Waste Tire Recycling and Reuse in Pennsylvania: an Analysis of the Industry, Markets, and State Use, Including Rubber Modified Asphalt
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WASTE TIRE RECYCLING AND REUSE IN PENNSYLVANIA: AN ANALYSIS OF THE INDUSTRY, MARKETS, AND STATE USE, INCLUDING RUBBER MODIFIED ASPHALT OCTOBER 2007 General Assembly of the Commonwealth of Pennsylvania JOINT STATE GOVERNMENT COMMISSION 108 Finance Building Harrisburg, PA 17120 - i - The release of this report should not be interpreted as an endorsement by the members of the Executive Committee of the Joint State Government Commission of all the findings, recommendations or conclusions contained in this report. Joint State Government Commission Room 108 Finance Building Harrisburg, PA 17120-0018 Telephone 717-787-4397 Fax 717-787-7020 E-mail: [email protected] Website: http://jsg.legis.state.pa.us The Joint State Government Commission was created by the act of July 1, 1937 (P.L.2460, No.459) as amended, as a continuing agency for the development of facts and recommendations on all phases of government for the use of the General Assembly. - ii - JOINT STATE GOVERNMENT COMMISSION Senator Roger A. Madigan, Chair _________________________________________________ EXECUTIVE COMMITTEE Senate Members House Members Joseph B. Scarnati, III Dennis M. O'Brien President Pro Tempore Speaker Dominic F. Pileggi H. William DeWeese Majority Leader Majority Leader Robert J. Mellow Samuel H. Smith Minority Leader Minority Leader Jane Clare Orie Keith R. McCall Majority Whip Majority Whip Michael A. O’Pake David G. Argall Minority Whip Minority Whip Michael L. Waugh Mark B. Cohen Chair, Majority Caucus Chair, Majority Caucus Jay Costa, Jr. Sandra Major Chair, Minority Caucus Chair, Minority Caucus MEMBER EX-OFFICIO Roger A. Madigan, Commission Chair _________________________________________________ David L. Hostetter, Executive Director _________________________________________________ - iii - - iv - - v - - vi - CONTENTS Introduction ............................................................................................................................... 1 Tires, Recycling and the Environment ....................................................................................... 7 Tire Pile Hazards ........................................................................................................... 7 Recycling, Residual Waste and Related Acts ................................................................ 8 Tire Remediation and Funding ...................................................................................... 15 Waste Tire Clean-up Funds (table) ................................................................... 16 Number of Waste Tires Cleaned Up (table) ..................................................... 17 Number of Stockpiled Tires in Pennsylvania (table) ....................................... 18 Comparing Pennsylvania to the Other 49 States ........................................................... 20 Waste Tire Recycling, Permitting, Grants & Fees in the Other 49 States ..................... 21 Pennsylvania Tire Recycling and State Government ................................................................. 39 Department of Conservation and Natural Resources .................................................... 39 Department of Corrections ............................................................................................ 40 Department of Education ............................................................................................... 40 Pennsylvania State System of Higher Education .......................................................... 40 Department of General Services .................................................................................... 40 Department of Transportation ....................................................................................... 41 New Product Evaluation Process (chart) .......................................................... 42 Turnpike Commission ................................................................................................... 44 Department of Community and Economic Development ............................................. 46 Performance Based Loans – Waste Tire Performance Measurers (chart) ........ 47 Joint Legislative Air & Water Pollution Control & Conservation Committee ............. 49 Overall Potential for Growth of Recycled Tire Products in Pennsylvania .................... 50 The Flow of Scrap Tires to End Use Markets (figure) ..................................... 51 Rubberized Asphalt .................................................................................................................... 53 Using Rubberized Asphalt ............................................................................................. 56 Rubber Modified Asphalt and Major Markets in the Other 49 States ........................... 60 - vii - Conclusion .................................................................................................................................. 81 Recommendations/Policy Options ................................................................................ 84 Selected Bibliography ................................................................................................................ 87 Appendices ................................................................................................................................. 89 Tire Related Definitions ................................................................................................ 91 List of Acronyms ........................................................................................................... 99 House Resolution 456 of 2005 ....................................................................................... 101 Act 190 of 1996, as amended ........................................................................................ 103 Governor’s Office Management Directive to State Agencies ....................................... 121 DGS Bidding Preference ............................................................................................... 125 Pennsylvania Tire-Related Businesses .......................................................................... 129 Waste Tire Disposal and Recycling Information by State (table) ................................. 131 - viii - INTRODUCTION House Resolution 456 of 2005 (Printer’s Number 2781), sponsored by Representative Ron Miller, charges the Joint State Government Commission to study: the use of rubberized asphalt (RA) in the other 49 states; the cost of using RA; the number of waste tires1 removed from the waste stream; and the new market impact analysis. Due to the dynamics of the tire recycling market, the variety of products that are produced from different types of tires and the supply and demand cost relationship within the industry, it is necessary to look at the waste tire recycling system as a whole, to put this in context. The use of rubberized asphalt is, however, a major focus of this study. The report that follows is an attempt to put forth an accurate and useful snapshot of waste tire use in Pennsylvania. The topic of waste tires has suffered over the years from a lack of knowledge, a lack of resources and varying misconceptions and stigmas. Despite some shortcomings at the state and industry levels, great strides continue to be made in tire clean-up, markets continue to grow, and the economic vitality of businesses is improving. In fact, there are several national and international leaders in scrap tire recycling based in the state, who often go unnoticed but play a major role in controlling the flow and use of waste tires. The Commonwealth is also a key stakeholder in this venture and by working together, all sides can continue to move forward with tire pile clean-up and creating long term, sustainable markets. From the time cars were invented, what to do with tires has posed a problem. With the onset of World War II, most scrap tires were reused or recycled due to a shortage of raw materials. After rationing ended and steel belted radials and synthetic rubber tires were introduced, they became more difficult to breakdown and piles of tires began to appear.2 Most tire piles went unchecked until the late 1980’s, when the problem was recognized. By the time legislation was adopted and monies appropriated to deal with the now illegal tire piles in 1996, the piles had grown to number some 36 million tires.3 At the time, there were few businesses in place to deal with the piles or to use the annual generation of tires, but that has since changed. In some segments of the tire markets, Pennsylvania is now a national and international leader and has numerous success stories. The state has a well established industry that contributes to the tax rolls, employs hundreds of people, and helps deal with this valuable commodity. 1 Throughout this report, tires are referred to as the statutorily defined waste tires. The case has been made, however, that tires are a scrap or commodity and not a waste due to their recycling and reuse potential. The reports use of the word waste, however, should not be interpreted as support for either definition. 2 Wolf, Rhonda Brown, “Scrap tires an environmental health concern,” Fort Detrick Standard, January 7, 2004, www.dcmilitary.com/dcmilitary_archives/stories/010704/26847-1/shtml. 3 Department of Environmental Protection, “Update of the Pennsylvania Waste Tire Recycling Program,” July 30, 2004. - 1 - Tire recycling is a vitally important business in today’s Pennsylvania, both environmentally and economically,