SCRAP TIRE MARKETS IN THE UNITED STATES
2005 EDITION
November 2006
Rubber Manufacturers Association
© Rubber Manufacturers Association, 2006. RMA provides this report free of charge on its website (http://www.rma.org) for educational, governmental and personal use as part of its commitment to the concept of shared responsibility for its members’ products. This report may not be sold for profit or for other purposes. RMA must be given proper attribution for any data, analyses, quotations, conclusions or other information contained in this report. About the Rubber Manufacturers Association
The Rubber Manufacturers Association (RMA) is the national trade association in the U.S. for the rubber products manufacturing industry representing nearly 100 companies that manufacture various rubber products. These member companies include every major domestic tire manufacturer including: Bridgestone Americas Holding, Inc., Continental Tire N.A.; Cooper Tire & Rubber Company; The Goodyear Tire and Rubber Company; Michelin North America, Inc.; Pirelli Tire North America; Toyo Tire North America, Inc. and Yokohama Tire Corporation.
In 1989, the RMA member tire manufacturers created the Scrap Tire Management Council (STMC), a non-profit advocacy organization that operated as part of RMA. In October 2001, RMA realigned management of its activities. Today, RMA scrap tire- related activities are directed by the RMA Scrap Tire Committee, comprised of representatives of the seven major tire manufacturers and managed by the RMA Environment and Resource Recovery Department.
The RMA Scrap Tire Committee provides policy direction and guidance for RMA activities regarding scrap tire management. The Committee’s mission is to promote the environmentally and economically sound management and use of scrap tires. The Committee’s strategic goals are to promote the elimination of all scrap tire piles; promote sound management of all annually-generated scrap tires; seek public awareness of scrap tire management successes; and advocate for a legislative and regulatory environment that is conducive and supportive of its mission.
The tire industry is sensitive to the need to assist in promoting environmentally and economically sound end-of-life management, reutilization and disposal practices for its products. The industry continues to promote the development of appropriate markets for scrap tires, provide technical and policy information regarding several areas of scrap tire management, host national, international and regional scrap tire conferences for state and federal regulators and advocate for sound state programs to address scrap tire issues. RMA does not represent nor have any vested interest in the processing of scrap tires or in any product derived from scrap tires. RMA promotes the concept that scrap tires are a resource that can be used in a wide array of applications. Contents
Executive Summary...... 6 1 Introduction ...... 8 Sources of Scrap Tires ...... 8 Data Collection ...... 8 Scrap Tire Metrics...... 9 Developing a Weight-Based Approach ...... 10 Revised Passenger Tire Equivalent (PTE) Value ...... 11 Characterizing the Data...... 11 Scrap Tire Generation Rates ...... 12 Retreaded and Used Tires ...... 12 Recycling and Scrap Tire Processing ...... 13 2 U.S. Scrap Tire Market Overview...... 15 3 Tire-Derived Fuel...... 19 The Cement Industry...... 21 Pulp and Paper Mills...... 22 Electric Utilities ...... 22 Industrial Boilers...... 23 Dedicated Scrap Tire-to-Energy Facilities...... 23 Other TDF users...... 24 Challenges to the TDF Marketplace ...... 26 Positive EPA Position Statement on Tire-Derived Fuel...... 28 Market Outlook...... 29 4 Civil Engineering Applications ...... 32 Landfill Construction and Operation ...... 33 Septic System Drain Fields...... 35 Subgrade Fill and Embankments ...... 35 Backfill for Walls and Bridge Abutments ...... 36 Subgrade Insulation for Roads...... 36 Vibration Dampening Layers...... 36 Baled Tires...... 36 Market Outlook...... 37 5 Ground Rubber Applications ...... 38 Athletic and Recreational Applications ...... 41 Molded and Extruded Products...... 43 Rubber-Modified Asphalt ...... 44 New Tire Manufacturing...... 45 Animal Mats...... 46 Other Markets ...... 46 6 Electric Arc Furnaces ...... 47 7 Other Markets ...... 50 Cut, Punched and Stamped Rubber Products ...... 50 Agricultural and Miscellaneous Uses ...... 51 Export of Tires ...... 51 8 Land Disposal Issues ...... 52 Tires Land Disposed in 2005 ...... 52 Scrap Tire Stockpiles ...... 53 9 State Performance and Evaluation...... 57 State Performance ...... 57 State Evaluation ...... 57 10 U.S. Regional Scrap Tire Market Analysis...... 61 U.S. EPA Region I...... 63 U.S. EPA Region II...... 64 U.S. EPA Region III ...... 65 U.S. EPA Region IV ...... 66 U.S. EPA Region V ...... 68 U.S. EPA Region VI ...... 69 U.S. EPA Region VII...... 70 U.S. EPA Region VIII ...... 71 U.S. EPA Region IX ...... 72 U.S. EPA Region X ...... 72 11 The Resource Conservation Challenge ...... 74 12 History of the Modern Scrap Tire Market...... 77 The Early Marketplace...... 77 The Ground Rubber Mandate and Its Effects ...... 78 The Entry of Civil Engineering Applications ...... 79 Dynamics of the TDF Market...... 80 Market Trends...... 80 13 Conclusions...... 82 14 Appendices...... 85 APPENDIX A: U.S. Scrap Tire Management Summary, 1990 - 2005...... 86 APPENDIX B: U.S. Scrap Tire Market Data Tables ...... 87 APPENDIX C: Tire-Derived Fuel Users...... 89 Figures
Figure 1: U.S. Scrap Tire Management Trends, 1990 - 2005...... 15 Figure 2: U.S. Scrap Tire Disposition, 2005...... 16 Figure 3: U.S. Scrap Tire Market Trends, 1990 - 2005 ...... 17 Figure 4: U.S. Tire-derived Fuel Market Distribution Trends, 1990 - 2007...... 19 Figure 5: U.S. Ground Rubber Supply, 1990 - 2005...... 38 Figure 6: U.S. Ground Rubber Market Distribution, 2005...... 39 Figure 7: Millions of Scrap Tires Remaining in U.S. Stockpiles, 1990 - 2005...... 54 Figure 8: U.S. State Scrap Tire Market Percentages, 2005...... 58 Figure 9: Scrap Tires Remaining in Stockpiles in the United States, 2005...... 58 Figure 10: Percentage of Scrap Tires to Market by U.S. EPA Region, 2005...... 61 Figure 11: Scrap Tire Market Distribution by U.S. EPA Region, 2005 ...... 62 Figure 12: Number of Scrap Tires Remaining in Stockpiles, by EPA Region, 2005...... 63 Figure 13: U.S. EPA Region I Scrap Tire Disposition, 2005...... 63 Figure 14: U.S. EPA Region I Comparative Scrap Tire Statistics, 2003 - 2005...... 63 Figure 15: U.S. EPA Region II Scrap Tire Disposition, 2005...... 64 Figure 16: U.S. EPA Region II Comparative Scrap Tire Statistics, 2003 - 2005...... 65 Figure 17: U.S. EPA Region III Scrap Tire Disposition, 2005...... 65 Figure 18: U.S. EPA Region III Comparative Scrap Tire Statistics, 2003 - 2005...... 66 Figure 19: U.S. EPA Region IV Scrap Tire Disposition, 2005...... 66 Figure 20: U.S. EPA Region IV Comparative Scrap Tire Statistics, 2003 - 2005...... 67 Figure 21: U.S. EPA Region V Scrap Tire Disposition, 2005...... 68 Figure 22: U.S. EPA Region V Comparative Scrap Tire Statistics, 2003 - 2005...... 69 Figure 23: U.S. EPA Region VI Scrap Tire Disposition, 2005...... 69 Figure 24: U.S. EPA Region VI Comparative Scrap Tire Statistics, 2003 - 2005...... 70 Figure 25: U.S. EPA Region VII Scrap Tire Disposition, 2005...... 70 Figure 26: U.S. EPA Region VII, Comparative Scrap Tire Statistics, 2003 - 2005...... 71 Figure 27: U.S. EPA Region VIII Scrap Tire Disposition, 2005...... 71 Figure 28: U.S. Region VIII Comparative Scrap Tire Statistics, 2003 - 2005...... 71 Figure 29: U.S. EPA Region IX Scrap Tire Disposition, 2005...... 72 Figure 30: U.S. EPA Region IX Comparative Scrap Tire Statistics, 2003 - 2005...... 72 Figure 31: U.S. EPA Region X Scrap Tire Disposition, 2005...... 73 Figure 32: U.S. EPA Region X Comparative Scrap Tire Statistics, 2003 - 2005...... 73 Tables
Table 1: Average Scrap Tire Weight Calculations for U.S. Market...... 10 Table 2: Characterization of State Data – Number of States Using Various Units to Report Data...... 11 Table 3: Scrap Tire Generation as a Function of U.S. Population (in 1000's)1 ...... 12 Table 4: 2005 U.S. Scrap Tire Market Summary...... 16 Table 5: TDF Market Trends and 2007 Projections...... 29 Table 6: Properties of TDA Used in Civil Engineering Applications ...... 32 Table 7: State Performance Rankings, State Scrap Tire Management, 2005...... 59 Table 8: 20 Most Improved States, State Scrap Tire Management, 2003 - 2005...... 60
Executive Summary
This report is the eighth in a series of 2005, or about 52 percent of the total biennial reports analyzing the state scrap scrap tires generated. Due to increasing tire management in the United States. fuel prices and improvements in the Since the report’s inception, scrap tire quality and reliable delivery of TDF, this market, generation and stockpile data market is anticipated to experience were provided in “millions of tires.” This continued growth in the next two years. report continues to provide these data in “millions of tires.” This edition of the Civil Engineering report, however, provides a new feature as well. Data are also provided by The civil engineering market consumed “weight,” in thousands of tons. over 49 million tires in 2005, about 16 percent of the total tires to market and Market Overview consisted of tire shreds used in road and landfill construction, septic tank leach In 2005, nearly seven-eighths of the scrap fields and other construction applications. tires in the U.S. were consumed in end- Tires add beneficial properties in these use markets. The total number of scrap applications, such as vibration and sound tires consumed in end-use markets in the control, lightweight fill to prevent erosion U.S. reached approximately 259 million and landslides and facilitate drainage in tires. RMA estimates that about 299 leachate systems. This market million tires were generated in the U.S. in experienced a slight decrease since 2003, 2005. This represents nearly an 8-fold due to competition with TDF markets. increase in the percentage scrap tires going into markets annually since 1990. Ground Rubber Applications By weight, RMA reports that 82 percent of scrap tires were consumed by end use This market consumed nearly 38 million markets. tires in 2005, or about 12 percent of the scrap tires generated. Ground rubber Scrap tires were consumed by a variety of applications include new rubber products, scrap tire markets, including tire-derived playground and other sports surfacing and fuel, civil engineering and ground rubber rubber-modified asphalt. The sports applications. Other smaller markets and surfacing market was the most dynamic legal landfilling consume to remaining segment in the ground rubber market annually-generated tires. during this period. This market is illustrated on the cover of this report, Tire-Derived Fuel (TDF) shown on a school running track. The asphalt market uses ground rubber to In this application, scrap tires are used as modify the asphalt binder used in road a cleaner and more economical paving, resulting in more durable roads. alternative to coal as fuel in cement kilns, The ground rubber market is expected to pulp and paper mills and industrial and experience modest growth in the next two utility boilers. TDF accounted for about years. 155 million scrap tires in the U.S. in Executive Summary 7
Stockpile Abatement Regional Markets
At the end of 2005, 188 million scrap Scrap tire markets remain regional in tires remained in stockpiles in the United nature. In this report, RMA analyzed States, a reduction of about 81 percent regional scrap tire management and since 1990. RMA credits this progress to market trends by U.S. EPA Region. state efforts to abate stockpiled tires, Scrap tire markets remain strong in the develop sustainable scrap tire markets mid Atlantic and Southeast, fueled by and enforce existing scrap tire laws and expanding TDF markets. Several pockets regulations. The remaining stockpiles are of stable and strong markets exist in the concentrated in seven states: Colorado, middle of the country. In the western half New York, Texas, Connecticut, Alabama, of the country, markets are challenged by Michigan and Pennsylvania. These states geography and population – large contain 85 percent of the scrap tires expanses of land separate population remaining in stockpiles. Of these states, centers, thus complicating transportation Alabama and New York have ongoing of scrap tires to available potential abatement programs, while Texas has markets. Although some areas with recently completed an abatement effort. developed markets do exist in the West, RMA continues to work with legislators transportation costs serve as a limiting and regulators in these states to develop factor in market growth in this region. and implement effective scrap tire programs to address these stockpiles. Outlook
State Performance Scrap tire management in the U.S. has made considerable progress since 1990, For the first time, RMA has evaluated when the RMA began to address the state scrap tire management performance issue. In 2005, more scrap tires were and created two ranking categories: consumed in markets than ever before, performance and improvement. In the thus avoiding landfills and stockpiles. performance category, South Carolina, The three major markets for scrap tires in Maine and North Carolina were the top the U.S. – TDF, civil engineering and three states in 2005. These states have ground rubber applications – are expected robust scrap tire markets and few, if any, to expand in the 2006 – 2007 timeframe. remaining scrap tires in stockpiles. The three most improved states since 2003 are Scrap tires in stockpiles have been Texas, Alabama and Ohio. reduced by over 81 percent since 1990. However, challenges remain. Several RMA recognizes these three states for states still lack effective scrap tire increases in the scrap tires going into end- programs. Some states with use markets and for significant progress comprehensive programs are facing the in stockpile abatement. While scrap tire loss of scrap tire funds, due to tight stockpiles continue to pose challenges in budget times. RMA will continue to these states, significant progress was work toward expanding markets and achieved in 2004 and 2005. Additionally, achieving effective regulatory programs Alabama recently initiated abatement in realization of its commitment to shared projects in 2006. responsibility.
1
Introduction
This edition of the Report on the U.S. stockpiles. These components pose Scrap Tire Markets is the eighth biennial distinct challenges and opportunities. report on scrap tire markets researched Therefore, this report addresses them and published by or on behalf of the separately. RMA as part of the tire industry’s continued commitment to the concept of A broad array of market opportunities is shared responsibility for the disposition available for annually-generated tires, of its products. since these tires typically are relatively clean. Furthermore, the fees paid by This report presents U.S. scrap tire consumers and retailers for disposal of market data for 2005, analyzes the these tires are available to fund proper various U.S. scrap tire markets, discusses processing. Annually-generated tires the history and current trends in U.S. can be properly absorbed into the scrap tire management and presents data marketplace more readily than quantifying the number of scrap tires in stockpiled tires in most regions. stockpiles in the U.S. RMA is recognized by stakeholders for its On the other hand, tires abated from expertise and leadership in the scrap tire stockpiles can be dirty and difficult to management field. process. If disposal fee was collected at the time a scrap tire was stockpiled, the This report is the most comprehensive money usually has long since been compilation of U.S. scrap tire spent. Accordingly, state funds often management information available. The are necessary to abate stockpiles. Some data presented in this report are a markets are available for stockpiled tires, culmination of questionnaires completed primarily some TDF and civil by state scrap tire regulators and engineering applications. However, extensive phone interviews with scrap other markets are often precluded by the tire processors and others involved in condition of stockpiled tires. scrap tire management activities. Data Collection Sources of Scrap Tires The information provided in this report This report addresses the two is based on several data collection components of scrap tire management – efforts. In coordination with the U.S. the disposition of annually-generated EPA Resource Conservation Challenge scrap tires and scrap tires in legacy (RCC) Tire Workgroup, an initiative 8 Introduction 9
focusing on scrap tire issues (discussed completed by the U.S. Environmental in more detail in Chapter 11 of this Protection Agency (EPA) in 1990. report), RMA developed and sent a questionnaire to all state scrap tire However, some governments (states, regulators. Responses to this regions and countries) collect and report questionnaire provided the basis for the scrap tire data in terms of total weight, market and stockpile inventory data and rather than in units. As well, some other analyses contained in this report. tire industry organizations that report scrap tire data do so in terms of weights. For the first time, RMA made this Additionally, the RCC Tire Workgroup questionnaire available to be completed has recommended that RMA data either on-line in an interactive format. RCC be collected or converted to a weight Scrap Tire Subcommittee members basis. contacted fellow state regulators to offer assistance to states completing the The RMA Scrap Tire Committee questionnaire. reviewed all of the issues associated with starting to collect and report scrap tire Additionally, RMA staff conducted an data in terms of weights. The extensive telephone survey with industry Committee agreed that RMA should sources, including scrap tire processors collect scrap tire market data from states and end-users, to verify and in some in terms of both weights and units for cases augment the data supplied through this report. The scope of this report is the questionnaire. Particularly, in the limited to those tires DOT-certified for case of tire-derived fuel markets (TDF), on-road use. information collected through the phone survey was used to supply data regarding It is important to note that the 2005 data tires from one state used for TDF in using a weight-based approach may not another state. These data were not fully be comparable to the previous data reflected in questionnaire responses. collected based on units. In this report, The phone survey also was used to gain RMA limits the impact of this by insight into certain aspects of the market reporting the data in terms of units as dynamics and trends affecting scrap tire well, which also will facilitate public markets. communication efforts.
Scrap Tire Metrics Comparisons to data from previous years are made only in terms of units. In the Within the scrap tire industry there has interest of greater consistency and been a continuing discussion concerning precision of data, however, the change to the method of accounting for scrap tires. weight-basis accounting is necessary. Since its inception, this report has Reporting in terms of weight also will contained scrap tire generation and facilitate greater consistency between market data expressed in terms of units RMA data for the U.S. and scrap tire the number of scrap tires generated and data available for other geographic consumed by markets, regardless of size regions. or weight. This methodology was consistent with the first substantial RMA appreciates the work of the RCC report on scrap tire management Tire Work Group Goals Subcommittee
10 Scrap Tire Markets in the United States 2005 Edition in this area. This group endorsed truck and bus tires). For the light duty RMA’s approach in this report. As category, the average scrap tire weight is previously mentioned, this report 22.5 pounds. This number serves as the presents data by both weight (1,000s of revised passenger tire equivalent tons) and units (millions of tires). (“PTE”) value, described in greater detail later in this chapter. For the There are four reasons for dual data commercial tire class, the average reporting. First, the data on scrap tire reported scrap tire weight is 110 pounds. generation that was collected was reported in tire units. Second, in order to RMA used these two values to calculate be able to compare the progress of the an average tire weight across all classes marketplace all historical data would of tires certified for on-road use by the have to be translated into weight, a U.S. Department of Transportation. difficult exercise at best. Having current and future data in both weight and units Table 1: Average Scrap Tire Weight allows for a historical comparison. Calculations for U.S. Market. Third, it would most likely cause Tire Class Millions Market Weight significant confusion if this report of Tires Percent (lbs) suddenly described all results in terms of Light Duty 264.2 88.20% 22.5 weight only. Finally, the change in Tires accounting systems could Passenger tire 202.3 67.53% replacements1 inappropriately characterize market Light truck tire 36.0 12.02% trends if no transitional benchmarking replacements1 Tires from 25.9 8.65% between the two systems were provided. 2 scrapped Cars Commercial 35.3 11.80% 110 Developing a Weight- Tires Medium, wide 17.8 5.94% Based Approach base, heavy truck replacement tires1
In order to begin publishing scrap tire Tires from 17.6 5.86% market and information statistics in scrapped trucks 2 terms of total weight (“thousands of and buses Total 299.6 100.0% 32.8 tons” is the metric used in this report), scrapped tires RMA needed to calculate an average 1 2005 RMA Tire Industry Facts, Factbook 2006. Industry total weight across all scrap tire categories. replacement tire shipments.
Due to the difficulty in obtaining broad, 2 Ward's Motor Vehicle Facts and Figures, 2006. Includes the representative weight information across number of vehicles removed from service in the car/light truck, truck and bus categories in 2005. Assumes 4 tires scrapped the U.S. new tire market, RMA chose from light duty vehicles and 5 tires scrapped from trucks and instead to collect information from buses. various scrap tire processors throughout the country. As illustrated in Table 1, the average tire weight in the United States across all on- RMA surveyed six scrap tire processors road tire categories and classes is 32.8 to determine average scrap tire weights pounds. Due to precision limitations for two broad classes of scrap tires: light inherent in these calculations, RMA then duty tires (including passenger and light rounded this number to the nearest truck categories) and commercial tires whole number for purposes of (including medium, wide base and heavy converting data provided in terms of
Introduction 11
“millions of scrap tires” to weights. PTEs and weights. States were asked to Consequently, in every instance where a specify which format represented the conversion from units to weights was data provided. Many states reported in necessary, 33 pounds was used to inconsistent formats across the various represent the average weight of a scrap reporting categories – annual scrap tire tire. generation, stockpiled tires and tires to the various markets. By necessity, RMA Revised Passenger Tire developed conversion equations in order to present the data in “millions of tires” Equivalent (PTE) Value (units) and “thousands of tons” (weights). Table 2 shows the The “passenger tire equivalent” or distribution of data formats RMA “PTE” has become a valuable tool used received across the various data to estimate scrap tire weights and collection categories. volumes for a variety of purposes, including assessing scrap tire stockpiles Table 2: Characterization of State Data – and scrap tires used in market Number of States Using Various Units to applications. Historically, the scrap tire Report Data. community, including industry and Data Category Millions PTEs Weight regulators, has used an average scrap tire of Tires weight of 20 pounds to represent one Generation 35 12 3 PTE. This standard for PTE is no longer TDF 20 6 16 valid, since tire sizes are trending larger. Civil Engineering 10 3 11 Ground Rubber 13 2 11 In order to revise the PTE to reflect Agricultural 5 0 3 current tire sizes, RMA staff contacted Punch/Stamp 4 0 2 six of the largest scrap tire processors in EAF 5 0 7 the U.S. RMA obtained average tire Landfill 15 2 7 weights for the scrap passenger and light Stockpiles 25 13 0 truck tires received by each company within a limited period of time. RMA In tabulating the data provided by states, found that the average scrap weight for original, not calculated, values were passenger and light truck tires is fairly used wherever possible. If a state consistent throughout the country. The provided data in “millions of tires,” the average tire weight for passenger and original values are reflected in the light truck tires in this study was 22.5 “units” calculations and then converted pounds. RMA recommends that this to weights for the weights evaluation. new value be used as the revised Likewise, if a state reported in terms of standard PTE value in the United States. weight, the original data are provided in the weights analysis and then converted Characterizing the Data for the “units” assessment. If a state provided data in terms of PTEs, the data States provided data to RMA in a variety were converted to weights or units using of formats – number (millions) of tires, the PTE value used and provided by the reporting state.
