2015 U S Scrap Tire Management Summary August

2015 U. S. Scrap Tire Management Summary August 2016 1

U. S. Scrap Tire Disposition 2015 Market or Disposition Tire-Derived Fuel Cement Kilns Pulp & Paper Electric Utilities Industrial Boilers Dedicated Tires-to-Energy Ground Rubber Civil Engineering Exported Electric Arc Furnace Reclamation Projects Agricultural Baled Tires/market Punched/ Stamped Other Total to Market Generated % to Market/Utilized Land Disposed % Managed (includes Markets, Baled and Landfill) Thousands of Tons Millions of Tires % change 2013 -2015 1922. 67 753. 37 616. 25 553. 05 0. 00 1020. 75 274. 92 102. 07 26. 00 52. 54 7. 10 9. 19 41. 20 94. 86 3551. 30 4038. 80 87. 9% 451. 40 117. 31 45. 97 37. 60 33. 74 0. 00 62. 28 16. 77 6. 23 1. 59 3. 21 0. 43 0. 56 2. 51 5. 79 216. 69 246. 43 87. 9% 27. 54 -9. 3% 3. 8% -14. 0% -4. 0% -100. 0% 4. 7% 59. 8% -58. 5% -60. 3% 6. 9% 0. 0% -69. 4% 2068. 4% -3. 2% 5. 6% N/A 37. 7% 99. 1% N/A © Rubber Manufacturers Association, 2016. May not be used, reproduced or cited without proper attribution. 2

U. S. Scrap Tire Market Summary (2007 – 2015) (in Thousands of Tons) 2007 2009 2011 2013 2015 Tire-Derived Fuel Ground Rubber Land Disposed Exported Civil Engineering Reclamation Projects Electric Arc Furnace Baled Tires/market Agricultural Punched/ Stamped Baled/no market Used Tires 1 Other Total to Market Generated 2 % to Market/Utilized 2484. 36 789. 09 593. 98 102. 08 561. 56 132. 58 27. 14 UNK 7. 13 1. 85 9. 31 n/a 2084. 75 1354. 17 653. 38 102. 10 284. 92 130. 00 27. 10 27. 76 7. 10 1. 90 15. 57 371. 25 1427. 03 1093. 50 491. 65 302. 48 294. 99 54. 29 65. 55 1. 92 7. 10 1. 90 32. 78 n/a 2120. 29 975. 00 327. 78 245. 84 172. 00 49. 17 65. 56 30. 00 7. 10 1. 90 No data n/a 4105. 79 4595. 72 89. 3% 4391. 05 5170. 50 84. 9% 3083. 76 3781. 00 81. 6% 3666. 85 3824. 26 95. 9% 1922. 67 1020. 75 451. 40 102. 07 274. 92 52. 54 26. 00 9. 19 7. 10 41. 20 No data n/a 94. 86 3551. 30 4038. 80 87. 9% % Managed(incl. baled and landfilled tires) 102. 5% 97. 9% 95. 4% 104. 5% 99. 1% Market or Disposition 1 RMA began tracking tires culled from scrap tire collection entering domestic used passenger and light truck used tire markets in 2009. RMA changed the way it incorporated estimates of tires entering used tire markets between 2009 and 2011. In 2009, RMA included used tires as a market for scrap tires. In 2011 and 2013, RMA subtracted used tires from the total tires hauled to calculate total net scrap tire generation. 2 RMA changed the basis for reporting scrap tire generated annually from state-provided data in 2005 -2007 to a calculation of replacement market tires sold and vehicles scrapped for reports issued 2009 and after. © Rubber Manufacturers Association, 2016. May not be used, reproduced or cited without proper attribution. 3

