Tire Recycling In Hawai’i - Maile's District 21 Blog Web viewTire Recycling In Hawai’i. 5/8/13. Yale University, ... O’ahu accounts for approximately 65-70 percent of both the

Tire Recycling In Hawai’i

5/8/13 Yale University, Final Project for FES 884 Industrial Ecology

Prepared by:

Frances DouglasLaura FranceschiniTruman MakRauf PrasodjoSirjan Xhurxhi

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Table of ContentsEXECUTIVE SUMMARY...............................................................................................3BACKGROUND...........................................................................................................5

HAWAI’I................................................................................................................................ 5INDUSTRIAL ECOLOGY IN HAWAI’I...............................................................................................5

OTHER STATES’ TREATMENT OF END OF LIFE TIRES.......................................................6California.......................................................................................................................... 7Arizona............................................................................................................................. 8

TIRES TO FUEL.......................................................................................................................8CURRENT SITUATION FOR END OF LIFE TIRES IN HAWAI’I..................................................................9

POLITICAL SITUATION AND CONCERNS........................................................................9TIRE DUMPING.......................................................................................................................9WASTE TO FUEL DRIVERS.......................................................................................................10PREVIOUS LEGISLATIVE ACTION REGARDING TIRES........................................................................11TIRE TASK FORCE.................................................................................................................12

STAKEHOLDERS.......................................................................................................13STAKEHOLDER INTERESTS AND POSITIONS...................................................................................13

CURRENT STOCKS AND FLOWS OF TIRES IN HAWAI’I....................................................15MATERIAL FLOW ANALYSIS.....................................................................................................15ESTIMATED RUBBER CRUMBLE NEEDS........................................................................................19

DESIGN OPTIONS FOR TIRE RECYCLING.....................................................................19RUBBERIZED ASPHALT............................................................................................................20WASTE TO ENERGY............................................................................................................... 23

COST-BENEFIT ANALYSIS...........................................................................................25QUALITATIVE CBA................................................................................................................26QUANTITATIVE CBA..............................................................................................................28

RECOMMENDATIONS................................................................................................38USE OF TIRE MATERIAL..........................................................................................................40RESEARCH........................................................................................................................... 41POLICIES............................................................................................................................. 45INDUSTRY........................................................................................................................... 47

CONCLUSION...........................................................................................................47ACKNOWLEDGEMENTS.............................................................................................48

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Tire Recycling In Hawai’iY A L E U N I V E R S I T Y, F I N A L P R O J E C T F O R F E S 8 8 4 I N D U S T R I A L E C O L O G Y

EXECUTIVE SUMMARYHawai’i faces the same challenges as other isolated islands: limited natural carrying capacity, limited resource availability, and tenuous resource security. These challenges make Hawai’i an ideal location for studying, encouraging, and implementing industrial ecology. This project uses tools from Industrial Ecology to analyze current flows, potential uses, and recommend an optimized solution for discarded tires in Hawai’i.

Interest in managing tires at end of life is largely driven by political interest in reducing illegal tire dumping – a problem widespread in rural and isolated parts of Hawai’i. Between 1999 and January 2013, over 10,790 tons of illegally dumped tires have been cleaned up in Hawai’i. The combination of lax legal enforcement and potential to avoid costs make illegally dumping tires an attractive option to many individuals. However, the problems associated with illegal tire dumping go far beyond aesthetics – dumped tires also pose significant health and public safety risks. Meanwhile, using tires as a fuel source is gaining political momentum since a recent addition to O’ahu’s waste-to-energy facility enables the burning of whole tires and generates revenue for the City. In response to growing political interest in end-of-life tires, the Abandoned Tire Task Force was recently created and charged with presenting its findings and recommendations to the Hawai’ian Senate in January 2014.

A material flow analysis for tires in Hawai’i was developed based on datasets collected and interviews conducted on O’ahu in March 2013. On average, 1.1 million tires are disposed of annually in Hawai’i. This number includes tires that are accounted for through proper disposal systems, tires that are illegally dumped, as well as underreported tires. Used tires are disposed through three main channels in Hawai’i. The first disposal channel is through Lakin Tire, a tire collection and recycling company that exports the tires to the mainland for processing. The second disposal channel for used tires is through small- and medium- size commercial entities, who primarily pay Unitek Solvents to dispose of their tires. The third channel is residents who dispose of tires through municipally run convenience centers. These centers currently bring the collected tires to Unitek. At Unitek, the tires are either shredded for use at AES, a coal fired power plant, or exported to a waste-to-energy facility in Vietnam via a company in China. Within the year, however, the majority of tires collected at the convenience centers will be delivered to H-Power, the municipally run waste-to-energy facility.

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Considering supply and demand limitations, this study focuses on two potential uses for discarded tires: rubberized asphalt concrete and waste-to-energy.

The first design solution investigated is rubberized asphalt concrete (RAC). Use of RAC in asphalt is a well-established technology and many states now mandate use of RAC in roads. Many studies have found that RAC asphalt performs as well or better than conventional asphalt. RAC has been found to produce benefits even when it is mixed at very low percentages, such as 5%. RAC asphalt has multiple benefits as compared to conventional asphalt. RAC roads are more durable and skid-resistant, they produce less noise, they last longer, and they require less maintenance. RAC in asphalt tends to have the greatest benefits in southern, warmer climates, such as Hawai’i. There is currently no facility on O’ahu with the capacity to grind tire rubber to the small mesh level needed, so for RAC to be feasible, construction of a tire crumbling facility would be necessary. The most feasible option for Hawai’i is the terminal blend method for using RAC in asphalt, because there is insufficient space at the two asphalt plants to incorporate rubber tire crumbling machinery and doing so at both plants would not be cost-effective.

The second design solution considered in depth by this study is using discarded tires as fuel. Though the use of tire as fuel will not provide enough to meet Hawai’i’s electricity demands, it can help reduce the amount of other fuels being imported and thus reduce the costs of electricity production. Furthermore, using tires to reduce the amount of coal imported and burned in Hawai’i also reduces the environmental impacts of producing electricity for Hawai’i.

The primary goal of this study was to determine the highest value end use for scrap tires. Various life cycle assessment studies determined that one of the most environmentally beneficial alternatives for reuse of scrap tires is for incineration as waste-to-fuel. Use of scrap tires for asphalt production leads to an increase in GHG emissions because asphalt production using crumb rubber from scrap tires involves additional processing steps that require inputs such as electricity and diesel. However, a life cycle assessment (LCA) study comparing RAC to tire-derived fuel (TDF) found that RAC provided significantly greater impact reductions than the energy recovery scenario. In addition, this study found that the establishment of new infrastructure required for a shift to material recycling incurs relatively insignificant burdens. An analysis was conducted to compare the costs and benefits of three different uses for end-of-use tires, export, fuel, and RAC, as compared to current baseline use. The most beneficial option was found to be RAC, then waste-to-fuel, then export. This study thus finds a basis for prioritizing treatment of scrap tire waste first as RAC and then as fuel.

In order to help Hawai’i meet its self-sufficiency goals, it is critical that Hawai’i best captures the value of on-island resources such as tires instead of exporting these valuable resources. As concluded in this study, the highest value for used tires on O’ahu is in rubberized asphalt concrete (RAC) because it will retain a valuable resource on-island, will improve transportation infrastructure, and will reduce the environmental costs of exporting or burning tires. This study therefore recommends that O’ahu begin planning to implement use of RAC in a three-phased approach and outlines a detailed action plan for how this can be accomplished.

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BACKGROUNDHawai’i Hawai’i is a unique space within the United States and conducting work there requires an

understanding of its history. Hawai’i is made up of eight main islands: Hawai’i, O’ahu, Maui, Molokai,

Lanai, Niihau, Kauai, and Kahoolawe. Located in the central Pacific Ocean, Hawai’i is one of the most

isolated population centers in the world - the closest land mass over 2,000 miles away. Despite this

isolation, Hawai’i is known worldwide for its coastal beaches, volcanos, and warm tropical climate.

Hawai’ian culture and lifestyle are heavily influenced by its rich history. Hawai’i has a population of 1.3

million with over 900,000 residents located on O’ahu. This population concentration coincides with the

largest Hawai’ian ports, and the majority of Hawai’ian visitors, imports, and exports travel through

O’ahu. Hawai’i’s main industries are tourism, coffee, macadamia nuts, pineapple and sugarcane.1

Historically the Hawai’ian Island’s main industries were sandalwood production, whaling, and

sugarcane.2

Industrial Ecology in Hawai’i

Hawai’i faces the same challenges as other isolated islands: limited natural carrying capacity,

limited resource availability, and tenuous resource security. These challenges make Hawai’i an ideal

location for studying, encouraging, and implementing industrial ecology. Since 2006, the Center for

Industrial Ecology has conducted work in Hawai’i. This work has ranged from describing existing

industrial symbiosis3 to a material flow analysis for O’ahu.4 This project continues to build upon this

work and maintains the strong partnership with the Kohala Center.5

Two large focus areas for industrial ecology in Hawai’i are energy and waste flows. According to

EIA’s Hawai’i State Profile and Energy Profile, Hawai’i imports over 94% of their energy and generates

1 USA. Hawai’i Department of Business, Economic Development and Tourism. 2007 Economic Census. N.p., Feb. 2010. Web. 06 May 2013.2 "Economic History of Hawai'i." Http://eh.net/encyclopedia/article/lacroix.hawaii.history. Economic History Association, 01 Feb. 2010. Web. 07 May 2013.3 Chertow, Marian, and Yuko Miyata. "Assessing collective firm behavior: comparing industrial symbiosis with possible alternatives for individual companies in O’ahu, HI." Business Strategy and the Environment 20.4 (2011): 266-280.4 Eckelman, Matthew J., and Marian R. Chertow. "Using Material Flow Analysis to Illuminate Long‐Term Waste Management Solutions in O’ahu, Hawaii."Journal of Industrial Ecology 13.5 (2009): 758-774.5 The Kohala Center. http://www.kohalacenter.org/

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the rest through on-site renewable sources.6 This study focuses on O’ahu, since the majority of Hawai’i’s

population is located there. O’ahu’s waste management relies heavily on waste to energy. All municipal

solid waste generated on O’ahu is sent to a waste to energy facility with a few remaining landfills to

handle items that cannot be burned such as ash, construction waste, and hazardous materials. Most

recyclable materials from Hawai’i are shipped to the continental United States (mainland). Significant

industrial symbiosis is occurring on O’ahu through resource recovery of wastewater, heat/energy, and fly

ash in the Campbell Industrial Park, as is illustrated below7:

FIGURE 1: INDUSTRIAL SYMBOSIS OCCURING IN CAMPBELL INDUSTRIAL PARK ON O’AHU, HI

Due to the island’s limitations, it can be difficult for new industries to emerge even if that

industry can benefit from industrial symbiosis. A further complication to establishing new industries is

the potential for inconsistent supply sources. If an industrial symbiosis supply chain is interrupted for

any reason, the costs to import that raw material can be uneconomical. Frequently, the additional cost of

importing goods to Hawai’i are outweighed by the cost to create the same commercial good on island

due to limited resources and insufficient infrastructure.

The focus of this study is determining the highest value use for end-of-life tires in Hawai’i.

6 United States. U.S. Energy Information Adminstration. Hawaii: State Profile and Energy Estimates. Web. 7 May 2013. <http://www.eia.gov/state/?sid=HI>.7 Chertow, Marian, and Yuko Miyata. "Assessing Collective Firm Behavior: Comparing Industrial Symbiosis with Possible Alternatives for Individual Companies in O’ahu, HI."Business Strategy and the Environment (2010): 266-80. Print.

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OTHER STATES’ TREATMENT OF END OF LIFE TIRES

There are several states that Hawai’i can study to better understand its options for designing a

viable solution for used tires. In particular, California and Arizona set good examples for potential

legislation and programs to deal with this issue.

CaliforniaCalifornia has one of the most developed tire recycling programs in the country. The issue of

discarded tires is especially pressing in California since it has more registered vehicles than any other

state.8 In 1989, California passed its first tire bill - the California Tire Recycling Act. The intent of this

bill was:

“(a) To reduce the landfill disposal and stockpiling of used whole tires by 25 percent within four years of full implementation of a statewide tire recycling program and to recycle and reclaim used tires and used tire components to the greatest extent possible in order to recover valuable natural resources.

(b) To eliminate illegal dumping and unnecessary stockpiling of used tires.”9

This bill would achieve these results through the creation of the Tire Recycling Program and the

California Tire Recycling Management Fund, primarily funded by a $0.75 fee per new tire sold.10 In

2000, California passed the California Waste Tire Recycling Enhancement Act that was created as a

more comprehensive measure for the waste management of used tires.11 This bill required that the local

government create a five-year plan with a proposed budget allocation to deal with disposal of used tires.

The program includes:

Cleanup and abatement of tire stockpiles across the state

A tire manifest program to improve California’s ability to track the flow of tires.

Research to promote and develop alternative uses for waste tires other than sending them to

landfill

Market development and implementation of new technologies for used tires.

