1. Waste Tire Situations and Markets in California Denise Kennedy, DK Enterprises CIWMB Waste Tire Forum Sacramento, California – March 9, 2006

2. Tire and Rubber Recycling Advisory Council (TRRAC) and the Tire Industry Association (TIA) Working group of recycling professionals marketing, processing, collection, crumb rubber and manufacturing one government liaison and advisor to TRRAC/TIA Represent 5000 members in the Tire Industry Association tire dealers and retreaders commercial and retail markets recyclers and suppliers TIA’s history of services include government representation; training, education and certification; educational seminars and workshops

3. Tire and Rubber Recycling Advisory Council (TRRAC) Mission: Ensure long term viability of tire and rubber recycling worldwide, while pursuing economic and environmental benefits Goals: To address the unique needs of the rubber recycling segment of the international tire industry and Promote the reuse and recovery of tires and tire derived materials Increase marketability of rubber products and applications Promote industry’s legislative, judicial and regulatory issues Provide educational, training, and networking opportunities

4. Tire and Rubber Recycling Advisory Council – Representatives Charles AstafanColumbus McKinnonFlorida Doug BarrBarr Formulated ProductsPennsylvania David ForresterTires Inc. of FloridaFlorida Dick GustLakin Environmental IndustriesIllinois Denise KennedyDK EnterprisesSacramento Allan LassiterVirginia DEQVirginia Monte NiemiFirst State Tire DisposalMinnesota Tom SecorDurable CorporateOhio Mary SikoraRecycling ResearchVirginia

5. Marketplace – March 2006 GreenMan Lakin Utah Tire Recyclers McClanahan CRM Socal/NorCal Break CB Tyres Golden Scrap Tire West Coast Rubber TRI-C RB Rubber Products BAS NW Rubber (Canada) WRW WTP CRM USMX WRW Shamrock WTP TD&R TDF

6. California Statistics US Census Bureau No. of Generators Haulers 2004 Population Counties W/ TPID’s W/Permits Southern 21,378,000 10 5,950 799 Northern 14,425,800 46 6,250 387 Total CA 35,803,800 56 12,200 1,186

7. Waste Tire Uses

8. Canvassing Barriers in California Different dynamics between northern and southern California Geographic proximity does not mean tire and product availability Shortage of facilities in southern California that have equipment and capacity to handle the quantity of tires that currently go to the landfills 1

9. Canvassing Barriers in California Tire processors compete with facilities and landfills that charge low tipping fees Technology and markets must be supported by supply of tires Subsidies by other states and countries influence collection, product and disposal 2

10. Canvassing Barriers in California Generators, facilities, and registered and unregistered haulers of scrap and used tires that bypass the regulated system impact pricing and market share Overregulation penalizes the businesses that abide by regulation Enforcement activity of the unregulated players is limited 3

11. Canvassing Barriers in California Difficult for many of the businesses to balance tire flow, seasonality, markets, and money Insufficient and sustainable markets require overcoming market barriers 4

12. Canvassing Barriers in California Research and development may be cost prohibitive Education, advertising and marketing campaigns may not be cost effective The cost of processing, manufacturing, equipment, land, and facility expansion capabilities impact decision to build business 5

13. Canvassing Barriers in California Lack of industry standardizations impacts ability to expand technology and market development Definitions and language Industry weights and measurements (being prepared by the RMA & RCC) Material Survey Data Sheet (MSDS) Testing Certification 6

14. Canvassing Barriers in California Interstate transport is market driven and cannot be controlled or regulated by state or local government Impact of tires and feedstock being imported and exported can effect the balance of markets Industry wants confirmation of authenticity of origination using California tires in CIWMB grant process 7

15. Canvassing Barriers in California Rubberized Asphalt Concrete growth is limited by understanding, education, and dollars Board to review the importance TDF plays in diverting 20% of the tire flow in California and impact if divert tires away from facilities Storage requirements for long term civil engineering applications projects using TDA are not always feasible 8

16. Canvassing Barriers in California Business Issues: Workman’s compensation Other insurance costs High energy costs Low-cost overseas rivals RCC and EPA – will these programs help or hinder growth in tire recycling Air quality Transportation costs 9

17. California Waste Tire Activity Grants will influence amount of income to processor, manufacturer and/or supplier Focus on expanding existing ground rubber markets Focus on developing civil engineering projects Support TDF markets as they will continue to grow on their own 1

18. California Waste Tire Activity Place more emphasis on research and development Grant selection options in Five Year Plan Utilize government programs to promote recycled materials including updating web pages 2

19. California Waste Tire Activity Companies buying other businesses Jump start businesses with BAP Provide business development, technical assistance, marketing assistance and product testing and certification 3

20. California Waste Tire Activity Utilize resources of the RMDZ Provide technical assistance Assist with marketing to state agencies Promote recycled content Assist with site location Link businesses with public agencies Utilize expertise of the RCC 4

21. Contact Information Denise Kennedy DK Enterprises 3323 Watt Avenue, Suite 298 Sacramento, CA 95821 PH: (916) 480-0443 FX: (916) 480-0386 MB: (916) 804-0931 denise@dkebusinesses.com www.DKEbusinesses.com