FCS3

 Recycling Market Development Zone Loan Program, which can provide low-interest loans to firms undertaking feedstock conversion activities that meet program financial, market and other criteria;  A pilot Tire Incentive Program (TIP), which CalRecycle staff is currently developing; and  The Plastics Market Development Incentive Program that provides funding to processors and manufacturers using California generated beverage containers. Feedstock Conversion Opportunities The 2009 Feedstock Conversion Report identified several rubber products for which crumb rubber from waste tires could potentially add value compared to virgin rubber raw materials. Some of the potential benefits that have driven California firms to undertake feedstock conversion projects include:  Reducing production cost by replacing higher cost raw materials with crumb rubber;  Enhancing product performance by taking advantage of the inherent characteristics of crumb rubber related to particle size, particle size distribution, density, rubber chemistry and surface morphology. Potential benefits may include: durability, flexibility, water resistance, slip resistance, tensile strength, cushioning, and sound or vibration dampening;

 Sales Expansion related to new or reformulated product lines;

 Green Marketing opportunities (though products typically must compete as well based on cost and performance); and

 Additional opportunities such as advancing corporate sustainability, supporting the local economy and/or promoting a made in the USA brand.

 The 2009 Feedstock Conversion Report concluded that a plausible goal would be for California manufacturers to collectively use about 52 million pounds of crumb rubber per year in making such products. While not a precise estimate of potential feedstock conversion demand, this figure is useful for evaluating alternative feedstock conversion activities. Feedstock Conversion Barriers Experience through the TBAP program shows success requires addressing several challenges, including:  Identifying and recruiting candidates for feedstock conversion;

 Need for a timeline and objectives tailored to the firm’s specific customer requirements and market positioning;

Contractor’s Report

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