8 CalRecycling. “Tire Management Overview. ” 2013. Web. May 1, 2013. <http://www.calrecycle.ca.gov/tires/overview.htm> 9 California code – Article 3: Tire Recycling [42870. – 42875.] 10 California code – Article 3: Tire Recycling [42870. – 42875.] 11 California Senate Bill (SB) 876 (Escutia, Statutes of 2000, Chapter 838)

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Enforcement of regulations related to used and disposed tires

Within this first five-year plan, the state was required to spend at least $6.5 million dollars on cleanup

activities, prepare a report on the health effects of smoke from burning tires, and create a $1 million

dollar emergency fund for this program.

As a result of this legislative action, data from the California's Department of Resources

Recycling and Recovery (CalRecycle) indicates 33.2 million was put into other beneficial use in 2010 -

an 81 percent recycling rate. This success is largely due to the emergence of higher end products that use

recycled tires and their corresponding uptake by the market.12

In the latest five-year plan (2012-2016 period), California has increased its planned expenditure

for the tire-recycling program to more than $185 million.13 In addition to the programs mentioned above,

this plan will also emphasize creating a sustainable market infrastructure for tire-derived products. In

particular, it will focus on rubberized asphalt concrete (RAC) and tire derived aggregate (TDA) in civil

engineering products. These programs were created to help ensure and stimulate increased retention of

the embedded material and energy value of used tires.

ArizonaArizona has also created a comprehensive used tire recycling program that mostly requires

people to recycle used tires rather than sending them to landfills or to be incinerated.14 Used tires must

either be disposed at tire collection centers or used for one of 12 permissible purposes stated by law

which include retreading, chopping or shredding for use as daily cover of solid waste in landfills, and

grinding for use in asphalt.

These programs are funded by a fee on the purchase of new tires, which is two percent of the

price of the tire or two dollars—whichever is less. Tire retailers are also required to accept used tires

when customers purchase new ones. Retailers can dispose of these tires at collection facilities across the

state without charge.

Despite not being mandated by law, for many years, Arizona’s Department of Transportation has

increasingly been using scrap tires for rubberized asphalt to repave state highways.15 This has helped to

12 CalRecycling. “Tire Recycling and Market Development.” 2013. Web. April 23, 2013 <http://www.calrecycle.ca.gov/Tires/Recycling/default.htm>13 CalRecycling. “Report to Legislation Sixth Edition.” 2013. Web. April 27, 2013. <http://www.calrecycle.ca.gov/Publications/Detail.aspx?PublicationID=1378>14 Arizona State Legislature, Title 44, Chapter 9, Article 8, Section 44-1301 to 44-130715 State of Connecticut General Assembly. “Tire Recycling in Arizona.” 2000. Web. May 1, 2013. <http://www.cga.ct.gov/2000/rpt/2000-R-0720.htm>

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create a market for discarded tires: it is estimated that around 4 million tires disposed in Arizona each

year are used for rubberized asphalt.16

Tires to FuelAnother commonly used method for tire disposal is as a fuel source. In 2003, an estimated 130

million of the more than 290 million tires discarded in the US were used as fuel. Of these, 41% went to

the cement industry, 20% went to pulp and paper mills, 18% went to electric utilities, 13% went to

industrial/institutional boilers, and 8% went to dedicated tire-to-energy facilities.17 According to the

EPA:

Tires produce the same amount of energy as oil, and 25% more than coal;

The ash residues from TDF may contain lower heavy metals content than some coals;

Burning tires results in lower NOx emissions when compared to many US coals,

particularly high-sulfur coals18

Current Situation for End of Life Tires in Hawai’i Recycling of waste tires faces similar constraints as for other recycling industries in Hawai’i.

These include high initial capital startup costs, inconsistent supply of waste tires or demand for finished

goods, or inability to compete with similar goods produced elsewhere. As a result, the currently

available disposal methods for discarded tires on O’ahu fall into three categories:

Export whole tires for use in waste-to-energy

Export whole tires for retreading and other recycling

Keep tires on island for waste-to-energy

o Shredded for burning in coal-fired power plant (AES)

o Burned whole in City and County of Honolulu waste-to-energy facility (H-Power)

16 Arizona Department of Environmental Quality. “Waste Tires” 2013. Web. May 2, 2013. <http://www.azdeq.gov/environ/waste/solid/tires.html> 17 Rubber Manufacturs Association, 2004 as cited on "Tire-Derived Fuel - Scrap Tires." EPA. Environmental Protection Agency. 06 May 2013 <http://www.epa.gov/osw/conserve/materials/tires/tdf.htm>.18 "Tire-Derived Fuel - Scrap Tires." EPA. Environmental Protection Agency. 06 May 2013 <http://www.epa.gov/osw/conserve/materials/tires/tdf.htm>.

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POLITICAL SITUATION AND CONCERNS Tire Dumping

Illegal tire dumping is one of the primary drivers behind political interest in end of life

management for tires. The majority of illegal dumping sites occur in rural or industrial areas of Hawai’i

and range widely in size. Although many dump sites contain fewer than ten tires, several sites contain

significantly more. A site in Ma’ili on O’ahu contained 6,628 tons of discarded tires. The cleanup of the

Ma’ili site took over a year to complete and cost $1,269,779. While Ma’ili stands out as one of the

largest Hawai’ian tire cleanups to date, there are many other sites with hundreds or thousands of tons of

tires in them. In all, over 10,790 tons of illegally dumped tires have been cleaned up in Hawai’i from

1999 to January 2013. As of January 2013, there were four active sites with an estimated 7,000 tires

combined.19

The tempting combination of lax legal enforcement and potential to avoid costs make illegally

dumping tires an attractive option. Currently, a commercial entity disposing of tires at a recycler must

pay a $2.50 fee per passenger tire.20 It is speculated that many small automobile shops, for example a

shop run out of a person’s home, illegally dump tires to avoid paying this fee. Another group that is

speculated to contribute to tire dumping is tire haulers who dump the tires and pocket the recycling fee

collected from their customer upon pickup.21 The opportunity to save money by avoiding the recycling

fee is made easier due to lax enforcement. According to multiple sources, tire dumping is a rarely

prosecuted crime. Even in instances where photographic evidence show an individual dumping tires,

individuals have been cleared by merely saying that the tires were illegally dumped on their property

and they are only moving the tires.22

In addition to being an eyesore, illegal tire dumping sites pose significant health and public

safety risks. Tires persist long after they have been dumped, largely maintaining their original shape.

Following a rain event, the impermeable tire interior holds water while sheltering it from evaporation.

This standing water makes abandoned tires a prime breeding ground for mosquito larvae. Mosquitos are

vectors for many infectious diseases, such as dengue fever, yellow fever, and West Nile virus. In

addition to holding water, the shape of a tire also contributes to its fire risks. The interior void of a tire

provides a fire with access to oxygen, allowing it to burn very well. This void also makes it difficult to

19 Valera, John. “Tire Program: Presentation to the Abandoned Tire Task Force” State of Hawai’i Department of Health Office of Solid Waste Management. January 9, 201320 "Interview with Michael O'Keefe: Recycling Specialists for City and County of Honolulu." Personal interview. Mar. 2013.21 "Interview with Senator Shimabukuro: Senate District 21." Personal interview. Mar. 2013.22 "Interview with Michael O'Keefe: Recycling Specialists for City and County of Honolulu." Personal interview. Mar. 2013.

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extinguish a fire with water or by cutting off its access to oxygen, so tire fires can persist for long

periods. This is a concern because tire fires create dense black smoke and highly toxic emissions and are

serious threats to public and firefighter health and safety.23

Waste to Fuel Drivers Waste-to-energy on O’ahu provides a significant revenue stream for the City and County of

Honolulu (CCH), the local municipal government. H-Power, the waste-to-energy facility owned by

CCH, can process up to 3,000 tons of municipal solid waste per day. This generates up to 90 megawatts

of energy, which is roughly 8% of O’ahu’s energy demands.24 The energy produced is sold to the

Hawai’ian electricity market, which has the highest electricity costs in the United States. In addition to

the sale of electricity, H-Power also generates revenue from tipping fees and metals recycling. The

current tipping fee at H-Power is $90/ton. Metals recovered during the waste-to-energy process may also

be sold, generating another source of revenue for CCH.

Previous Legislative Action Regarding Tires Legislative action regarding tires in Hawai’i has evolved over time. The City and County of

Honolulu banned the disposal of whole tires in City Disposal sites in the Scrap Tire Management Act of

1993.25 This ban also included stipulations that new tire dealers are required to accept used tires being

replaced. In 2000, a $1 per tire surcharge was placed on each tire imported into the State of Hawai’i,

with an exemption for car rental companies.26 The money collected went into a special tire fund for

cleaning up illegal tire dumping sites. This surcharge evolved from an original goal of collecting six

million dollars to a final purpose of collecting three million dollars. It was agreed the surcharge would

be sunset either in 2006 or when three million dollars had been collected, whichever came first.27 The

surcharge sunset early in 2003 after three million dollars was collected, yet political interest in end of

life tire management has remained active. 28 In the first quarter of 2013, there had already been seven

23 Ji-Won Jang, Taek-Soo Yoo, Jae-Hyun Oh, Iwao Iwasaki, Discarded tire recycling practices in the United States, Japan and Korea, Resources, Conservation and Recycling, Volume 22, Issues 1–2, March 1998, Pages 1-14, ISSN 0921-3449, 10.1016/S0921-3449(97)00041-4.24 "Covanta Honolulu Resource Recovery Venture." Covanta Energy, n.d. Web. 6 May 2013. < http://www.covantaenergy.com/covanta-us-home/facilities/facility-by-location/honolulu.aspx>25 Hawai’i Revised Statutes, Chapter 342I Section 342I-21 to 342I-3526 Valera, John. “Tire Program: Presentation to the Abandoned Tire Task Force” State of Hawai’i Department of Health Office of Solid Waste Management. January 9, 201327 "Interview with Dave Rolf, Executive Director, Hawai’i Automobile Dealers Association (HADA)." Personal interview. Mar. 2013.28 Ibid.

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bills applying to tires which had been introduced in the Hawai’ian Senate or House of Representatives.

Since some bills were introduced to both the House and the Senate, these represent a total of four formal

discussion concepts regarding tires, as follows:

Requiring tire importers to acquire the amount of used tires that is equal to at least ninety five

percent of the new tires sold by that importer and report to the Department of Health. 29

Re-establish the $1 per motor vehicle tire surcharge to assist in managing, recycling, and

disposing of tires.30

Establish a surcharge of $1 per tire on any tire retailer or wholesaler who installs a replacement

tire.31

Establish a voucher system for collection and disposal of vehicle tires.32

Tire Task Force With growing legislative concern regarding tire dumping on the Island of O’ahu, there have been

continuous discussions regarding the enactment of SB3006, known as the “Tire Bill” by the Hawai’i

senate.33 Senator Maile Shimabukuro has been a primary advocate of this Bill. Earlier in its life, the Tire

Bill tried to reinstate a $1 per tire deposit program for tires imported into Hawai’i, with the fees to be

collected in a fund. This fund would be used by the Department of Health for tire recovery and would

create incentives to prevent tire dumping. However, this proposal was met with opposition from the

private sector and some government officials due to the expensive start-up costs of the program and the

bureaucratic complexities of implementing the bill.

As a result, the Tire Bill was revised to an Act which created the Abandoned Tire Task Force. As

stipulated in the Act, the Abandoned Tire Task Force will include the following people:

1. “The director of health, or the director's designee;2. The chairperson of the board of land and natural resources, or the chairperson's designee;3. A representative of the city and county of Honolulu department of environmental services;4. A representative of the Honolulu police department;5. Elected officials of affected communities, as determined by the department of health;

29 Hawai’i 2013 HB 374 <http://www.capitol.hawaii.gov/session2013/Bills/HB374.pdf>; Hawai’i 2013 SB 566 < http://www.capitol.hawaii.gov/session2013/Bills/SB566_.PDF>30 Hawai’i 2013 SB 63 < http://www.capitol.hawaii.gov/session2013/bills/SB63_.pdf>; Hawai’i2013 HB 375 < http://www.capitol.hawaii.gov/session2013/Bills/HB375_.PDF>31 Hawai’i2013 HB 441 < http://www.capitol.hawaii.gov/session2013/Bills/HB441_.PDF>; Hawai’i2013 SB 569 < http://www.capitol.hawaii.gov/session2013/Bills/SB569_.PDF>32 Hawai’i2013 HB 701 < http://www.capitol.hawaii.gov/session2013/Bills/HB701_.PDF>33 Hawai’iState Legislation. “2012 Archives – SB3006.” 2012. Web. May 1, 2013. <http://www.capitol.hawaii.gov/Archives/measure_indiv_Archives.aspx?billtype=SB&billnumber=3006&year=2012>

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6. A representative from each of the neighborhood boards of affected communities, as determined by the department of health;

7. A representative of the tire recycling industry, to be selected by the department of health;8. A representative of the vehicle recycling industry, to be selected by the department of health;9. A representative of tire retailers, to be selected by the department of health;10. A representative of automobile dealers, to be selected by the department of health;11. A representative of Ka Wai Ola O Waianae; and12. A representative of the Naval Facilities Engineering Command.”34

The first meeting of the Abandoned Tire Task Force was held on January 9, 2013 and was led by

the Department of Health of the State of Hawai’i.35 This meeting determined that the task force should

conduct further studies regarding the problem of used tires in Hawai’i and propose potential solutions as

well as legislation for problems found. The final findings of the Abandoned Tire Task Force will be

discussed at the Hawai’i Senate in January 2014.

