1. SCRAP TIRE OVERVIEW Michael Blumenthal Senior Technical Director Rubber Manufacturers Association Washington, DC Municipal Waste Management Association

2. 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

3. 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

4. Early Perceptions in the Scrap Tire Industry Tipping fees alone would provide profit Large inventories are advantageous Easy to enter the market

5. 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

6. 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

7. 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 –1994800 million –1996500 million –1998400 million

8. 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

9. Civil Engineering Applications Increase –Septic field medium; landfill applications Ground rubber markets expanded –Playgrounds; sport surfacing TDF markets rebounded –Cost benefit; environmental + 2001 and Beyond Industry Successes

10. Markets for Scrap Tires ’01 Total generated: 281 Million –TDF115 million –CE 40 million –GR 33 million –Exported 15 million –Punched 8 million –Ag/Misc. 7 million Total: 218 million/77% of total

11. Scrap Tire Utilization - 2001

14. 2002 and Beyond Market Challenges Still a fragmented market Reliance on single markets Balancing supply & demand

15. 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

16. Stockpile Abatement Continuing Stockpile Abatement Efforts –2000300 million –2001300 million 2 states (CT & CO) add 45 million tires to their list in 2001; other states’ stockpiles decline

17. Stockpile Abatement - U.S. 1000 800 500 400 300 0 200 400 600 800 1,000 x Millions 1990199219941996199820002001 No. of scrap tires in stockpiles

18. 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

19. 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

21. Expected Legislation in ‘02 Michigan(modify program) New York (new program) Oregon(study group) Tennessee(landfill ban ’02) Washington(new program)

22. 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)

23. 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

24. 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

25. 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%

26. 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

27. 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

28. Michael Blumenthal Rubber Manufacturers Association 1400 K Street NW Washington, DC 20005 202 682 4882 michael@rma.org WWW.SCRAPTIRE.ORG