Questions about the Tire Incentive Program grant application were accepted in writing only, no later than July 1, 2016. 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.
- 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?
Yes. It is described on page 4 of the Application Guidelines and Instructions.
- 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. 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.
- 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.
- 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.
- If a Tire Incentive Program (TIP) applicant is a subsidiary or affiliate of another business (20 percent or greater common ownership), can we satisfy the time in operation (three years) and profit requirements (profitable in two of the past three years) by referencing the more established business?
If an applicant does not satisfy the time in operation and profits requirements, CalRecycle may consider whether parent companies, subsidiaries, divisions and/or affiliated businesses that are similar in operation to the applicant would satisfy the requirements. An applicant, including related businesses, can apply for only one TIP award per cycle. Refer to page 3 of the Application Guidelines and Instructions for more information regarding eligible applicants.
- 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 changed product still be eligible?
Yes. Providing the modification does not change the nature of the product and there is a legitimate business and marketing rationale to support the modification. For example, a flooring product cannot be “modified” to be a lawn edging product, but a round delineator base may be changed to a square base to facilitate shipping.
- Would a product manufacturer that uses crumb rubber in the asphalt material (as a substitute for oil or other material) qualify?
No. Asphalt binder containing crumb rubber that would be used in paving products (rubberized pavement, rubberized chip seal, etc.) is not eligible. Please refer to CalRecycle’s Rubberized Pavement Grant Program for eligibility. However, asphalt base stock that would be used in non-paving applications (such as various roofing products and roadway patch products such as crack seal, etc.) may be eligible, provided that the final product contains at least five percent crumb rubber, by weight.
- My company has a TIP2 grant. Can my company receive the general cost incentive under TIP2 and TIP3 for the same product?
- What modification to an existing Tire Derived Product (TDP) constitutes a new TDP? For example, if a company produces a four inch wide widget and modifies it to a two inch widget, would the two 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.
- What materials qualify for the program incentive?
Products manufactured using either crumb rubber from recycled California-generated waste tires or using California-generated truck tire buffings are eligible under the Tire Incentive Program. Refer to the Application Guidelines and Instructions for more information.
No questions were submitted in this category.