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Waste Tire Working Group December 3, 2013
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Waste Tire Issues Fee Expires June 30, 2014 Gap in Fee Collections Regulating Used Tires Draft Annual Report Review
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Should the fee be extended beyond June 30, 2014?
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Background 2002, 2006 Four year extension for $1 per tire fee 2010, 2012 Two year extension as part of budget bill Sunsets July 1, 2014
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States that discontinued program: ○ Reappearance of illegal tire dumps and fires ○ Legislature faced with huge remediation costs Los Reales Landfill Tire Fire Tucson AZ 1989 Rick Wiley
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Fee Continuation 36 states have a fee (RMA 2011) Median fee is $1 Highest is $2.50 (AK, IL, NY) Lowest is $0.25 (IN)
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Fee Continuation State Experience with no fee MN: ○ Tip fee up (for disposal or recycling) ○ Monofilling WI: ○ Provided $20/ton subsidy with fee ○ TDF market crashed without fee
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Fee Continuation State Experience with no fee TX: ○ $9.5M general funds to clean up two piles, buy 2 TDF metering systems ○ Land reclamation MO: ○ No fee two years, no licensing ○ Several fires ○ Fee reinstated for five years in 2009
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Recycling Rate Waste Tire Management program Closure-Precedents/Experience in Other States, 2010, TAG Resource Recovery
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Fee Discontinuation in KY No state-wide amnesties Counties do not have $ to clean up Rural areas adversely impacted $3,000 annual grants to counties would end
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Fee Discontinuation in KY No crumb rubber grants Cities, counties, schools use for playgrounds Past to present: ○ EEC awarded 315 grants totaling $6.8 M since FY 2004 ○ Awarded 20 grants for $300,854 in FY 2012
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Fee Discontinuation in KY No market development Rubberized pavement pilot projects would cease Future auto parts and rubber products market would not be initiated
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Fee Continuation Cabinet hopes to insert in Budget Bill 2-year extension Less controversial than separate bill
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What can be done to collect more fees?
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Fee Receipts Tire Fee Receipts FY$ 20062,698,852 20072,690103 20082,734,918 20092,590,443 20102,621,464 20112,621,464 20122,591,606
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Fee Gap Revenue recovered 74% of available fee % Tire Fee Collected M Tires U.S.KY (1.5%) Replacement243.93.7 Salvage24.40.4 Subtotal3.7 Less Internet Sales (5%) 0.2 Total3.5 2012 Collections 2.6 % Collected 2012 74%
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Fiscal Issues: Dept. of Revenue: ○ Receives $50,000 per year flat fee ○ Not enough to collect tire fee (less than1 person) ○ No incentive, like a %, to recover tire fee DEP: ○ Could visit retailers and check records ○ Lacks audit authority
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What can be done to regulate used tires?
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Used Tires: 20-25 M sold in U.S. each year per RMA 8-11% replacement tires Many may end up in dumps RMA: 88% of all tires repaired improperly http://www.rma.org/tire- safety/tire-repair/ http://www.rma.org/tire- safety/tire-repair/ 220 M flat tires per year says answers.com (about 100% lifetime rate based on 242 M vehicles)
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Used Tires: KY: ○ 385,000 PTEs resold annually (280,000 tires) ○ Safety Issue ○ KRS 224.50-854(2) exempts storage of waste tires for resale ○ 224.50-868(2)(c) encourages reuse of waste tire “for its originally intended purpose”.
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Used Tires: RMA says used tire should not be sold when the following is present: ○ Less than 2/32 inch tread depth ○ A penetration wider than ¼ inch or not sealed from inside ○ Any innerliner or bead damage ○ Bulges or local areas of irregular/fast treadwear
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Used Tires: RMA says used tire should not be sold when the following is present: ○ Run-flat, under inflated and/or overloaded damage ○ Any cuts, cracks, bulges, scrapes, etc. ○ Defaced or removed DOT tire identification number (TIN) ○ See http://www.rma.org/tire-safety/used-tires/http://www.rma.org/tire-safety/used-tires/
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Used Tires: KY Options ○ Change Transportation, EEC law ○ Retailers inspect tires stored for resale against RMA standards ○ Revise Notice to Consumer: http://waste.ky.gov/RLA/Waste%20Tires/Docum ents/Waste%20Tire%20Fact%20Sheets%20f or%20Consumer11-20-08.pdf
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When will draft be available for review?
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Annual Report: Recycling and disposal numbers for January 1 to November 30, 2013 Estimate December 2013 Draft annual report available January 2, 2014 Comments needed by January 9, 2014 Final due to LRC January 15, 2014
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Waste Tire Issues George F. Gilbert, P.E. Environmental Engineer Consultant Director’s Office Division of Waste Management (502) 564-6716 george.gilbert@ky.gov Terry Gray TAG Resource Recovery Houston TX
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Waste Tire Report Other Contributors: Ricky Solomon, Supervisor Recycling Section Recycling and Local Assistance Branch Division of Waste Management Lisa Evans Local Assistance Section Recycling and Local Assistance Branch Division of Waste Management
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