STAKEHOLDERS Stakeholder Interests and Posit ionsHawai’i’s small population and geographic isolation make it necessary for policy analysis and

recommendations to include consideration of stakeholder interests and positions. Waste tire management

in Hawai’i is a contentious topic for many stakeholders and there are widely varying opinions as to how

best to deal with end of life tires.

State Senator Maile Shimabukuro represents a rural district on O’ahu where tire dumping is

common and a key issue of concern for residents. As a result, Senator Shimabukuro and other politicians

have spearheaded legislation aimed to resolve this issue that affects their constituents. Proposed

legislation has included tire taxes, tire deposit fees, or mandatory tire recycling programs.

However, not all stakeholders agree that there is a problem with current end of life management

for tires. In particular, automobile dealers36 and tire recyclers37 do not think the handling of waste tires

needs to be changed. They believe that the tire dumping problem can best be dealt with through clean

34 Hawai’iSenate Bill 3006 < http://www.capitol.hawaii.gov/session2012/bills/SB3006_CD1_.htm>35 District 21 – Senator Maile Shimabukuro. “Task force on Abandoned Tires.” 2013. Web. April 28, 2013. <http://21maile.com/2013/01/02/task-force-on-abandoned-tires/>36 "Interview with Dave Rolf, Executive Director, Hawaii Automobile Dealers Association (HADA)." Personal interview. Mar. 2013.37 "Interview with Blane Yamagata, President, Unitek Solvent." Personal interview. Mar. 2013.

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ups and do not support legislation regarding additional surcharges or deposits. They believe the

administration required to run these programs will negatively impact their industries.

One proposed use of waste tires is incorporating tire crumble into rubberized asphalt concrete

(RAC) mix. This solution has been championed by Senator Shimabakuro and Nick Youngleson, a

resident of Senator Shimabakuro’s district. Youngleson initially became involved due to his frustration

with illegal dumping and its associated environmental damage. As a seasoned entrepreneur, Youngleson

is interested in developing a rubber crumble facility to process discarded tires for use in RAC. He

believes this is a solution which can solve the tire dumping problem while simultaneously addressing

Hawai’i’s large potholes and creating a new industry on O’ahu.38

This proposed solution of RAC has been met with opposition from the Hawai’i Asphalt Paving

Industry (HAPI) and Unitek Solvent. HAPI does not believe RAC is viable in Hawai’i due to four main

reasons39:

1. Insufficient amount of waste tires to meet RAC demand year round

2. High startup capital required for new equipment/training

3. Additional operational costs

4. Non-existent state and municipal design specifications for RAC

However, it should be noted that as RAC typically extends the lifespan of roads and reduces

required maintenance, implementation of this option stands to reduce business for HAPI. This is likely

another key reason why HAPI does not support RAC.

Unitek Solvent, a major tire recycler, does not believe the tire crumbling process can be done

economically in Hawai’i given the current annual supply of discarded tires.40 Additionally, both HAPI

and Unitek Solvent expressed concerns that mandated regulations may be created without proper

consideration of the unique challenges Hawai’i might face in using RAC in asphalt and before first

testing this product on Hawai’ian roads.

The table below shows key stakeholders, their position on new tire legislation involving the

creation of a new tax, deposit fee or recycling program, and the stated key drivers behind their position.

38 "Interview with Nick Youngleson” Personal interview. Mar. 2013.39 "Interview with Jon Young, Executive Director, Hawai’i Asphalt Paving Industry (HAPI) and Dick Levins, President, Asphalt Hawai’i." Personal interview. Mar. 2013.40 "Interview with Blane Yamagata, President, Unitek Solvent." Personal interview. Mar. 2013.

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Stakeholder Position on Tire Fees

Position on RAC

Key Drivers

Maile Shimabukuro (And other supporting state senators) – Politician

In Support In Support Eliminate tire dumping in their district and decrease associated environmental damage

Hawai’i Automobile Dealers Association (HADA) – Industry Group

Opposed Neutral Concerned about the added upfront costs of tire fees for consumers, as well as the administrative costs and paperwork for them to administer this fee

Nick Youngleson – Concerned Citizen/ Entrepreneur

In Support In Support Concerned about the environmental damage that is occurring in his community, motivated to start a tire crumbling business

Unitek Solvents – Tire Recycler

Opposed Neutral Against deposit fee proposal, does not think it will solve tire dumping but only complicate the problem, might be expected to administer the fee.

Honolulu/ Opala Solid Waste Department, City & County of Honolulu – Municipal Government

Neutral/

Opposed

Neutral Will follow legislation, but has incentive to use waste tires for tire-derived fuel due to newly built incineration boiler that can take whole tires and generates profit for CCH. May be expected to administer deposit fee program.

Hawai’i Department of Health - Office of Solid Waste Management – State Government

Neutral/ Opposed

Neutral Will follow legislation, but believes tire dumping has been significantly reduced and the problem is now under control. Does not believe a tire fee is necessary

Hawai’i Department of Transportation – State Government

Neutral Neutral Will follow legislation and will create state design specifications for RAC asphalt as necessary, but is hesitant to create such specifications unless industry is comfortable with the technology

Hawai’i Asphalt Paving Industry (HAPI) – Industry Group

Neutral Opposed Against legislation due to the new equipment, storage and operating costs of RAC. Likely also strongly motivated by the potential of reduced profits due to increased durability and reduced maintenance needs of RAC roads.

FIGURE 2: KEY STAKEHOLDERS, POSITIONS, AND DRIVERS

CURRENT STOCKS AND FLOWS OF TIRES IN HAWAI’I

Material Flow Analysis

A material flow analysis for tires in Hawai’i was developed based on datasets collected and

interviews conducted on O’ahu in March 2013.

Page 15


One method for estimating current stocks and flows of tires in Hawai’i is to look at vehicles.

There are currently 1.1 million vehicles in the state of Hawai’i and the majority of these are 4-wheel

passenger cars. Around 50,000 new cars are imported annually into the state. O’ahu accounts for

approximately 65-70 percent of both the total number of vehicles and imports. Using these calculations,

the car stock of O’ahu is 710,500 cars and the amount of cars entering per year is 32,500 cars. National

data indicates an average of one tire per car is replaced annually, thus the average number of end-of-life

tires disposed in Hawai’i annually can be estimated to be 1.1 million.41

Another method for quantifying end-of-use tires disposed in Hawai’i is to look at tire recovery

statistics. Based on data from the Hawai’i Department of Health (DoH), the amount of disposed tires

reported differs greatly between 2001 and 2012. The range can be seen in Figure 3 below, where the

lowest number of used tires recovered was around 560,000 tires in 2009 and the highest number of used

tires recovered was around 1.5 million tires in 2004.

The years with lower quantities of tires recovered coincide with economic downturn and might indicate

that during this period, people were using tires for longer periods. The average amount of used tires that

were recovered by the state of Hawai’i during this period was around 900,000 tires per year. However,

the DOH acknowledges that there could be up to 300,000 used tires that are not reflected in these

41 "Interview with Dave Rolf, Executive Director, Hawai’i Automobile Dealers Association (HADA)." Personal interview. Mar. 2013.

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FIGURE 3: TIRES RECOVERED AND ASSOCIATED DESTINATION


figures. These unaccounted tires could result from several possibilities, such as: people keeping used

tires, underreporting of used tires by companies, and differences in counting methods used by tire

facilities (i.e. reporting by tons versus number of tires, and using rough conversions between the two

methods).42 In addition, current estimates for annual number of tires dumped illegally are approximately

26,000.43 If unaccounted tires are included, the average annual amount of used tires disposed in Hawai’i

estimated by DOH is roughly the same as the estimation by HADA.

A third mechanism for quantifying end-of-life flow of tires in Hawai’i is via tire disposal

agencies. Used tires are disposed through three main channels in Hawai’i:

The first disposal channel is Lakin Tire. This nationwide company provides tire collection and

recycling services for large distributors in Hawai’i such as Walmart and Sears, which are required by

law to accept the used tires replaced by the new tires sold in their stores. The tires collected by Lakin

Tire are exported to the US mainland where they are reused, recycled, or used as fuel.44 Lakin also

collects used tires from the military base in Hawai’i, which is estimated to consume up to ten percent of

the tires used in Hawai’i annually. In 2012, the total amount of tires that were shipped by Lakin Tires

from Hawai’i to the mainland amounted to 374,000 tires, of which 77 percent (287,000) came from

O’ahu.45

The second disposal channel for used tires in Hawai’i is through small- and medium- size

commercial entities. On O’ahu, these companies primarily take the used tires they collect directly to

Unitek. After Unitek collects discarded tires, there are two options for their end use. Until 2009, Unitek

would shred the majority of its tires and sell them to AES, a coal-fired power plant on O’ahu, for fuel.

This arrangement ended in 2009 after a disagreement regarding the selling price between the two

companies. Since then, Unitek has shipped all the tires it collects to a processor in China. From there,

the tires are imported into Vietnam as fuel for energy production. In October 2012, Unitek reached an

agreement where AES will purchase 6,000 tons of tires per year (equivalent to 600,000 passenger tires)

at $60 per ton for a 10-year period. The remaining tires Unitek receives will continue to be exported to

Asia. This agreement will take effect later in 2013.

42 Presentation given to the Abandoned Tire Task Force – Department of Health, State of Hawai’i. Presented by John Valera on January 9, 2013. 43 Meeting with John Valera, Department of Health44 Lankin Tire Website <www.lakintire.com45 Correspondence with C. Janer from Lakin Tire. March 2013

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The third disposal channel for used tires in Hawai’i is through residents at refuse convenience

centers provided by counties in Hawai’i. Residents (not commercial entities) can dispose of used tires at

these centers free of charge. These convenience centers are estimated to collect approximately 60,000

used tires each year46. As of March 2013, tires collected from the convenience centers are then taken to

Unitek, where the disposal fee is paid by the local government, thus using money from residential taxes.

Although there are twelve used-tire facilities in Hawai’i, the majority of used tires go through

Unitek. Currently, Unitek handles around 700,000 tires per year. As discussed above, this number

encompasses the disposal routes for small- to medium- sized companies and residents. By the end of

2013, this amount will likely decrease by 60,000 tires to roughly 640,000 tires processed by Unitek

annually. This is because the Department of Environmental Services of the City and County of Honolulu

has initiated a trial phase to burn up to 65,000 tires at H-Power, a municipally owned waste-to-energy

facility. During this trial phase, the 60,000 tires collected at residential convenience centers will be

redirected to H-Power.

The material flow analysis for Tires in Hawai’i is shown below in Figure 4.

46 Meeting with Michael O’Keefe, Recycling Specialist (Tire Recycling), Honolulu/ Opala Solid Waste Department, City & County of Honolulu, March 11, 2013

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Unreported(up to

300,000)

Imported(1.1

million)

Exported(387,000)

Burned as Fuel

(660,000)

Tire Recycling In Hawai’iFIGURE 4: DIAGRAM ILLUSTRATING THE MATERIAL FLOW OF TIRES IN HAWAI’I IN 2013 (ESTIMATED ANNUAL NUMBER OF PASSENGER TIRE EQUIVALENTS)

Estimated Rubber Crumble NeedsA draft of a bill to be introduced to the Senate states that a minimum of 9,000 tons of rubber

crumble be used annually in asphalt by 2020.47 Producing this amount of rubber crumble would require

1,285,700 waste passenger tire equivalents per year.48 However, our analysis shows that O’ahu might

only currently produce a maximum of approximately 1,240,000 passenger tire equivalents annually. In

addition, according to field data from ADOT, 1.1 million passenger tires can provide pavement for only

up to 200 miles of streets and Hawai’i paves approximately 1,102 miles of miles of streets annually.49

Therefore, it may be necessary to import some rubber crumble to meet the proposed senate bill,

presuming that this bill refers to all roads in Hawai’i and not just state-owned roads. If the bill refers

only to state-owned roads, which represent only 15% of Hawai’i’s roads, then there would be more than

enough rubber crumble available.

If 9,000 tons of rubber crumble is added to the asphalt binder at 20% mix in the terminal blend,

this will result in 45,000 tons of rubber asphalt binder per year.50 If this rubber asphalt binder is added to

asphalt concrete at a 5-10% mix, it would result in RAC of 450,000 to 900,000 tons a year.51 HAPI

currently uses about 1,200,000 tons of asphalt a year for paving in Hawai’i. Therefore, even with design

specifications for only 5% RAC content in roads, there is likely not enough rubber crumble available

within Hawai’i to meet these requirements. It will thus likely be necessary to import rubber crumble if

the design specifications will require 5% RAC or higher for all roads in Hawai’i.