12 Scrap Tire Markets in the United States 2005 Edition
Scrap Tire Generation Table 3: Scrap Tire Generation as a Function of U.S. Population (in 1000's)1 Rates Passenger tire replacements2 202,309 Light truck tire replacements2 35,025 RMA estimates that about 299 million Medium, wide base, heavy 17,784 tires were discarded in 2005, based on truck replacement tires2 the data reported to RMA through the Tires from scrapped cars3 25,912 state survey process. Historically, RMA Tires from scrapped trucks 17,784 has compared new replacement tire and buses shipments and scrapped vehicles data Total scrapped tires 299,595 U.S. population – 2005 Census 296,410 with U.S. population data. This estimate (July 1, 2005) comparison indicates that about one tire Number of tires scrapped per 1.01 is discarded annually per person in the person United States. This ratio has become an Annual scrap tire generation, 299.15 important estimation tool in scrap tire as reported by states 1All units represented in table are in 1000’s, except for the management. number of tires per person, which is in actual units. 2 2005 RMA Tire Industry Facts, Factbook 2006. Industry total replacement tire shipments. For this report, RMA reaffirmed the 3 Ward's Motor Vehicle Facts and Figures, 2006. Includes validity of this ratio by adding the the number of vehicles removed from service in the car/light truck, truck and bus categories in 2005. replacement tire shipments in all tire Assumes 4 tires scrapped from light duty vehicles and 5 categories and the tires on scrapped tires scrapped from trucks and buses. vehicles and calculating the ratio of that sum to the total U.S. population. The calculations are shown in Table 3. Retreaded and Used Tires
2005 RMA total industry replacement In Europe and Japan, retreading and the tire data were used. The 2005 U.S. used tire market are included in scrap population estimate by the U.S. Census tire market statistics. However, RMA Bureau was used to reflect the total U.S. has always made a distinction among population. Table 1 illustrates that RMA retreadable casings, used tires and scrap has once again validated the estimate of tires. All RMA reports have excluded one tire per person per year as the retreading and used tires from estimates number of scrap tires generated annually of scrap tire markets. In the United in the U.S. States, used tires and retreadable casings usually are handled through the same Furthermore, in its scrap tire system that collects all other worn tires questionnaire sent to the states, RMA for when they are first removed from the first time asked states to report the vehicles. Consequently, it is common number of scrap tires generated for states and non-tire industry concerns annually. The states reported a total of to consider these tires as part of the 299.15 million tires generated annually, “scrap tire” flow. which aligns with U.S. Census population data. Since RMA received Since retreadable casings can still be actual reported data from respondent used for their original intended purpose, states for annual generation this year, RMA does not consider them scrap tires these primary data were used to and does not include them in scrap tire represent annual generation and estimates. In RMA’s view, retreading is calculate recovery percentages. a viable technology that prolongs tire life
Introduction 13
and makes a positive contribution product that the material can be toward decreasing scrap tire disposal. considered a non-waste or a commodity. RMA estimates that 16.255 million retreadable tire casings were retreaded in Processing scrap tires produces material the U.S. in 2005 and used by for various scrap tire markets, including commercial aircraft, commercial trucks, tire-derived fuel (TDF), ground rubber school buses and off-the-road vehicles applications and civil engineering such as industrial, agricultural and applications. Some end-uses in these mining equipment. Very few passenger market segments could be considered tires are retreaded in the U.S., due to recycled products, while others, economic factors. including TDF cannot. The use of TDF is considered a “recovery” (energy RMA defines used tires as those tires recovery) activity. that are still usable on vehicles after they are removed from initial service. Used According to EPA, collecting and tires are resold in the U.S. or exported processing secondary materials is part of for sale in other countries. No extensive the “recycling process,” not recycling. market data are available on the used tire By conventional definition, a scrap tire market. RMA does not consider used “recycler” refers to a company that tires that are resold in the U.S. in its incorporates ground rubber into a new scrap tire figures, since they are not product, such as mats, molded or disposed. As will be discussed later, extruded rubber products, rubber some U.S. used tires are exported from modified asphalt and new tires. the U.S. and are counted as a scrap tire Interestingly, companies manufacturing market because they leave the U.S. such products typically focus on the performance attributes of their products, Recycling and Scrap Tire instead of the recycled content.
Processing Other entrepreneurs sometimes attempt to enter the tire “recycling” business by RMA does not consider processing scrap producing a “product” with no market. tires to be the same as recycling scrap An example of this situation is tire balers tires. While scrap tire processors serve that define non-engineered structures an important role in the scrap tire (i.e., fences) as “recycling tires.” RMA management structure, RMA focuses on recognizes tire bales as a market end-use markets. application only when the structure has
been certified by a professional engineer. In order for scrap tire processing to be considered “recycling,” the product Another abuse of the term “recycler” generated would have to be classified as occurs when a scrap tire processor “recycled” material. Without exception, amasses an excessive quantity of state regulatory definitions for scrap tire shredded scrap tires and calls that programs consider scrap tire-derived material “recyclable.” This industry material as a solid or special waste as often has witnessed such processors go long as it remains in the possession of a out of business, often abandoning whole scrap tire processor. It is only upon the or processed scrap tires in the process. sale and transfer of the scrap tire-derived This is why state regulatory definitions
14 Scrap Tire Markets in the United States 2005 Edition have made clear distinctions between are far different. History has taught us processed tire material that is that using state scrap tire funds to “recyclable” and material that is destined subsidize scrap tire processing has for a specified market. yielded less than desirable results.
How the scrap tire industry is defined Scrap tire processing does serve an can also have legislative implications. important and integral function in the Several states enacted scrap tire recycling process. Production and sale legislation stating that “scrap tire of high quality scrap tire-derived recyclers” can receive payment directly materials is integral to the success of the from the state’s scrap tire fund. If these industry. Yet processing scrap tires is payments are used to increase the not an end unto itself. The focus of this demand for scrap tire-derived products, report, therefore, is on market then the scrap tire program typically is development and progress. Only with successful. However, when this equates healthy, stable and sustainable markets to paying scrap tire processors to simply will the scrap tire management industry process scrap tires (i.e. shred tires) with continue to thrive. no identified end-use markets, the results
2
U.S. Scrap Tire Market Overview
From 2003 through the end of 2005, the U.S. scrap tire markets, tracking scrap total number of scrap tires going to a tire generation, utilization and usage market annually increased from 233.3 rates over time. The data in Figure 1 million tires (80.4 percent of the 290.2 represent the historical data collected by million generated) to 259.2 million (86.6 RMA since the inception of its scrap tire percent of the 299.15 million generated). activities. Figure 1 shows historical trends in the
Utilized (millions) Generated (millions) % Utilization 350 100%
87% 300 80% 80% 78% 250 67% 62% 60% 200 55%
150 40%
100 27%
20% 50 11%
0 0% 1990 1992 1994 1996 1998 2001 2003 2005
Figure 1: U.S. Scrap Tire Management Trends, 1990 - 2005.
15 16 Scrap Tire Markets in the United States 2005 Edition
In 2005, the market increases can be attributed to expanded markets for scrap Table 4: 2005 U.S. Scrap Tire Market tires for tire-derived fuel and coarse Summary. rubber applications. Table 4 shows the MARKET Millions Tons x 103 of Tires estimated total U.S. scrap tire market for Tire-Derived Fuel (TDF) 155.09 2144.64 2005. In addition, the data collected for Civil Engineering 49.22 639.99 each state are presented in Appendix B, Ground Rubber 37.47 552.51 which cumulatively comprise the Export 6.87 111.99 numbers presented in Table 4. Cut/Punched/Stamped 6.13 100.51 Miscellaneous/Agriculture 3.05 47.59 Figure 2 shows the disposition of scrap Electric Arc Furnaces 1.34 18.88 tires in the U.S. in 2005 and the relative TOTAL USE 259.17 3616.11 percentages for each market or other TOTAL GENERATION 299.15 4410.73 disposition. Figure 3 illustrates the historical trends of scrap tire market Percent Utilization 86.6 82.0 distribution since 1990, illustrating the increasing diversification of the scrap tire marketplace as it matures. The data used to create Figure 3 are presented at Appendix A.
Baled 1% Agricultural Land Disposed 1% Electric Arc Furnace 14% <1% Punch/Stamp 2% Exported 2% Ground Rubber 12%
Civil Engineering Tire Derived Fuel 16% 52%
Figure 2: 2005 U.S. Scrap Tire Disposition (in millions of tires).
U.S. Scrap Tire Market Overview 17
300.0
250.0
200.0
150.0
Millions of Tires 100.0
50.0
0.0 1990 1992 1994 1996 1998 2001 2003 2005
Tire-Derived Fuel Civil Engineering Ground Rubber Rubber Modified Asphalt Electric Arc Furnaces Punched/stamped Products Export Agriculture and misc.
Figure 3: U.S. Scrap Tire Market Trends, 1990-2005.
As described in the previous chapter, improvement in the quality and RMA is publishing scrap tire market consistency of TDF and more reliable information data by weight for the first delivery of a consistent TDF product. time. By weight, about 82 percent of scrap tires generated in the U.S. in 2005 The use of scrap tires in civil were utilized by an end-use market. As engineering declined since 2003. The expected, the recovery percentage by 2005 data indicate that 49.22 million weight is lower than the recovery scrap tires (639.99 thousand tons) were percentage by units (millions of tires), used in a variety of applications, down since tires range in size from small from 55 million tires in 2003. The same passenger tires to very large commercial three large-scale applications for tire applications. Since weight-based shreds accounted for most of the calculations are a new addition with this markets: landfill construction report, comparative and trend analyses applications, use as a septic system drain are provided by units (millions of tires) field medium and road construction. only. Civil engineering market demand The tire-derived fuel market consumed remains a function of three factors: cost 155.09 million tires (2144.64 thousand competitiveness of tire shreds, compared tons), up from 129 million tires in 2003. to traditional construction materials, In the TDF market, the increase was a increased acceptance by regulatory function of three factors: increased agencies and increased recognition by demand for alternative fuels due to scrap tire processors of market elevated energy prices, continued
18 Scrap Tire Markets in the United States 2005 Edition opportunities available in civil more traditional applications (asphalt engineering applications. rubber and molded and extruded rubber products). From 2003 to 2005, the The ground rubber market increased to industry witnessed a decrease in the use 37.47 million tires (552.51 thousand of ground rubber as a modifier in tons), up from 28.2 million tires in 2003. asphalt, while the use of ground rubber In the ground rubber market there are in molded/extruded products increased. two classes of particle sizes: “ground” rubber (10 mesh and smaller) and Other markets include scrap tire exports, “coarse” rubber (4 mesh and larger, with punched and stamped products and a maximum size of one-half inch). Each agricultural and miscellaneous uses. The of these size ranges has distinct market export of tires was reported to involve applications. about 6.5 million tires (111.99 thousand tons). Punched and stamped products Over the last two years the greater were reported to use around 6.1 million growth in market share has been with the tires (100.51 thousand tons). “coarse” sized particles. This particle Agricultural and miscellaneous uses are range is used in playground surfacing, estimated to be the same as has been running track material, soil amendments reported in previous editions of this and some bound rubber products. The report, about 3 million tires (47.59 smaller particle sizes are used for the thousand tons).
3
Tire-Derived Fuel
At the end of 2005, 117 separate did not use the maximum amount facilities were permitted to use tire- allowed or did not use TDF on a derived fuel (TDF).1 Total annual TDF consistent basis. The level of TDF consumption was approximately 155 consumption in 2005 represents a 20 million scrap tires (2144.64 thousand percent increase in the number of tires tons). The permitted capacity of all used as TDF since the end of 2003. facilities in 2005 was actually higher Figure 4 shows the distribution of TDF than the amount consumed, but several usage across the various markets. facilities permitted to use TDF actually
200
180
160
140
120
100
80
Millions of Tires 60
40
20
0 1990 1992 1994 1996 1998 2001 2003 2005 2007 (proj.)
Cement Kilns Pulp & Paper Industrial Boilers Utility Boilers Tires-to-Energy
Figure 4: U.S. Tire-derived Fuel Market Distribution Trends, 1990 – 2007.
1 The 117 total facilities using TDF in 2005 included 47 cement kilns, 24 pulp and paper mills, 22 electric utility boilers, 15 industrial boilers, six waste-to energy facilities, two lime kilns and one dedicated tires-to energy facility. 19 20 Scrap Tire Markets in the United States 2005 Edition
Overall, the industries that are taking the minus, while technologically feasible, greater advantage of the benefits of TDF does not appear to be economically had to contend with a series of viable at this time. significant issues over the past two years. While this report will not go into One of the major reasons for the detail about the changes that have improvement in the quality of TDF fuel occurred in the energy sector, suffice it chips has been the introduction of a new to say that the cost of energy rose to new type of tire processing equipment. The heights in the 2003 to 2005 timeframe. processing system used in second stage scrap tire processing consists of slow Many large-scale energy consuming speed machines designed to have a high industries began or expanded use of steel removal efficiency (this equipment alternative fuels, which had a direct and is known commercially as the Liberator, positive impact on the use of TDF. Grizzly or Rasper). The better the steel Another significant trend seen within the liberation at this point the easier it is for last two years is that several large-scale down stream processing of high-quality users of TDF have made considerable TDF or feed stock material for coarse or upgrades to TDF systems. This suggests ground rubber production. Additionally, TDF will continue to be used as an when steel is removed to make a TDF alternative fuel regardless of any chip, the steel can be sold to metals changes in the cost of energy, thus processing and recycling operations. implying that TDF usage will at least remain at its current level, if not increase In addition to producing a more refined to new record levels over the foreseeable fuel chip, this processing system has also future. yielded a secondary benefit: production of coarse rubber particles. It is Prior to the discussion on the individual commonplace that when using these end use markets for TDF, a review of large-scale, second stage scrap tire information supplied in the last edition processing systems, the scrap tire of this report is appropriate. The end- processor also generates various use market for processed TDF (fuel percentages of smaller particle material. chips) has changed over time. Facilities The particles generated range in size that once accepted two to three inch from one inch to three-eights of an inch. rubber chips have generally shifted to This is what is commonly referred to a smaller, typically two by two inch, fuel “coarse” rubber, a larger form of ground chips. rubber. The coarse rubber is generally separated by a screen as the finished A number of companies are producing product exits the processing system. two inch minus chips, which typically are no larger than two inches by one and The generation and capture of this coarse one half inches. These smaller fuel rubber allows TDF producers to enter chips also contain less steel than larger into the supply chain for this material, fuel chips, which can reduce problems which is currently in relative high associated with handling and ash demand. This is a positive development, disposal. Production of fuel chips for it allows scrap tire processors who smaller than one and one half inch have historically focused on TDF
Tire-Derived Fuel 21
production to develop a more diverse cement (since kilns with high demand array of products that they can produce for cement often do not use TDF and sell. Since the generation of coarse because TDF use can limit kiln rubber is a by-product of the generation capacity), (2) elevated cost of energy, (3) of high quality TDF, the return on favorable cost implications, (4) investment is enhanced and improves the reduction of nitrogen oxide emissions as economic stability of the scrap tire compared to other fuels and (5) the fact processors as well as increases the that TDF usage is starting to be supply of this material. considered a routine practice.
The development of American Society The data also indicate that a relatively for Testing and Materials (ASTM) high number of kilns are using relatively standards for TDF must be recognized as low volumes of TDF. This trend is due another step toward making tire-derived to a variety of factors. In the lower materials a commodity (ASTM Standard Atlantic Coast region and in the Gulf D-6700-01 “Standard Practice for Use of States area, the supply of whole tires for Scrap Tire-Derived Fuel). The great TDF was limited due to the demand for advantage in this effort is that end users processed TDF by the pulp and paper and potential end users now have an industry. industry-accepted standard against which to compare all tire chips. The The shift in the supply chain was due to other benefit to the industry is the the higher return on investment for development of a single sampling and processed TDF relative to the cost of testing protocol. supplying whole tires as fuel. In the Pacific Northwest, the supply of whole The Cement Industry tires was limited due to the relatively high cost of transporting relatively low At the end of 2005, 58 million tires value whole tires the great distances (about 802.0 thousand tons) were between the sources of scrap tires (urban consumed in the U.S. by a total of 17 areas) and the kilns (usually some cement companies using TDF in a total distance away in rural settings). of 78 cement kilns in 47 cement facilities across the county (one location While some areas of the country had could have multiple kilns using scrap supply problems with whole tires, the tires). Each cement company has Central and Plains states demonstrated a several facilities located across the significant increase in the use of whole county. The total volume of tires tires. Among Texas, Oklahoma and consumed is reported here in tire units Kansas there were 12 cement kilns using only, since the majority of scrap tires whole tire TDF. In this area there were used in cement kilns as TDF is whole few other, large-scale, viable markets for tires. Appendix C lists the cement kilns scrap tires. Consequently, the in the U.S. that utilize scrap tires as fuel. combination of the locations of the cement kilns, the availability of whole The increase in TDF consumption by the tires and an efficient transportation cement industry once again is due to five system facilitated the rate of TDF usage. main factors: (1) reduced demand for
22 Scrap Tire Markets in the United States 2005 Edition
As reported in previous editions of this improved. Another major factor, report, environmental considerations especially for those mills that have been continue to play a key role in the use of using TDF for several years is that the TDF in cement kilns. The EPA required feeding systems have been amortized, states to develop State Implementation adding to the cost benefits of TDF. In Plans (SIPs) for the reduction of nitrogen certain cases, TDF suppliers have oxides (NOx) emissions from fuel installed TDF feeding systems for mill combustion, which required some customers. This business arrangement cement kilns to make significant NOx has alleviated problems with capital reductions. The use of TDF is a low cost outlays from the mills, which are often NOx reduction option, encouraging the in short supply. use of TDF in the cement industry. Cement kilns are also recipients of tires In the 2003 to 2005 timeframe, this from stockpile abatement projects, market sector saw several former end- which is a beneficial use of a material users resume use of TDF, while several that would otherwise have few other other mills significantly increased use of market opportunities. TDF because of the continued high cost of energy. It appears now that even if Pulp and Paper Mills there is a drop in the price of natural gas that TDF will continue to be used at At the end of 2005 there were 24 pulp present levels, since TDF will likely and paper mill boilers consuming 39 remain a less expensive fuel even if million scrap tires (539.3 thousand tons), other fuels come down in price. up from 17 pulp and paper mill boilers consuming 26 million scrap tires at the Another important factor is that the use end of 2003. Several factors contributed of bark as a fuel has been decreasing to this dramatic increase. The continued over time. Bark, which was used in elevated cost of energy is probably the large volumes, is being diverted to the first and most significant factor. TDF is mulch market. This situation benefits an attractive alternative source of energy the TDF market but presents marketing since TDF prices are a fraction the cost challenges for tire shreds being used in of traditional fuels, such as natural gas, competitive applications, such as sports coal, petroleum coke, etc. Appendix C and playground coverings and other lists the pulp and paper mills in the U.S. landscaping and soil amendment uses. that utilized TDF in 2005.
As has been seen before, poor quality Electric Utilities TDF will cause pulp and paper mill operators to stop use of this material, At the end of 2005, 17 electric utility regardless of the price differential. Over boilers were using TDF on a regular the last four years, the quality of TDF basis, consuming the equivalent of 27 has experienced significant and million scrap tires (373.3 thousand tons). continuous improvement, which has Several of the market conditions that contributed to the market growth. limited the use of TDF in this market Additionally, the overall service sector in the past seemingly have been (delivery) related to TDF supply has resolved. Electric utility deregulation,
Tire-Derived Fuel 23 for many electric utility companies, has Over the past several years, the use of concluded. These companies are now TDF has increased significantly in seeking ways to remain competitive in industrial boilers. The main reason for the marketplace. this is the increased use of TDF in circulating fluidized bed (CFB) boilers. The purchase of relatively lower cost, According to the Department of Energy high energy content alternative fuels is (DOE) website, CFB boilers “suspend one way for these companies to remain solid fuels on upward-blowing jets of air competitive. Second, the production of during the combustion process. The high-quality, relatively steel free TDF is result is a turbulent mixing of gas and another major factor in the resurgence of solids. The tumbling action, much like a this market. Appendix C lists the utility bubbling fluid, provides more effective boilers in the U.S. that utilized TDF in chemical reactions and heat transfer” 2005. (http://www.fossil.energy.gov/programs/ powersystems/combustion/fluidizedbed_ While TDF has made a comeback in this overview.html). market, there still remain several technological limitations to the further The DOE website further explains that expansion of this market. Many of the CFB “evolved from efforts to find a newer utility boilers either use combustion process able to control pulverized coal or have entered into pollutant emissions without external long-term contracts to purchase low- emission controls (such as scrubbers). sulfur coal. TDF is incompatible with The technology burns fuel at pulverized coal boilers due to the temperatures of 1,400 to 1,700 degrees differences between the two fuels, both F, well below the threshold where in terms of fuel size and in terms of the nitrogen oxides form (at approximately necessary residence time in the 2,500 degrees F, the nitrogen and combustion zone. Also, while the sulfur oxygen atoms in the combustion air content of TDF is relatively low and combine to form nitrogen oxide stable, low sulfur coal contains less pollutants).” sulfur than TDF and typically is used to comply with stringent sulfur emission The development of CFB boilers has led requirements. Few boiler operators will to greater fuel source flexibility for accept any fuel that contains more sulfur industrial boilers, since any solid fuels, than contained in their current fuel. including tires, can be combusted without additional emission control Industrial Boilers measures.
At the end of 2005, 16 industrial boilers Dedicated Scrap Tires-to- were consuming an equivalent of 21 Energy Facilities million scrap tire tires (290.4 thousand tons). Appendix C lists the industrial At its peak in 1996 and 1998, three boilers in the U.S. that utilized TDF in dedicated tires-to-energy facilities 2005. consumed some 16 million scrap tires annually in this market. At the end of
24 Scrap Tire Markets in the United States 2005 Edition
2005, there was only one dedicated tires- Other TDF users to-energy facility in operation consuming 10 million scrap tires (about Lime Kilns 138.3 thousand tons). The cause for the decrease was due to the Illinois facility Lime kilns, like their cousins, cement not being operational. At present the kilns, can use tires as a source of heat in use of whole and/or processed tires in the lime production process. The dedicated scrap tires-to-energy facilities production of lime in kilns does not remains limited to the one facility in require as long a combustion process as Connecticut. is needed in the manufacturing of cement. This has been a limiting factor Three dedicated tires-to-energy facilities for the use of TDF in lime kilns since the have been constructed in the United time needed to ensure complete States: one each in California, combustion of the tire material is not Connecticut and Illinois. In California, available in all lime kilns. the Modesto Energy Limited Partnership (MELP, Westly, California) closed in Tires in commercial grade lime kilns 1999, due to the change in rates the have also been limited because the facility received for the power it introduction of the tire could darken the generated. color of the lime. While no negative impact on the lime’s performance has During the same period, the Ford been reported, there could be an impact Heights, Illinois facility reopened after on the acceptability of the color of the Rubber Technology Group (RTG) lime. The data collected indicates that purchased it. This plant was built by tires are being used in two industrial Browning-Ferris Industries in the mid lime kilns, where discoloration is not an 1990’s, but was shut down soon after its issue. completion due to the termination of the Illinois Retail Rate Law. The Retail The combination of elevated energy Rate Law extended favorable rates for costs, abundant tire supply and electricity to alternative fuel-fired compatible kilns has allowed for this utilities. market to be created. Still, the use of tires in lime kilns appears to be of The Exeter Energy Limited Partnership limited scope, since less than a million facility, located in Sterling, Connecticut, tires are reportedly used in both lime is a 25-megawatt electric generating kilns. The data collected indicates that facility. Built in 1991, Exeter consumes there are an additional two lime kilns 10 to 11 million scrap tires a year, interested in using tires, which if providing the only large-scale end-use realized, would probably double the market for scrap tires in the lower New current level of usage. This market England area. This facility also serves likely can be helpful in a localized area as a major market for scrap tires in New near the lime kiln. The indications are York and Northern New Jersey. that this market will not have any major impact on the overall scrap tire marketplace.
