Scrap Tyre Management in the United States and the EU Michael Blumenthal Marshay Inc Scrap Tyre Summit Auckland New Zealand June 2 2015 Scrap Tyre Management in the USA Pre1985 no state or Federal legislation or regulations on scrap tyres ID: 396680
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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, 2015Slide2
Scrap Tyre Management in the USAPre-1985 no state or Federal legislation or regulations on scrap tyres
Accepted management practices were to landfill
or stockpile tyres
No activity on market development1985: Minnesota enacts legislation and develops regulations on scrap tyresBy 1990, 48 states have enacted legislation & regulations on scrap tyresEPA 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 USAUS 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, 2015 Marshay, Inc.Slide3
Scrap Tyre Legislation & RegulationScrap 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 feesMost state scrap tyre programs focused on market development and stockpile clean upPatchwork of regulations caused non-logical flow of tyres to occurMarkets responded to incentives and adapted to regulationsOff road (non DOT) tires not regulated
New Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.Slide4
Understanding US Solid Waste/Recycling PolicyThe 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 issueOverall approach to waste management is command and controlFree 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, 2015 Marshay, Inc.Slide5
Industry Approach to Scrap Tire ManagementTyre 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 publicEPA, Federal and state government did not oppose this approachNot everyone agreed or accepted their assumed responsibilityUS system worked relative wellEnd use markets increased from 11% in 1990 to 55% in 1995 to 92% in 2013Tires 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, 2015 Marshay, Inc.Slide6
Scrap Tyre Management in the EUEach 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 basedFunds generally used for collection and paying end usersNot all programs are similar or effectiveCounties which selected end use markets (Sweden, Finland) are less expensive programs & manage all ELTsNew Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.Slide7
New Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.Slide8
EU Scrap Tire ProgramsPrograms with sufficient markets: Germany, Sweden, Denmark, Finland, Belgium, Netherlands
Country programs vary:
Germany: TDF & recycled products
Sweden: TDFFinland: TDABelgium & Netherlands: Recycled rubber productsDenmark: Recycled rubber products & TDFNew Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.Slide9
U.S. Scrap Tire Trends 2005 - 2013
New Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.Slide10
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, 2015 Marshay, Inc.Slide11
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
Extruded440 mm lbs.373 mm lbs.430 mm lbs.450 mm lbs.475 mm lbs.Exported115 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.
New Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.Slide12
U.S. Stockpiled Scrap Tires 1990 - 2011
New Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.Slide13
Scrap Tire FeesSince 1985,
44
states have enacted laws
placing a user fee on scrap tiresFees 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 tiresNo fee on retreaded tires, agricultural, bicycle tires or off-road tires
New Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.Slide14
Fee ProgramsFees 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 taxedMost state programs send a percentage to state finance agency for their assistanceFees 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, 2015 Marshay, Inc.Slide15
Uses for Scrap Tire FeesMarket Development
Research
Grants/loans IncentivesStockpile abatement Pile abatement & amnesty daysStaffing & Enforcement of scrap tire regulations
New Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.Slide16
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, 2015 Marshay, Inc.Slide17
Quick History of the Scrap Tire IndustryUS scrap tyre industry is a function of state legislation & regulationsIndustry 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 companies1990 500 companies: 2015: 50 companiesNew Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.Slide18
What has worked: What has not worked
What Has Worked?
What Hasn’t Worked ?
Tire fees used for abatement, market developmentNo fees or Raided feesDevelopment 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, 2015 Marshay, Inc.Slide19
ConclusionsUS 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 enforcementOverall, scrap tyres are one of the most recovered materials in the USAOverall 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, 2015 Marshay, Inc.Slide20
Contact InformationMichael BlumenthalMarshay, Inc.
A Scrap Tire Consulting Company
marshayinc@gmail.com
845-642-3130www.scraptireexpert.comNew Zealand Scrap Tyre Summit, June 2, 2015 Marshay, Inc.