DESIGN OPTIONS FOR TIRE RECYCLING

There are many different options for using end of life tires, rather than landfilling them. These

options utilize tire properties such as their elasticity, energy content, or material value. Applications for

used tires include:

Rubberized asphalt concrete (RAC) Fuel for electricity or use by industry

47 Personal Email Correspondence with Nick Youngleson and Senator Shimabukuro, March 201348 Personal Email Correspondence with Nick Youngleson, March 201349 "What is Rubberized Asphalt?" Quiet Roads ~. Arizona Department of Transportation. 06 May 2013 <http://www.azdot.gov/quietroads/what_is_rubberized_asphalt.asp>.50 Personal Email Correspondence with Nick Youngleson, March 201351 Personal Email Correspondence with Nick Youngleson, March 2013

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Artificial turf Playground surfaces Molded rubber parts

The inclusion of discarded tires improves each of these applications. For example, using tire rubber in

playgrounds and artificial turf increases the durability of the surfaces and decreases injury rates due to

the tires’ high resiliency and impact attenuation.52 In fact, a study of twelve common uses for discarded

tires found that using them in artificial turf provided the largest reductions in greenhouse gas emissions

and dioxin emissions. This same study found that artificial turf provided the largest reductions in the

TRACI environmental impact categories of ecotoxity, eutrophication, human health – cancer, human

health – non-cancer, and ozone depletion.53

For this report, the field of potential applications for end of life tires was narrowed due to

restrictions inherent to operating in Hawai’i, which render many options impractical. These restrictions

include limited supply of tires, limited demand for products, high shipping costs, and high costs of

manufacturing in Hawai’i. For example, Hawai’i has a limited number of playgrounds and athletic fields

and this number is unlikely to grow dramatically due to limited capacity for expansion. As a result, the

supply of used tire material will quickly outpace the demand for athletic turf and playground covering.

In addition, the high costs of manufacturing and shipping will likely make it infeasible to export

Hawai’ian athletic turf or playground covering as it will not be cost effective.

Given these restrictions, this study focuses on two primary options for using end of life tires in

Hawai’i – rubberized asphalt concrete and waste-to-energy.

Rubberized Asphalt The first design solution investigated for end of life tires is rubberized asphalt concrete (RAC).

Use of RAC in asphalt is a well-established technology. The earliest use for this application in the US

dates back to 1964 in Phoenix, Arizona.54 Many states now mandate use of RAC in roads, including

Arizona, California, Florida, Texas, Nebraska, New York, New Mexico, and South Carolina. Several

other states are currently considering similar legislation.

52 Fiksel, Joseph, et al. "Comparative life cycle assessment of beneficial applications for scrap tires." Clean technologies and environmental policy 13.1 (2011): 19-35.53 Ibid.54 "What is Rubberized Asphalt?" Quiet Roads ~. Arizona Department ofTransportation. 06 May 2013<http://www.azdot.gov/quietroads/what_is_rubberized_asphalt.asp>.

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http://www.azdot.gov/quietroads/what_is_rubberized_asphalt.asp


Asphalt is typically made up of approximately 60-70% coarse aggregate (stone or gravel), 25-

35% fine aggregate (sand), 4-5% asphalt cement (tar), and additives. Rubber tire crumble is incorporated

into the coarse aggregate segment of the asphalt hot mix. This crumb rubber is produced by placing

shredded tires into a fine grind process, producing different sizes of crumb rubber.55 In order to

incorporate RAC in asphalt, crumb rubber must first be ground to a very small size of less than 8 mesh.56

The fine grind process generates steel wires, which are sold separately, and textile fibers, which are

treated as solid waste.57 There is currently no facility on O’ahu with the capacity to grind tire rubber to

this small mesh size, so for RAC to be feasible, a tire crumbling facility would be necessary. Such a

facility will shred tires into three main components: crumb rubber, fiber, and metal wiring. Fibers can be

easily incinerated with little environmental damage and metal wiring can be recycled.

There are three methods for using RAC in asphalt. The first is the dry process, which involves

mixing dry tire crumble with the coarse aggregate at the same time the asphalt cement and aggregate are

mixed. The second method, the wet process, is when rubber is added to the liquid asphalt cement (black

tar material) at the plant before the aggregate is added. The third method, terminal blend, is when the

rubber is ground and added at the terminal facility, in which case the rubber is already in the asphalt

cement before the other asphalt components are mixed together. The most feasible option for Hawai’i is

the terminal blend method, because there is insufficient space at the two asphalt plants to incorporate

rubber tire crumbling machinery and doing so at both plants would not be cost-effective.58

The methods above are used for asphalt surface layers. Rubber asphalt can also be used as a

Stress Absorbing Membrane Interlayer (SAMI). This layer is a thin layer that is laid between the base

coarse (or binder layer) and the surface layer. The SAMI layer absorbs the stresses in the pavement

which will reduce the amount of cracking and rutting on the surface, giving the pavement a longer life

span.

Many studies have found that RAC asphalt performs as well or better than conventional asphalt.

A New Jersey study of crumb rubber in hot mix asphalt concluded that asphalt with crumb rubber in it

performed as well as or better than the conventional asphalt mix for every test conducted59. This study

used an RAC content of 20%, which is typically considered the maximum amount that should be added 55 Fiksel, Joseph, et al. Comparative life cycle assessment of beneficial applications for scrap tires. Mar 2010. Clean Techn Environ Policy (2011) 13:19-35.56 Ibid.57 ibid.58 "Interview with Jon Young, Executive Director, Hawai’i Asphalt Paving Industry (HAPI) and Dick Levins, President, Asphalt Hawai’i." Personal interview. Mar. 2013.59 Evaluation of Crumb Rubber in Hot Mix Asphalt. July 2004. Center for Advanced Infrastructure and Transportation, Rutgers Asphalt/ Pavement Laboratory, Rutgers University.

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to an asphalt mix60. Beyond this percentage, RAC may make asphalt too soft and negatively impact its

performance61. RAC in asphalt tends to have the greatest benefits in southern, warmer climates, such as

Hawai’i, as hot weather warms up the rubber and makes it pliable, which closes the cracks in coarse

aggregate and helps prevent the asphalt from cracking62.

RAC has been found to produce benefits even when it is mixed at very low percentages. A study

of RAC in Arkansas found that the performance of asphalt-rubber mixes with RAC blends of 5%, 10%,

and 15% did not differ significantly at a 5% level of statistical significance.63 Therefore, asphalt roads

are expected to perform equivalently at RAC contents of 5% to 15%.

RAC asphalt has multiple benefits for roads. First, RAC roads are more durable. ADOT and the

EPA report that RAC has been proven to be more durable and skid-resistant than conventional asphalt64.

Secondly, RAC roads produce less noise. Some applications have shown a decrease up to 10 dB or 90%

noise reduction, however, other research has shown that 50-75% noise reduction is commonly attained.65

Third, in addition to having increased longevity, RAC roads require less maintenance. Studies have

shown that after 15 years of service it will cost $180/lane mile to maintain RAC asphalt versus

$700/lane mile to maintain conventional asphalt.66 This represents a 74% cost savings for RAC.

It is common practice to recycle various materials into asphalt. In fact, asphalt is one of the

oldest materials to be recycled, with recycled asphalt having been used for over 100 years. Two

materials other than RAC which are commonly used in asphalt are recycled asphalt and recycled glass.

Recycled asphalt is when the top inch of asphalt is scraped off, re-crushed, and then used as aggregate

for new asphalt. This is done on-site and is very cost effective. Both recycled asphalt and recycled glass

are already being used in asphalt in Hawai’i. There are no issues with including tire crumble in asphalt

mixes which already include recycled asphalt and/ or recycled glass, as the recycled asphalt and glass

typically goes into the binder layer whereas the RAC is typically incorporated into the new surface

layer.67

Waste to Energy60 Ibid.61 Phone Interview with Gabe Cimini, Pavement Engineer Specialist, Stantec Engineering, May 5, 201362 Phone Interview with Gabe Cimini, Pavement Engineer Specialist, Stantec Engineering, May 5, 201363 Gowda, Gary V., Kevin D. Hall, and Robert P. Elliot. Arkansas: Experience with Crumb Rubber Modified Mixes using Marshall and SHRP Level 1 Design Methods. University of Arkansas, Department of Civil Engineering. January 1996.64 Tire-Derived Fuel - Scrap Tires." EPA. Environmental Protection Agency. 06 May 2013<http://www.epa.gov/osw/conserve/materials/tires/tdf.htm>65 "What is Rubberized Asphalt?" Quiet Roads ~. Arizona Department of Transportation. 06 May 2013<http://www.azdot.gov/quietroads/what_is_rubberized_asphalt.asp>66 James B. Henry Center for Executive Development. (2012). Crumb Rubber Modified Asphalt 101: An Introduction to Implementation of Different Types of Crumb Rubber Modified Asphalt Mixtures. 67 Phone Interview with Gabe Cimini, Pavement Engineer Specialist, Stantec Engineering, May 5, 2013

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http://www.azdot.gov/quietroads/what_is_rubberized_asphalt.asp

http://www.epa.gov/osw/conserve/materials/tires/tdf.htm


The second design solution considered is using end of life tires as fuel. Tires have a high energy

content and thus can be burned to produce energy, such as electricity. Burning tires is not necessarily

capturing the highest value of this material and also creates externalities such as release of toxic gases

and other pollutants. However, while burning may be a less desirable use of tires in many locations,

Hawai’i’s isolation makes this a much more attractive option. Hawai’i has the highest electricity rates in

the United States with a current residential rate around $0.35 per kWh.68 This is largely due to the high

costs of transporting fuel to Hawai’i – a cost which is circumvented by using old tires as fuel. Though

the use of tires as fuel cannot provide enough electricity to meet Hawai’i’s current demands, it can

nevertheless help reduce the amount of fuel imported and, thus, potentially reduce the costs of electricity

production.

On O’ahu, there are currently two major power plants – AES and H-Power - that have the

capability of using tires to produce electricity. AES is a privately owned coal-fired power plant, which is

able to use shredded tires as a fuel source. Unitek recently agreed to provide AES with 6,000 tons of

shredded tires a year (approximately 600,000 passenger tire equivalents) for the next ten years. H-Power

is a waste-to-energy facility owned by the municipality, the City and County of Honolulu. Historically,

H-Power only burned incidental amounts of tires which ended up mixed in with regular trash. However,

in 2013, H-Power obtained a variance (an environmental permit) for a pilot program to burn up to

65,000 tires collected at O’ahu’s residential convenience centers. This pilot program was largely

prompted by completed construction of a third boiler, which is capable of incinerating bulky materials

including furniture and whole tires. For a visual depiction of H-Power’s process, see Figure 5 below.69

68 "Average Electricity Prices for Hawai’ian Electric, Maui Electric, and Hawai’i Electric Light Company." Hawai’ian Electric Company. 06 May 2013 <http://www.heco.com/portal/site/heco/menuitem.508576f78baa14340b4c0610c510b1ca/?vgnextoid=692e5e658e0fc010VgnVCM1000008119fea9RCRD>.69 "Waste to Fuel Energy Facility in Honolulu." HPower Facility. Covanta Energy. <http://www.covantaenergy.com/>.

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FIGURE 5. PROCESS DIAGRAM FOR H-POWER WASTE-TO-ENERGY POWER PLANT

Tires are a very energy dense fuel source, which makes them attractive for producing electricity.

Tires have roughly 15,000 British thermal units (BTUs) per pound,70 an energy density which is roughly

twice that of average municipal solid waste and is even higher than that for some types of coal.71 If all

discarded tires in Hawai’i are used for electricity generation, tires could produce roughly 24,285,000

kWhs of electricity annually.72 While this is enough to power 3,459 average Hawai’ian homes for a year,

this represents only 1% of households in Hawai’i.73 However, even this small percentage of electricity is

worth nearly $8.5 million dollars when sold at the current market price for residential electricity in

Hawai’i ($0.35 per kWh).