Tire-Derived Fuel 25
Resource Recovery Facilities combusted that will yield a certain amount of energy. When tires are The term resource recovery facility introduced into RRFs their heating value (RRF) is used to describe a facility that relative to their weight can cause combusts municipal solid waste. combustion irregularities inside the Another term frequently used is garbage RRF. (or waste)-to-energy facilities. There are some 110 RRFs in the United States. In Second, using tires in a RRF can cause 2005, six of these facilities reportedly economic concerns since the tipping fee used TDF. At some point virtually every for tires is generally lower than the one of these facilities has combusted tipping fee for MSW. The third main some scrap tires. Still, the amounts reason is that the combustion technology consumed were generally small and in a RRF, particularly the grates upon previous versions of this report have which the MSW is combusted, are not never quantified the level used. When designed for the greater heating value of and where this market segment uses tires. Placing concentrated energy relatively larger-scale amounts of TDF it sources like TDF into the combustion is primarily a function of the amount of system has caused the grates to fail in solid waste the facility can acquire and the past. consume. Scrap tires are used in RRFs for two In general, TDF use in RRFs represents basic reasons: a lack of MSW or to off- only two to five percent of a facility’s set an even lower than normal heating fuel supply. This typically translates value material. The lack of MSW into the consumption of less than available could be caused by an effective 500,000 tires per facility per year. When recycling program, shifts in population tires are allowed into one of these or more competitive MSW management facilities, the tipping fee and heating options. A RRF often takes in very wet value from TDF provide a net benefit, as or very dry materials (grass clippings or well as providing a combustible material dry leaves) and must use a higher BTU needed to maintain their mass balance. value material to maintain the facility’s energy balance. Scrap tires can be a Three main reasons limit TDF use in very effective material in such cases. RRFs. First, every RRF is designed to consume a certain amount of municipal Since 1990, the RMA has not focused on solid waste (MSW). The economic RRFs as a potential TDF market for two viability of the RRF depends on taking basic reasons: an RRF would use a in a certain quantity of MSW at a certain relatively low volume of TDF and a tipping fee. MSW contains about a third negative RRF experience with TDF of the energy value of scrap tires (5,000 could have caused an unneeded BTUs/lb versus 14,000 BTU/lb of tire). distraction from existing end use TDF The RRF’s mass balance is calculated markets. Therefore, no national effort to based on a certain amount of MSW introduce TDF into RRFs exists.
26 Scrap Tire Markets in the United States 2005 Edition
Challenges to the TDF recovery as tire-derived fuel are regulated under section 112 of the CAA. Marketplace However, if facilities using TDF for In 2005, three challenges to the TDF energy recovery were required to market emerged. Two of these threats comply with section 129, this would are not specific to TDF, but if brought to impose additional regulatory and fruition, could pose significant administrative burdens on such facilities challenges to the TDF market. The third and would serve as a significant is a direct threat to TDF – a legal disincentive to TDF use. Under such a challenge by the state of Vermont to the scenario, even if a facility burned a small use of TDF at an International Paper mill amount of TDF (even one tire), it might in New York State. be subject to section 129, unless EPA
explicitly recognized the fact that tires Review of EPA Air Rules used as tire-derived fuel are not solid waste because they are not discarded or Recent petitions for review brought in some other legally permissible the U.S. Court of Appeals D.C. Circuit justification. challenge EPA’s industrial, commercial and institutional boilers and process This legal challenge is ongoing at this heaters Clean Air Act (CAA) section date. Environmental and municipal 112 standards and commercial and petitioners filed their briefs on June 12, industrial solid waste incineration 2006. Respondent’s brief was filed on (CISWI) CAA section 129 MACT September 18, 2006. Other parties have standards (Natural Resources Defense also filed briefs, including state amici Council (NRDC), et. al, petitioners v. curiae and industry and environmental U.S. Environmental Protection Agency, interveners. RMA filed an amicus respondents (04-1385 consolidated with curiae brief in the case to explain the 04-1386, 05-1302, 05-1434, 06-1065)). policy implications if TDF burned for One of the key issues in the case is energy recovery were regulated under whether waste combusted for energy CAA section 129. recovery should be regulated under section 112 or section 129 of the Clean As of the writing of this report, the court Air Act. had not ruled. Even if the court were to
require EPA to revise its CISWI The final CISWI rule distinguished regulations, EPA would need to develop between discarded material that is a factual record and make incinerated (which is subject to the more determinations such as whether tires stringent requirements of Section 129 of used as fuel are solid wastes and whether the CAA) and material that is not using tires for energy recovery presented discarded, but rather used as fuel (which such a minimal impact that they should remains subject to Section 112 of the be exempted from the rule. CAA).
EPA would seek public comment on a Thus, under the final rules, emissions proposed new rule and only issue the associated with tires burned for energy final rule after addressing these
Tire-Derived Fuel 27 comments. If such a new rulemaking is apparently a non-qualified energy initiated, RMA would continue to inform resource. EPA about the legal, factual and policy reasons that tires are not solid wastes These facilities requested a private letter and that application of section 129 of the ruling from the IRS to clarify how the CAA to energy recovery facilities using combustion of non-qualifying fuels is tires is not necessary to protect the treated in the calculation of the credit. environment and would result in Although a private letter ruling is significant negative environmental generally only binding on the taxpayer impacts. who received the ruling, it does evidence the IRS’ thinking on the matter. A Biomass Tax Credits “biomass” combustion facility that was using tire-derived fuel as a supplemental The second challenge to the TDF market fuel may stop using TDF fuel if an concerns the use of TDF in biomass unfavorable private letter ruling is issued combustion facilities. There was an for fear that they would lose the tax opinion rendered by the Internal credits. Revenue Service (IRS) on the use of non-biomass materials in biomass RMA submitted a White Paper to the combustion facilities and the impact on IRS explaining the factual and legal tax credits that could be generated from background of the use of tire-derived the use of biomass materials. fuel at biomass facilities. The White Paper sought to have the IRS address the Section 45 of the IRS Code allows issue by issuing a comprehensive IRS taxpayers a credit for electricity notice (instead of by private ruling), produced from qualified energy which would interpret Section 45 of the resources, including any solid, non- IRS Code as not prohibiting an hazardous, cellulose waste material or otherwise qualified taxpayer from certain waste material that is segregated utilizing the tax credit for a biomass from other waste materials (this facility that also uses tire-derived fuel. definition was expanded in the Energy Policy Act of 2005). Businesses that On September 26, 2006, the IRS qualify for certain target federal income released an interim guidance notice tax credits commonly broker them to (2006-88) regarding the tax credit under other taxpayers that could better use section 45, pending issuance of a them. treasury regulation (“Interim Guidance”). The Interim Guidance In early 2006 several “biomass” states that “[e]lectricity produced from facilities were preparing to sell the open-loop biomass [facilities] that is co- Section 45 credits to other taxpayers and fired with fuels other than fossil fuels wanted to strengthen their tax position in may qualify for the “45 credit.” the credits. Specifically, these facilities apparently create electricity from a Similarly, the Interim Guidance states mixture of qualified energy resources that if “a taxpayer produces electricity and a small amount of non-qualified from both open-loop biomass and other energy resources. Tire-derived fuel is fuels” and “the open-loop biomass and
28 Scrap Tire Markets in the United States 2005 Edition other fuels are commingled during EPA supports the highest and best practical use combustion and the steam and electricity of scrap tires in accordance with the waste management hierarchy; in order of preference: is commingled,” the percentage of reduce, reuse, recycle, waste-to-energy, and electricity subject to the credit is the disposal in an appropriate facility. Disposal of “percentage of the thermal content from scrap tires in tire piles is not an acceptable open-loop biomass.” One of the management practice because of the risks examples in the Interim Guidance is a posed by tire fires, and because of the use of tire piles as a habitat by disease vectors such paper mill that generates 25 percent of as mosquitoes. The use of scrap tires as tire its thermal content using biomass and 75 derived fuel (TDF) is one of several viable percent using other fuels and states that alternatives to prevent newly generated scrap 25 percent of the electricity qualifies for tires from inappropriate disposal in tire piles, the tax credit. and for reducing or eliminating existing tire stockpiles. . . . RMA is going to verify that these references to “other than fossil fuels” EPA testing has shown that TDF has a higher and “other fuels” as allowing TDF to be BTU value than coal. Based on over 15 years used, since the term is not defined in the of experience with more than 80 individual facilities, EPA recognizes that the use of tire Interim Guidance. As of the writing of derived fuels is a viable alternative to the use of this report, RMA is in the process of fossil fuels, and supports the responsible use of evaluating the details of this proposal. TDF in Portland cement kilns and other industrial facilities, provided the candidate facilities have developed a TDF storage and Positive EPA Statement handling plan, and have secured a permit for all on Tire-Derived Fuel applicable State and Federal environmental programs and are in compliance with all While these three examples pose new requirements of this permit. challenges to the TDF marketplace, – EPA TDF Website positive developments have occurred as http://www.epa.gov/epaoswer/non well. Most notably, EPA published a -hw/muncpl/tires/tdf.htm Tire-Derived Fuel Fact Sheet on its website. On March 7, 2005, the EPA RMA applauds EPA for development posted its position statement on TDF and publication of this supportive and onto their web site. This position factual statement on TDF. EPA has the statement was created through the EPA ability to encourage markets and Resource Conservation Challenge eliminate barriers in ways that industry subcommittee on TDF. To date this is cannot. This statement is an important the most definitive and positive step in eliminating misperceptions about statement the EPA has made on TDF. TDF. RMA encourages continued EPA The EPA statement is as follows: leadership in this area.
Tire-Derived Fuel 29
Table 5: TDF Market Trends and 2007 Projections. 1990 1992 1994 1996 1998 2001 2003 2005 2007 (proj.) Cement Kilns 6 737343853535866 Pulp & Paper 131427262019263942 Industrial Boilers 610161511172135 Utility Boilers 1 15 12 23 25 18 23.7 27 26 Tires-to-Energy 4.5 15 15 16 16 14 10 10 10 Total Fuel 24.5 57 101 115 114 115 129.7 155.1 179 Market Outlook
The outlook for the TDF market remains marketplace could be characterized by a optimistic over the next two years. base TDF market of some 200 million However, the various market segments tires. The other markets combined will face different market challenges and would consume the remaining tires opportunities. Every indication exists (estimated at 150 million). This analysis that TDF markets will remain strong for can give states the time necessary to the foreseeable future, barring any legal work with the scrap tire industry and or regulatory disruptions. In fact, TDF develop the other markets that will be use could increase over the next two needed to accommodate the scrap tires years. RMA projects a 10 to 20 percent generated annually. increase over current usage levels. Table 5 shows the historical TDF trends Cement Industry and projected market expansion for 2007. In order for the kilns using relatively low quantities of TDF to increase TDF use, Limited potential TDF market capacity greater supply must be made available in exists in some regional markets, due to the marketplace. Supply issues scrap tire supply constraints. Several notwithstanding, cement kilns may be markets are rapidly approaching these limited in the amount of TDF they can limits. In the cement industry there use due to limited amount of additional appear to be only another six to ten oxygen that can be introduced into the cement kilns that could readily use TDF. kiln. The use of whole tires in cement In the pulp and paper industry, RMA kilns typically causes a need to introduce estimates that five to ten additional mills extra oxygen into the cement making could use TDF. Additionally, about five process. Not all kilns have excess utility boilers and no other dedicated capacity for oxygen or the ability to scrap tire-to-energy facilities could increase this capacity. Furthermore, due potentially use TDF. The industrial to the manner in which any given kiln is boiler market has a greater expansion configured, the quantity of tires that can potential, although this realizing this be introduced at any point in the cement potential is dependent on cultivation of making process may be limited. new TDF users. In addition, cement kilns typically do not An apt summary of this analysis is that operate non-stop year around due to in the near term, the scrap tire annual or semi-annual maintenance,
30 Scrap Tire Markets in the United States 2005 Edition during which time scrap tires are not shifted to either a new end user or to consumed. In the past two years several satisfy increased demand from an cement kilns were shut down for major existing end user. renovations. All of these factors combine to disrupt the constant flow of The situation in the Northwest differs scrap tires to cement kilns. dramatically. Here, the relatively abundant supply of low cost petroleum Overall, the data collected suggest that coke has had a negative impact on the the use of scrap tires in cement kilns will use of TDF. At present, no Northwest continue to be the major end-use market. pulp and paper mills use TDF. This Maximum capacity may be reached in situation likely will not change for the several years in the cement kilns in the foreseeable future. U.S. that have the ability to use TDF. This will clearly have an impact on the Utility Boilers marketplace, because the cement industry has been a major contributor the As many as 10 utility boilers may be steady increase in the number of tires considering the use of TDF. Growth consumed as TDF. potential in this market appears to be modest. RMA projects that only two or Pulp and Paper Industry three utilities actually will begin using TDF over the next two years. The pulp and paper mill industry is concentrated in three geographic regions There are several reasons for this of the country: the Northeast, Southeast conservative forecast. Several of the and Northwest. At present, the use of utilities are located in the North Central TDF in pulp and paper mills is common region of the country, where tire supply in the Northeast (Maine) and the is limited. Even with the possibility of Southeast. The mills in the Northwest, transporting large quantities of TDF via which were the first to use TDF, are not barge or train, the relatively high currently TDF users. The number of end demand for TDF in cement kilns in the users in the Northeast is limited but central portion of the country and stable. At this time, one other mill could demand for TDF in the Southeast likely use TDF. places limits on the potential supply of scrap tires. Several of the utilities are in The situation in the Southeast (North states that already have a strong TDF Carolina to Louisiana) is such that there market. The combination of long-term might be more demand for TDF than the contracts and limited supply is likely to supply chain can provide. stymie these potential end users. This is Consequently, the unique situation in not to suggest that fuel managers at these this region is that the growth of this utility boilers could not increase the market will be limited because of the price they would be willing to pay for already elevated level of demand for high quality TDF. The market would TDF and consequent lack of supply. probably respond favorably to such a What this suggests is that the current shift in pricing policy. level of TDF use should be sustained, because any excess supply would be
Tire-Derived Fuel 31
Industrial Boilers that this facility could become active some time over the next two years. If RMA anticipates a substantial increase that would occur, then clearly the in this market niche. The data collected number of scrap tires used in these types suggest that as many as 10 industrial of facilities would increase dramatically. boilers are interested in TDF as a source However, outside of this one potential of fuel. Analysis shows that at least five end user there does not appear to be any additional industrial boilers could begin realistic likelihood that another using TDF over the course of the next dedicated tire-to-energy facility will be two years. This could increase the built. In contrast, there is no indication amount of TDF consumed by 7 to 10 that the Sterling, Connecticut facility million tires. The other facilities appear will cease operations in the near term. to be limited due to the same factors as mentioned in the utility boiler section – Other TDF Markets location and supply of TDF. The majority of RRFs reporting Dedicated Tires-To-Energy relatively larger-scale use of TDF are Facilities located in Florida, with most of the RRFs that reported an interest in using There has been some recent activity with TDF also being in Florida. the dedicated tire-to-energy facility in Consequently, this is more of a local Illinois, suggesting that this facility market rather than a new national trend. could begin combusting tires again. At As such, it does not appear reasonable to the end of 2005, this facility still was not consider the use of TDF in RRF as a operational. Currently, there is no major growth area for the foreseeable indication that this facility will be future. operating in the short-term. It is possible
4
Civil Engineering Applications
In 2005, approximately 49 million scrap Table 6: Properties of TDA Used in Civil tires were used in civil engineering Engineering Applications applications (639.99 thousand tons). Size 2 to 12 inches This is a reduction of six million scrap Weight 1/3 to 1/2 weight of soil tires, or a nearly six percent decrease, Volume 1 cubic yard ≈75 tires since 2003. Drainage 10 times better than well graded soil Since 1992, when the first civil Insulation 8 times better than engineering applications were gravel Lateral 1/2 that of soil introduced to the marketplace, the Foundation number of available applications has Wall Pressure increased dramatically. In addition, the quality of the shred used in these Over the course of the last two years applications has increased as well. Over changes in the market have had a time, tires shreds have turned into a profound impact on TDA use. The use commodity and are now commonly of TDA still provides both an referred to as tire-derived aggregate, or engineering and cost benefit. However, TDA. the use of TDA historically has been most prevalent in the Mid-Atlantic to Leading applications in this market were Southeastern regions of the country, the lightweight fill, drainage layers for same regions that have the highest landfills and aggregate for septic tank concentration of TDF users in the leach fields. For these applications, country. scrap tires are processed into TDA, with a range of two to 12 inches. The driving The overall economic conditions of the forces for market growth are the marketplace have drawn a significant beneficial properties of TDA including amount of the annual scrap tire supply light weight, high permeability, ability to from the TDA market to the TDF attenuate vibrations and good thermal market. The main reason for this shift is insulating properties. Table 6 lists the that the return on investment for high- properties of tire rubber used in civil quality TDF is greater than that for engineering applications. TDA. Consequently, the increased use of TDF in the Southeast and Atlantic
32 Civil Engineering Applications 33
Coast region has limited the volume of applications that have been used scrap tires available to the TDA market. elsewhere. The duplication of testing procedures not only adds cost to the The market substitution of TDF for TDA price of TDA, but delays the approval is not the only reason for this decrease. process, sometimes by months or years. The use of TDA as a drainage medium in landfill leachate liners has decreased Policy preference, the other category of due to some reported problems of obstacle to civil engineering clogging. It have been reported that applications, occurs when a decision TDA traps too many solids in the maker in a regulatory agency, is biased drainage layer, which decreases the against such applications. Policy ability of the leachate to flow freely. preference information was not directly Consequently, this market niche obtained from the state agency declined across the nation, not just in the questionnaire, yet is readily observable Atlantic Coast/Southeastern portion of in the field. the county. States that encourage the use of TDA Civil engineering applications continue make the permitting process straight to lack wide acceptance by a number of forward. States that disfavor TDA make states. This lack of acceptance falls into the permitting process so difficult that one of two categories: institutional the marketplace is stymied. The irony of obstacles or policy preferences. this situation is that most of the states Institutional obstacles are generally that are not allowing the use of tire permitting conditions or regulatory shreds as TDA are also among the states definitions that make the use of TDA with the fewest overall markets for scrap very difficult or impossible. tires.
Often, different state agencies or One of the goals for the Civil different departments within a single Engineering subgroup of the EPA agency have conflicting regulations. Resource Conversation Challenge is to Sometimes scrap tires are considered a identify the states that have institutional solid or special waste, even after they are obstacles and address them. This is processed and sold as an aggregate. In accomplished by providing the necessary this case, potential end-user would have technical materials, identifying to obtain a solid waste storage permit in competing regulations that cause the order to store TDA for a civil obstacles and working with the state engineering project. Since competing agencies to reach an understanding that aggregate materials do not require this will remove these barriers. additional permitting step, other materials are often selected instead of Landfill Construction and TDA. Operation Another form of institutional obstacle is Overall, there are five applications for in the permitting process when a tire-derived aggregate (TDA) in landfill regulatory agency requires development construction. These applications are for of its own testing protocol for
34 Scrap Tire Markets in the United States 2005 Edition the use of TDA as a drainage layer in added application, is utilizing large-scale cap closures, as permeable backfill in amounts of abatement tires, as well as gas venting systems, as a material for residual tire material from TDF daily cover, permeable aggregate for processing. This application is proving leachate collection systems and in beneficial for landfills with limited operational layers. It must be noted that access to clean fill. In this application, the use of scrap tires in landfill TDA proves effective in keeping the construction must not be considered as a municipal waste in the landfill and disposal option. Rather, it is a beneficial restricting birds or rodents from entering use of the properties of processed scrap the landfill. TDA used alone has no tires. TDA replaces other construction ability to control odor emanating from materials that would have had to be the landfill or infiltration of purchased. precipitation. Consequently, landfill operators are combining dirt with tires in Cap Closures a 50-50 mixture.
TDA is being used in lieu of drainage Leachate Collection Systems aggregate in the final cover system for landfills. In this application the TDA is Leachate collection systems have been typically placed as a one-foot thick layer the most widely used applications for between the impervious cap and the TDA in landfills. In this application, a vegetative support layer. The TDA size relatively clean-cut 3 to 4-inch square used for this application varies, but often shred replaces the upper foot of the two is 3-in. maximum size material. to three feet of sand that is required in a leachate collection system. TDA is not Gas Venting Systems used in the sections of the collection system that touch the geomembrane that A 3 to 4 inch maximum size, cleanly cut lines the bottom of the landfill due to shred is used as the bedding material for concerns that tire wire would puncture gas extraction pipes. The lightweight the geomembrane and cause leakage. nature of TDA, relative to conventional drainage aggregate, allows the TDA to Operational Layers settle with the surrounding trash thereby exerting less pressure against the gas Operational layers separate municipal venting equipment. This reduces solid waste from the leachate collection shifting or damage to the gas venting and removal system (LCRS). LCRS are pipes. typically comprised of one or more drainage layers and impervious barriers Alternate Daily Cover such as a geosynthetic membrane, geosynthetic clay liner or compacted Rough shreds are mixed with clean fill clay liner. TDA is used in lieu of (dirt) to comprise the six inches of cover conventional material (sand, clean fill, or material every landfill must spread select waste), but is not typically placed across the work area of an active landfill directly against the geomembrane liner. cell at the end of the day. This application, while a very low value
Civil Engineering Applications 35
Septic System Drain Subgrade Fill and Fields Embankments
TDA is used in several states to California, Colorado, Maine, construct drain fields for septic systems. Massachusetts, Minnesota, New York, The lower density of TDA greatly North Carolina, Oregon, Pennsylvania, reduces the expense and the labor to Texas, Vermont, Virginia, Wisconsin construct drain fields, while the material and Wyoming have used TDA as a provides equal performance to the subgrade fill in the construction of traditional stone backfill material. highway embankments and other fill Arkansas, Florida, Georgia, South projects. The principal engineering Carolina, Virginia and many other states advantage that TDA brings to these allow this application. projects is lighter weight (one-third to one-half of conventional soil fill). TDA is fast becoming accepted by the septic field construction industry for Use of TDA allows construction of several reasons. First, TDA has a embankments on weak, compressible greater void space percentage compared foundation soils. For most projects, the to stone. For the low vertical pressures use of TDA as a lightweight fill material involved with this application, TDA is significantly cheaper than alternatives, contains 62 percent void space, as such as use of expanded shale aggregate compared to 44 percent with stone. This or polystyrene insulation blocks. allows TDA to hold more water than stone. Second, TDA is lighter than Projects featuring TDA use include: stone, which makes moving the material easier than moving stone during • Construction of a highway embankment in construction. Third, the increasing the Alleghany River Valley northeast of acceptance of TDA is also a function of Pittsburgh, Pennsylvania; • Building a highway on-ramp on improved quality. The pieces must be compressible San Francisco Bay Mud north clean cut and have uniform size. of San Jose, California; • Construction of two highway embankments While TDA has clearly demonstrated on weak clay in Portland, Maine; that it can be used in these applications, • Construction of an interstate ramp across a further expansion will depend on the closed landfill in Colorado; • Construction of mine access roads across level of acceptance by appropriate bogs in Minnesota; government agencies and on economics. • Highway embankment stabilization in Where and when TDA is less expensive Topsham, Maine; and than stone and where state regulations do • Reconstruction of a highway shoulder in a not restrict this application, it is expected slide prone area in Oregon. that this market niche will expand. TDA also has been used to retain forest roads, protect coastal roads from erosion, enhance the stability of steep slopes along highways and reinforce shoulder areas.
