California Department of Resources Recycling and Recovery (CalRecycle) 

Tire Grants

Questions and Answers: Tire Incentive Program (FY 2014-15)

Questions about the fiscal year (FY) 2014-15 Tire Incentive Program grant application were accepted in writing only, no later than April 17, 2015 April 10, 2015. Similar or related questions were grouped together or reworded for clarity and responded to as one question.

The question and answer period is now closed for this grant cycle. All questions and answers are posted on this site.

General

  1. The Sales and Calculation samples contains an error in Section 5 (Column P) to calculate the amount of crumb rubber eligible for the incentive.

    When calculating the amount of crumb rubber eligible for existing Tire Derived Product (TDP), new TDP, feedstock, or fine (≤50) mesh categories (Column P):

    • If the product is an existing TDP, the incremental increase in usage of crumb rubber (compared with previous year’s records, i.e. “baseline”) would be based on the amount of crumb rubber in pounds (Column D) times the projected sales quantity in pounds (Column F) once it exceeds the baseline amount.
    • If the product is feedstock conversion, fine (≤50) mesh or an existing TDP reformulated to use fine (≤50) mesh, there would be no baseline. The incentive would be based on the amount of crumb rubber in pounds (Column D) times the projected sales quantity in pounds (Column F). The incentive would be calculated from the beginning of the grant term.

    For clarification, Projected Sales Quantity (Column F) is the quantity of crumb rubber projected to be used during the term of the grant (approximately two years). Projected Crumb Rubber Usage (Column P) is the quantity of crumb rubber projected to be used per year.

  2. I am a California manufacturer capable of purchasing truck tire buffings from a California waste tire processor and further processing the material to produce a fine (≤50) mesh product. May I use the material and claim the fine mesh incentive? If I sell the material to another manufacturer, can they claim the fine mesh incentive?

    You may purchase truck tire buffings or crumb rubber from a California waste tire processor and further process the material to fine mesh. The resulting material may be used in a Tire Incentive Program (TIP) product under the New and Existing Tire-Derived Product or Feedstock Conversion incentive categories, but would not qualify under the Fine Mesh incentive category.

    A different, non-affiliated TIP applicant may purchase the fine mesh material from the manufacturer that further processed the larger material to fine mesh. In this case, the non-affiliated manufacturer would be purchasing the fine mesh material that originally came from a California waste tire processor. The material may be used in a TIP product and would qualify under the Fine Mesh incentive.

  3. Test Method ASTM D5644 defines the process for screening and determining particle size and particle distribution but does not provide a definition of what constitutes a specific mesh size. This may result in different interpretations of the amount of material that is larger or smaller than the identified size. For example, what constitutes fine (≤50 mesh) mesh crumb rubber?

    Particle size and particle size distribution as well as the screening process will be calculated according to ASTM D5644 and ASTM 5603, as appropriate. According to these testing methods, crumb rubber designated as 30-100 mesh would have 0 percent retained on the zero screen and not more than 10 percent retained on the designation screen. For crumb rubber finer than 100 mesh, 0 percent may be retained on the zero screen and not more than 15 percent retained on the designation screen.

    Basically, ASTM 5603 determines a minimum size designation, but not an upper limit on the mesh size. For example, material designated as 50 mesh (ASTM 5603 designation Class 50-X) would have 0 material on a 40 mesh zero screen and not more than 10 percent retained on the 50 mesh designation screen. It may be more useful for a manufacturer to specify (and a processor to provide) a mesh range (such as 50 to 80 mesh) and the percentage of material that must fall within that range. It is strongly suggested that manufacturers request a distribution table reflecting the sieve analysis of material provided.

  4. Does a grantee need to provide actual invoices of products sold to customers to claim reimbursement?

    No. However, invoices (and other supporting documentation) are required to be retained with the grantee’s onsite audit file. Every grantee will be audited during and/or after the grant term.

Eligibility

  1. What constitutes an applicant’s profitability during the application award review?

    An applicant must demonstrate operational profitability in two of the most recent three tax years, as evidenced by financial records and federal tax return information.

  2. If a Tire Incentive Program (TIP) applicant is a subsidiary or affiliate of another business (20 percent or greater common ownership), can an applicant business satisfy the time in operation (three years) and profit requirements (profitable in two of the past three years) by referencing the more established business?