The main environmental benefits of using tires as fuel come from avoided coal. If energy

production from tires increases, the corresponding decrease in production will likely come from

imported fuels rather than municipal solid waste-to-energy. When the environmental impacts of using

70 "DEEP: Reduce Reuse Recycle." DEEP: Reduce Reuse Recycle. Connecticut’s Department of Energy and Environmental Protection. 06 May 2013 <http://www.ct.gov/deep/cwp/view.asp?A=271471 "Tire-Derived Fuel - Scrap Tires." EPA. Environmental Protection Agency. 06 May 2013 <http://www.epa.gov/osw/conserve/materials/tires/tdf.htm>.72 This calculation is based on 1.1 million discarded tires, each weighing 20 lbs and 15,000 BTUs per pound. This also assumes as 27% conversion efficiency at the waste to energy facility, as based on Cherubini, Francesco, Silvia Bargigli, and Sergio Ulgiati. "Life cycle assessment (LCA) of waste management strategies: Landfilling, sorting plant and incineration." Energy 34.12 (2009): 2116-2123. Finally, this calculation also assumes a 7% loss during transmission and distribution, which is according to "Frequently Asked Questions." How much electricity is lost in transmission and distribution in the United States? US Energy Information Administration. 06 May 2013 <http://www.eia.gov/tools/faqs/faq.cfm?id=105>.73 This calculation is based on the average Hawai’ian home consume 7020 kWhs annually and there being 417,531 residential electricity users in Hawai’i, both facts based on information from “Average Monthly Residential Electricity Consumption, Prices, and Bills by State.” Frequently Asked Questions, U.S. Energy Information Administration. Accessed on 07 May 2013. <http://www.eia.gov/tools/faqs/faq.cfm?id=97&t=3>

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tires as fuel are compared to coal, tires have lower environmental impacts with regards to ozone

depletion, acidification, eutrophication, human health – heavy metals, human health - carcinogens,

human health - winter smog, water consumption, and energy.74 Additionally, tires produce less NOx

emissions than most coals, particularly high sulfur coal.75

COST-BENEFIT ANALYSIS

The primary goal of this study was to determine the highest value end use for scrap tires. Scrap

used tires can be a major source of pollution, and the past decade has seen an increase in US Federal and

state governments encouraging the recycling and reuse of scrap tires in a number of applications,

ranging from energy recovery to civil engineering materials to utilization of ground rubber in

manufacturing76. Various studies have been done to assess the comparative costs and benefits for each of

these potential end uses of scrap tires.

A life cycle assessment study determined that the most environmentally beneficial alternatives

for reuse of scrap tires was application in artificial turf, followed by use as fuel for cement plants and for

incineration.77 Both alternatives were found to provide reductions in greenhouse gas (GHG) emissions,

air toxics, and water consumption.78 Every metric ton of tire-derived fuel substituted for coal in cement

kilns was found to avoid an estimated 543 kg (CO2 equivalent) of direct and indirect GHG emissions79.

Although the use of tire rubber for artificial turf offers the greatest environmental emission reductions, it

has limited potential for large-scale utilization due to the saturated market for artificial turf80. The use of

fuel derived from scrap tires in cement production is therefore a more attractive option due to the large

market capacity for cement. Use of scrap tires for incineration as waste-to-fuel was found to be almost

as beneficial as for cement production, in terms of overall environmental impacts.81 In contrast, the use

of scrap tires for asphalt production leads to an increase in GHG emissions because asphalt production

74 Corti, Andrea, and Lidia Lombardi. "End life tyres: Alternative final disposal processes compared by LCA." Energy 29.12 (2004): 2089-2108.75 "Tire-Derived Fuel - Scrap Tires." EPA. Environmental Protection Agency. 06 May 2013 <http://www.epa.gov/osw/conserve/materials/tires/tdf.htm>.76 Fiksel, Joseph, et al. Comparative life cycle assessment of beneficial applications for scrap tires. Mar 2010. Clean Techn Environ Policy (2011) 13:19-35.77 Ibid.78 Ibid79 Ibid80 Ibid81 Ibid

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using crumb rubber from scrap tires involves additional processing steps that require inputs such as

electricity and diesel.82

However, another life cycle assessment (LCA) study which compared two prevalent end-of-life

(EOL) treatment methods for scrap tires: material recycling (ie. RAC) and energy recovery (ie. tire-

derived fuel, TDF), found that material recycling provided significantly greater impact reductions than

the energy recovery scenario83. This study assessed the following environmental impact potentials:

energy demand, iron ore consumption, global warming potential, acidification, eutrophication, smog

formation, and respiratory effects84. In addition, this study found that the establishment of new

infrastructure required for a shift to material recycling incurs relatively insignificant burdens. This

conclusion remained the same for (1) a range of TDF heating values, (2) a decrease in the mixed scrap

tire rubber-to-steel composition ratio, (3) two alternative electricity grid fuel mixes with higher and

lower carbon dioxide emission rankings than that of the baseline scenario, and (4) a comparison of

material recycling to energy recovery when TDF is used in pulp and paper mills instead of cement

kilns85.

One of the greatest benefits of RAC asphalt is its lower maintenance costs. Studies have shown

that after 15 years of service it will cost $180/lane mile to maintain RAC asphalt versus $700/lane mile

to maintain conventional asphalt86. Considering that road quality in Hawaii is a key issue of concern for

residents and the road maintenance budget is unable to meet existing road maintenance needs, this is a

very valuable benefit.

Qualitative CBA

An analysis was conducted to compare the costs and benefits of different uses for discarded tires,

as compared to current baseline use. Three different uses of tires were considered: export, fuel or waste-

to-energy (WTE), and RAC. Current baseline use was set as a mix of export (both to Asia and to the US

mainland), as well as burning tires for fuel (both in the H-Power waste-to-energy plant and the AES

coal-fired power plant). Even though H-Power and AES are not yet burning tires, we chose this as our

82 Fiksel, Joseph, et al. Comparative life cycle assessment of beneficial applications for scrap tires. Mar 2010. Clean Techn Environ Policy (2011) 13:19-35.83 Feraldi, Rebe, Cashman, S., Huff, M., & Raahauge, L. (2012). Comparative LCA of treatment options for US scrap tires: material recycling and tire-derived fuel combustion. Int J Life Cycle Assess (2013) 18:613–6284 Ibid85 Ibid86 James B. Henry Center for Executive Development. (2012). Crumb Rubber Modified Asphalt 101: An Introduction to Implementation of Different Types of Crumb Rubber Modified Asphalt Mixtures.

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baseline as both of these facilities have existing contracts in place to start burning tires before the end of

2013. Green represents cases where a particular use was deemed to be better or easier than the baseline,

red represents cases where a particular use was deemed to be worse or more difficult than the baseline,

and yellow represents cases where no change from baseline is expected. The results of our analysis can

be found in the table below.

Figure 6: Cost-Benefit Analysis of Different Uses for End-of-Use Tires, as Compared to Current Baseline Use

LEGEND: Green = Better/ Easier, Yellow = Unchanged, Red = Worse/ Difficult

As can be seen in the table above, tire export is the least beneficial option, as it results in a

negative change from the baseline in terms of operating costs (due to export of a usable resource), as

well as environmental impacts and health impacts. Most tires from Hawai’i are currently being exported

to Asia, where they are presumed to be burned for fuel. As Asia has lower environmental and health

regulations which are enforced less stringently than those in the US, tire export is presumed to have

negative environmental and health impacts as compared to the baseline.

Using scrap tires as fuel, either as waste to energy or in the coal-fired power plant, is more

beneficial than exporting tires. This option has benefits due to reduced operating costs (retention of a

resource on island) and revenue generation for Hawai’i (as H-Power is owned by the City and County of

Honolulu). However, this option again also produces negative environmental and health impacts as

burning tires as fuel released dioxins and furans, two substances which are very toxic.

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The most beneficial use of scrap tires in Hawai’i is therefore as RAC in asphalt. This option will

require upfront capital costs and will take time to implement. However, once in place, it stands to

generate a variety of economic, social, and environmental benefits. This option will retain a valuable

resource on island while improving both the quality and durability of Hawai’ian roads, reducing

maintenance costs. Finally, by reducing toxic emissions from burning of tires, this option also produces

environmental benefits.

Quantitative CBA

An attempt was made to quantify the benefits of investing in RAC versus waste to energy. This is

a rudimentary analysis involving several assumptions and which is based primarily on rough

estimations. Nevertheless, this analysis can provide further support for investing in RAC in Hawaii.

The results of this analysis are included in the table below. Both scenarios are based on an

estimate of 1.1 million discarded tires annually. Costs and benefits were estimated over a 10 year period

after implementation of RAC.

Figure 7: Quantitative Public Cost-Benefit Analysis of WTE vs. RAC Over 10 YearsWaste to Energy RAC

COSTSCapital Costs n/a $4.125 million ($3.125 million

for rubber crumbling facility + $1 million for terminal mixing facility)

Environmental and Social Costs

Toxic emissions and associated health impacts (difficult to quantify)

Lower overall environmental impacts as compared to WTE (difficult to quantify)

BENEFITSAvoided Recycling Fees $2 million ($200,000 x 10) $2 million ($200,000 x 10)Sale of Electricity $85 million ($8.5 million

dollars x 10)n/a

Avoided Import Costs $5.25 million ($525,049 x 10) $71.5 million ($7.15 million x 10)

Reduced Material Costs n/a $780 million ($78 million x 10)Road Maintenance Savings n/a $470 million ($47 million x 10)Road Construction Savings n/a $325 million ($32.5 million x

10)Job Creation n/a $204 millionVehicle Ownership Savings n/a $2.425 billion ($242.5 million

x 10)Noise Reduction for Roads n/a Avoided costs of constructing

sound barriers (difficult to Page 28


quantify)TOTAL NET BENEFITS (Benefits - Costs)All $92,250,000 $4,273,375,000Public Only $92,250,000 $3,426,000,000LEGEND:

Blue represent private costs/ benefits, which primarily apply to private industry Green represent public costs/ benefits, which primarily apply to taxpayers or municipal, state, or federal

governmentsAssumptions:

All estimates presume no increases in number of tires discarded, electricity costs, or market prices of any goods Operating costs of using tires for WTF versus coal-fired plants are excluded, as they are assumed to be

approximately equivalent for both options. Shipping costs for all goods (coal, rubber crumble, tires) are also excluded, as they are presumed to approximately

even out across options.

The cost-benefit analysis above does not take into account which stakeholders will incur costs or

benefit from savings. The capital costs of constructing a rubber crumble facility and operating costs of

materials will likely be financed privately. The electricity costs generated from H-Power will add to

revenue for the municipality, as CCH ‘owns’ the plant through a financial arrangement with Covanta

Honolulu Resource Recovery Venture. The savings in road construction and maintenance costs will

primarily benefit the budgets of the transportation departments for the municipality and the State. Job

creation, savings in vehicle ownership costs, and noise reduction will primarily benefit Hawai’ian

citizens.

This report is primarily concerned with determining the best ultimate purpose for end-of-use

tires. We therefore conducted our cost-benefit analysis in terms of which option is most beneficial for

the public good. The public good in this case includes Hawai’ian citizens and all three levels of

government which serve the interests of Hawai’ian citizens. Investing in RAC will result in far greater

benefits over ten years, with a total benefit of $4.27 billion as compared to $92 million for WTE. Even if

private costs are omitted from our net totals, RAC is still the clear choice with a total combined benefit

of $3.4 billion over ten years.

Further details, including explanations as to how the numbers above were calculated, are

included in each section below.

COSTS

Capital Costs

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No capital costs are required for WTE, as both the AES and H-Power facilities currently have the

capability to burn tires. To implement RAC, rubber crumble could either be imported or produced on-

island. If rubber crumble is produced on –island, this would require construction of a rubber crumble

facility which could either be constructed anew or incorporated into the existing tire recycling facility at

Unitek. Nick Youngleson, a businessman interested in constructing a new rubber crumble facility,

estimates this will cost between $3.5 and $5 million dollars, with a midline estimate of $4.25 million.87

However, Blane Yamagata at Unitek estimates it would cost approximately $2 million in additional

equipment for him to crumble tires down to the size needed for RAC88. Therefore, we used a midline

estimate of $3.125 million for construction of an on-island rubber crumble facility. A rubber crumble

facility would need to produce 1,500 tons of rubber crumble annually in order to be profitable, which

would require approximately 222,000 passenger tire equivalents.89 As this represents approximately 20%

of the tires available in Hawaii, it is anticipated that a rubber crumble facility should be profitable,

presuming there are no issues with obtaining a suitable supply of discarded tires.

Implementation of RAC would also require construction of a mixing plant at the asphalt terminal

facility. HAPI estimates such a plant would cost $1.5 million90, whereas Nick Youngleson estimates it

would cost between $500,000 and $1 million91, therefore we assumed a midline cost estimate of $1

million. While this will be an additional cost for the asphalt industry, it will enable the asphalt

companies to produce a higher quality product for which they may be able to charge a price premium.

Therefore, it is presumed that this investment will be offset by additional revenue generation.

All of the above estimated costs are private costs which will be borne by industry and are

expected to be offset by subsequent profits. In addition, rubber crumble could be imported instead of

produced on-island. Therefore, these capital costs should be excluded from the net cost-benefit analysis.