U. S. Scrap Tire Generation 2015 Tire Class Millions of Tires Market % Average Weight (lbs) Weight (thousands of tons) Light Duty Tires 248. 8 89. 0% Passenger tire replacements 1 206. 1 73. 7% Light truck tire replacements 1 29. 1 10. 4% Tires from scrapped cars 2 13. 6 4. 9% Commercial Tires 30. 9 11. 0% 120. 0 1854. 0 Medium, wide base, heavy truck replacement tires 1 17. 9 6. 4% Tires from scrapped trucks and buses 2 13. 0 4. 6% Total tires hauled 279. 7 100. 0% 33. 3 4653. 0 Used tires culled 36. 9 13. 2% 33. 3 614. 2 242. 8 4038. 8 Net scrap tires 22. 5 2799. 0 1 Factbook 2014: U. S. Tire Shipment/Activity Report for Statistical Year 2013, Rubber Manufacturers Association. 2 Ward's Motor Vehicle Facts and Figures, 2014. Includes the total number of vehicles removed from service in 2013. In 2013, Ward's did not publish vehicles retired from service separated for the car and truck/bus category. Instead, it only published total vehicles scrapped from service. RMA estimated the split between cars and trucks/buses based on the average of the split from 2002 - 2012. Assumes two tires scrapped from light duty vehicles and 2. 5 tires scrapped from trucks and buses. © Rubber Manufacturers Association, 2016. May not be used, reproduced or cited without proper attribution. 4

U. S. Scrap Tire Trends 2007 - 2015 5000. 0 120. 0% 4500. 0 89. 3% 85. 3% 87. 9% 81. 6% 80. 0% 3000. 0 2500. 0 60. 0% 2000. 0 Percent Utilized Thousands of Tons 3500. 0 100. 0% 95. 9% 4000. 0 40. 0% 1500. 0 1000. 0 20. 0% 500. 0% 2007 2009 Total to Market 2011 Total Generated 2013 2015 Market % © Rubber Manufacturers Association, 2016. May not be used, reproduced or cited without proper attribution. 5

U. S. Scrap Tire Market Trends 2005 – 2015 Please note: RMA began tracking tires culled from scrap tire collection entering domestic used passenger and light truck used tire markets in 2009. RMA changed the way it incorporated estimates of tires entering used tire markets between 2009 and 2011. In 2009, RMA included used tires as a market for scrap tires. In 2011 and later, RMA subtracted used tires from the total tires hauled to calculate total net scrap tire generation. © Rubber Manufacturers Association, 2016. May not be used, reproduced or cited without proper attribution. 6

U. S. Scrap Tire Disposition 2015 (percent of total tons generated annually) Land Disposed 11. 4% Ground Rubber 25. 8% Other 2. 6% Reclamation Projects 1. 3% Civil Engineering 7. 0% Other 7. 1% Tire-Derived Fuel 48. 6% Electric Arc Furnace 0. 7% Exported 2. 6% Numbers may not add due to rounding. © Rubber Manufacturers Association, 2016. May not be used, reproduced or cited without proper attribution. 7

U. S. Tire-Derived Fuel Markets 2015 U. S. TDF Markets 2015 Did you know? Electric utility boilers 29% Cement kilns 39% Total scrap tires diverted to TDF market: 1, 922, 000 tons or over 117 million tires Pulp and paper mills 32% © Rubber Manufacturers Association, 2016. May not be used, reproduced or cited without proper attribution. 8

U. S. Tire-Derived Fuel Market Trends 2005 – 2015 3000. 0 2500. 0 0. 4 2000. 0 1500. 0 139. 6 203. 5 290. 4 200. 6 373. 3 343. 8 203. 5 235. 0 539. 3 1066. 9 326. 3 802. 0 669. 1 716. 0 203. 5 604. 0 165. 0 1000. 0 101. 8 0. 0 576. 3 553. 1 716. 3 616. 3 726. 0 753. 4 160. 0 593. 1 500. 0 305. 4 0. 0 2005 Cement kilns 2007 Pulp and paper mills 2009 Electric utility boilers 2011 Industrial boilers 2013 Dedicated scrap tires to energy 2015 Lime kilns © Rubber Manufacturers Association, 2016. May not be used, reproduced or cited without proper attribution. 9

U. S. Ground Rubber Markets 2015 (percent of total pounds of ground rubber consumed in market) Automot ive 2% Export 1% Asphalt 15% Molded/ Extruded 35% Sports surfaces 25% Playgrou nd Mulch 22% Did you know? Total tire rubber consumed in ground rubber markets: about 1, 360, 000 pounds Total scrap tires diverted to these markets: About 1, 020, 000 tons or over 62 million tires Please note: Ground rubber market distribution data are based on ground rubber consumed in end-use markets, not whole tires entering these market streams. The data represented in RMA U. S. scrap tire market summaries refer to the weight of whole tires diverted to all scrap tire markets, including ground rubber, whereas this chart refers to the weight of processed ground rubber (with wire, fluff and agglomerated rubber removed) that is consumed in ground rubber end-use markets. © Rubber Manufacturers Association, 2016. May not be used, reproduced or cited without proper attribution. 10