36 Scrap Tire Markets in the United States 2005 Edition
Backfill for Walls and addition, the very high permeability of TDA allows excess water to drain from Bridge Abutments beneath the roads, which prevents damage to road surfaces. Several projects have been constructed using TDA as backfill for walls and bridge abutments. The weight of the Vibration Dampening TDA produces lower horizontal pressure Layers on the wall, allowing for construction of walls with less reinforcing steel. In TDA has been used to attenuate ground addition, TDA is free draining and born vibrations generated by light-rail provides good thermal insulation, passenger car lines. This application eliminating problems with water and absorbs vibrations from trains that travel frost buildup behind the walls. The through the ground and reemerge as benefits of this application were noise in adjacent homes and businesses. demonstrated by a full-scale test wall A 12-inch thick layer of three inch constructed at the University of Maine maximum size TDA beneath the stone and a bridge abutment built by Maine ballast is used to absorb the vibration. DOT. Recent wall projects have been This technology was recently used on a constructed in Pennsylvania and half mile of track in San Jose, California. California. Research conducted in It will also be used on upcoming Maine and South Dakota also shows that expansions of the light rail system in the compressibility provided by a thin Denver, Colorado. This technology is layer of TDA placed directly against a generally a fraction of the cost of bridge abutment can significantly reduce alternate methods to reduce ground born horizontal pressures. vibrations.
TDA can also be used in small-scale, Baled Tires homeowner-level civil engineering applications. TDA has been used in The technology to “bale” scrap tires has some areas as a drainage medium around been on the market since 1988. Tire house foundations. baling is a process where up to 100 scrap tires are placed onto a rod where they are Subgrade Insulation for then compressed into a condensed block. Roads The tire bale is then secured with some form of ties, typically metal or plastic. One of the problems plaguing roads in There appear to be two primary baling northern climates is the excess water technologies that form somewhat released when subgrade soils thaw differently shaped bales. In either case, during the spring melt. To prevent this, the bale weighs between 888 to 2,000 TDA has been used as subgrade pounds. Baling is not in itself a insulation on projects in Maine, Vermont recycling activity. Instead, it is another and Quebec. The insulation that is form of tire processing. Bales are provided by a 6 to 12-inch thick TDA neither advantageous nor layer keeps the subgrade soils from disadvantageous to the marketplace. freezing throughout the winter. In Rather, the potential benefit of tire bales
Civil Engineering Applications 37 is a function of where and how they are tires have not been sent to the market but used. rather have been baled and remain on the processors premises. There have been several successful applications of tire bales. Most notable Market Outlook of these applications has been as a construction material, used as a side- RMA projects that demand for TDA in slope stabilizer. This has been used once the Atlantic Coast and Southeast regions in Arizona and several times in Texas. of the country will remain stable. Tire bales have also been used Competition for scrap tires between the successfully as a road base in New York. TDF and TDA markets will probably In each of these cases the use of tire continue in the Southeast. It also bales were incorporated into a project appears that the states which are now that was designed and managed by a just beginning to permit and encourage professional engineer. civil engineering markets are not achieving the increased levels of usage There have also been a series of they envisioned. Finally, it also appears applications where the use of tire bales that the EPA RCC market development has not been successful. Tire bales were effort will need at least several years to used as a base for cattle feed lots, wind become effective. The result of these breaks at cattle feed lots and in erosion factors suggests that there will probably control along river banks. In these not be a dramatic resurgence in TDA applications, the structural integrity of usage over the course of the next two the bale failed, causing the need to have years. the baled tires removed. There have been numerous attempts to use baled Also, a limited number of other states tires in a variety of applications (i.e., as a continue to develop these markets. fence, as a background material for Overall, RMA projects that TDA use shooting ranges, etc), but these will increase by 10 to 20 percent (four to applications have not been well received eight million tires) over the next two by the state regulatory community. years.
The distinguishing factor between a Of concern is that 75 percent of all civil successful and unsuccessful application engineering use is concentrated in eight for baled tires is the level of engineering states (Texas, North Carolina, Virginia, that goes into the project. Those projects Iowa, Minnesota, Ohio, South Carolina that are designed and receive the stamp and Maine). The use of scrap tires in of approval by a professional engineer civil engineering applications is have yet to fail. Consequently the expected to continue at current levels in recommend manner in which to use Texas, North Carolina, Maine and baled tires is in engineered projects. Minnesota. In Iowa, Ohio and Virginia, however, the markets are primarily In 2005, some 2,657,500 scrap tires were driven by abatement programs. Once baled, primarily in four states (Arkansas, these abatement programs are Montana, Texas and New Mexico). It completed, it is unclear whether these should be noted that many of the baled markets will continue.
5
Ground Rubber Applications
In 2005, about 37.47 million scrap tires rubber was sold into an array of market were consumed by ground rubber applications. Of that total, about 480 applications (552.51 thousand tons). million pounds was generated from This market experienced growth since whole scrap tires, while 250 million 2003, when 28.2 million tires were used pounds of ground rubber was generated by this market. In this market, whole from tire buffings. scrap tires are processed, removing the wire and textile to create ground rubber specified by the various market 800 applications described below. 700 600
500
400
There are two sources for tire-derived 300 Millions of Pounds of Millions ground rubber: tire buffings and 200 processed whole scrap tires. Tire 100
0 buffings are a by-product of the process 1990 1992 1994 1996 1998 2001 2002 2003 2005 that retreads tires. The estimated total Year supply of buffings available in the U.S. Scrap Tire Rubber Tire Buffings Total is 250 million pounds per year. These Figure 5: U.S. Ground Rubber Supply, quantities have reached capacity, since 1990 – 2005. the number of tires retreaded annually While the term “ground rubber” (also has declined. Until 1992, all of the known as “crumb rubber”) is defined by ground rubber that was used came from ASTM, there are several distinct and tire buffings. In 2005, as in previous commonly-used terms used to describe years, all demand for ground rubber the various sizes of tire rubber. For the above the 250 million pounds of smaller-sized particles the term “mesh” buffings were supplied from scrap tire is used. Mesh sizing is defined by the rubber. number of holes on a one inch (liner) Figure 5 shows the historical screen – the higher the number, the contributions of tire buffings and smaller the hole-size. These terms are: processed whole tires to the total U.S. • Tire Buffings: by-product of the ground rubber market. RMA estimates retreading industry that by the end of 2005, approximately • Coarse Rubber: 1 inch to 4 mesh 730 million pounds of processed ground 38 Ground Rubber Applications 39
• Ground Rubber: 10 to 80 mesh amount of ground rubber going to sports field applications increased by 67 • Fine Grind Rubber: 80 to 400 percent and the sum total increase for the mesh “other” category nearly doubled.
There are several distinct markets for The data indicate that the major products ground rubber. In an attempt to simplify in the “other” category include the various end-uses for tire rubber, the horticultural products (mulch, weed markets are divided into seven control devices), horse arena cover and categories: asphalts/sealants; products that we could not clearly molded/extruded products; sports identify from the data received. surfacing; new tire manufacturing; surface modification; animal bedding The very significant increase in sports and horticultural applications. Figure 6 surfacing applications comes from the shows the estimated distribution of growth of the use of ground rubber in ground rubber for 2005 among these synthetic field turf applications for various markets. football, soccer and other related sports playing surfaces. Industry sources Others 8% indicate that ground rubber based sport Animal mats surfacing systems were placed in 600 to 3% Tires Athletic/ 800 sports fields in the United States in 7% recreational 2005. In 2006, RMA anticipates that 35% another 1200 sport fields could convert to ground rubber-based systems from
Asphalt traditional aggregate or turf systems. 16% Consequently, the short-term outlook for this market niche is very good. The same can be stated for the horticultural market niche.
Molded/extruded 31% An analysis of these markets has led us Figure 6: U.S. Ground Rubber Market to the following conclusion: there is a Distribution, 2005. cycle to demand and sustainability of ground rubber products. It appears the The data collected show some cycle has seven phases: introduction, interesting patterns and trends. Overall, incubation, acceptance, increased the amount of ground rubber going into demand, market saturation, gradual the asphalt market was the same as 2003. decrease and stasis. For this discussion, The same is true for ground rubber going playground cover serves as the example. into new tire construction and animal bedding products. There was a modest The use of scrap tires as a playground increase in the amount of ground rubber cover material was first introduced some in molded and extruded rubber products. six or seven years ago. It took about two The major increases for the ground years for this concept to become rubber market were in athletic field accepted in the marketplace. Once the applications and “other” markets. The safety features were recognized, the
40 Scrap Tire Markets in the United States 2005 Edition
demand for scrap tire-derived Ground rubber producers should be playground cover increased seeking and developing the next target dramatically. From 2002 through 2004 market and can not count on the current this was one of the major markets for level of demand being sustained for all ground rubber. However, a finite products. The asphalt and molded number of playgrounds exist. Many of products ground rubber markets may be those consumers that would purchase susceptible to this market cycle as well. ground rubber playground material did However, there are several factors that so during that period. Since 2004 the could allow these market applications to amount of ground rubber going into this continue to expand. These factors will market niche has been decreasing. be discussed in the market outlook section. Several factors caused this slow down in market demand. First, the market is Since 2003, the distribution of ground saturated. Second, several state grant rubber producing capacity has shifted. programs for the purchase of playground Historically, 90 percent of the ground material have ended. These grants did rubber volume was produced by 10 not stimulate the demand for this percent of the U.S. ground rubber product, since it has been reported that producing companies. Today, of the there has not been any after-grant some 60 companies producing ground purchases by former state grant rubber in the United States, an estimated recipients. Third, many school systems, 15 companies (25 percent of the total one of the major target markets for this number of companies), produce 90 product, are still having budgetary percent of the ground rubber entering the problems that limit the purchase of this market. product. Consequently, the demand for playground cover products is decreasing The major ground rubber producers from the sales numbers of just a few share several important attributes: years ago. This is not to suggest that this consistent, high quality product; market will disappear. Instead, the level competitive pricing and a loyal customer of demand for ground rubber playground base that values quality product in products will level off at some lower addition to competitive pricing in point, probably followed by a gradual geographic areas where markets are decline in nationwide sales over the next stable. While a considerable five years. improvement compared to just a few years ago, some companies have not yet The implications of these observations reached this level and are struggling to are meaningful and suggest that the achieve market success. current strong demand for horticultural products and sport surfacing applications Yet, some marketing tactics of are unlikely to be sustained for more struggling companies can be detrimental than another two-to-three year period. It to the industry. Sometimes fledgling further indicates that the level of demand ground rubber producers will attempt to for ground rubber going into animal boost sales by reducing the price of their bedding products and new tires have product. This is not a new approach for probably reached their levels of stasis. this sector. Since 1992, some ground
Ground Rubber Applications 41
rubber producers with excess inventory production capacity and market demand have tried this tactic. Seven because of the presence of recent consequences to this sales strategy entrants into the ground rubber typically follow: (1) the market for that production arena. specific size of ground rubber becomes flooded with product and prices fall; (2) This is not to suggest that every new the company that is selling this under- company that begins to produce ground valued product quickly begins to rubber will eventually flood the market experience additional financial losses with product and ultimately go out of and the quality of this material business. This is to suggest that if a new decreases; (3) companies that have to entrant to the ground rubber marketplace match these below-fair market prices to does not have a well developed business maintain customers also start to plan that focuses on untapped markets or experience financial losses; (4) the cannot expand sales into an already company that began this “fire-sale” crowded marketplace, then they should marketing approach goes out of have a limited expectation of success. business, reducing the quantity of that History shows that the majority of failed specific sized rubber available on the crumb rubber producers enter the market market; (5) the price for that particular place without a clear business plan or sized rubber does not return to the pre- reliable customer base. This, coupled dumping prices; (6) major suppliers of with poor due diligence by investors and that particular sized product experience exaggeration of the need for additional reduced earnings which poses financial capacity or tire disposal, results in a strain; and (7) fair market values are continual revolving door of new entrants skewed downward resulting in and those who exit the ground rubber purchasers demanding price points that processing field. are unsustainable often resulting in disrupted or discontinued use of crumb Athletic and Recreational rubber which retards growth and Applications development of new uses for crumb rubber. This market segment has been one of the fastest growing markets for ground In spite of the existence of detrimental rubber over the last two years. marketing tactics, since 2002 the ground Examples of this market segment rubber producing sector of the scrap tire include, but are not limited to, the use of industry has become more stable. A rubber in running track material, in greater percentage of ground rubber grass-surfaced playing areas, in stadium producers are selling a relatively greater playing surfaces, artificial turf infill, for percentage of the material sold. The playground surfaces and as a turf top market has seen lower turnover in this dressing. segment of the industry, with a greater
incidence of owner turnover or plant The incorporation of rubber into sport closings in lower volume ground rubber surfaces provides two benefits: increased producers. While this should be safety and performance enhancement. expected as a function of the This is a function of the properties of the marketplace, it is difficult to balance
42 Scrap Tire Markets in the United States 2005 Edition rubber. In the case of playgrounds, has relied on state grants to fund where loose rubber, rubber mats or a playground projects. These grants have coagulated rubber emulsion is laid, not stimulated the market. Instead, they rubber surfacing has the highest impact have created a cycle where schools attenuation level of any material tested receive a grant, spend it and then wait and/or commonly used. The same for the next grant. Reduced school feature is also displayed when rubber is budgets further inhibit the marketplace used in running tracks – the impact on because schools cannot afford to the surface is absorbed largely by the refurbish a playground absent a state rubber-modified surface, not by the grant. Often, playground equipment body. manufacturers and contractors sell schools lower cost materials rather than Artificial Turf Applications emphasizing the lower long term costs associated with rubber playground Artificial turf applications are and will material and the child safety benefits continue to be the major market niche in associated with it. Interestingly, it is in a the ground rubber market. In artificial contractor’s interest to continue selling turf applications, artificial grass is lower cost materials on a consistent basis embedded in a mixture of ground rubber instead of selling longer lasting rubber and sand. These applications are used in playground materials, where repeat football and soccer fields and have business will have a longer cycle. gained wide recognition as a system that allows for better drainage of water and Data received from industry sources reduces injuries to the athletes. When indicate that a shift has occurred in the rubber is used to modify grass playing sales patterns in this market niche. surfaces or synthetic playing surfaces There appears to be less demand for (i.e., soccer field, football field) the large-scale loose-fill rubber and rubber provides resiliency, softens the increased demand for the pour-in-place fall impact and protects the grass. This systems. Practitioners are also market has increased dramatically in the experiencing increased sales of smaller U.S. and Europe. sized loose-fill material (50 pound bags) in the residential (retail) markets. This Industry sources report that these rubber- data suggests that schools and other based sports field systems were installed institutions are not buying loose-fill in over 600 fields in 2005. RMA materials, probably for the reasons cited projects that in 2006 and 2007 this earlier. The upward trend in the market could double and maintain that relatively more expensive pour-in-place level through 2008. Secondary sales rubber systems suggest the consumer could become a major positive factor base for playground cover has shifted. over the next six to eight years. The original target markets for this Playground Cover product were public schools and institutions. Now the consumer base is Overall, the ground rubber playground moving toward the private institutions market, typically loose fill, has been (schools, malls) that are looking to slowed by several factors. This market install a safe and durable product in play
Ground Rubber Applications 43 areas. There is no consensus on whether the established product manufacturers this sales trend will continue or how are located. Expansion in this market large a potential market this can be. was due to increased production capacity at established facilities, rather than new The relatively significant demand in businesses entering the market. retail sales of smaller sized quantities of loose tire playground cover suggests that Aside from the sport surfacing market, there is considerable interest from home RMA believes that the molded and owners with on-site playground extruded rubber products market (mats, equipment. Once again, there is no blocks, sheets of rubber) has the greatest consensus from the industry sources potential to expand. The products contacted as to the exact size or potential manufactured typically are high-quality of this market. Yet it is reasonable to and relatively competitively priced. assume that there could be a large, However, several factors are limiting untapped market potential for home use this market growth. of loose-fill playground material. Overall, a lack of knowledge exists on the methods to compound (blend Molded and Extruded together) recycled rubber with polymers. Products Also, there is a lack of publicly available information on compounding recycled Ground scrap tire rubber may be formed rubber and success stories of companies into a set shape, usually held together by and products in this arena. an adhesive material (typically urethane or epoxy). These bound rubber products The rubber manufacturing industry is include, but are not limited to carpet both limited and concentrated in three underlay; flooring material; dock general geographic regions, which in bumpers; patio floor material; railroad turn concentrates expertise. crossing blocks and roof walkway pads. Consequently, even if there is a dramatic increase in the amount of ground rubber Ground rubber also can be added to used in molded products, it would not other polymers (rubber or plastic) to represent a nationwide market extend or modify properties of opportunity. A significant limit to this thermoplastic polymeric materials. market expansion is the fact that not all Examples of this application are polymers are compatible, so there could injection-molded products and extruded be several families of recycled materials goods. There appears to be a significant that would not be used in these market potential for this application due applications. to the continuing research and development of products using a As in other industrial sectors, foreign surface-modified rubber. competition in the molded and extruded The demand for ground rubber for products market is forcing companies to molded and extruded products is move production off shore. If this trend concentrated in three geographic continues, the molded and extruded regions: the Southeast, Northwest and rubber market could disappear from the Central portions of the country, where ground rubber market. This could
44 Scrap Tire Markets in the United States 2005 Edition significantly affect the overall well- grants to entice counties and being of the ground rubber market and municipalities to use this material. would likely cause several major ground rubber producers to cease operation. There are several states and one city (Nevada, Rhode Island, Washington, Missouri and Chicago) that appear to be Rubber-Modified Asphalt interested in using RAC. In Chicago, the City Council passed a mandate for Ground rubber can be blended with the use of RAC; historically mandates asphalt to favorably modify the have not had the long-term impact they properties of the asphalt in highway intended. Two states that have put down construction. Ground scrap tire rubber test patches of RAC (Nebraska and can be used either as part of the asphalt Tennessee) and appear to be content to rubber binder, seal coat, cap seal spray wait until a complete assessment on the or joint and crack sealant, or as an performance of those roads is available. aggregate substitution. Currently, there Several states considered RAC appears to be an increasing interest in (Pennsylvania, New Jersey, New York), the benefits of rubber-modified asphalt, but it is unlikely that any of these states not only in the fairly limited range of will develop a RAC program anytime states currently using a significant soon. amount of it, but also in other states. Within the RAC industry, several factors To a large extent, any large-scale are limiting the growth of this market as increase in the use of rubber-modified well. The companies that control the asphalt is dependent upon the marketplace in Arizona, Texas and willingness of a state department of Southern California appear not to be transportation (DOT) to accept national expanding the market base. Whether by test results and begin its own state and design or market forces, this limits the local level programs. Even with some availability of the expertise to the greater degree of acceptance by a DOT, the asphalt paving industry. demand for size-reduced rubber as a result of rubber-modified asphalt Several recent developments in this applications is not expected to increase market sector could have positive immediately. impacts on the future demand for ground rubber. In Canada, several provinces The outlook for the sale of ground have embarked on a program to research rubber in the rubber modified asphalt and use RAC. This is important because market (or rubber asphalt concrete or a successful RAC program in Canada RAC) is not particularly positive. From would further dispel the misperception the data collected, RMA anticipates that that RAC is only a warm weather the five states which are already using technology. Additionally, the use of RAC (California, Arizona, Texas, terminally blended rubber modified Florida and South Carolina) will asphalt could stimulate the industry. continue to do. Among these states, Further, the Federal Highways Florida has reduced the amount of RAC Administration Quiet Roads initiative used by some 20 percent, while holds promise to boost this market. California and South Carolina still use
Ground Rubber Applications 45
Terminal Blending road noise in Arizona and California. Several states that have not had The use of terminal blended rubber extensive experience with RAC will be modified asphalt could have a major putting down RAC to determine whether impact on the industry. Ground rubber this technology can be used in their has a specific gravity of 1.15 compared states to abate road noise. The states of to approximately 1.000 for asphalt Missouri, Washington and Nevada will (binder). Therefore, settlement of the be using RAC for road noise abatement ground rubber is a major issue. Several projects in 2006 and 2007. companies claim to have overcome this problem with adding a polymer or other Should this technology be successful and chemicals to the asphalt mix. other states begin to use RAC in ever Sometimes, companies constantly agitate increasing amounts, the level of demand the rubber modified asphalt prior to for ground rubber in asphalt paving application to keep the rubber suspended should increase. While this presents in the matrix. itself as a significant opportunity, it will likely be a gradual process. Several This technology potentially could be states plan on waiting three to four years appealing to the asphalt industry because before deciding whether the RAC it does not need the same equipment as applications were successful. If the hot mix asphalt. Should this technology Quiet Roads initiative does present itself prove successful, it could help overcome as a market opportunity, the effects are significant obstacles impeding this not likely to be felt for at least another market’s growth and result in a three to four years. significant increase in the demand for ground rubber, although it is too early to New Tire Manufacturing estimate the growth potential associated with this development. Estimates are Limited quantities of finely ground scrap that it could be another three years tire rubber can be used in some before this technology could begin to components of new tires. The quantities impact the markets for ground rubber. used in new tires likely will not exceed five percent by rubber weight in the tire Quiet Roads types and models that contain recycled content, since the addition of recycled The Federal Highway Administration content in new tires decreases the tire’s (FHWA) Quiet Roads Initiative was performance in critical areas, including designed to address road noise audible to safety. residents in close proximity to major roadways. FHWA is researching the In 2003, Continental Tire North types of pavements that can be used as a America, Inc. announced its findings means of abating or preventing noise from a research project conducted in from roadways. The use of RAC in an conjunction with the state of North open graded friction course on highways Carolina that studied the feasibility of is known to decrease road noise. RAC incorporating up to 13 percent recycled has been used successfully to reduce content in tires (both recycled tire rubber and other non-tire recycled materials).
46 Scrap Tire Markets in the United States 2005 Edition
This report showed negative tire also are available for use as bedding performance implications associated material for domesticated animals (dogs with the addition of this and lower and cats). percentages of recycled content, including lower tread wear life, lower Other Markets wet traction, longer wet stopping distance, lower snow traction and higher The “other markets” category includes a rolling resistance. Continental has number of other, smaller markets for discontinued this research project due to ground rubber. Highlighted here are two the unacceptability of the negative such markets – rubber mulch and horse performance implications and the arenas. The demand for tire-derived unavailability of acceptable source mulch has grown over the past several material. years. This material, a one-to-two inch piece of rubber with 99 percent of the Continental’s recent experience in this wire removed has established itself in area illustrates that while increased the industrial and residential markets. levels of recycled content rubber can be added to new tires, doing so does not The increase in sales appears to be a provide any additional durability to the function of two factors. First, the tire. Further, recycled content properties of the material (does not introduction can come at the cost of decay, does not attract insects, retains other desired tire performance moisture in the soil, effectively characteristics. No engineering benefit eliminates weeds) are becoming more (as defined by durability and/or widely recognized. Second, one of the performance) and in fact, some negative main competitive materials, wood chips, performance implications, are likely to are being used as a fuel source at the keep the recycled content of tires, where pulp and paper mills as a source of used, to the one-half to three percent energy, reducing their availability and levels that have been used in some increasing their relative costs. Demand applications. for and sale of rubber-derived mulch should continue to increase over the next Animal Mats two years.