Environmental and Social Costs

Burning tires either in a coal-fired power plant or as waste-to-fuel involves external social and

environmental costs. For example, it results in emissions such as sulfur dioxide and nitrous oxide, which

create acid rain, as well as carbon dioxide emissions, which causes global warming, and it can also cause

serious damage to ecosystems.92 A synthesis of the results of various studies to calculate the external 87 Interview with Nick Youngleson, Mar.11, 201388 Interview with Blane Yamagata, Unitek Solvent Services, March 13, 201389 Interview with Nick Youngleson, Mar.12, 201390 "Interview with Jon Young, Executive Director, Hawai’i Asphalt Paving Industry (HAPI) and Dick Levins, President, Asphalt Hawai’i." Personal interview. Mar. 2013.91 Interview with Nick Youngleson, Mar.11, 201392 Waste Not, Want Not: The Private and Social Costs of Waste-to-Energy Production, Marie Lynn Miranda and B. Hale, Duke University, Energy Policy, Vol 25, No. 6, 1997

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costs of fossil fuel production in the U.S. found a range of 2.6 to 4.5 cents per kilowatt hour of

electricity produced.93 Another study found that the external costs associated with WTE facilities in the

U.S. ranged from 1.7 to 3.2 cents per kilowatt hour of electricity, considering mortality effects,

morbidity effects, materials effects, crop destruction, visibility impacts, and global warming

contributions from criteria air pollutants. Comparing both coal-fired plants and WTE, WTE facilities

were found to have lower externality costs, however they were found to emit more toxics, which

elevates public concern due to associated health risks and because of greater uncertainty surrounding the

impacts of these pollutants.94 When the total private production and social environmental costs of

managing one tonne of waste and generating equivalent energy production in the U.S. was considered,

WTE was found to have a slightly higher cost than landfilling in combination with energy production

from fossil fuels, with WTE in the range of $75.39 to $149.27 as compared to landfilling and fossil fuels

in the range of $62.99 to $131.15.

When environmental and social costs are included, burning tires as WTE may in fact have higher

costs than burning them in a coal-fired power plant. However, as there are a variety of factors which can

influence external cost estimates, it is difficult to determine whether or not using tires as WTE is a better

alternative than as fuel for coal-fired plants. If tires are used in RAC instead of burned, the resulting

difference in fuel inputs will presumably be made up with additional imports of coal, therefore, using

tires as RAC will presumably reduce toxic emissions only slightly.

As mentioned in the Cost-Benefit Analysis section above, an LCA study found that RAC

provided significantly greater environmental impact reductions than WTE, though these reductions are

difficult to quantify.

BENEFITS

Recycling Fees

The City & County of Honolulu currently spends approximately $200,000 a year to recycle used

tires.95 These fees will presumably be eliminated if tires are instead used as WTF or RAC, as in either

93 Waste Not, Want Not: The Private and Social Costs of Waste-to-Energy Production, Marie Lynn Miranda and B. Hale, Duke University, Energy Policy, Vol 25, No. 6, 199794 Waste Not, Want Not: The Private and Social Costs of Waste-to-Energy Production, Marie Lynn Miranda and B. Hale, Duke University, Energy Policy, Vol 25, No. 6, 199795 "Interview with Michael O'Keefe: Recycling Specialists for City and County of Honolulu." Personal interview. Mar. 2013.

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case the tires will become a valuable on-island resource which the City should be able to sell or at a

minimum dispose of at no cost.

Sale of Electricity

As outlined in the ‘Waste to Energy’ section above, if all 1.1 million tires discarded annually in

Hawaii were burned as fuel, this could produce 24,285,000 kWhs of electricity, which could be sold for

approximately $8.5 million dollars at the current market rate.

Import Costs

To produce an equivalent amount of electricity as can be generated by burning tires, the amount

of coal needed would be 12,872 short tons96. The average market price for coal delivered to U.S. electric

utilities from 2007 to 2011 was $40.79 per short ton.97 This means that the cost to import the amount of

coal needed to produce the same amount of electricity as can be generated from burning tires is

approximately $525,049 a year. Therefore, these costs are avoided with WTE.

Likewise, implementing RAC will avoid the need to import some asphalt binder. Binder currently

has a market price of $650/ ton, which is on par with that of rubber crumble.98 1.1 million tires have a total

estimated weight of approximately 11,000 tons, thus can be presumed to generate this amount of rubber

crumble. The annual cost to import 11,000 tons of asphalt binder or rubber crumble is therefore

estimated at $7.15 million ($650/ ton x 11,000 tons). This exemplifies the high value of tires as a

resource and how the value of this tire material is currently not being recognized. By generating rubber

crumble on-island, these import costs can be avoided, revenue can be generated on-island, and Hawaii

can become less dependent on imports and more resilient to external market prices of goods such as

asphalt binder.

Reduced Material Costs

The majority of asphalt use in Hawai’i is for repaving, with 75% of asphalt used in thin overlays

of 1 – 2 inches total, and only 25% of asphalt used in reconstruction layers of 3 – 15 inches total.99

96 http://www.eia.gov/tools/faqs/faq.cfm?id=667&t=6, 0.00053 Short Tons of coal per kWh x 24,285,000 kWhs97 Annual Coal Report, U.S. Energy Information Administration, Dec.12, 2012, Retrieved May 10, 2013 from http://www.eia.gov/coal/annual/98 Interview with Nick Youngleson, Mar.11, 201399 Asphalt Pavement Use in Hawai’i, Steve Muench, University of Washington, 2010

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For most applications, RAC can be used at a reduced thickness compared to conventional asphalt

overlays, sometimes at only half the thickness of conventional material.100 101 This can result in

significant cost savings due to reduced material needs.

Hawai’i currently uses 1.2 million tons of asphalt annually.102 If we conservatively assume that

RAC enables Hawai’i to reduce asphalt thickness by just 10%, this would result in a savings of 120,000

tons of asphalt annually. At the current market price for asphalt binder of $650/ ton, this would result in

approximately $78 million in annual savings ($650/ton x 120,000 tons) due to reduced material costs.

Road Maintenance

Just like for most states, maintaining transportation infrastructure is a significant challenge for

Hawai’i. Declining revenues and escalating debt service are reducing the state’s ability to maintain its

road infrastructure in good condition. Transportation systems in Hawai’i and across the U.S. are thus

becoming more expensive, uncompetitive, and unsafe over time.103

While in recent years Hawai’i has invested heavily in road repair and maintenance, insufficient

long-term investment has led to a backlog of roads in “poor” and “deficient” condition. Only 22% of

Hawai’i’s total lane miles are considered in “good condition”, which means that 78% of Hawai’i’s 9,615

total lane miles (7,500 miles) require repair.104 In Honolulu, 62 percent of major roads are in ‘poor’

condition, the third highest share among cities with a population of 500,000 or more.105 As of 2008, only

10% of Hawai’i’s major state-owned roads were listed in “good condition”.106

Between 2004 and 2008, Hawai’i spent an average of 34% ($65 million annually) of its highway

capital expenditures on road expansion and 33% ($63 million annually) on repair and maintenance of

existing roads.107 Major rehabilitation costs for Hawai’i’s roads are estimated at $16 million annually

over the next twenty years.108 Hawai’i would need to spend approximately $65 million annually for the

next twenty years to get its current backlog of major state-owned roads improved from a condition of

100 Rubberized Asphalt Concrete, CalRecycle, Retrieved May 4, 2013 from http://www.calrecycle.ca.gov/tires/rac/101 James B. Henry Center for Executive Development. (2012). Crumb Rubber Modified Asphalt 101: An Introduction to Implementation of Different Types of Crumb Rubber Modified Asphalt Mixtures.102 Asphalt Pavement Use in Hawai’i, Steve Muench, University of Washington, 2010103 Hawai’i: Smart Transportation: Save Money and Grow the Economy, Smart Growth America, January 2011104 Providing Safe and Efficient Mobility in Hawai’i: The Cost to Drivers of Deficient Roads, Highway Congestion and Traffic Crashes, TRIP, March 2012.105 Providing Safe and Efficient Mobility in Hawai’i: The Cost to Drivers of Deficient Roads, Highway Congestion and Traffic Crashes, TRIP, March 2012.106 http://www.smartgrowthamerica.org/repair-priorities/hawaii107 http://www.smartgrowthamerica.org/repair-priorities/hawaii108 Hawaii: Smart Transportation: Save Money and Grow the Economy, Smart Growth America, January 2011

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http://www.calrecycle.ca.gov/tires/rac/


‘poor’ to ‘good’. The annual maintenance need to preserve Hawai’i’s transportation system in good

condition is currently estimated at as much as $163 million.109

Just like most states, Hawaii has a sizable gap between its transportation budget and its extensive

wish list of transportation projects. However, this gap can be reduced through strategic decisions such as

investing in RAC. While this will require limited capital costs up front, this investment will more than

make up for it with increased longevity of roads and lower road maintenance costs over time. Neglect

and deferred maintenance of roads can result in a deteriorated road network and a six- to ten-fold

increase in repair costs.110 According to the American Association of State Highway and Transportation

Officials (AASHTO), every $1 spent to keep a road in good condition avoids $6 to $14 needed later to

rebuild the same road once it has deteriorated.111 Improving the quality of Hawai’i’s roads will therefore

result in significant savings for Hawai’i’s transportation budget, enabling Hawai’i to maintain more of

its roads in good condition.

As mentioned above, RAC asphalt has lower maintenance costs estimated at a savings of

$520/lane mile over 15 years of service. If we extrapolate this figure over 10 years, the timeframe for

our cost-benefit analysis, we get an estimated savings of $347/lane mile for road maintenance costs.112

The table below provides an overview of the distribution of lane miles in Hawai’i. Total lane miles

across the state were estimated at 9,615 in 2011. Therefore, one estimate for the total savings in road

maintenance costs over 10 years is $3.34 million ($347/lane mile x 9,615 lane miles).

Figure 8: Highway Statistics for Hawai'I (Functional System Lane Length in Lane Miles)113

RURAL URBAN

TOTAL LANE MILES

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0 594 64024

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7 364 842 - 3,0645,48

9 9,615

109 Hawaii: Smart Transportation: Save Money and Grow the Economy, Smart Growth America, January 2011110 Hawaii: Smart Transportation: Save Money and Grow the Economy, Smart Growth America, January 2011111 Road condition and automobile repair costs: AASHTO, Rough Roads Ahead: Fix Them Now or Pay for Them Later, May 8, 2009. Retrieved May 10, 2013 from http://roughroads.transportation.org/112 Calculation: $520/lane mile x 1.33 = $693/lane mile113 Adapted from Office of Highway Policy Information Highway Statistics Series, U.S. Department of Transportation, Federal Highway Administration, Retrieved May 10, 2013 from http://www.fhwa.dot.gov/policyinformation/statistics/2011/hm60.cfm

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However, this estimate seems far too low, considering that Hawai’i spends $65 million annually

on new road construction and $63 million annually on road maintenance. Another way to estimate the

savings for road maintenance is to recognize that if RAC asphalt was found to have a 15 year

maintenance cost of $180/lane mile versus $700/lane mile for traditional asphalt, then maintenance costs

for RAC asphalt can be presumed to be approximately 25% those for traditional asphalt ($180/$700 =

25%). Therefore, if Hawai’i currently spends approximately $63 million annually on road maintenance,

if all Hawai’ian roads were RAC, savings in annual maintenance costs could be as high as $47 million

(75% of $63 million). If road maintenance costs are reduced to one fourth what they were previously,

this means that for the same amount of money, Hawai’i could upkeep four times as many roads.

Road Construction

In addition to savings from road maintenance costs, savings are also anticipated due to reduced

road construction costs. As RAC roads are expected to last up to twice as long as traditional roads, the

need for new road construction is expected to be reduced by approximately 50%. In addition, as reduced

road maintenance costs for RAC enable more roads to be regularly maintained, roads are expected to

deteriorate less rapidly, again reducing the need for new road construction. As a simple estimate, we can

assume that road construction costs for RAC will be reduced by 50%, so for Hawai’i’s current budget of

$65 million annually, road construction savings could be estimated at $32.5 million a year.

Job Creation

In 2011, the Honolulu area lost a higher percentage of construction jobs than most metro areas in

the U.S., demonstrating a 3 percent decrease in construction jobs during this period while the nation as a

whole showed a 2 percent increase.114 Road construction creates jobs. One study found that every $1

billion invested in highway construction would support approximately 27,800 jobs, including

approximately 9,500 in the construction sector, 4,300 in industries supporting construction, an 14,000

other jobs.115 Several studies have found that road maintenance and repair creates more jobs than

114 Providing Safe and Efficient Mobility in Hawaii: The Cost to Drivers of Deficient Roads, Highway Congestion and Traffic Crashes, TRIP, March 2012.115 Employment Impacts of Highway Infrastructure Investment, FHWA, Retrieved May 4, 2013 from http://www.fhwa.dot.gov/policy/otps/pubs/impacts/index.htm

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building new roads. For example, $1 billion spent on repairing existing highways instead of building

new ones creates 16% more person-years of construction jobs.116

As of January 2012, there were an estimated 20,300 construction jobs in Hawai’i.117 If we

assume that approximately half of these jobs are related to road construction, then there are an estimated

10,150 road construction jobs in Hawai’i. As mentioned above, Hawai’i currently spends approximately

$65 million annually on construction of new roads and $63 million annually on road maintenance, thus

we can presume that there are currently approximately 5,075 jobs each for road construction and road

maintenance, or approximately 79 jobs per $1 million in spending. If we presume that RAC roads last

twice as long as traditional roads, then over time, we can expect half of the road construction money

($32.5 million) to be diverted from road construction to road maintenance. Over ten years, this would

result in an additional $325 million spent on road maintenance. Applying our formula above of 79 jobs

per $1 million in spending, this would represent 25,771 total jobs. If road repair creates 16% more jobs,

then an additional 4,123 jobs would be created if this money was spent on road maintenance rather than

road construction. According to the Bureau of Labor Statistics, in 2009, Hawai’i had the highest average

annual salary in the nation for construction laborers, at $49,400.118 Therefore, 4,123 construction jobs

can be estimated to have a total worth of $204 million ($49,400 x 4,123).