1600. 00 U. S. Ground Rubber Market Distribution 2007 - 2015 1400. 00 145. 8 1200. 00 95. 8 1000. 00 800. 00 71. 7 600. 00 90. 8 400. 00 60. 5 22. 7 170. 3 200. 00 18. 9 286. 9 416. 7 165. 0 81. 0 33. 8 67. 5 56. 3 60. 0 153. 1 20. 4 10. 2 366. 0 322. 5 240. 0 300. 0 207. 8 168. 8 2011 2013 357. 3 266. 7 224. 6 71. 7 189. 2 215. 2 2005 2007 333. 3 255. 2 0. 00 2009 2015 Pleases note: Ground rubber market distribution data are based on ground rubber consumed in end-use markets, not whole tires entering these market streams. The data represented in RMA U. S. scrap tire market summaries refer to the weight of whole tires diverted to all scrap tire markets, including ground rubber, whereas this chart refers to the weight of processed ground rubber, with wire, fluff and agglomerated rubber removed that is consumed in ground rubber end-use markets. © Rubber Manufacturers Association, 2016. May not be used, reproduced or cited without proper attribution. 11

U. S. Civil Engineering Markets 2005 - 2015 700 Thousands of Tons 600 640 562 500 400 300 285 295 275 200 172 100 0 2005 2007 2009 2011 2013 2015 © Rubber Manufacturers Association, 2016. May not be used, reproduced or cited without proper attribution. 12

U. S. Stockpiled Scrap Tires 1990 - 2015 1200 Did you know? 1100 1000 In 1990, about a billion scrap tires were in stockpiles in the U. S. 900 By 2015, over 93% of those tires have been cleaned up! Only 67 million more stockpiled tires still to go. Millions of Tires 800 685 700 600 510 500 400 308 300 272 180 200 142 128 125 100 77 75 67 © Rubber Manufacturers Association, 2016. May not be used, reproduced or cited without proper attribution. 20 20 20 15 20 13 20 09 20 10 20 11 20 07 20 05 20 03 20 01 19 96 19 94 19 92 19 90 0 13

Where are scrap tires still in stockpiles? © Rubber Manufacturers Association, 2016. May not be used, reproduced or cited without proper attribution. 14

Overview of Current State Programs State Fee Collected? 37 Prohibit Collection Of 2 Other Fees? 0 13 48 10 20 Number of States 30 40 YES 50 NO © Rubber Manufacturers Association, 2016. May not be used, reproduced or cited without proper attribution. 15

Overview of Current State Programs Have Storage and Disposal Regulation? 44 Require Haulers to have Permits? 6 36 Require Financial Assurance for Haulers? 15 14 35 Require Financial Assurance for Processors? 36 0 10 20 30 Number of States 14 40 YES 50 NO © Rubber Manufacturers Association, 2016. May not be used, reproduced or cited without proper attribution. 16

Overview of Current State Programs Allow Whole Tires in Landfills? 10 40 Cut, Shredded Tires Allowed In Landfill? 38 Allow Monofillls? 12 24 0 10 26 20 Number of States 30 40 YES 50 NO © Rubber Manufacturers Association, 2016. May not be used, reproduced or cited without proper attribution. 17

Overview of Current State Programs Have a Stockpile Cleanup Program? 30 Stockpile Cleanup Program is Active? 25 0 10 20 25 20 30 Number of States 40 YES 50 NO © Rubber Manufacturers Association, 2016. May not be used, reproduced or cited without proper attribution. 18

About the Rubber Manufacturers Association RMA is the national trade association representing tire manufacturers that make tires in the United States. RMA’s scrap tire management efforts are a reflection of the tire industry’s commitment to the concept of shared responsibility for its products when not suitable for use on vehicles. RMA began its scrap tire program in 1990 under the auspices of the Scrap Tire Management Council. RMA works with all stakeholders, including states, U. S. EPA and the industry to develop markets, reduce scrap tire stockpiles and implement state regulations that foster sustainable scrap tire markets. RMA supports all scrap tire markets that are environmentally sound and economically feasible. © Rubber Manufacturers Association, 2016. May not be used, reproduced or cited without proper attribution. 19