Coarse rubber is being used as the fill The use of tire material in horse arenas material for fabric mats that are used in appears to have reached a steady-state the dairy industry. These mats (referred status. The data obtained suggests that to as “cow mattresses”) provide comfort the demand for this three-eighths inch for milking cows and protect the cows’ material has been stable over the past udders, to help maintain the milk two years and is expected to remain so production capacity of these animals. for the next two years. These mats come in various sizes and
6
Electric Arc Furnaces
In 2005, one and one-third million scrap steel product. This is close to closed- tires (18.88 thousand tons) were utilized loop recycling of scrap tires. in electric arc furnaces in the United Since 2003, the onset of the use of scrap States. Scrap tires were first introduced tires in EAFs, two additional facilities into electric arc furnaces in the United have started using scrap tires, raising the States in 2003. Scrap tires are used as a total number of EAFs using scrap tire to source of carbon and steel during the four. The overall market has not reached manufacture of high carbon steel the level that the RMA projected in the products. This process takes place last market report. The projection of six inside an electric arc furnace (EAF) at to ten EAFs using scrap tires has failed temperatures exceeding 3,000 degrees to be realized. Fahrenheit. While our research indicates that up to Tires contain three beneficial resources eight additional EAFs remain interested for EAFs: a high carbon content, high- in using scrap tires, only one of these grade steel and energy. Scrap tires are facilities has completed trials and also attractive to EAFs since tires can be received tentative permission to proceed used whole or in relatively large pieces with the use of scrap tires. An analysis (halved or quartered) and the facility of the market suggests there are several receives a tip fee for accepting scrap reasons for the lower than expected rate tires. EAFs can also accept larger-sized of usage. tires (mining, grader, earth mover, farm tires) that have few, if any, other viable First, tire supply issues and prevailing outlets. tipping fees can play a major role in geographic regions with relatively high While the combustible portion scrap levels of scrap tire generation and tires is used as a source of energy, some demand for scrap tires. The potential carbon (about 68 percent of tire supply of whole tires to EAFs in these composition by weight) and most of the regions has been limited, if not steel (about 12 percent of tire unavailable. These are regions where composition by weight) components of the supply and demand for scrap tire- the tires are incorporated into the new derived (processed) products (tire- derived fuel, ground rubber and civil
47 48 Scrap Tire Markets in the United States 2005 Edition engineering applications) are the point of processed by the scrap tire infrastructure, equilibrium with the supply of scrap the supply and the economics would tires. probably be favorable, which would allow for the sustained use of scrap tires. Furthermore, EAFs also have to directly This approach to attracting a supply is a compete with cement kilns for a supply function of the willingness of facility of larger-sized, whole tires. Market personnel to cultivate and develop such a conditions dictate that those markets that supply chain. It is uncertain how many are willing to pay the most for tire- of the EAFs that have expressed an derived products will receive the greater interest in making use of scrap tires amounts of these products. could carry out this type of program. Consequently, the number of scrap tires available to EAFs and the tip fee offered Additionally, a patent issue exists that to these facilities has been low. The poses a challenge to this market. The combination of limited supply and no or introduction of whole tires into a relatively low tipping fees have caused “charge” bucket at an EAF was first EAF management to rethink the use of used in the United States at a Nucor EAF scrap tires. in Nebraska. A then-employee of Nucor responsible for this project applied for In other regions of the country the and received a patent for this process location on the EAF is a rural setting and through the U.S. Patent Office. An relatively distant from the sources of agreement between Nucor and the patent scrap tires. With the dramatic increase holder has apparently enabled Nucor to in fuel prices, scrap tire haulers have use the patented process in its facilities. been less inclined to transport scrap tires Other EAF facilities interested in using over great distances, especially in those tires as a charge material should research cases where they still have to pay a these patent issues as part of an tipping fee. In these cases the assessment process. combination of limited tire supply and economics has worked against the ability Several EAF production managers have to guarantee a constant supply of scrap expressed concerns about the use of tires. The market conditions have also scrap tires relative to the quality of the caused EAF management to delay or steel product being manufactured. cancel the use of scrap tires. Concern about supply and an unwillingness to use scrap tires on a trial Given that an EAF can accept larger basis, in combination with any of the scrap tires than the majority of scrap tire factors cited above have caused EAFs to processing systems are willing or able to postpone or abandon any plans to test or process, EAFs can provide an important use scrap tires. niche market. This has been the case at the Nucor EAF in Auburn, New York, In these cases, the economics of which makes use of a relatively high negatively impacting the quality of steel percentage of agricultural tires. In cases products far outweighs any benefit from like this, where the EAF can attract a using scrap tires for any purpose. While relatively constant quantity of scrap tires there is no evidence to suggest that scrap that are not normally collected and tires have caused any degradation of the
Electric Arc Furnaces 49 steel products generated at any of the level of usage in Europe, the European EAFs worldwide, the production scrap tire industry is making an effort to methods, raw materials and products increase the number of tires going into made at EAFs vary. EAFs. For more information, please visit the American Iron and Steel There also were comments made by Institute website at http://www.steel.org/. production managers that tire manufacturers could use either an The current market conditions suggest ASTM 1070, 1080 or 1090 steel. While that the use of scrap tires in electric arc these are all high-grade materials, the furnaces will not be expanded to variability could pose challenges in steel previously suggested levels and is likely production. This lone factor appears to to be a minor end use market. Given the be sufficient to prevent several EAFs current market conditions, our analysis from using scrap tires. These concerns suggests that there are two to three EAFs are unlikely to dissipate in the near term. that could begin using scrap tires in the 2006-2007 timeframe, with two of these Over the past few years there have been facilities being owned by Nucor. If the a number of mergers and acquisitions projections are correct, this would bring within the steel industry. Conversations the total market use to approximately with steel industry sources indicate that three million tires a year by the end of additional mergers and acquisitions are 2007 (please note that the data received likely in the near-term. This factor could for scrap tire usage in EAFs was in units, also be delaying any changes in methods i.e., millions of scrap tires). or materials at EAFs. It also appears likely that any EAF using What should be noted is that of all the scrap tires will be doing so at a relatively reasons given for the lack of expansion low rate, suggesting a rate of usage in in this market, environmental the range of 200,000 to 500,000 scrap considerations have not been mentioned tires per year per EAF. Furthermore it as a concern. From the reports made appears evident that the supply of these available it is apparent that the use of scrap tires will come from sources fairly scrap tires in EAFs has had no adverse close to the facility, perhaps no greater impact on emissions associated with than 50 – 75 miles from the facility. these operations. RMA projects that growth in this market On a worldwide comparison basis, the area will be incremental in the next two rate of usage of scrap tires in U.S. EAFs years, given the combination of adequate is second to Japan, which reports that scrap steel supplies, the downward some 15 percent of all scrap tires pressure on tip fees for scrap tires and entering an end use market are used by the diminished availability of scrap tires, EAFs. The level of scrap tires usage in coupled with internal management U.S. EAFs is at present greater than the considerations.
7
Other Markets
Cut, Punched and medium truck tires. However, the steel belts and body plies in an increasing Stamped Rubber Products percentage of medium truck radial tires are not desirable in these applications. There was more information supplied on Larger bias-ply tires may provide this market segment in 2005 than in any another possible raw material for this previous year. In 2005, approximately market, which could offset some of the six million scrap tires were cut, punched decrease in supply for this market caused or stamped in the United States (100.51 by the trend toward steel-belted radial thousand tons). This market remained medium truck tires. Thus it may provide constant in 2005. a reuse opportunity for some of the large
off-the-road tires that otherwise pose The process of cutting, punching or waste management challenges. stamping products from scrap tire carcasses is one of the oldest methods of Because of the constant demand in this reusing of old tires. This market market, virtually all of the scrap bias-ply encompasses several dozen, if not medium truck tires that are collected by hundreds of products, all of which take major truck casing dealers find their way advantage of the toughness and to a cutting or stamping operation. This durability of tire carcass material. The demand is expected to remain constant. basic process uses the tire carcass as a This market has reached capacity, since raw material. Small parts are then die- the supply of bias-ply tires is limited. In cut or stamped, or strips or other shapes fact, if no new supply of bias-ply tires are cut from the tires. can be secured, it is likely that this
market segment will decrease slightly A limitation of this market is that it over the next two years as the supply of generally uses only bias-ply tires or bias-ply tires diminishes. fabric bodied radial tires. Historically, this market has consumed primarily
50 Other Markets 51
Export of Tires Agricultural and Miscellaneous Uses
The business of exporting sound used Scrap tires are regularly used in a variety tires continues. RMA received more of agricultural applications. Used tires information in 2005 about this market not legally fit for highways sometimes niche than any previous year’s data may be used on low-speed farm collection effort. Based on this equipment. Tires are also used to weigh information the number of tires exported down covers on haystacks, over silage, is reported to be nearly seven million or for other purposes where an easily tires per year (111.99 thousand tons). handled weight is needed. Tires can be Admittedly, this information represents used to construct livestock feeding only the data collected. There is a stations or to protect fence posts and significant likelihood that more tires are other structures from wear and damage exported than have been reported. The by livestock. obvious weakness in the reporting system is that some used tires may not Tires may also be used in erosion control have been counted in a state’s and other land retention projects. There questionnaire or are handled by tire also is a wide variety of uses for scrap collectors that do not report their tires that do not fit neatly into any of the activities to state agencies. preceding categories, which ranges from one of the most popular uses as a scrap tire swing, to more exotic uses, limited only by imagination and necessity. Agricultural and miscellaneous uses consumed approximately three million tires in 2005 (47.59 thousand tons).
8
Land Disposal Issues
In many states, the management data includes those tires consumed in portfolio for scrap tires includes an reclamation projects as well as those option to place whole and/or processed landfilled or monofilled, so a scrap tires into landfills or monofills. comparison with 2003 data is not Additionally, some states use scrap tires appropriate in this case. as fill in land reclamation projects. RMA does not view these practices as Landfills end-use market applications, but as disposal options. In some states, landfilling scrap tires is the only viable option. Certain aspects Tires Land Disposed in of landfilling scrap tires must be 2005 recognized. First and foremost, landfilling tires has a profound impact The data obtained in the questionnaires upon the end-use markets for scrap tires. from state scrap tire regulators was The cost to landfill a tire restricts tip fees somewhat incomplete relative to the (fees paid to dispose of material) that tire number of tires that were landfilled in processors can charge for processing 2005. RMA conducted telephone tires as well as the supply of scrap tires interviews with major collectors and available to them. processors of scrap tires in those states that that allow landfilling or monofilling Second, landfilling scrap tires is not a scrap tires or use tires in reclamation market; it is a disposal option. Many projects. factors, including transportation costs and limited scrap tire volumes, may RMA estimates that 42.42 million scrap make it impracticable to have substantial tires were land disposed in 19 states in scrap tire markets in some locations. 2005 (477.15 thousand tons). This Landfills can compensate for a lack of represents approximately 14 percent of available scrap tire markets or instability the scrap tires generated in the United in scrap tire markets. Where this is the States in 2005. This may seem to be an case (particularly in Western states with increase since 2003 when RMA reported large land areas, difficult geography and that nearly 27 million, or about nine sparse populations), it is understandable percent of the total scrap tires generated, that landfills may be the most reasonable went into landfills. However, the 2005 52 Land Disposal Issues 53 and cost-efficient management option for scrap tires. In theory, monofilled processed scrap tires can be harvested when markets for Landfills also provide two other scrap tire material improve. In practice, important features for the scrap tire however, the economics of retrieving industry. Sometimes, tires taken out of this material relative to the value this stockpiles are in such poor condition that material can yield makes it unlikely that they cannot be considered for any such actions will occur. RMA is application. Consequently, the only unaware of a single case in which viable option left is to properly landfill previously monofilled tires were mined this material; indeed several states that for market applications. Still, placing have a complete ban on tires in landfills scrap tires into monofills is preferable to have a stipulated exclusion for these above-ground storage in piles, especially situations. if the piles are not well managed.
Second, landfills provide a disposal Land Reclamation option for tire shredder residue (the tire wire, textile and adhered rubber that are Scrap tire shreds have been used for land byproducts of ground rubber reclamation. In this process, rough processing). In some cases, the scrap shreds are used as a fill material on land tire processor does not have the that has been mined or subjected to equipment to further process this significant erosion and is in the process material into a salable material or of being restored (reclaimed). Tires are available markets for it. The ability to used to level out the contour of the land landfill or otherwise manage tire before the land is covered with soil and shredder residue will remain important reseeded. to the industry until markets are created for this material. Scrap Tire Stockpiles
Monofills The issues associated with and management practices for scrap tires in Since 1996, the placement of shredded stockpiles are different than those for scrap tires in monofills (a landfill, or annually-generated scrap tires. portion thereof, that is dedicated to one Stockpiles are the residue of past (and type of material) has become more some current, usually illegal) methods of prominent in some locations as a means handling scrap tires. While its owner of managing scrap tires. In some cases, sometimes considers a scrap tire monofills are being used where no other stockpile to be an asset, scrap tire markets are available and municipal stockpiles truly are liabilities, due to the solid waste landfills are not accepting or potential for fire and vermin infestation. are not allowed to accept tires. In other cases, monofills are portrayed as a Another major distinction between management system that allows long- annually-generated tires and stockpiled term storage of scrap tires without the tires is a matter of economics. problems associated with above-ground Generally, the collection, flow and storage. processing of annually-generated scrap
54 Scrap Tire Markets in the United States 2005 Edition tires are aided by the fees often assessed many state scrap tire management at the retail level. programs have focused on stockpile abatement. In 1994, following a survey Typically, stockpile sites are managed of the states, the estimated number of such that the fees used to place tires onto scrap tires in stockpiles in the U.S. was stockpiles are not available to facilitate 700 to 800 million, considerably fewer handling, processing or other than earlier estimates. remediation. Consequently, stockpiled tires tend to remain in place until state- Scrap Tire Stockpiles in 2005 initiated abatement programs or enforcement efforts can be implemented. In 2005, an estimated 188 million tires Another major issue in managing scrap were in stockpiles across the United tire stockpiles is developing an accurate States, compared with 275 million at the assessment of the actual number of scrap end of 2003. Appendix B shows state tires in stockpiles. estimates of the numbers of tires remaining in stockpiles in the U.S. In its initial report on scrap tire issues in Figure 7 shows the reduction in the 1990, EPA estimated that there were number of scrap tires in stockpiles since between two and three billion scrap tires 1990. State data collected by RMA in stockpiles in the U.S. RMA refined indicate that scrap tire stockpiles are that estimate in ensuing years and concentrated in a small number of states. estimates that about one billion tires were in stockpiles in 1990. Since 1994,
1200
1000 1000 1000
800 800
600 500 400 400 300 275 188 200
0 1990 1992 1994 1996 1998 2001 2003 2005
Figure 7: Millions of Scrap Tires Remaining in U.S. Stockpiles, 1990 - 2005.
Land Disposal Issues 55
At the end of 2005, 84 percent of all programs within the next two years, but stockpiled tires in the U.S. were located these states contain a total of less than in just seven states: Colorado (40 eight million tires in stockpiles. If million), New York (37 million), Texas continued significant progress is to be (24.6 million), Connecticut (20 million), made, Alabama, New York, New Jersey Alabama (18 million), Michigan (10.6 and Michigan need to have aggressive million) and Pennsylvania (nearly eight abatement programs. These four states million). RMA’s policy on reporting contain almost 67 million scrap tires. stockpile data has been to use the data provided by the states. Interestingly, Texas and Pennsylvania, which still have some states reported fewer tires in significant stockpiles, do not have stockpiles than the number reported two dedicated scrap tire program funds for years ago without abating any tires over scrap tire stockpile abatement programs. this period (Massachusetts, New Jersey Officials in both states have indicated and Washington). that they intend to approach their respected state legislature to secure The last two years have seen a funds for abatement projects. Given significant amount of abatement activity that, there is no guarantee that either and few new piles created. The state will conduct abatement activity. combination of increased market demand, improved collection practices, The remaining states with relatively better law enforcement and a greater large amounts of stockpiled tires public awareness of the dangers (Colorado, Connecticut, Massachusetts, associated with unlawful dumping have Delaware, North Dakota and Idaho) resulted in a significant improvement in contain some 74 million stockpiled scrap this important arena. It should also be tires. These states either do not have a reiterated that the decreased number of funded scrap tire program or are not scrap tires in stockpiles is a function of using funds for stockpile abatement. improved assessments of the actual Consequently, it is highly probable that number as much as the abatement of more than half of the currently reported stockpiled tires. stockpiled scrap tires will remain unabated for the foreseeable future. Scrap tire legislation was enacted in Virginia, Washington and Missouri that Stockpile Mapping will allow these states to begin or complete stockpile abatement. New Several states and some U.S. EPA York, New Jersey and Alabama are in Regions have begun to use satellite the beginning of the process to abate the imagery to map tire stockpiles within major stockpiles in those states. their borders. This technology enables a jurisdiction to locate previously A continued reduction in stockpiles is unknown, often smaller, stockpiles. likely over the next several years, Additionally, this technology can assist although it may not be at the rate of in assessing the estimated size of a decrease that was experienced between particular stockpile. Through this 2003 and 2005. Iowa, Ohio, Missouri information, states can more effectively and Virginia should complete abatement plan and budget for abatement projects.
56 Scrap Tire Markets in the United States 2005 Edition
U.S. EPA Region V has mapped the the field. The Guidebook provides state scrap tire stockpiles in each state within and local officials with all of the its jurisdiction. California has also information needed to effectively conducted a mapping project for the manage a scrap tire abatement project. state. Stockpile mapping is discussed in more detail in the stockpile abatement The document reviews components of an guidebook recently developed by U.S. abatement project, bidding out a cleanup EPA Region V and described below. project, working with contractors and implementing effective prevention Development of Stockpile programs to keep new stockpiles from Abatement Guidebook forming. The Guidebook is available online at In 2005, U.S. EPA and Illinois EPA http://www.epa.gov/reg5rcra/wptdiv/soli combined resources to create The dwaste/tires/guidance/. Complete Scrap Tire Cleanup This website also includes sample Guidebook. This document provides a requests for proposals and other relevant much-needed tool for abating scrap tire documents from several states to assist stockpiles. This comprehensive guide states in developing abatement was developed by synthesizing the programs. expertise of scores of professionals in
9
State Performance and Evaluation
State Performance tires each state sent to market in 2005. Figure 9 shows the millions of scrap The previous edition of this report tires remaining in stockpiles in each published individual state scrap tire state. Of note, several states have abated management data for the first time. In all known stockpiles. Several other this edition of the report, RMA is again states did not report or did not know the publishing individual state data. Now number of scrap tires in stockpiles that two consecutive volumes of within its borders. individual state data are available, RMA was able to benchmark state State Evaluation performance and begin to evaluate trends. This trend analysis is available For the first time in this report, RMA has in two components: (1) individual state evaluated individual states in scrap tire performance and improvement rankings management. RMA created two state (2) regional market analysis (by EPA ranking categories: performance and Region), contained in the following improvement. In both categories, state chapter. The purpose of ranking states is performance was evaluated in several two-fold: to recognize those states that areas, in terms of the absolute number of have achieved scrap tire management scrap tires, as well as the per capita success and identify those states that number of scrap tires. RMA felt that need heightened focus and resources viewing state performance both in devoted to scrap tire issues. absolute volume of tires and on a per capita basis rewarded the efforts of states Two of the key criteria evaluated in this with large populations and more and the following chapter are (1) state significant annual generation, while the scrap tire markets and (2) existing state per capita evaluation acknowledged state scrap tire historical stockpiles and state efforts, regardless of volume, to address remediation efforts. Figures 8 and 9 annually generated or stockpiled tires illustrate state-by-state scrap tire market and work toward a sustainable program and stockpile statistics. Figure 8 shows within the state. the percentage of annually-generated 57 58 Scrap Tire Markets in the United States 2005 Edition
Figure 8: U.S. State Scrap Tire Market Percentages, 2005.
Figure 9: Scrap Tires Remaining in Stockpiles in the U.S., 2005.
State Performance and Evaluation 59
State Performance Rankings In 2005, South Carolina received the In the performance category, RMA number one ranking, followed by Maine, evaluated state performance in markets, North Carolina, Florida and Mississippi. stockpiles and land disposal, both in South Carolina, the top performer in terms absolute numbers and numbers per 2005, sends all of its annually-generated capita. States that had more tires in scrap tires to markets. This is a markets, fewer tires in stockpiles and significant achievement. RMA fewer tires that were land disposed were commends South Carolina for its efforts. ranked higher than other states. States South Carolina generates approximately that did not report the number of tires in six and one-half million tires and sends stockpiles were not viewed positively for nearly eight million tires to markets ranking purposes. within the state. TDF consumes the majority of the scrap tires (six million), The top performing states exhibited while the remaining tires are used in strong, diverse markets. Typically, TDF civil engineering applications (many in was the anchor market in these states but septic drainage fields) and rubber the states had other well-developed modified asphalt. markets as well. Most of these states had few, if any, tires remaining in Table 7 shows the performance rankings stockpiles and did not land dispose of all 50 states. significant numbers of tires.
Table 7: State Performance Rankings, State Scrap Tire Management, 2005. State Performance Rank State Performance Rank South Carolina 1 Nebraska 26 Maine 2 New Mexico 27 North Carolina 2 Connecticut 27 Florida 4 Massachusetts 29 Mississippi 5 Hawaii 30 Illinois 6 New Hampshire 31 Ohio 7 Louisiana 32 Missouri 7 New York 33 Rhode Island 7 Delaware 34 Georgia 7 New Jersey 35 South Dakota 7 Montana 36 Oklahoma 12 Washington 37 California 13 Minnesota 38 Tennessee 13 Indiana 39 Michigan 15 Idaho 40 Vermont 15 Arizona 41 Virginia 15 Oregon 42 Iowa 18 North Dakota 43 Texas 19 Colorado 43 Arkansas 20 West Virginia 45 Utah 21 Kentucky 46 Maryland 22 Kansas 47 Pennsylvania 23 Nevada 48 Wisconsin 24 Alaska 49 Alabama 25 Wyoming 49
60 Scrap Tire Markets in the United States 2005 Edition
Of the top five performing states, four In this category, RMA is publishing the states are in the southeast, EPA Region 20 most improved states. The other 30 IV (South Carolina, North Carolina, states fall into one of two categories: Florida and Mississippi). As discussed states where performance was in more detail in the following chapter, inadequate between 2003 and 2005 and this region of the country has seen states where performance remained dramatic growth in the TDF market. constant and strong between 2003 and Each of these four states has 2005. Table 8 lists the top 20 most exceptionally strong TDF markets – improved states. particularly from pulp and paper mills. Maine, in EPA Region I, likewise has a The most improved state for the period strong TDF market comprised of pulp 2003 to 2005 was Texas, followed by and paper mills. Maine also has a well- Alabama, Ohio, Michigan and developed civil engineering market. Massachusetts. In the cases of Texas, Ohio, Michigan and Massachusetts, the State Improvement Rankings high improvement rankings can be attributed to reported progress in the area RMA also assessed which states have of stockpile remediation. Texas abated improved, according to several scrap tire over 28 million scrap tires. While Ohio management parameters since 2003. To removed over 14 million tires from evaluate improvement, RMA compared stockpiles, Michigan removed nearly six state trends between 2003 and 2005 in million and Massachusetts reportedly terms of improvement in the number of removed nearly seven million tires. scrap tires consumed by markets and reduction of historical stockpiles, again Alabama’s improvement can be on absolute and per capita bases. attributed more to a dramatic increase in the number of scrap tires being Table 8: 20 Most Improved States, State consumed in end-use markets. While Scrap Tire Management, 2003 – 2005. Alabama did report abatement of two million tires in 2004 and 2005, it is more State RANK Texas 1 impressive that scrap tire markets Alabama 2 expanded by eight fold during the period Ohio 3 Michigan 3 to over 18 million tires, or over 400 Massachusetts 5 percent of annual generation. Alabama New Jersey 5 Missouri 7 is poised to continue and accelerate its Vermont 7 improvement, with a number of recent Washington 7 Rhode Island 10 announcements of major remediation Delaware 10 projects to address the 18 million scrap Indiana 10 Hawaii 13 tires still in stockpiles. Pennsylvania 14 Maine 15 North Carolina 15 Montana 15 Iowa 18 New York 18 Minnesota 20
10
U.S. Regional Scrap Tire Market Analysis
The markets for scrap tires continue to be analysis that follows looks at scrap tire regionally based. To understand scrap markets in each of the ten EPA Regions. tire management in the U.S., it is Figure 10 shows the percentage of scrap important to conduct an analysis of the tires going into end-use markets in each market dynamics in each region. The U.S. EPA Region in 2005.