    Eligible applicants must be California-based or incorporated in another state (or country) with an established manufacturing facility and be qualified to do business in California. Any and all subsidiaries, divisions and/or affiliated businesses are considered part of the primary business entity for the purpose of applying for and receiving a grant award under the TIP. A business is considered an “affiliated business” if it has at least one owner with a 20 percent or greater interest in another business. An applicant, including related businesses, can apply for only one TIP award per cycle.

    If an applicant does not satisfy the time in operation and profits requirements, CalRecycle can consider whether parent companies, subsidiaries, divisions and/or affiliated businesses that are similar in operation to the applicant would satisfy the requirements.

  3. If an applicant is approved for a new eligible product based on a concept drawing with title matching the product description, and subsequent changes are made to the product differing from the original concept drawing, would the product still be eligible?

    Yes, provided there is a legitimate business and marketing rationale to support the modification.

  4. Would a product manufacturer that uses crumb rubber in the asphalt binder material (as a substitute for oil or other material) qualify?

    For this cycle, the manufacturer of an asphalt-based product that uses at least 5 percent crumb rubber in the product (generally) is eligible. The Application Guidelines and Instructions, pages 3 – 4 state the eligible product categories and the critical elements that affect the product categories: New and Existing TDP, Feedstock Conversion and Fine Mesh. For a product such as roofing shingles, waterproof membranes, etc., the final product must contain a minimum of 5 percent crumb rubber by weight. Paving products must contain a minimum of 5 percent of crumb rubber in the binder. This would not meet the 15 percent threshold for a paving product to be considered “rubberized,” but may still reduce the overall material cost.

Funding

  1. The Application Guidelines and Instructions reference a general cost incentive of 5 cents per pound for all Tire Incentive Program (TIP)-eligible products sold and shipped (regardless whether the products are included in the TIP award). Please clarify the meaning of “regardless whether the products are included in the TIP award.”

    The general cost incentive includes all TIP-eligible products an applicant manufactures. This includes products for which the applicant is requesting a TIP product incentive as well as any other Tire Derived Product (TDP) that the applicant manufacturers (either their own or for others on a contract basis) that would otherwise be eligible for the TIP. Products that are specifically not eligible such as: rubber mulch/bark; tire-derived aggregate; crumb rubber (as a singular, intermediate product), synthetic turf-infill; rubberized sidewalks and tree wells; loose-fill, pour-in-place and playground tiles; sports tracks; and similar type products that may have benefited from the TDP Grant Program would not qualify to be included for the general cost incentive.

  2. If an applicant is also a TIP1 grantee, when calculating the 25 percent maximum general cost incentive for all product categories, would the applicant include their TIP1 products or TIP2 new products?

    The applicant would include only TIP2 eligible products when calculating the 25 percent maximum general cost incentive. However, sales of the TIP1 products can be included when claiming the general cost incentive.

  3. What modification to an existing Tire Derived Product (TDP) constitutes a new TDP? For example, if a company produces a 4 inch wide widget and modifies it to a 2 inch widget, would the 2 inch widget be considered a new TDP?

    The determination of whether an existing TDP has been sufficiently modified to be a new TDP would be based on whether there is a legitimate business and marketing rationale to support the modification. For example, changing the dimensions and/or weight of a product to satisfy previously un-met market need or to facilitate packaging and/or transportation demands would be sufficient. Making nominal changes in order to qualify as a new TDP would not be sufficient.

  4. Do the following materials qualify for the Tire Incentive Program (TIP) incentive?
    • Styrene-Butadiene Rubber (SBR)
    • Granulated Tire Rubber
    • Polymeric (Elastomeric, vulcanized)

    Products manufactured from crumb rubber from recycled California-generated waste tires (including truck tire buffings) are eligible under the TIP. In the past, tires were made from SBR (a synthetic material) and some people still (incorrectly) refer to crumb rubber from recycled waste tires as SBR. Today, SBR is one of several components in tires. That portion of products that contain SBR (exclusive of crumb rubber), elastomeric or vulcanized rubber are not eligible to receive a TIP incentive.

  5. Do 30 mesh truck tire buffings qualify for the incentive?

    Yes, products manufactured from 30 mesh truck tire buffings can qualify for the incentive.

Application

No questions were submitted in this category.

TIP FY 2014-15 | TIP Grants Home

Last updated: May 27, 2015
Tire Recycling, Cleanup, and Enforcement Grants, http://www.calrecycle.ca.gov/Tires/Grants/
Contact: (916) 341-5062 Grants@calrecycle.ca.gov