Vehicle Ownership Costs

In addition to reducing maintenance costs, RAC can also help to reduce the costs of vehicle

ownership for Hawai’ian taxpayers. Driving on roads in need of repair leads to additional vehicle

operating costs due to accelerated vehicle depreciation, tire and suspension wear, additional repair costs,

and additional fuel costs due to reduced fuel efficiency. Poor roads are estimated to add an average of

$335 to the annual cost of owning a car in the U.S.119 For Hawai’i, roads in need of repair are estimated

to cost each motorist an average of $549 annually ($485 million statewide).120 These costs are highest in

Honolulu, where they are estimated at $701 annually per motorist.121 RAC therefore stands to reduce

costs for Hawai’ian families.

116 Public opinion polling: Smart Growth America Nationwide Survey: Strategic findings from survey among 1,000 voters nationwide conducted November16 – 22, 2010 by Hart Research Associates.117 State List of Construction Employment by Metropolitan Area or Division, January 2011 – January 2012, Retrieved May 4, 2013 from http://www.agc.org/galleries/news/Metro_empl_1201-Rank.pdf118 http://www.ehow.com/about_7414297_average-construction-worker_s-salary.html119 Road condition and automobile repair costs: AASHTO, Rough Roads Ahead: Fix Them Now or Pay for Them Later, May 8, 2009. Retrieved May 10, 2013 from http://roughroads.transportation.org/120 Providing Safe and Efficient Mobility in Hawaii: The Cost to Drivers of Deficient Roads, Highway Congestion and Traffic Crashes, TRIP, March 2012.121 Providing Safe and Efficient Mobility in Hawaii: The Cost to Drivers of Deficient Roads, Highway Congestion and Traffic Crashes, TRIP, March 2012.

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If RAC could help reduce the number of roads in Hawai’i in poor condition by 50%, the total

combined savings in vehicle ownership costs would amount to $242.5 million a year ($485 million/2).

Noise Reduction for Roads

As mentioned above, RAC roads are quieter and therefore result in noise reduction benefits.

However, these benefits are difficult to quantify. Some financial savings could potentially be attained in

terms of reduced need to construct sound barriers between roads and residential neighborhoods.

Other Benefits

In addition, improving the condition of roads and increasing their longevity is expected to result

in other benefits. Another study by McKinsey and Company found that $26 billion in road investments

creates $40 billion in other incremental benefits.122 Lastly, improved road conditions lead to a more

welcoming business environment and therefore increased economic competitiveness for the state.

The findings from studies above in combination with the results of our cost-benefit analysis

provide a basis for prioritizing treatment of scrap tire waste first as RAC and then as fuel.

RECOMMENDATIONS In order to help Hawai’i meet its self-sufficiency goals, it is critical that Hawai’i best captures the

value of on-island resources such as tires instead of exporting these valuable resources. As concluded

above, the highest value for used tires on O’ahu is in RAC because it will retain a valuable resource on-

island, will improve transportation infrastructure, and will reduce the environmental costs of exporting

or burning tires. In addition, by investing in RAC, Hawai’i can save money, improve road conditions,

create jobs, appease voters, and create a more welcoming business climate. Road maintenance is also

incredibly popular with voters. 51% of Hawai’i voters believe that fixing roads and bridges should be

the number one priority for the state.123 Prioritizing investment in RAC is therefore a strategic and

fiscally responsible choice that will help the state of Hawaii obtain the highest return on its investment.

122 McKinsey & Company study of potential investments in Atlanta: McKinsey & Company, IT3 Scenario Results and IT3 Scenario Results and Implications, State of Georgia, Discussion Document, November 13, 2008.ding123 Hawaii: Smart Transportation: Save Money and Grow the Economy, Smart Growth America, January 2011

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It is an opportune time to invest in RAC in Hawai’i, especially for roads owned by the

municipality. During newly elected Mayor Caldwell’s inaugural state of the city address on April 3,

2013, he listed repaving roads as one of his top priorities. He has called for a commitment to a road

maintenance program that will keep roads in good condition and has proposed a five year plan to spend

$150 million a year to repave 300 lane miles annually.124 In addition to investment in RAC at the

municipal level, Hawai’i should also update its Long Range Transportation Plan and its five year capital

improvement program to incorporate investment in RAC as a high priority at the state level as well.

We recommend that O’ahu begin planning to implement use of RAC in a three-phased approach.

An overview of our recommended action plan is provided in Figure 9 and is discussed in further detail

below.

Figure 9: Action Plan for Capturing Used Tire Value on O’ahu

Category Phase 1 (2014 – 2016) Phase 2 (2017 - 2019) Phase 3 (2020 - )

Use of Tire Material

Reduce export of used tires

Increase burning of used tires

Import rubber tire crumble for RAC road tests

Continue burning used tires

Begin using RAC in asphalt when feasible

Continue importing rubber tire crumble as needed

Minimize burning used tires

Most tires used as RAC in asphalt

Continue importing rubber tire crumble as needed

Research Conduct RAC road tests

Assess results of RAC road tests

Continue RAC road tests if necessary (long-term)


Continue RAC road tests if necessary (long-term)


Policies Develop design specifications for RAC in roads

Implement design specifications for RAC in roads (2020 start date)

Design specifications for RAC in roads in effect

Industry Research financing and ownership options for on-island rubber crumble facility

Construct rubber crumble facility

Begin operations at rubber crumble facility

During Phase 1 (2014 to 2016), export of used tires should be reduced and if possible, eliminated

entirely. The majority of tires should be burned for fuel while studies are conducted to test RAC on

124 Full Text of Honolulu Mayor Kirk Caldwell’s Inaugural State of the City Address, April 3, 2013, Retrieved May 4, 2013 from:http://honolulu.politics.government.blogs.civilbeat.com/post/47042522743/full-text-of-honolulu-mayor-kirk-caldwells-inaugural

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O’ahu roads. There are two options for RAC road tests, a natural option which could produce results in 4

or 5 years, or an accelerated option which could produce results in as little as 1 or 2 years. After RAC

road tests are completed, results should be assessed to determine the impacts on road performance and to

ascertain the optimal percentage of RAC for O’ahu roads. As the RAC road tests are expected to

produce positive results, during Phase 1, design specifications for RAC in roads should be developed so

that they are ready to go. In addition, during this phase research should be conducted on financing and

ownership options for an on-island rubber crumble facility.

Presuming the RAC road tests demonstrate positive results, during Phase 2 (2017 to 2019), the

design specifications for RAC would be implemented, which would take effect in 2020. This would

enable RAC to start being incorporated into roads as soon as possible, though this would require tire

crumble to continue being imported while the on-island rubber crumble facility is under construction.

The majority of used tires would continue to be burned as fuel during this phase. RAC road tests should

be continued if possible so that longer-term results can also be obtained.

In Phase 3 (2020 onwards), the tire rubber crumble facility will come online as the design

specifications for RAC in roads come into effect. At this point, burning used tires should be minimized

or eliminated entirely if possible and the primary use for used tires should be RAC in asphalt. It is

expected that this transition will occur naturally. As asphalt companies seek to procure rubber crumble to

meet the road design specifications, used tire material is likely to be diverted from burning and instead

directed to rubber crumbling. This may require renegotiation of existing contracts, such as the ten year

contract between Unitek and AES. Rubber tire crumble may need to be imported at times to meet the

design specifications. If desired and if budgetary constraints allow, RAC road tests can be continued

during Phase 3 in order to assess longer-term performance results.

Each phase of this action plan is discussed in further detail under each category below.

Use of Tire Material

During Phase 1 (2014 to 2016), export of used tires should be reduced and if possible, eliminated

entirely. As there is currently no on-island capacity to create rubber tire crumble of the small size needed

for RAC, until a rubber crumble facility is constructed on the island, the crumble used for RAC tests

would need to be imported from the mainland. As the market price for rubber crumble is currently on

par with that for asphalt binder, the costs for this should not be prohibitive. Construction of a rubber

crumble facility is scheduled for Phase 2, and is targeted to be operational by Phase 3. Therefore, during

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Phases 1 and 2, the majority of used tires on O’ahu would be available to burn for fuel, the next best

alternative use for this material.

Tires could be burned either at the AES coal burning power plant or at the H-Power waste-to-fuel

facility. As outlined in the Cost-Benefit Analysis section above, the emissions resulting from burning

tires in both cases are fairly equivalent, so there is no strong environmental rationale to prefer one option

over the other. However, it is possible that both of these facilities may currently be subject to different

emissions regulations. In addition, the emissions standards for both of these plants may change in

coming years. As a coal-fired steam power plant that generates more than 25 megawatts of power, AES

is covered under the EPA’s pending Mercury and Air Toxics Standards (MATS) for Power Plants.125 As a

waste-to-fuel facility, H-Power will likely be subject to the EPA’s pending Emissions Standards for

Boilers and Process Heaters and Commercial/ Industrial Solid Waste Incinerators.126 Therefore, it is

recommended that the emissions standards applying to both AES and H-Power be monitored to

determine their impact on the anticipated emissions from burning tires. The majority of tires should be

diverted to whichever facility has more stringent requirements at a given time, as this would decrease

the environmental impacts of burning tires.

In Phase 3 (2020 onwards), as the design specifications for RAC in roads come into effect and

the rubber crumble facility comes online, burning of used tires should be minimized or eliminated

entirely if possible and the primary use for end-of-life tires should be RAC in asphalt. Currently, the

market price of rubber tire crumble imported to Hawai’i is on par with that of asphalt binder, and it is

estimated that rubber tire crumble could be produced on-island at an equivalent price127. Therefore, no

increase to material costs is anticipated for asphalt containing RAC. However, even if the market price

of rubber crumble were to increase, as use of RAC has many positive benefits which significantly

increase a road’s lifespan and reduce its maintenance costs, the lifecycle costs of RAC roads would still

be lower even if the cost of rubber crumble were to double.

Research

The Long Term Pavement Performance (SHRP-LTPP) program is an extended pavement

research project that monitors in-service pavements across North America and has been collecting

pavement performance data for over 25 years.128 Launched in 1987 under the Strategic Highway

125 EPA, Power Plants Likely Covered by the Toxics Rule, Retrieved May 3, 2013, from: http://www.epa.gov/airquality/powerplanttoxics/pdfs/20111221PowerPlantsLikelyCoveredbyMATS.pdf126 EPA, Air and Radiation, Air Quality Planning and Standards, Emissions Standards for Boilers and Process Heaters and Commercial/ Industrial Solid Waste Incinerators, Retrieved May 2, 2013 from: http://www.epa.gov/airquality/combustion/127 "Interview with Nick Youngleson” Personal interview. Mar. 2013128 Phone Interview with Gabe Cimini, Pavement Engineer Specialist, Stantec Engineering, May 5, 2013

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http://www.epa.gov/airquality/combustion/

http://www.epa.gov/airquality/powerplanttoxics/pdfs/20111221PowerPlantsLikelyCoveredbyMATS.pdf


Research Program, this is the most comprehensive highway research program in history which involved

monitoring of more than 2,500 sections of pavement. This program determined that there are only four

distinct environmental study zones across all of North America: wet-no freeze, wet-freeze, dry-no

freeze, and dry-freeze.129 A wet region was defined as one with an annual average rainfall over 508

millimeters (20 inches), which would represent Hawai’i130. This study found little to no variations in

asphalt performance within each of these climatic zones, therefore it is not anticipated that performance

of RAC asphalt in Hawai’i will differ significantly from its performance in other wet-no freeze regions,

such as the pacific north-western states or the south-eastern states. However, it is recognized that to

appease all concerned parties, it may be advisable to repeat a similar study in Hawai’i to increase the

confidence of stakeholders that RAC asphalt will perform as intended.

The primary research to be conducted would be RAC road tests, the goals of which would be

threefold: First, they would confirm that RAC does not have any unexpected adverse effects on O’ahu

roads. Second, they would assess the optimal RAC content for asphalt on O’ahu in order to maximize

improvements in road performance. Third, they would provide the asphalt industry on O’ahu with an

opportunity to become familiar with procedures for including this material in their asphalt mix. This

research would be commenced in Phase 1 and would continue during Phases 2 and 3 if longer-term

results were desired and financially feasible.