Figure 10: Percentage of Scrap Tires to Market by U.S. EPA Region, 2005.
61 62 Scrap Tire Markets in the United States 2005 Edition
Generally, scrap tire markets in the by isolated pockets of population eastern half of the U.S. remain strong. In surrounded by long distances. In the the middle of the country, Illinois and Pacific Northwest, a regional market has Michigan have strong and major clusters developed between Portland, Oregon and of markets that pull tires from the Northern California. In the Southwest, surrounding regions. The scrap tire Arizona has a well-developed asphalt situation in the Western half of the market and Texas has a strong TDF country is characterized by a few states market, while surrounding states with strong markets that attract tires from maintain weak markets with significant adjoining states, but generally there is a challenges. Figure 11 illustrates the weak market infrastructure characterized market distribution in each EPA region.
70.00
60.00
50.00
40.00
30.00 Millions of Tires of Millions 20.00
10.00
0.00
I X n III VI VII I io n n n on IV ion X eg gion II i io io g R e eg eg gion eg R Regio Region V e Re R R R Region VIIIR
Electric Arc Furnace Tire Derived Fuel Civil Engineering Ground Rubber Exported Punch/Stamp Agricultural
Figure 11: Scrap Tire Market Distribution by U.S. EPA Region, 2005
Regional Scrap Tire Market Analysis 63
Figure 12 shows the number of scrap tires remaining in stockpiles in each U.S. Agricultural Punch/Stamp 0.1% EPA Region. 13.0% Ground Rubber 0.2% Civil Engineering 50 9.0% 45
40
35
30
25 Millions of Tires of Millions 20
15 Tire-Derived Fuel 10 77.7%
5
0 Figure 13: U.S. EPA Region I Scrap Tire
I I I I X I III V V V II I n I n VII n ion ion n io n n g g g o ion V io Disposition, 2005. gi g Re Regio Re Re Re Region X Regio Re Reg Regio EPA Region
Figure 12: Millions of Scrap Tires There is presently a demand for over 26 Remaining in Stockpiles, by U.S. EPA million scrap tires annually. To meet Region, 2005. that demand, scrap tires generated along the eastern corridor of New York State, including the New York City metropolitan area/Northern New Jersey, U.S. EPA Region I are transported to the dedicated scrap tire combustion facility. The only other Maine, Vermont, New market in the region includes a small Hampshire, Massachusetts, amount of rubber-modified asphalt in Rhode Island and Rhode Island. Connecticut
U.S. EPA Region I maintains strong 70 markets for scrap tires. Virtually all of 60 the annually-generated scrap tires are 50 collected and processed, then shipped to 40 an end-use market. The major market is 30 TDF, with three pulp and paper mill Tires of Millions 20 boilers in Maine using TDF and a 10 dedicated scrap tire-to-energy facility in 0 2003 2005 Connecticut. There are relatively small Year
markets for tires in civil engineering Tires to Markets Annual Generation Stockpiled Tires applications (Maine) and for stamped and die-cut products (Massachusetts). Figure 14: U.S. EPA Region I Comparative Figure 13 shows the disposition of scrap Scrap Tire Statistics, 2003 - 2005. tires in U.S. EPA Region I. Figure 14 shows the scrap tire market trends for 2003 to 2005.
64 Scrap Tire Markets in the United States 2005 Edition
U.S. EPA Region II Since the last report, two companies in New York began using TDF and are New York and New Jersey supplying market demand for TDF in the Western and North Central regions of the state. Of particular interest, TDF is Scrap tire markets have not been being shipped from the eastern portion of established in U.S. EPA Region II. the state to western New York to meet Figure 15 shows the disposition of scrap market demand. These markets were tires in U.S. EPA Region II. developed without assistance from New York state agencies.
Electric Arc Furnace As mentioned earlier, scrap tires 0.8% Tire-Derived Fuel generated on either side of the Hudson 11.5% River and down to the New York City
Civil Engineering area are generally taken to Connecticut. 11.5% In areas that are absent any large-scale market tires are flowing to larger-scale processors. Scrap tires in the southern- Unknown Ground Rubber 62% tier of the state are taken into 15.3% Pennsylvania. Scrap tires in the central Baled portion of the state are being used in an 0% electric arc furnace. Figure 15: U.S. EPA Region II Scrap Tire Disposition, 2005. New York enacted a funded scrap tire management program in 2002. The state There are no large-scale markets in New began to abate stockpiles and developed Jersey, although some tire processors a scrap tire marketing plan. While these operate in the state. Most tires in New are positive events, the abatement Jersey are taken into other states. Tires in program has nearly halted and the market southern New Jersey are picked up and develop plan has yet to be unveiled. transported into Maryland, while many tires from the northern part of the state To further complicate the situation, the go into Connecticut or Pennsylvania. New York Department of Transportation appears to be unable to use all of the Scrap tire legislation enacted in 2006 in processed tires coming out of the New Jersey was designed to focus on abatement program in civil engineering stockpile abatement, but no markets in projects, contrary to earlier plans. To the state exist that could make use of the date, the state has given two grants for stockpiled tires. There has been some the expansion of processing capacity for interest in civil engineering applications ground rubber. in the state, but no advancement in this market has occurred to date. Recently, a Figure 16 shows the scrap tire trends in New Jersey ground rubber producer went Region II between 2003 and 2005. out of business.
Regional Scrap Tire Market Analysis 65
market is the main market for in-state 60 tires. Additionally this market brings 50 tires in from Virginia and Delaware.
40 Delaware recently enacted state scrap tire legislation, leaving Alaska as the only 30 state without legislation in place. 20 Millions of Tires of Millions Delaware has a major processor of coarse 10 rubber (quarter inch, half inch and three-
0 quarter inch sized particles) that supplies 2003 2005 a good percentage of this sized material Year
Tires to Markets Annual Generation Stockpiled Tires along the eastern seaboard. A significant amount of this supply comes from Figure 16: U.S. EPA Region II Comparative Maryland-generated tires. Scrap Tire Statistics, 2003 – 2005. Virginia’s program has been successful U.S. EPA Region III due to the end-user reimbursement program. The majority of annually- Delaware, Maryland, generated tires go to a market. Major markets for TDF and civil engineering Pennsylvania, Virginia and have been developed. There are two West Virginia pulp and paper mill boilers and three industrial boilers using TDF. On the civil engineering side, both annually- U.S. EPA Region III has varied scrap tire generated and stockpile abatement tires programs. Figure 17 illustrates the are being used as alternate daily cover in market diversity in this region. landfills across the state. Some of Virginia’s tires go into adjacent states, Tire-Derived Fuel while tires from North Carolina are 15.8% shipped into Virginia for processing. Unknown 35% Pennsylvania takes in tires along the Civil Engineering eastern and northern sections of the state 19.2% Land Disposed from adjoining states. Pennsylvania has 0% moderately strong markets for tires, but Baled they are not large enough to consume all 0% of the tires generated in the state. West Exported Ground Rubber 1.0% 28.6% Virginia is moving along slowly, still Figure 17: U.S. EPA Region III Scrap Tire plagued by limited markets, but it has Disposition, 2005. made progress in stockpile abatement.
Maryland has an aggressive scrap tire Figure 18 shows the trends in scrap tire program featuring a strong demand for statistics in U.S. EPA Region III in the TDF and the production of coarse and period 2003 – 2005. ground rubber. Maryland’s strong TDF
66 Scrap Tire Markets in the United States 2005 Edition
Some of the annually-generated scrap 70 tires are landfilled or monofilled. For 60 example, Alabama allows landfilling. 50 This management practice tends to attract 40 tires from adjacent areas (within about 30 100 miles) and affects the market by
MillionsTires of 20 reducing the number of tires available for
10 the marketplace and depressing tipping
0 fees. 2003 2005 Year
Tires to Markets Annual Generation Stockpiled Tires In this region, Florida has the most diverse and well-developed program. Figure 18: U.S. EPA Region III Florida is one of the only two states (CA Comparative Scrap Tire Statistics, 2003 - is the other) where all of the major 2005. markets for scrap tires are well developed (TDF, civil engineering applications, rubber-modified asphalt and U.S. EPA Region IV coarse rubber), and the majority of the legacy stockpiles have been abated. Alabama, Florida, Georgia, However, Florida has seen some market Kentucky, Mississippi, North changes since the last report. Florida has Carolina, South Carolina and experienced a reduction in the amount of Tennessee rubber modified asphalt used, while its TDF markets have not been operating on A strong TDF market is well established a consistent basis. Furthermore, there are in U.S. EPA Region IV, supported by no significant large-scale markets in the several large-scale pulp and paper mill Southern portion of the state. Increased boilers and cement kilns. Figure 19 transportation costs result in order to shows the scrap tire disposition in bring scrap tires to the processors in the Region IV in 2005. central and northern portions of the state. Furthermore, there has been a turn down
Land Disposed Electric Arc Furnace in the ground rubber production and 12% 1.4% demand situation in the state. Exported 0.3% Ground Rubber Alabama has a strong TDF market that is 9.6% starting to slow the flow of tires to the major monofill in the state. Alabama is
Civil Engineering home to two major cement kilns using 12.5% TDF, an electric arc furnace using tires Tire-Derived Fuel 64.1% as a charge material and a major monofill. Some scrap tires from the panhandle of Florida still are transported Figure 19: U.S. EPA Region IV Scrap Tire into Alabama for landfill disposal. In the Disposition, 2005. north end of the state, tires are being
processed and sold into TDF markets in
Regional Scrap Tire Market Analysis 67
Mississippi and Tennessee. Some tires Georgia also has a well-developed from Western Georgia are transported market infrastructure. The state’s annual into Alabama and are stockpiled or generation feeds a significant TDF landfilled. market, consisting of three pulp and paper mill boilers. These markets also In Mississippi, two pulp and paper mill consume tires from South Carolina and boilers are using significant amounts of Florida. TDF. In early 2006, an electric arc furnace began to use tires as a charge Tennessee has a dual approach to scrap material. Aside from the use of TDF, no tire management: viable TDF markets other markets have been developed. To along with legal landfilling. Due to the satisfy market demand, tires are imported state’s geography, the TDF markets in from as far away as Texas. the south central portion of the state are as likely to receive tires from Georgia, North Carolina’s program continues to Alabama and Mississippi as from in-state allow monofills, which consume sources. TDF markets in western approximately 25 percent of the Tennessee receive tires from Alabama, annually-generated tires. In the last two Mississippi, Arkansas and Texas. years, North Carolina has developed a TDF market. Some tires are processed Kentucky has developed tire processing into materials for playgrounds, running capacity and a TDF market, although it is tracks and soil amendments. The state unclear whether all of its tires are also imports one to two million scrap directed to markets. tires a year, which primarily are shredded and monofilled. Figure 20 compares 2003 and 2005 U.S. EPA Region IV scrap tire statistics. In South Carolina, all of the annually- generated scrap tires go to markets, both in and out of state. Most are collected 70 and then transported and processed out- 60 of-state (either in North Carolina or 50 Georgia), and returned to South Carolina 40 TDF and rubber-modified asphalt 30 markets. A significant amount of TDF is MillionsTires of 20 sent into South Carolina from states 10 outside of the immediate area as well. 0 Due to the elevated level of demand for 2003 2005 Year
TDF, most, if not all of the civil Tires to Markets Annual Generation Stockpiled Tires engineering uses for scrap tires have diminished greatly. Figure 20: U.S. EPA Region IV Comparative Scrap Tire Statistics, 2003 - 2005.
68 Scrap Tire Markets in the United States 2005 Edition
U.S. EPA Region V the market dynamics, considering that no excess demand exists to consume the Indiana, Ohio, Illinois, newly-available additional supply of Minnesota, Michigan and TDF. There could be a shift in the supply dynamics, probably causing the Wisconsin TDF transported from the furthest point to be redirected to markets closer to the U.S. EPA Region V has several strong source. markets in various parts of the region.
Figure 21 shows the various scrap tire Illinois has recently lost some TDF users, markets in 2005. but has regained a TDF end user that had
previously discontinued TDF use. Tires Land Disposed 7% Unknown from adjacent states are still brought into Punch/Stamp 1% the state to be processed and then 6.3% Exported shipped to TDF markets in adjacent 2.1% states. Ground Rubber 1.8% Wisconsin has experienced resurgence in Tire-Derived Fuel the TDF market and the processing 56.0% Civil Engineering infrastructure instate. While this is a 25.4% welcome improvement, the supply of TDF is satisfied from both in and out of state suppliers. TDF remains the only Figure 21: U.S. EPA Region V Scrap Tire major market for scrap tires in Disposition, 2005. Wisconsin.
Over the course of the past several years, Indiana has the highest number of Ohio has allowed the construction of processors in any state but continues to monofills, to which a significant number seek in-state markets for its scrap tires. of scrap tires continue to be shipped. In Some scrap tires from Indiana are recent years, Ohio has expanded its TDF shipped into Illinois and Michigan to be and civil engineering markets. used as TDF, while tires that remain in Additionally, Ohio-generated scrap tires the state likely are stockpiled or are being processed into TDF and landfilled. shipped to markets in other states.
Minnesota has a well-established Michigan continues to have a significant infrastructure for collection, processing TDF market, which is the only major and transporting scrap tires that is market for scrap tires in that state. The sufficient to consume the annual demand for TDF in Michigan has created generation of scrap tires. Although a demand-pull situation in the state, Minnesota’s scrap tire program ended in drawing processed tires from Ohio, 1996, the markets for tires continue to Indiana and Illinois. thrive, and no new stockpiles have been
reported. A significant number of scrap The recent loss of two TDF end users in tires are shipped to South Dakota and Michigan will have long-term impact in Wisconsin for TDF, while civil
Regional Scrap Tire Market Analysis 69 engineering applications use the balance In Arkansas, each county, or a group of of the tires in the state. counties, is responsible for managing its tires. Consequently, tires are managed in Figure 22 shows a scrap tire summary for several ways. While many tires are U.S. EPA Region V, comparing 2003 shredded and landfilled, TDF markets in- and 2005. state have been increasing. Additional Arkansas tires are shipped into markets in bordering states. 70 60 In Oklahoma, three cement kilns 50 continue to use TDF. The state still 40 supports processing scrap tires and pays 30 a price support to end-users. The state
Millions Tires of 20 also allows civil engineering
10 applications, primarily alternate daily
0 cover in landfills and lightweight 2003 2005 backfill. One ground rubber producer Year
Tires to Markets Annual Generation Stockpiled Tires operates in Oklahoma. The state continues to move toward using rubber- Figure 22: U.S. EPA Region V Comparative modified asphalt. Evidently, few tires Scrap Tire Statistics, 2003 - 2005. leave or enter the state.
Louisiana uses a subsidy program to help U.S. EPA Region VI sustain markets. Part of the price support goes to the processor, with an increasing Arkansas, Louisiana, New amount given when tire-derived materials are sold to end-users. Tires Mexico, Oklahoma and Texas from this state are being landfilled or processed into TDF for in-state use or U.S. EPA Region VI has robust and transported to Alabama markets. diverse markets, illustrated in Figure 23.
Texas has a very dynamic TDF market, Electric Arc Land Disposed Furnace with seven cement kilns using TDF. 19% 0.1% This demand is supplied primarily from Baled 1% in-state supply. Recently the state has
Agricultural begun using a notable amount of rubber 0.8% modified asphalt and now has an in-state Exported Tire-Derived Fuel 5.6% 50.6% ground rubber processor. Over the past
Ground Rubber two years the state has made significant 7.7% progress in abating the two largest stockpiles. The tires abated and Civil Engineering 14.6% processed from these piles are generally Figure 23: U.S. EPA Region VI Scrap Tire shipped to pulp and paper mills in Disposition, 2005. Louisiana. When the abatement projects terminate at the end of 2006, there will be a slight shift in the supply dynamic.
70 Scrap Tire Markets in the United States 2005 Edition
New Mexico has adopted a program tire market distribution in U.S. EPA where the majority of tires are taken to Region VII. landfills where they are stored until they are baled. Once compacted, the state Unknown Land Disposed 4% seeks to use these baled tires in civil 14% engineering applications. The state has attempted to push the rubber-modified Agricultural asphalt markets, but any movement in 0.3% this direction comes from private Ground Rubber Tire-Derived Fuel industry’s use of the material. There are 16.9% 55.8% no fuel markets, nor does it appear that there will be any in the near term. Civil Engineering 8.3% Figure 24 shows progress since 2003 in U.S. EPA Region VI scrap tire statistics. Figure 25: U.S. EPA Region VII Scrap Tire Disposition, 2005.
70 Iowa has developed a strong TDF market
60 and is opening up a civil engineering
50 market as well. Iowa has cleaned up
40 most of its stockpiles. Missouri focuses on TDF and grants for the purchase of 30
MillionsTires of playground cover, with a significant 20 amount of TDF coming in from Illinois. 10 There is a strong TDF market in 0 2003 2005 Missouri. On the other hand, Kansas Year sends most of its tires to monofills in the Tires to Markets Annual Generation Stockpiled Tires western part of the state, while the lone Kansas TDF market gets its supply from Figure 24: U.S. EPA Region VI Missouri. Comparative Scrap Tire Statistics, 2003 -
2005. Nebraska is shifting the focus of its scrap
tire program. There appears to be an
emerging TDF market, although the U.S. EPA Region VII onset of TDF use has yet to occur. If and when this does occur, most of the scrap Iowa, Kansas, Nebraska and tires in the more densely populated Missouri eastern portion of the state provide an adequate supply. Scrap tires in the U.S. EPA Region VII is characterized by western portion of the state will likely areas with strong markets and others with continue to be landfilled. significant regulatory or market challenges. Scrap tires in this region are Figure 26 shows comparative data for either used as TDF or landfilled. This U.S. EPA Region VII in 2003 and 2005. region has few large-scale scrap tire stockpiles. Figure 25 shows the scrap
Regional Scrap Tire Market Analysis 71
landfill annually-generated scrap tires. 70 There is little likelihood of short-term 60 market development. 50
40 Unknown 6% 30 Land Disposed 9% Millions of Tires of Millions 20
10 Tire-Derived Fuel 0 43.2% 2003 2005 Year
Tires to Markets Annual Generation Stockpiled Tires Baled 28% Figure 26: U.S. EPA Region VII, Comparative Scrap Tire Statistics, 2003 - Agricultural Civil Engineering 2005. 0.4% Ground Rubber 2.2% 10.6% U.S. EPA Region VIII Figure 27: U.S. EPA Region VIII Scrap Tire Disposition, 2005. Colorado, Montana, North The Montana scrap tire program is Dakota, South Dakota, Utah considering development of some and Wyoming markets. At present, the vast majority of tires are land disposed. Montana also enacted regulations banning baled tires. U.S. EPA Region VIII has few scrap tire markets overall. Large expanses of land North and South Dakota have limited combined with low population densities scrap tire markets due to demographics present market challenges but also a and geography – sparse population lower annual generation of tires than centers separated by great distances. other EPA regions. Figure 27 shows the Both states landfill most scrap tires. disposition of scrap tires in U.S. EPA Region VIII. Figure 28 shows the comparison of 2003 and 2005 data. 70 60
Colorado is looking to improve its scrap 50 tire infrastructure (collection of fees). 40
Markets in Colorado are limited to one 30
cement kiln and one processor and of Tires Millions 20 manufacturer of coarse-sized particles for 10 an array of products. Still scrap tires are 0 accumulating at landfills. Unfortunately, 2003 2005 little immediate movement is expected. Year Tires to Markets Annual Generation Stockpiled Tires
Utah subsidizes end-users of Utah- Figure 28: U.S. Region VIII Comparative generated scrap tires and has one TDF Scrap Tire Statistics, 2003 - 2005. user. Utah and Wyoming primarily
72 Scrap Tire Markets in the United States 2005 Edition
U.S. EPA Region IX In Northern California, tires are used for fuel at a cement kiln or are landfilled. Arizona, California, Hawaii and Nevada In Hawaii, tires generated on each island are typically managed on that island, since the cost to transport them to one U.S. EPA Region IX has several regions central point is prohibitively expensive. with strong markets for scrap tires, There is one relatively large-scale including Arizona and parts of California processor on Oahu, which produces and Hawaii. Other areas landfill the shreds for civil engineering applications majority of scrap tires. Figure 29 shows and the TDF market. Tires on the other the disposition of scrap tires in EPA islands are typically landfilled or used for Region IX. small-scale projects.
Unknown Figure 30 shows trends in scrap tire 12% Tire-Derived Fuel 20.0% disposition between 2003 and 2005 in U.S. EPA Region IX.
Land Disposed 29% 70 Civil Engineering 14.5% 60
Baled 50 0% 40 Agricultural Ground Rubber 30 5.4% 16.6% Exported Millions of Tires 5.0% 20 Figure 29: U.S. EPA Region IX Scrap Tire 10
Disposition, 2005. 0 2003 2005 Year Arizona has developed strong markets Tires to Markets Annual Generation Stockpiled Tires for its scrap tires, primarily ground rubber for rubber-modified asphalt and Figure 30: U.S. EPA Region IX products. Some tires in the western Comparative Scrap Tire Statistics, 2003 – portion of the state are transported into 2005. Southern California to be monofilled. Tires in Nevada simply are landfilled. U.S. EPA Region X
In Southern California many tires Alaska, Oregon, Idaho and continue to be landfilled, despite a strong Washington market for TDF and several ground rubber producers. In central California U.S. EPA Region X is challenged by there are some TDF markets, while civil geography and distances between engineering applications are being tested population centers. Figure 31 shows the by the state. Rubber-modified asphalt disposition of scrap tires in Region X in has been used widely throughout the 2005. southern and central portions of the state.
