003

20052007

20092010

20112020

0.00

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

900.00

1000.00

1100.00

1200.00

1000 1000

685.389659

509.98

308.445271.79

180.36142.2725

127.602901125.039408

76.734465

Mill

ions

of T

ires

U.S. Stockpiled Scrap Tires 1990 - 2011



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


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


Uses for Scrap Tire FeesMarket Development

Research

Grants/loans

Incentives

Stockpile abatement

Pile abatement & amnesty days

Staffing & Enforcement of scrap tire regulations


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


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

1990 500 companies: 2015: 50 companies


What has worked: What has not workedWhat Has 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


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


Contact Information Michael Blumenthal Marshay, Inc.

◦ A Scrap Tire Consulting Company

[email protected] 845-642-3130 www.scraptireexpert.com

mailto:[email protected]

http://www.scraptireexpert.com/

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