If possible, two subsets of RAC road test sites should be established, one on the east (windward)

side of the island and one on the west (leeward) side. Because O’ahu has mountains running primarily

along the east shore of the island, there can be substantial differences in precipitation between the east

and west sides of the island (see Figure 10 below). As most storms tend to approach from the east and

drop most of their rain as they move over the mountains, a phenomenon known as orographic uplifting,

the west side of O’ahu tends to have lower levels of rainfall.131 It would thus be advisable to test RAC on

a road on each side of the mountain range to account for any notable differences in performance due to

fluctuations in precipitation. However, it is unlikely that significant differences in road performance will

be observed between these two sites as previous pavement studies have grouped all ‘wet, no freeze’

regions as one climatic research area. All of Hawai’i would be classified as ‘wet-no freeze’, thus it is

anticipated that there should be no differences in pavement performance within different regions of

129 SHRP-LTPP General Pavement Studies Recruitment Guideline, 1989, Braun Pavement Technologies130 ibid.131 Norton, C. W., P.-S. Chu, and T. A. Schroeder (Sept. 2011), Projecting changes in future heavy rainfall events for O’ahu, Hawaii: A statistical downscaling approach, Journal of Geophysical Research: Atmospheres, Volume 116, Issue D17110.

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Hawai’i. Therefore, if budgetary constraints do not allow for two road test sites, one road test site should

suffice.

Figure 10: Map of Mean Annual Rainfall for O’ahu, based on statistics from 1978 to 2007132

As shown in the map of O’ahu State’s roads and highways below (see Figure 11), there are

separated expressways, principle highways, and secondary highways on both sides of the island. Ideally,

one road test site should be identified on either side of the island for the same type of highway

(expressway, principle highway, or secondary highway). A major highway located in a more rural area

away from the urban areas around Honolulu would be ideal. Each test site should be 5000 feet (1 mile),

the typical length of asphalt that is laid at one time. The road should be fairly level and uniform in terms

of the underlay material and road thickness across the entire length of the test site. In addition, road use

should be consistent across the test site, with no intersections between the start and end of the test

sections, as this will result in variances in traffic load and thus road wear across different sections of the

road.

132 Mean Annual Rainfall Island of O’ahu, 2011 Rainfall Atlas of Hawaii, Department of Geography, University of Hawai’iat Manoa

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Figure 11: O’ahu State Roads and Highways133

For each test site, a minimum of four test segments of 500 feet each should be included within it,

which should be separated from each other by 500 feet. These four segments would be as follows: one

control section where RAC is not used, one section with 5% RAC (an optimal percentage of RAC

previously identified for wet, no freeze regions), one section with a higher RAC content, and one section

with a lower RAC content (see Figure 12 below). If budget permits, two additional test sections with

varied RAC content could be added at each test site.

Figure 12: Recommended RAC Road Test Sections for O’ahu

133 Map of O’ahu State Roads and Highways, State of Hawaii, Department of Transportation, Highways Division, O’ahu District, Retrieved May 2, 2013, from http://hidot.hawaii.gov/highways/home/oahu/oahu-state-roads-and-highways/

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http://hidot.hawaii.gov/highways/home/oahu/oahu-state-roads-and-highways/


Test Site Test Segment Variables RAC content

Test Site A (west) Segment A-1 Control None

Test Site A (west) Segment A-2 Lower than optimal 3%

Test Site A (west) Segment A-3 Optimal RAC content previously identified for wet, no freeze regions

5%

Test Site A (west) Segment A-4 Higher than optimal 7%

Test Site B (east) Segment B-1 Control None

Test Site B (east) Segment B-2 Lower than optimal 3%

Test Site B (east) Segment B-3 Optimal RAC content previously identified for wet, no freeze regions

5%

Test Site B (east) Segment B-4 Higher than optimal 7%

There are two options for RAC road tests, a natural option which could produce results in 4 or 5

years, or an accelerated option which could produce results in as little as 1 or 2 years. The natural option

would allow each test site to sit and undergo normal use for several years, after which it would be

subjected to various tests. According to a pavement engineer specialist, five years should be a sufficient

amount of time to assess the asphalt’s performance under natural conditions134. A second option would

be to use Accelerated Loading Facility (ALF) machines to simulate longer term road use. By running an

ALF repeatedly over a section of pavement, it is possible to get an estimation of road performance after

20 years of traffic in just 1 to 2 years.135 This is a good option if Hawai’i is interested in getting results

more quickly, however, securing use of an ALF machine could be expensive. It is not necessary to

continue RAC road tests beyond five years, however, if longer term test results are desired and funding

is available, these road tests could be continued up to 20 years, which is the expected life of pavement.

Various sources of funding may be available to assist with RAC road tests on O’ahu. One

common practice for asphalt studies has been pooled fund studies, where a collection of states or

industry partners pool money together in a fund to support research expected to generate mutually

beneficial findings. One funding option could therefore be a pooled fund study by various stakeholders

on O’ahu interested in RAC, such as the State, the municipality, and/ or prospective rubber crumble

business owners. Another option could be a pooled fund study involving Hawai’i and other island

nations or states interested in seeing the performance results of RAC in an island climate, such as Puerto

Rico, Guam, and the Virgin Islands. There may also be grants or other sources of funding available 134 Phone Interview with Gabe Cimini, Pavement Engineer Specialist, Stantec Engineering, May 5, 2013135 ibid.

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through the Asphalt Institute, the Rubber Pavements Association, the National Asphalt Pavement

Association, other research institutes, the US Department of Energy, the US Environmental Protection

Agency, or universities or states conducting research on asphalt. Another option could be to finance

these studies out of the funds collected for tire disposal on O’ahu. In addition, Honolulu’s Mayor

Caldwell has recently proposed increasing the fuel tax for the first time in 24 years, by a nickel per

gallon, which would generate $15 million to finance road repaving projects.136 If this financing project

goes ahead, some of this money could be used for testing and implementation of RAC in repaving.

Policies

Asphalt paving in Hawai’i is done by four primary clients: CCH (60%), Hawai’i Department of

Transportation (15%), military (15%), private/ other (15%).137 Therefore, the municipal government is

responsible for the vast majority of asphalt use. Considering all asphalt use in Hawai’i, 85% is used for

roads and streets, and the remaining 15% is used for airfields, parking lots, and other applications.138

Therefore, when considering policies requiring design specifications for RAC, it makes sense to target

roads and streets owned by CCH and the state.

Once the optimal percentage of RAC for O’ahu roads has been established, this could be

incorporated as the recommended or required percentage content for government specifications for

roads. This minimum amount should be fixed in order to lock in the benefits of using RAC for O’ahu’s

roads.

During Phase 1, design specifications for RAC in roads should be developed, which could be

implemented in Phase 2 in order to give industry time to meet the requirements when they go into effect

in Phase 3. As there is currently at least one draft bill at the State Senate level requiring RAC in roads, it

is advisable to first pursue design specifications at the State level. However, as the municipality and

federal government also construct and maintain roads, design specifications for these entities should also

be pursued. As CCH owns the vast majority of Hawai’ian roads, the mayor has recently announced that

he will make road paving one of his top priorities, and he has proposed massive investment in road

paving over the next five years, it is critical that design specifications for RAC in municipally-owned

roads are implemented as soon as possible.136 Full Text of Honolulu Mayor Kirk Caldwell’s Inaugural State of the City Address, April 3, 2013, Retrieved May 4, 2013 from:http://honolulu.politics.government.blogs.civilbeat.com/post/47042522743/full-text-of-honolulu-mayor-kirk-caldwells-inaugural137 Asphalt Pavement Use in Hawaii, Steve Muench, University of Washington, 2010138 Asphalt Pavement Use in Hawaii, Steve Muench, University of Washington, 2010

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A current draft of a bill to be introduced to the State Senate declares that a minimum of 9,000

tons of rubber crumble be used annually in asphalt by 2020.139 This is a tonnage requirement that does

not specify the percentage of RAC to be used in asphalt. A better alternative would be for Hawai’i to

implement a regulation specifying a minimum percentage content of RAC in asphalt. This would ensure

that Hawai’ian roads are capturing the benefits of using rubber crumble in asphalt, as if RAC content is

too low it is possible that the performance benefits for the roads would be reduced or even eliminated. It

is therefore recommended that Hawai’i draft initial design specifications requiring 5% RAC content in

asphalt. Even though there may not be enough rubber crumble material available on-island to meet a 5%

RAC requirement, it is not recommended that RAC content requirements be reduced further than 5%

unless road testing during Phase 1 shows that such a lower RAC percentage content will have equivalent

performance. If at any point there is a shortage of rubber crumble material and it cannot be obtained

either on island or via import, it would be advised to leave out RAC entirely from paving projects for

roads anticipated to have less use, rather than reducing the overall content of RAC in all asphalt, to

ensure that the benefits of using RAC are not compromised. As asphalt is typically mixed on site on the

day it will be used, it is simple to substitute additional coarse aggregate binder material for RAC. It may

be advised to include a provision for this scenario in the design specifications.

Lastly, another regulation which may be worth investigation is that for storage of used tires and

of rubber tire crumble. In order to efficiently collect used tires, transport them to a tire crumbling

facility, and then incorporate the crumble into the terminal mix, it may be necessary at times to store

relatively large amounts of used tires and tire crumble. However, there are currently restrictions in place

as to the amount of used tire material that can be stored in one place.140 Tire storage is considered both a

health and safety risk as whole tires attract vermin and insect pests, and all tire material is highly

flammable. To streamline collection and recycling of tires into rubber crumble, it may thus be necessary

to consider adapting these storage restrictions, potentially increasing the amount of tire material allowed

to be stored at a given site.

Industry

Finally, in order to maximize retention of used tire value in Hawai’i, it is recommended that a

tire crumbling industry is established on O’ahu. During Phase 1, research should be conducted on

financing and ownership options for an on-island rubber crumble facility at the terminal plant. Such a 139 Personal Email Correspondence with Nick Youngleson and Senator Shimabukuro, March 2013140 "Interview with Blane Yamagata, President, Unitek Solvent." Personal interview. Mar. 2013.

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facility could be privately owned or government owned. The latter option could potentially provide an

alternate revenue stream for the state or municipality, similar to that provided by the H-Power facility. In

Phase 2, the rubber crumble facility should be constructed, and it should be operational by Phase 3.

The revenue stream for a crumb rubber facility typically includes tipping fees paid to receive the

raw materials, sales of crumb products to different end-users, and potential sales of scrap metal and fiber

contained within the tires.141 The profitability of a crumb facility is particularly sensitive to crumb rubber

prices, operating costs, and availability of raw materials such as used tires.142 However, given the

amount of used tire material available in Hawai’i and that design specifications would likely create a

stable demand for the entire supply of rubber crumble, it is anticipated that a crumb rubber facility in

Hawai’i would be profitable. However, before stakeholders will make investments in development of a

new industry such as this, they need a guarantee that there will be a market for the product.

CONCLUSION

In conclusion, use of rubber tire crumble in asphalt is not only a viable option, it is the highest

value use of tire material flows in Hawai’i and is expected to have a wide variety of environmental,

social, and economic benefits. By investing in RAC, Hawai’i can save taxpayer money, improve road

conditions, create jobs, appease voters, and create a more welcoming business climate. Prioritizing

investment in RAC is therefore a strategic and fiscally responsible choice that will help the state of

Hawaii obtain the highest return on its investment. By following our three phase action plan outlined

above, it is feasible to implement standard use of RAC in Hawai’i roads by 2020.

ACKNOWLEDGEMENTS

Thank you to everyone who assisted us with this project, including:• Asia Yeary, Hawaii Sustainability Coordinator, US Environmental Protection Agency• Cascadia Consulting

141 Sunthonpagasit, N., and Duffey, Michael. (2004). Scrap Tires to Crumb Rubber: Feasibility Analysis for Processing Facilities. Resources, Conservation, and Recycling. Volume 40, Issue 4.142 Ibid.

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• City & County of Honolulu• Clare Gupta, Postdoctoral Associate, National Science Foundation• County of Hawai’i• Covanta Honolulu Resource Recovery Venture• Dawn Lippert, (Former) Senior Consultant for Hawaii Clean Energy Initiative• Department of Environmental Services, Honolulu/ Opala Solid Waste Department• Gabe Cimini, Pavement Engineering Specialist, Stantec• Hawai’i Asphalt Paving Industry (HAPI)• Hawai’i Automobile Dealers Association (HADA)• H-Power• Lakin Tire• Marian Chertow, Director, Yale University Industrial Environmental Management Program• Matthew Eckelman, PhD, Environmental Engineering, Yale University• Nedal Nassar, PhD Student, Yale University• Nick Youngleson, Youngleson Holdings LLC• Office of Senator Russell Ruderman of Hawai’i, Senatorial District 2• Office of Solid Waste Management, Hawai’i• Rachel Mak, Teaching Fellow, Yale University• Re-use Hawai'i• Senator Maile Shimabukuro, Senatorial District 21• State Department of Business, Economic Development, and Tourism, Hawai’i• State Department of Health, Hawai’i• State Department of Transportation, Hawai’i• State Energy Office, Hawai’i• The Center for Industrial Ecology, Yale University• The Kohala Center• Thomas Graedel, Director, Yale University Center for Industrial Ecology• Ulupono Initiative• Unitek Solvent Services, Inc.

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Documents

Tire Recycling In Hawai’i - Maile's District 21 Blog Web viewTire Recycling In Hawai’i. 5/8/13. Yale University, ... O’ahu accounts for approximately 65-70 percent of both the