Regional Scrap Tire Market Analysis 73
stockpiles have been identified in Tire-Derived Fuel 22.6% Washington and baled tires are being amassed at the processor’s locations. Washington reinstated a scrap tire fee but the funds are earmarked for stockpile Ground Rubber Unknown 7.9% abatement only. 54%
Alaska’s population, relative to its size Land Disposed 15% makes managing scrap tires a challenge. The majority of tires are landfilled, Figure 31: U.S. EPA Region X Scrap Tire although there has been some interest in Disposition, 2005. establishing regional collection points that would allow for the economical use In Washington, a small percentage of of a mobile shredder. To date, there has scrap tires are used for TDF and some not been any movement on these plans. civil engineering applications, while the rest of the tires along the western side of Figure 32 shows the scrap tire the state (west of the Cascade mountain management trends in U.S. EPA Region range) are transported to Oregon to be X between 2003 and 2005. land disposed. In Eastern Washington, the Idaho Panhandle and Western Montana, a considerable number of tires 70 baled and inventoried. Scrap tires from 60 Eastern Oregon, parts of Montana and 50 central Idaho are sent to the TDF market 40 in Eastern Oregon or central Idaho. Tires 30 in central and southern Oregon are used Millions of Tires 20 for ground rubber or combined with tires 10 from Northern California for TDF in 0 Northern California. 2003 2005 Year Tires to Markets Annual Generation Stockpiled Tires This region’s market development efforts are stymied due to the lack of state- Figure 32: U.S. EPA Region X Comparative funded scrap tire programs. Washington Scrap Tire Statistics, 2003 - 2005. (1996), Oregon (1993) and Idaho (1996) have terminated their fee programs. New
11
The Resource Conservation Challenge
In late 2002, EPA created the Resource RCC focuses on shaping consumer Conservation Challenge (RCC) as a purchasing and disposal decisions to major national program to find flexible, conserve natural resources, save energy yet protective, ways to conserve our and preserve the environment. national resources. The RCC seeks to One RCC focus area is scrap tire expand markets for secondary materials management. The RCC Tires by removing the barriers that impede Partnership has set two goals: (1) entry to market for these materials diverting 85 percent of newly-generated through voluntary stakeholder initiatives scrap tires to reuse, recycling or energy and public/private partnerships. recovery and (2) reducing the number of tires in existing stockpiles by 55 percent The RCC challenges all Americans to by 2008 from the 2001 baseline. prevent pollution and promote recycling and reuse of materials, reduce the use of The RCC Tire Partnership has toxic chemicals and conserve energy and subcommittees that are assigned the materials. To achieve these goals, the responsibility of (1) identifying the RCC has enlisted many partners and obstacles that are impeding further continues to solicit the involvement of market development and (2) devising a additional stakeholders. list of possible solution scenarios to resolve these obstacles. The The RCC is comprised of voluntary subcommittees focus on several areas, programs and projects with a materials including: goals, TDF, rubber-modified management and resource conservation asphalt, other ground rubber products, focus geared towards producing results. civil engineering applications and The ideas advanced by the RCC also stockpiled tires. RMA participates in all may include innovative regulatory of the RCC Subcommittees. approaches that allow material recycling and reuse, while protecting human health Stakeholders involved in the RCC Tires and the environment. In addition, Partnership include EPA headquarters through education and outreach, the and various EPA Regions, several states, 74 Resource Conservation Challenge 75 the Federal Highway Administration, the identifying “champions” for these tire industry, the cement industry, markets. recyclers and other interested parties. Civil Engineering Goals and Stockpile Subcommittee Reduction Subcommittee The Civil Engineering Subcommittee is Each RCC Tire Partnership designed to “work with State, industry Subcommittee has developed action and Federal stakeholders to increase the plans to achieve its goals. The Goals usage of civil engineering applications and Stockpile Reduction Subcommittee for scrap tires.” This Subcommittee has developed the RCC Tire Partnership set several goals and targets and is market and stockpile reduction goals working toward a 25 percent market stated earlier in this section. This share for civil engineering by 2008. The subcommittee assisted RMA in the work of this Subcommittee focuses on development of the state regulators various tasks associated with collecting questionnaire used to collect data for this case studies of successful projects and report. Members of the subcommittee developing a web-based inventory of also called state regulators to encourage such projects and working to identify submittal of state scrap tire information. and eliminate barriers to these applications. The RCC Goals and Stockpile Reduction Subcommittee also continues to Rubberized Asphalt encourage stockpile abatement. The Subcommittee Subcommittee has promoted the new The Complete Scrap Tire Cleanup The Rubberized Asphalt Subcommittee Guidebook developed by U.S. EPA focuses on education and awareness, Region V. The Subcommittee has elimination of market barriers and coordinated workshops in states with identification of public sector champions large stockpiles to facilitate stockpile for the market application. abatement, focusing on the 11 states identified in the 2003 RMA report as The Subcommittee is working to containing 90 percent of the remaining develop technical materials and conduct scrap tire stockpiles. education with public sector potential end-users of rubber modified asphalt. Ground Rubber Currently, the Subcommittee is working Subcommittee to create a list of state demonstration projects and reported results, identify The Ground Rubber Subcommittee is and address obstacles to the market, focused on educating potential end-users identify decision-makers in potential of ground rubber products on the target public entities and promote this benefits of these products, compiling market application. technical information and success stories, identifying and eliminating barriers to ground rubber markets and
76 Scrap Tire Markets in the United States 2005 Edition
Tire-Derived Fuel Subcommittee
The Tire-Derived Fuel Subcommittee “supports the expanded and appropriate use of scrap tires” in TDF applications. The Subcommittee is working to collect comprehensive emissions sampling data to assist new TDF users and regulatory agencies. The Subcommittee also promotes the use of and identifies barriers to the use of TDF.
For more information about EPA efforts on scrap tires, please visit the EPA website at: http://www.epa.gov/epaoswer/non- hw/muncpl/tires/index.htm.
12
History of the Modern Scrap Tire Market
Typical scrap tire management before The Early Marketplace 1985 consisted of sending whole scrap tires to landfills for burial. Another Historically, the uses in the U.S. for means of managing scrap tires was for scrap tires were limited to punched and someone to collect scrap tires from stamped products, dock bumpers, swings retailers and place them onto a pile. and assorted functions on farms. TDF Since there were no laws restricting how use in the cement industry began in scrap tires could be managed or any Germany in 1975, in response to the programs seeking to encourage other spike in energy prices caused by the uses for scrap tires, these two embargo of petroleum by the management practices were used Organization of Petroleum Exporting because they were the lowest-cost Countries (OPEC). Japan also used TDF management practices available. in cement kilns beginning in the 1970’s.
In 1985, Minnesota enacted the first In 1979, Waste Recovery, Inc. (WRI) legislation specific to scrap tires. At that began processing and selling tire-derived point, states began to look into the fuel (TDF) to the pulp and paper possibility of changing the way scrap industry in Washington State in the first tires were being managed. In 1986, commercial use of scrap tires. From Oregon was the second state to enact 1979 to 1985, WRI remained the only scrap tire legislation and promulgate substantial commercial processor of regulations. By 1990, all but two states scrap tires. WRI expanded its operations (Alaska and Delaware) had promulgated during that period to include a facility in regulations and/or developed a specific Texas. management program.
77 78 Scrap Tire Markets in the United States 2005 Edition
From 1979 to 1992, TDF was the departments of transportation and the dominant market application for scrap paving industry were opposed to this tires. In 1985, Oxford Energy, Inc. unfunded mandate, while entrepreneurs constructed dedicated a tire-to-energy and scrap tire processors were talking power plant. In 1990, 25 million tires about how the demand for ground rubber were consumed as fuel. By 1991, had the potential to consume every scrap Oxford Energy was operating two tire in the U.S. dedicated tire-to-energy facilities (Sterling, Connecticut and Westley, In 1991, the demand for ground rubber California). In addition, cement kilns was still being met, almost exclusively, began to use scrap tires as a by tire buffings, the part of the tire that is supplemental fuel. By 1992, some 57 removed when tires are being prepared million of the 68 million scrap tires that for a new tread (hence the term went to an end-use market were “retreading,” also referred to as consumed as TDF. “recapping”). Tire buffings were collected, cleaned and shipped to The Ground Rubber specialized grinding facilities that processed these long, tubular particles Mandate and Its Effects into smaller-sized particles. At this point, the ground rubber market supplied In 1991, the U.S. Congress enacted the several ground rubber applications, Intermodal Surface Transportation including asphalt rubber, bound rubber Efficiency Act of 1991 (ISTEA), which products and brake liners. No whole contained a provision mandating the use tires were being processed into ground of ground tire rubber in a prescribed rubber, not only because of the supply of percentage of highways that were funded buffings, but also because the equipment by the federal government. Starting in to process whole tires into ground rubber 1993, ISTEA required that five percent was in its developmental stages. of all federally-funded highways must contain 20 pounds of scrap tire rubber Still, from 1992 through 1995, a surge of per ton of hot mix asphalt laid. ISTEA companies entered the business of also mandated that by 1994, ten percent processing scrap tires into ground rubber of all federally-funded highways must in hope of capturing a share of the contain 20 pounds of scrap tire rubber anticipated demand caused by ISTEA. per ton of hot mix asphalt laid. The Additionally, several states conducted ISTEA mandate further required that the asphalt rubber testing programs that led rates be increased to fifteen percent in to an increase in activity and a sense of 1995 and ultimately 20 percent in 1996 market potential among some ground and thereafter. ISTEA mandated that rubber producers. Meanwhile, most any state that did not meet these goals states refused to comply with the would lose a corresponding amount of mandate. The Federal Highway federal funds for any given year. Administration (FHWA) issued a memo
indicating that it was unlikely to monitor The mandate caused angst and exuberant or punish states that did not comply with optimism in the paving and scrap tire the mandate. Consequently, very little industries, respectively. In general, state tire rubber was used in highway paving
History of the Modern Scrap Tire Market 79 as a result of the ISTEA mandate. In such as concerns about chemicals 1993, Congress repealed the section of leaching from tires placed in the ISTEA referring to the use of tire rubber environment. Consequently, several in highway paving. states began testing the leachate from scrap tires. Yet, these studies were The results of the FHWA memo and laboratory studies, designed for specific later the Congressional action were parameters. It was not until 1996 that immediate, permanent and devastating to the first field study of tire leachate was ground rubber producers. The rush to implemented. build processing capacity coupled with virtually no increase in demand not only In December 1995, two large-scale road caused the marginal ground rubber embankments built with scrap tire shreds producers to go out of business, but in Washington State developed “hot weakened the larger, more established spots” and began to heat. These producers. This was a direct result of incidents cast civil engineering the downward price pressure caused by applications in an unfavorable light. the over-supply of ground rubber. In the FHWA immediately distributed a period of 1994 to 1996, some 20 ground memorandum to all of its field offices rubber operations were either sold or stating that they should not engage in closed. new projects using tire shreds as a fill material. This action caused all ongoing The Entry of Civil and planned scrap tire civil engineering application to be halted. There were Engineering Applications even some concerns that the asphalt road itself could have caught fire, but that was 1992 marked the beginning of the use of not the case. tires in civil engineering applications. To be sure, scrap tires had been used in RMA’s Scrap Tire Management Council an array of projects, ranging from (STMC), in cooperation with the swings to dock bumpers and playground FHWA, provided technical assistance castles. Yet, these varied uses were too during and after the heating incidents. small to be considered concentrated uses In addition, STMC convened an industry or markets for scrap tires. ad hoc committee to determine the factors that led to the heating, as well as One of the seemingly inadvertent side to develop construction guidelines to effects of ISTEA was a focus on other prevent any further self-heating uses of scrap tires in highway episodes. The Committee concluded applications. Scrap tires were the that the two embankments at issue were subjects of experiments at several significantly deeper than any previous universities in the early 1990s. These embankment project. Embankments experiments typically were designed to with tire shreds less than 15 feet deep test the properties of tires. In particular, had never developed heating situations. tire shreds were use-tested in road embankments, as a lightweight backfill The ad hoc committee’s and as a road base foundation material. recommendations, which were accepted These studies generated other questions, and distributed by the FHWA, stated that
80 Scrap Tire Markets in the United States 2005 Edition no tire shred fill should be greater than scrubbers to remove sulfur from the gas 10 feet in depth and listed a series of stream, TDF use causes zinc levels in other construction guidelines as well. water effluent to increase. While the Once the FHWA accepted these presence of zinc did not cause these guidelines, its restrictions on using tire mills to exceed any permit limits, it was shreds in civil engineering applications contrary to some company policies. were lifted. While lifting the restrictions Consequently, several mills stopped allowed this market niche to continue, it using TDF. took several years before state agencies and the industry began using tire shreds The beginning of deregulation in the at a significant level again. utility industry followed similar trends. From 1992 through 1996, several utility Dynamics of the TDF boilers had begun using TDF or were in the midst of completing testing of the Market material. Once utilities began considering selling power-generating The TDF market, while remaining the plants, many of these companies stopped largest single market for scrap tires, has using TDF, due to concerns that an been subject to a series of changes. alternative fuels program would create a From 1990 through 1996 the use of TDF disincentive to a prospective buyer. The expanded at a steady rate. TDF had combination of all these factors caused become widely accepted in the cement the number of facilities using TDF to and pulp and paper industries. Several decrease. Furthermore, many facilities large and small-scale power plants had that were about to begin using TDF or also begun using TDF. that were in the permitting or testing
process also stopped. In 1996, the cement industry began a six-year period of heightened demand caused by the economic boom the Market Trends country was experiencing. Most kilns were operating at fully capacity, and As described above, TDF was the first those kilns that were using TDF as a large-scale market for scrap tires. supplemental fuel reduced or However, with the entry of the ground discontinued use of TDF. It was rubber and civil engineering markets, in believed that using TDF, while helping 1992 a shift began, albeit small, in the to reduce production costs, also slightly markets for scrap tires. TDF was no reduced cement-making capacity. longer the only end-use market. In 1992, civil engineering applications At the same time, several pulp and paper consumed about five million tires. Some companies stopped using TDF as well. four and one-half million whole tires The decline was based on a combination were processed and used as ground of poor quality material, pending rubber. changes to air permit requirements and company policies requiring a reduction From 1993 to 1994, all three major in zinc emissions to the water effluent. markets for scrap tires increased, In pulp and paper mills that use wet including TDF, ground rubber markets and civil engineering applications. By
History of the Modern Scrap Tire Market 81 the end of 1994, market demand for From 1998 through 2001, all three major scrap tires had reached 138.5 million, markets for scrap tires experienced with 101 million going to TDF, nine further expansion. TDF use increased million going to civil engineering with the addition of several co- applications and four and one-half generation boilers and several cement million being processed into ground kilns, while civil engineering rubber (three million tires were used in applications expanded beyond road asphalt rubber applications and one and embankments. Tire shreds were widely one-half million tires in other ground used in various landfill construction rubber applications). Export, applications. The use of ground rubber agricultural and miscellaneous increased dramatically, beyond the applications accounted for the remainder historical markets of asphalt rubber, tire of the market uses. manufacturing and molded and extruded products. New applications, such as From 1996 through 1998, the majority of playground surfaces, soil amendments, tires used in civil engineering horticultural applications and horse applications were limited to alternative arena flooring combined to push the daily cover in landfills. During this time demand for ground rubber to new frame, TDF and ground rubber markets heights. increased dramatically. By the end of 1998, end-use markets for scrap tires had The 2001 to 2003 timeframe was a reached 177.5 million, with 114 million period of continued expansion of the used as TDF, 20 million used in civil same major markets that expanded in the engineering applications and seven 1998 to 2001 timeframe. As a general million for ground rubber. Once again, statement, these markets expanded for export, agricultural and miscellaneous the same reasons as in the last reported applications rounded out the field. timeframe. This period also saw the emergence of the EAF market and creation of the U.S. EPA RCC.
13
Conclusions
As this report details, in 2004 and 2005, resources and advocacy. Governmental scrap tire markets continued to increase programs, even those that are successful, overall, to an all-time high rate of nearly must maintain emphasis on three core 87 percent. This period saw dramatic functions: market development, expansion in the TDF market, fueled by stockpile abatement and enforcement of rising prices for traditional fuels. The regulations. growth in the TDF market, in turn, restricted growth in the civil engineering market, due to supply constraints in The Evolving Marketplace geographic regions where both market segments traditionally have been strong. By necessity, each of the biennial scrap The ground rubber market continues to tire market reports published by RMA is expand, although this period saw the a snapshot in time. That view changes emergence of a new market leader in this with time. The scrap tire industry must segment – the sports surfacing market. remain focused and flexible to change with the market. Here, the market is Scrap tire stockpile abatement king, and the industry must keep up or progressed significantly as well in 2004 risk falling behind. and 2005. Scrap tires in stockpiles are at an all-time low of 188 million tires. Illustrations of these market dynamics in Several states have now completed this edition are several. In the case of ambitious stockpile abatement programs, electric arc furnaces, this market did not while a few others have recently expand with the vigor reported in the launched abatement activities. Other 2003 edition, due to realities in the steel states, however, still need new emphasis manufacturing industry and intellectual and resource commitments in this area. property constraints. TDF markets saw enormous growth, but the market share While this report delivers good and of processed TDF to whole tire TDF welcome news, the scrap tire industry shifted, changing the balance of that and regulatory agencies collectively market and modifying the economics must maintain focus on this important and processing requirements of TDF. issue. Markets, while strong, are Likewise, due to the expansion in TDF constantly in flux. Stockpile abatement markets, civil engineering markets must continue and requires vigilance, contracted slightly. For the first time, the market saw supply constraints on 82 Conclusions 83 processed tire material. This Also, as states become more engaged in development itself is significant and scrap tire management and stockpile requires fresh thinking about abatement, new stockpiles are often transportation issues in order to sustain discovered. Likewise, the size of known both of these markets. In the ground stockpiles is reassessed, causing rubber area, the emergence of sports stockpile size estimates to grow or surfacing as the dominant market force contract. Technology also assists in this required ground rubber producers to process – stockpile mapping using adjust targeted end-users and processing satellite imagery is gaining popularity as requirements. a tool to identify previously unknown stockpiles. These factors make assessing These examples are not dispositive in the magnitude of the stockpile challenge and of themselves. On the contrary, they difficult and funding abatement to its merely illustrate the dynamic nature of completion equally so. this market and underscore that in order for scrap tire markets to remain Large stockpiles do remain in some sustainable, those involved must be states where attention is lacking and nimble. resources are scarce. In these states, RMA continues to advocate for stockpile The Stockpile Challenge abatement and market creation. Gone are the days when scrap tires were Significant achievements in stockpile useless waste relegated to unsightly reduction have occurred since 1990. stockpiles. To the contrary, scrap tire Yet, significant as well is the fact that stockpiles can and should be completely 188 million scrap tires remain in eliminated in this country. While stockpiles across this country. As is markets do not now exist for all often the case, incremental progress stockpiled tires, the stockpiles should be becomes more challenging in many eliminated, sending all possible tires to states as the major, easily-accessible markets and properly landfilling the stockpiles are abated. remaining tires to eliminate the risks (fire, disease, vermin) posed by scrap What remains in many states are smaller, tire stockpiles. harder to reach piles in rivers, ravines, over cliffs, buried, or on private property State Scrap Tire Program where access is denied. These stockpiles Maintenance require creativity, time and more resources per tire to abate. Interestingly, Several states now are in an enviable large stockpiles garner more attention position where most or all annually- and public interest, so often funds for generated scrap tires enter end-use larger stockpiles are more successfully markets, and most or all scrap tire obtained. Abatement of smaller stockpiles have been abated. While it is stockpiles often requires dedication of tempting to declare victory and sunset state regulators and other stakeholders. successful state programs, to do so would invite new problems.
84 Scrap Tire Markets in the United States 2005 Edition
Even where the trio of market market infrastructure advances and development, stockpile abatement and vigilant state oversight, leadership and state regulations have successfully enforcement. created a healthy and thriving scrap tire program, continued state oversight and Outlook enforcement is necessary. In these cases, a state may assess whether the The outlook for continued growth in state scrap tire program fee can be scrap tire markets remains strong. reduced and whether the program can be Stockpile abatement is expected to realigned to reflect the maturity of the continue, although not likely at the rate scrap tire management system in the seen in 2004 and 2005, due to state state. This analysis is necessary and is a resource and focus challenges. key component of responsible management of a state program. Yet, it RMA is optimistic about the continuing would be short-sighted to conclude in work by the U.S. EPA Resource this analysis that the role of state Conservation Challenge Tires government is not necessary when Partnership, but remains cautious about markets exist and stockpiles are abated. the challenges of translating good work and positive intentions into action. States should continue to play a vital RMA encourages all stakeholders role in a mature and thriving state scrap interested in scrap tire management tire market. Such states should maintain issues to remain vigilant, focused and a basic funding level to enforce state committed cooperatively to creating and regulations and avoid the potential promoting a sustainable scrap tire reappearance of scrap tire stockpiles. marketplace. The long-term success of the scrap tire industry will be a function of continued
14
Appendices
APPENDIX A: SCRAP TIRE MANAGEMENT TRENDS, 1990 - 2005 APPENDIX B: 2005 U.S. SCRAP TIRE MARKET DATA TABLES APPENDIX C: TIRE-DERIVED FUEL USERS
85 86 Scrap Tire Markets in the United States 2005 Edition
APPENDIX A: U.S. Scrap Tire Management Summary, 1990 – 2005.
1990 1992 1994 1996 1998 2001 2003 2005 Scrap Tire Generation: 223 252 253 265 265 281 290 299
Scrap Tire Recycled or Recovered: 24.5 68.0 138.5 164.5 177.5 218.0 233.3 259.2 Tire-derived fuel: cement kilns 6.0 7.0 37.0 34.0 38.0 53.0 53.0 58.0 pulp/paper 13.0 14.0 27.0 26.0 20.0 19.0 26.0 39.0 industrial boilers 0.0 6.0 10.0 16.0 15.0 11.0 17.0 21.0 utility boilers 1.0 15.0 12.0 23.0 25.0 18.0 23.7 27.0 dedicated TTE (tire to energy) 4.5 15.0 15.0 16.0 16.0 14.0 10.0 10.0 Total Fuel 24.5 57.0 101.0 115.0 114.0 115.0 129.7 155.1 Electric arc furnaces N/A N/A N/A N/A N/A N/A 0.5 1.3 Ground rubber 0.0 5.0 1.5 7.5 7.0 21.0 18.2 30.1 Rubber modified asphalt N/A N/A 3.0 5.0 8.0 12.0 10.0 7.4 Punched/stamped products N/A N/A 8.0 8.0 8.0 8.0 6.5 6.1 Civil engineering N/A 5.0 9.0 10.0 20.0 40.0 56.4 49.2 Export 12.5 15.0 15.0 15.0 9.0 6.9 Agricultural use and miscellaneous N/A 1.0 3.5 4.0 5.5 7.0 3.0 3.0 Percent of scrap tire usage 11% 27% 55% 62% 67% 78% 80% 87%
Total Scrap Tires in Stockpiles 1000 1000 800 500 400 300 275 188 * some numbers may not add due to rounding.
