Contractor’s Report
to CalRecycle
38
CalRecycle is embarking on some notable adjustments to its tire market development programs,
doing away with the Tire-Derived Product Business Assistance Program service grants and
shifting some funds from the tire-derived product grants program to a pilot Tire Incentive
Program. Stakeholder’s comments indicate a lack of consensus on these changes and on how
CalRecycle tire market development funds should ideally be allocated. Moreover, funding for tire
market development may decline in coming years as the statewide retail tire fee is scheduled to be
reduced from $1.75 to $0.75 per tire. However, CalRecycle’s existing spending authority and tire
fund reserves may mean existing levels of effort will continue for the foreseeable future.
While the exact impact on markets of these trends and policy changes is uncertain, CalRecycle’s
efforts continue to be driven by a goal of expanding and diversifying demand for California waste
tires. The industry has proven itself to be resilient and markets are among the most diverse in the
nation. On the whole, this may bode well for the future of waste tire diversion in California,
although there are sure to be some bumps in the road along the way.
