SCRAP TIRE OVERVIEW

Michael Blumenthal

Senior Technical Director

Rubber Manufacturers Association

Washington, DC

Municipal Waste Management Association

RUBBER MANUFACTURERS ASSOCIATION

• Represents the 7 US tire manufacturers– 90% tires sold in the USA

• Created scrap tire program in 1990• Focus on development of sound markets and

management for 100% of annually generated scrap tires

• Elimination of all scrap tire piles in an environmentally and economically sound manner

• 48 states enact scrap tire legislation or regulations

• Markets for tires increases to 24 million • Federal interest in scrap tires• Billions of tires reported to be in

stockpiles• Small-scale operations• Tire fires make headlines

The Early Years 1985-1990

Early Perceptions in the Scrap Tire Industry

• Tipping fees alone would provide profit

• Large inventories are advantageous

• Easy to enter the market

Industry Challenges ‘90 –’95• Some state programs focused on processing

instead of markets• Controversial federal mandate spurs

investment in ground rubber production• Overcapacity in ground rubber market – many

companies fail• ‘Hot spots’ in civil engineering projects

creates concern• Lack of enforcement leads to dumping

Industry Successes 1990-1995

• Markets increase to 55% of annual generation

• Use of Ground Rubber Markets Expand– From zero to 12 million

• Civil Engineering market created– From zero to 10 million

• TDF markets increased– From 24 million to 100 million

Industry Successes 1990-1995

• ASTM specifications created for:– Ground rubber– Civil engineering applications– Tire-derived fuel

• Tire leachate research conducted• Better data on tires in stockpiles

– 1994 800 million– 1996 500 million– 1998 400 million

Industry Challenges ‘96-’01

• Ground rubber markets only consumed 20 million tires a year

• Civil engineering applications still subjected to Not Invented Here

syndrome

• TDF markets battered by wide array of issues

• Civil Engineering Applications Increase–Septic field medium; landfill applications

• Ground rubber markets expanded–Playgrounds; sport surfacing

• TDF markets rebounded–Cost benefit; environmental +

2001 and BeyondIndustry Successes

Markets for Scrap Tires ’01

• Total generated: 281 Million– TDF 115 million– CE 40 million– GR 33 million– Exported 15 million– Punched 8 million– Ag/Misc. 7 million

• Total: 218 million/77% of total

Scrap Tire Utilization - 2001

Unknown12.5%

Civil Engineering

14.2%

Tire Derived Fuel

40.9%

Ground Rubber11.7% Landfill

10.0%

Misc.2.5%

Export5.3%

Punched/Stamped 2.8%

Utilization of Scrap Tires - U.S.

24.5

68

202 196

218223

252 253

281

177.5

139

273265265

11

27

55

7277

67

76

0

50

100

150

200

250

300

1990 1992 1994 1996 1998 2000 2001

Mill

ion

s o

f T

ire

s

0102030405060708090100

% S

cra

p T

ire

Uti

liza

tio

n

Scrap Tires Reused, Recycled, Recovered Scrap Tire Generation % Usage

% RECOVERY of SELECTED MATERIALS

72

69

64

64

62.5

50

40

35

77

0 10 20 30 40 50 60 70 80 90 100

Scrap Tires

Cardboard

Newspaper

HDPE Plastic

Steel

Office Paper

Glass

PET Plastic

Aluminum

2002 and Beyond Market Challenges

• Still a fragmented market

• Reliance on single markets

• Balancing supply & demand

Issues at Hand

• Uneven regulation between states• Not enough enforcement on dumping & non-

licensed haulers• Not Invented Here Syndrome• Markets not evenly distributed• Scrap tire industry still not well understood by

regulators & even some processors

Stockpile Abatement

Continuing Stockpile Abatement Efforts– 2000 300 million– 2001 300 million

2 states (CT & CO) add 45 million tires to their list in 2001; other states’ stockpiles decline

Stockpile Abatement - U.S. 1000 1000

800

500400

300 300

0

200

400

600

800

1,000

x M

illio

ns

1990 1992 1994 1996 1998 2000 2001

No. of scrap tires in stockpiles

State Scrap Tire Programs

• 48 states have regulations (AK/DE)• 33 states have a fee ($0.50 - $2.00)• 6 states ended their fee program• 38 states ban whole tires from landfills• 11 states ban all tires from landfills• 35 states allow shredded tires/landfills• 8 states have no landfill restrictions• 10% of scrap tires are landfilled

State Scrap Tire Programs

• 17 states allow processed tires in ‘monofills’• 14 states require transporter manifests• 27 states have active abatement program• 35 states regulate tires processors• 34 states regulate tire transporters• 3 states subsidize collection/processing

Legislation in ‘01

• Colorado

• Hawaii

• Illinois

• Kansas

• Louisiana

• Maine

• Maryland

• Minnesota

• Mississippi

• New York

• Ohio

• Oklahoma

• Oregon

• Texas

• Utah

• West Virginia

Expected Legislation in ‘02

• Michigan (modify program)

• New York (new program)

• Oregon (study group)

• Tennessee (landfill ban ’02)

• Washington (new program)

Why So Much Activity

• Need to create program (NY)• Need to readdress situation (OR/WA/TX)• Limited duration of programs (3-5 Yrs.); more

time to resolve issues: (MO/MS Extending program)

• Addressing or discovered more stockpiles (TX/MA)

• Tweaking program (HI/OK/CO)

Components of Effective Legislation • Comprehensive regulation for generators,

collectors, processors and end users• Limited time fee: dedicated fund – tamper

proof• Funds used to spur market development (no

subsidies)• Funds used to abate stockpiles• License/permit transporters• Tire tracking system

Tire Industry Accomplishments• Retreading (2000 Data*)

–18.2 million retreaded medium & heavy duty truck tires–6.3 million retreaded light truck tires–1.5 million retreaded passenger tires–0.75 million retreaded aircraft, OTR, etc.

• Tire Life–Since 1981, the average tire life has increased 53% (43,000 miles vs. 28,000 miles)

* From Tire Retread Information Bureau

Be Tire Smart – Play Your PART

• Pressure, Alignment, Rotation, Tread– 4 key elements of proper tire care

• Proper tire care maximizes safety, fuel economy and tire wear– Under inflation is a tire’s #1 enemy– Operating a tire 20% under inflated increases fuel

consumption by 10% and tread life is reduced 15%

Be Tire Smart – Play Your PART

• Multi-year, multi-million dollar campaign to educate consumer about proper tire care and safety

• Survey research found over 75% of motorists scored “D” or worse on tire safety quiz

Be Tire Smart – Play Your PART

• Communicate tire safety information to policy

makers, media & the public

• Establish key partnerships to enhance

message delivery of RMA tire safety program• Raise consumer awareness of the importance

of proper tire care & safety

Michael BlumenthalRubber Manufacturers Association

1400 K Street NWWashington, DC 20005

202 682 4882michael@rma.org

WWW.SCRAPTIRE.ORG