Appendices 87
APPENDIX B: U.S. Scrap Tire Market Data Tables
5 Market % Market ineering values. ineering Annual GenerationAnnual 4 Unknown .06 -1.61 2.92 78.08 0.04 0.79 1.60 26.25 Stockpiles 3 Land Disposed 2 Baled 1 TotalTiresToMkt 05 259.17 3.66 42.42 188.38 -4.65 299.15 86.64 0.07 0.42 0.39 0.18 DNRDNR 18.10 0.00 DNR DNRDNR 2.5 0.6 18.00 1.00 DNR -16.10 DNR 0.00 4.50 0 0.60 402.22 DNR DNR 0.00 0.30 0.00 0.02 1.30 76.92 1 DNR 0.66 1.68 0.00 DNR DNR 2.28 0.15DNR DNR 2.1 0 0.75DNR DNR DNR 0 0.09 DNR 0.27 3.25 0 4.00 0.50 0.54 18.75 0.90 10.00 DNR DNR 1.50DNR DNR DNR 0 1.37 DNR DNR 2.14 1.36 3.64 2.50 4.45 41.21 7.18 19.08 30 DNR 2.50 25.70 0 11.5 1.50 0.60 37.80 64.25 00 0.00 0.04 0.20 2.67 0.44 3.56 -2.73 0.58 34.48 DNR DNR 0.00 2.50 0 1.5 DNR 1.90 5.90 42.37 DNR DNR DNRDNRDNR 9.22 DNR 0.06 DNR DNR 0.00 0 1.99 37.00 DNR 1.97 8.50 0 0 17.78 0.00 0 -1.32 51.86 0.05 1.14 0.67 297.01 3.11 63.34 in markets. In the case of Texas, the tires were consumed in civil engineering applications and are included eng civil in the included and are applications engineering consumed in civil were tires the Texas, the case of In in markets. agricultural markets. agricultural 60 DNR DNR 0.00 1.60 000 0 DNR 40.00 3.00 DNR DNR 4.60 1.00 34.78 0 0 1.25 7.40 8.40 11.90 2005 U.S. SCRAP TIRE MARKET DATA (IN MILLIONS OF TIRES) OF MILLIONS (IN DATA MARKET TIRE SCRAP U.S. 2005 d fuel, civil engineering, ground rubber, export, punch/stamp and punch/stamp export, rubber, ground engineering, civil d fuel, monofilled or used in reclamation projects. or used in monofilled reclamation Total of tires consumed in electric arc furnaces, tire tire derive furnaces, in arc electric consumed of tires Total consumed not were bales the tire of majority vast the because calculation, market to tires in total included the is not "Baled" landfilled, were that tires disposed" includes "Land disposed. land and baled market, to tires total the of sum the and generation annual the between difference the is "Unknown" Generation." "Annual over "TotalTiresToMkt" %" is the "Market ConnecticutDelawareFlorida I Region Georgia III Region HawaiiIdaho IV Region IV Region IX Region X Region 0.00 0.00 0.00 0.00 10.00 DNR 0.00 DNR 9.02 6.00 0.00 0.24 0.77 1.00 1.74 0.00 0.00 unknown MexicoNew DNR VI Region DNR DNR DNR 3.65 0.00 DNR DNR 0.22 0.00 0.00 0.00 DNR 0.00 DNR 0.00 0.00 DNR 0.00 DNR DNR DNR 0.35 0.00 DNR 10.00 0.77 14.63 N/A 0 DNR 6.00 0.24 0 DNR DNR 0 0 0 DNR 20.00 2.09 2.50 0 -6.60 0 0.09 0.01 DNR 0.38 0.00 1.50 0.65 3.00 3.40 0.78 18.22 294.12 98.72 0.89 9.00 80.30 26.97 66.67 StateNameAlabama EPARegion Electric Arc Furnace Tire Derived Fuel IV Region Engineering Civil Ground Rubber Exported Punch/Stamp Agricultural 0.32 17.78 DNR DNR DNR DNR AlaskaArizonaArkansasCalifornia X Region Colorado IX Region VI Region IX Region VIII Region Illinois DNRIndiana 0.00 0.03Iowa 0.00Kansas 0.00Kentucky Region V V Region Louisiana 0.00 0.00Maine 1.52 VII Region VII Region Maryland IV Region 9.00 VI Region 1.00Massachusetts I Region MichiganMinnesota III DNR Region I Region 0.00Mississippi 0.47 0.00Missouri V Region 6.70 0.00 V Region 0.00Montana IV Region DNR 0.00Nebraska DNR DNRNevada 2.50 DNR VII Region 0.26 HampshireNew VIII Region 5.20 I Region 5.27 DNR VII Region JerseyNew DNR 0. 0.10 0.00 0.00 DNR 1.30 IX Region 0.38 II Region 0.75 DNR 2. 0.00 0.02 DNR 8 DNR 0.00 0.01 1.30 0.00 DNR 6.39 0.64 DNR DNR 17.00 0.00 0.00 2.00 DNR 1.89 DNR DNR DNR 0.00 0.00 0.01 6.00 DNR 0.97 0.00 DNR 2.04 1.00 1.25 0.36 0.00 DNR 2.00 DNR DNR 0.00 DNR 0.00 DNR 1 2.00 0.00 DNR 0.00 0.09 DNR 3.00 DNR DNR 0.55 DNR 0.00 0.00 DNR DNR DNR 2.00 DNR DNR DNR DNR DNR DNR 0.97 DNR DNR 3.00 DNR DNR DNR 0.50 0.00 0.00 DNR DNR DNR DNR DNR DNR DNR 1. DNR DNR 9.27 0.00 0.11 0.00 0.00 DNR 0.00 DNR 0.38 DNR 2.91 DNR 0.00 0 DNR 0.00 0 0.00 3.00 0.00 DNR DNR 0 3.31 8.43 9 18.25 DNR 0.04 0.00 4.00 DNR DNR 3.91 0 0 0 1 2 0.08 6.97 0 DNR 1.45 0.20 0.00 0 1.67 0.09 0 0 1 0 0.06 1.62 3.73 0 4.03 3.89 0 0.74 0 10.58 DNR 0.27 0 1.55 3.30 0.20 0.44 -8.25 -4.50 0.51 DNR 0.00 -6.92 1.67 13.00 3.00 6.00 1.33 3.73 0 1.25 -1.01 1.00 -1.61 6.30 71.31 12.67 0.00 -0.13 10.00 78.02 1.83 4.5 1.51 4.98 1.30 47.62 182.50 2.90 5.00 200.00 558.28 5.80 66.47 1.89 134.83 80.00 120.17 1.30 76.72 0.00 New YorkNew North CarolinaNorth Dakota Region IV II Region Ohio Region VIIIOklahomaOregonPennsylvania VI Region Rhode Island III Region V Region South Carolina Region I X Region South Dakota Region IV DNRTennessee Region VIII 0.22 0.00TexasUtah IV Region VermontVirginia 0.00 6.08Washington 0.00 DNR VI Region 3.00 0.02West Virginia DNR DNR I Region 0.00 VIII Region Wisconsin X Region DNR III Region Region IIIWyoming 2.36TOTALS 5.38 V Region 0.75 0.75 1.34 3.00 0.14 VIII Region 0.50 4.55 1.00 1.99 0.00 1.17 0.00 0.00 0.00 DNR 3.00 0.00 3.50 DNR 0.85 9.38 0.00 DNR 2.58 0.00 DNR DNR 14.95 DNR DNR 0. 1.28 1.47 6.00 0.88 0.57 1.37 DNR 1.00 1.00 1.77 0.61 DNR 0.02 DNR DNR 7.36 2.22 0.30 0.05 DNR DNR DNR 1.34 DNR DNR 0.00 DNR 0.03 DNR DNR DNR 4.23 1.62 DNR 0.13 DNR DNR DNR DNR 155.09 DNR 0.50 DNR 12.63 DNR 0.03 DNR 0.71 DNR 0.00 3.00 DNR DNR 0.00 DNR DNR DNR DNR DNR 49.22 0 0.00 DNR 3.64 0.00 DNR 11.78 DNR 7.90 DNR 7.74 DNR 37.47 1.02 0.37 0.00 0 4.5 DNR 0 DNR 0.03 DNR 0 4.25 6.87 0 0.00 0 0.06 DNR DNR DNR 27.30 0.05 -8.53 6.13 1.57 0.66 1.00 0.02 0 0.70 6.71 0 3.56 3. 0 2.22 DNR 0.00 0 7.89 0 0.31 0.02 0.00 -1.95 DNR 0.00 DNR 8.60 7.17 0.30 4.50 -0.48 -0.02 24.62 146.86 0 0.05 1.65 -13.16 0 4.00 0.51 11.40 0 DNR 2.22 12.40 0.10 DNR 7.26 0.60 1.00 103.33 4.50 91.00 0.01 5.90 0.00 0.00 21.33 63.71 2.22 106.61 102.00 127.99 72.03 5.50 6.79 0.66 0.51 4.44 18.18 98.82 100.00 0.00 50.00 Footnotes 1 2 3 4 5
88 Scrap Tire Markets in the United States 2005 Edition
5 Market % ineering values. ineering Annual Generation 4 Unknown Stockpiles 3 Land Disposed 2 Baled 1 3616.11 42.22 590.81 2854.91 166.62 4410.73 82.0% TotalTiresToMkt .15 322.88 0.25 80.73 276.98 -163.86 240 134.53 0.45 16.36 0.63 5.71 20.59 8.45 31.15 52.52 R 41.25 424.05 0 189.75 24.75 9.90 623.7 67.99 48 DNR 132.53 0 17.65 40 37.92 188.1 70.46 49.5 DNR 125.32 0 0 3.3 89.18 214.5 58.42 in markets. In the case of Texas, the tires were consumed in civil engineering applications and are included in the civil eng civil in the included are and applications engineering in civil consumed were tires the Texas, case of the In in markets. agricultural markets. agricultural .95 DNR 0 130.36 0 0 130.19 74.24 204.6 63.71 NR DNR DNR 150.93 0.99 0 610.5 48.08 200 75.47 0 0 0 0 75.54 0.22 0.62 25 0.00 76.38 98.9 2005 U.S. SCRAP TIRE MARKET DATA (IN THOUSANDS TONS) OF THOUSANDS (IN DATA TIRE MARKET 2005 U.S. SCRAP because the vast majority of the tire bales were not consumed not were bales tire of the majority vast the because ivil Engineering Ground Rubber Electric Arc Furnace Exported Punch/Stamp Agricultural C erived Fuel erived D Total of tires consumed in electric arc furnaces, tire derived fuel, civil engineering, ground rubber, export, punch/stamp and and punch/stamp export, rubber, ground engineering, civil fuel, derived tire furnaces, arc in electric consumed of tires Total calculation, market to tires total the in included is not "Baled" projects. reclamation used in or monofilled landfilled, were that tires includes disposed" "Land disposed. land and baled to market, tires total sum of the the and generation annual the between is difference the "Unknown" Generation." "Annual over "TotalTiresToMkt" %" is the "Market StateNameAlabamaAlaska EPARegion ArizonaArkansas IV Region California X Region Colorado Region IXConnecticut Region VI IX Region Delaware 200Florida Region VIII I Region Georgia 17.14 Region IIIHawaii 0 148.5 0Idaho 16.5 DNR IV Region Illinois IV Region 165Indiana Region IXIowa 110.55 DNR 5.3Kansas 0 Region X 101.5Kentucky V Region DNR 0 Region VLouisiana 99 0 2.69Maine 0 Region VII Region VII 85.8Maryland Region IV DNR 16.5 8.62 2.9 59.32 Region VI 19.6Massachusetts 41.25 1.11 Region IMichigan 14.65Minnesota Region III I Region DNR 4.27 9.9 unknown 0 8.42Mississippi 3.6 DNRMissouri 132 Region V 0 V Region 41.1Montana DNR 0.11 Region IV 0 21.45 DNR DNRNebraska 71.89 7.18 0.29 DNR 0 DNRNevada VII Region DNR DNR 280.5 HampshireNew VIII Region DNR DNR DNR 37.95 I Region 0 0 Region VII 21.27 JerseyNew DNR 33 DNR MexicoNew DNR 0.08 0.01 0 Region IX DNR 0 10.87 YorkNew Region II DNR DNR 23 99 DNR Region VI 20.63North Carolina DNR DNR DN 0 DNR 4.09 0 0North Dakota Region IV 16.5 DNR Region IIOhio 0 DNR DNR . DNR DNR Region VIII 0 33Oklahoma DNR DNR 2.5 DNR 0 33 3.97Oregon DNR DNR 0 DNR 203.6 0 68.39Pennsylvania DNR 6.18 0 DNR VI Region Rhode Island 0 49.5 0 1 0 0.2 III Region DNR Region V DNRSouth Carolina DNR DNR 0 0 0 DNR 25.63 Region I Region X DNR 0 0South Dakota DNR Region IV 33 0 DNR 16.5 DNR 0 0 DNR DNR DNR DNRTennessee 60.5 DNR Region VIII 26.5 10.92 DNR DNR 5.64Texas 2.53 DNR 12.38 15.07 DNR 49.5 41.25 DNRUtah DNR 1.58 DNR DNR IV Region 0 41.25 0 75.04 0 DNR 8.25 DNR 0Vermont 16.5 DNR 22.34 DNR DNR 0Virginia DNR 26.4 DNR 13.21 DNR DNR 16.5 0 DNRWashington DNR VI Region 0.02 14.03 164.7 105.5 0 297 23.56 DNR 49.5 57.75 0.18 2.69West Virginia DNR Region I 49.5 Region VIII 42.62 DNR 9.9Wisconsin Region X -170.60 DNR 8.62 DNR 0 16.5 165 Region III Region III 0 DNR DNRWyoming 0 0 168.23 DNR DNR 1.06 DNR DNR 0 DNR 0 0 0TOTALS 0 DNR DNR Region V 16.57 DNR 32.7 N/A 14.4 24.75 DNR DNR 9.89 1.23 99 DNR 9.34 DNR DNR VIII Region -3.50 8.42 0 DNR 19.91 15.4 DNR 16.5 4.27 0 148.5 16.5 10 0 DNR 82.81 0.00 0 74.25 DNR 0 0 DNR 0.01 DNR DNR 2.43 DNR 0 23.46 49.5 0.33 99 DNR 0 DNR DNR 0 DNR DNR 0 DNR 25 DNR 301.13 DNR 31.35 D 0.54 47.64 0 DNR DNR 274.21 94.89 0 DNR DNR 0 0 0 1.41 48.22 18.18 54.53 DNR DNR 660 DNR 0 0 0 DNR 0 DNR 0 DNR 4.3 0 DNR 2144.64 41.25 9.9 0.94 DNR 16.84 0 DNR DNR DNR DNR DNR 0.59 16.5 DNR 16.5 0 49.50 0 0 DNR DNR 33 0.54 7.99 5.58 53.15 DNR 330 0 97.35 7.31 DNR DNR DNR 4 0.8 0 DNR 12.38 DNR 109.92 4.31 4.95 0 54.46 DNR DNR -108.90 0 639.99 DNR 18.75 1 66 1. 0.01 0 DNR DNR 1 0 DNR DNR DNR -90.75 0 28.73 142.1 42.37 66.46 DNR DNR 57.58 0 64.77 205 0 0 DNR 75.9 0 0 8.36 0 4.77 552.51 16.5 119 DNR 0 0 12.93 0.4 54.45 49.5 21.45 DNR 3 10 DNR DNR DNR 0 0.25 DNR DNR DNR 56.1 0 -136.13 0 0 4.35 80.34 DNR 2.3 25.58 34.78 74.25 DNR 49.50 0 DNR 49.5 DNR DNR DNR DNR 3.06 66.67 0.01 76.92 40.92 66 5 -77.89 99 0 294.12 26.9 127.66 0 2.19 103.95 24.75 42 1.47 DNR 22.34 DNR 18.88 16.5 50.57 DNR 0 DNR 0 0.03 1.97 111.99 4 DNR DNR 200 165 DNR 70.13 8.63 DNR 0 15 30 0 12.76 0 148.5 DNR 0.95 DNR 1.24 47.62 DNR 77.86 -6.61 DNR 16.83 0 DNR 8.25 DNR DNR -19.22 100.51 0.5 0.54 -50.77 10.95 17 16.50 182.5 0 20.63 10.85 56 DNR DNR 66.67 47.59 0 8.88 0.74 122.10 0 15.4 0 16.5 5 558.18 0 47.85 0 10.96 11.55 97.38 95.7 22.15 DNR 141.9 0 DNR DNR 27.7 82.5 14.85 24.34 25 40 113.81 0 0 0 0 0 35.31 138.6 4.95 0 114.86 18 0 100.14 -30.69 DNR -14.84 DNR -45.94 21.45 15.25 27.22 6.73 80 0 0 0 41.25 11.9 26.5 60.06 66 0 DNR 50.12 -0.33 0 8.4 81.72 21.45 6.5 0 7.5 97.35 1.65 74.25 41.21 DNR 0.83 62 156.22 9.9 297.87 -0.07 33.69 72.04 80.77 12.86 0.00 16.5 0 25.00 90.75 19.07 10.89 102 35.01 18.18 8.4 50 100.64 63.27 0 50 Footnotes 1 2 3 4 5
Appendices 89
APPENDIX C: Tire-Derived Fuel Users
Company Location Type of Facility ALABAMA Lafarge North America Calera Cement kiln International Paper Corp. Courtland Pulp & paper mill Holcim Inc. Theodore Cement Kiln Lehigh Cement Company Cement Kiln National Cement Ragland Cement kiln Smurfit-Stone Container Enterprises, Inc. Stevenson Pulp & paper mill CEMEX Demopolis Cement kiln ARKANSAS Ash Grove Cement Company Foreman Cement kiln Georgia Pacific Crossett Pulp & paper mill Domtar, Inc. Ashdown Pulp & paper mill International Paper Pine Bluff Pulp & paper mill CALIFORNIA California Portland Cement Ontario Cement kiln CEMEX Victorville Cement Kiln Lehigh Southwest Redding Cement Kiln Stockton Co-generation Stockton Industrial boiler Mitsubishi Cement Lucerne Valley Cement kiln National Cement Co. of CA Lebec Cement kiln Port Stockton District Energy Facility Utility Boiler Mt. Posco Cogeneration Kern County Industrial boiler COLORADO Holcim, Inc. Florence Cement kiln CONNECTICUT Exeter Energy Sterling Dedicated tire-to-energy FLORIDA Ridge Generating Station Auburndale Utility boiler CEMEX Brooksville mid 2006 Cement kiln Rinker Materials Brooksville Cement kiln Florida Rock Gainesville Cement kiln Names not supplied Across the state Waste-to-energy (6) GEORGIA CEMEX Clinchfield Cement Kiln Georgia Pacific Brunswick Pulp & paper mill Inland-Rome Rome Pulp & paper mill Interstate Paper Riceborough Pulp & paper mill SP NEWSPRINT CO Dublin Pulp & paper mill HAWAII AES Hawaii, Inc. Oahu Industrial boiler IOWA Holcim, Inc. Mason City Cement kiln IDAHO Ash Grove Cement Company Inkom Cement kiln Cascade Boise Pulp & Paper Mill ILLINOIS Archer Daniels Midland (ADM) Decatur Industrial boiler Buzzi Unichem USA Oglesby Cement kiln Illinois Power Baldwin Utility Boiler Lafarge North America Grand Chain/Joppa Cement kiln KANSAS Ash Grove Cement Company Chanute Cement kiln Monarch Cement Humboldt Cement kiln KENTUCKY Owensboro Municipal Utilities Owensboro Utility boiler East Kentucky Power Maysville Utility Boiler NewPage Corporation Wickliffe Pulp & Paper Mill LOUISIANA International Paper Mansfield Pulp & paper mill International Paper Bastrop Pulp & paper mill Boise Deridder Pulp & paper mill MARYLAND Essroc Cement Company Joppa Cement Kiln St. Lawrence Cement Co. Hagerstown Cement kiln Essroc Cement Company Lime kiln Fort Detrick Fredrick Industrial boiler MAINE NewPage Corporation Rumford Pulp & paper mill International Paper Bucksport Pulp & paper mill Georgia-Pacific Woodland Pulp & paper mill MICHIGAN American Resource Recovery Corp. Monroe Industrial boiler Hillman Power Hillman Utility boiler Viking Energy McBain Utility boiler Viking Energy Lincoln Utility boiler Holcim, Inc. Dundee Cement kiln Wyandotte Power Wyandotte Utility boiler Tondu Energy Filer City Utility boiler Grayling Generating Station Grayling Industrial boiler MISSOURI
90 Scrap Tire Markets in the United States 2005 Edition
Company Location Type of Facility Holcim, Inc. Clarksville Cement kiln Ameren/UE, Inc. Portage Des Sioux Utility boiler University of Missouri-Columbia Columbia Industrial boiler Aquila/ Sibley Generating Station Kansas City Utility boiler Buzzi Unichem USA Cape Girardeau Cement kiln Empire District Electric Co. Asbury Power Plant Joplin Utility boiler Aquila, Inc. - St. Joseph Utility boiler MISSISSIPPI Nucor Steel Jackson EAF NEW YORK Nucor Steel Auburn Auburn Electric Arc Furnace Black River Electric Fort Drum Utility boiler WPS Empire State Niagara Falls Industrial boiler NORTH CAROLINA Cogentrix Roxboro Industrial Boiler Cogentrix Southport Industrial Boiler Cogentrix Lumberton Industrial Boiler OHIO Akron Thermal, LLP (utility) Akron Utility boiler NewPage Corporation Chillicothe Pulp & paper mill OKLAHOMA Holcim, Inc. Ada Cement kiln Lafarge North America Tulsa Cement kiln Buzzi Unichem USA Pryor Cement kiln OREGON Ash Grove Cement Company Durkee Cement kiln PENNSYLVANIA Allentown Cement Blandon Cement kiln Lafarge North America Whitehall Cement kiln ESSROC Materials Meadville Cement kiln SOUTH CAROLINA Trigen Biopower Hodges Industrial boiler Lafarge North America Harleyville Cement kiln Bowater Catawba Pulp & paper mill Sonoco Products Company Hartsville Pulp & paper mill International Paper Eastover Pulp & paper mill International Paper Georgetown Pulp & paper mill TENNESSEE Bowater Incorporated Calhoun Pulp & Paper Mill Allen Steam Plant Memphis Utility Boiler CEMEX Knoxville Cement Kiln Gerdau Ameristeel Jackson EAF TEXAS Ashgrove Cement Midlothian Cement kiln Capital Cement San Antonio Cement kiln CEMEX New Braunfels Cement kiln CEMEX /Southdown Cement Odessa Cement kiln Holcim Cement Midlothian Cement kiln Lone Star Cement Mary Neal Cement kiln Texas Lehigh Cement Buda Cement kiln Texas Industries Cement New Braunfels Cement kiln UTAH Ashgrove Leamington Cement Kiln Holcim Inc. Morgan Cement kiln Chemical Lime Company Grantsville Lime kiln VIRGINIA Cogentrix Richmond Industrial boiler Southeastern Public Service Authority Portsmouth Industrial boiler Tire Energy Corp (TEC) Martinsville Industrial boiler WASHINGTON Ashgrove Cement Seattle Cement Kiln WEST VIRGINIA Allegeny Power Parkersburg Utility Boiler WISCONSIN Alliant Energy Cassville Utility Boiler Alliant Energy Edgewater Generating Station Sheboygan Utility Boiler Thilmany Papers De Pere Pulp & Paper Mill Xcel Energy Bayfront Plant Ashland Utility Boiler University of Wisconsin Charter Street Plant Madison Industrial Boiler
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