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Tire Incentive Program

Grants to California Businesses for Product
Development Using Recycled Rubber Materials

Agency Type:

State

Funding Source:

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California Department of Resources Recycling and Recovery (CalRecycle)

Deadline Date:

09/27/18

Description:

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Grants starting at $25,000 to California businesses for the development and manufacturing of products using recycled rubber tires and related materials. Funding through this program is intended to reimburse businesses that use crumb rubber or substitute crumb rubber for virgin rubber, plastic, or other raw materials in products.

The Department of Resources Recycling and Recovery (CalRecycle) administers a program to provide the opportunities to divert waste tires from landfill disposal, prevent illegal tire dumping, and promote markets for recycled-content tire products. The Tire Incentive Program (TIP) provides a reimbursement (as an incentive payment program) to eligible businesses that use (recycled) crumb rubber in eligible products or substitute crumb rubber for virgin rubber, plastic, or other raw materials in products. The program’s goal is to increase demand for crumb rubber and promote higher value products.

Products:

-A new or existing product that has not benefited from the Tire-Derived Product Grant Program. Tire-derived products (TDP) which received minimal benefit (grantee awards for the Tire-Derived Product Grant Program totaling less than $1,000,000 since fiscal year 2005‒06) or that are reconfigured to serve a different purpose/market are eligible.

-An existing or new/improved product currently manufactured with virgin rubber, plastic or other material which will be produced with a minimum of five percent crumb rubber and may be co-extruded, injected, calendered or otherwise combined (also known as “feedstock conversion”). This includes compounded rubber and calendered sheet rubber as intermediate products.

-An existing or new/improved product currently manufactured with virgin rubber, plastic or other material which will be produced with a minimum of five percent devulcanzied crumb rubber and may be co-extruded, injected, calendered or otherwise combined. This includes devulcanized crumb rubber as an intermediate product.

-An existing or new/improved product that will use fine (less than or equal to 50) mesh crumb rubber. Particle size and particle size distribution are determined in accordance with American Society for Testing and Materials (ASTM) D5644 and D5603 and will be verified by CalRecycle or a CalRecycle contractor.

Applicants are reimbursed at the incentive rates below per pound according to category.

Examples of possible eligible products include, but are not limited to: devulcanized crumb rubber; flooring underlayment; rubberized flooring; industrial products; conveyer belts; calendered or compounded rubber; agricultural harvesting devices; various landscaping and garden products; various building products; various traffic devices (i.e., traffic cones, delineators, spacers, tire stops and barricades);fencing; asphalt products that are not eligible under other CalRecycle programs; asphalt products (i.e. crack seal, roofing products, etc.) must contain a minimum of five percent crumb rubber in the binder or flux, not necessarily the finished product; rubberized sidewalks, pathways, and tree wells (if specifically designed for storm water management); paints, sealants and coatings; poured-in-place playgrounds which use ground, shredded or chunk rubber from California-generated passenger tires (not truck tires or buffings) for the cushion layer; or crumb rubber to replace ethylene propylene diene monomer (EPDM) and thermoplastic vulcanizates (TPV) in the wear layer; end-of-life (EOL) material (crumb rubber, nuggets/mulch) being recycled or reused in a variety of eligible products; Source of EOL material (e.g., the playground or turf field) must be located in California; synthetic turf underlayment (not loose infill); and Americans with Disabilities Act (ADA) leveling and accessibility ramps, etc.

GrantWatch ID#:

GrantWatch ID#: 172941

Estimated Total Program Funding:

$3,968,000

Estimated Size of Grant:

The minimum is $25,000 and the maximum is $500,000 per grant award

Incentive Categories and Amounts

1. New or existing TDP (TIP product) 10 cents for total crumb rubber or end-of-life (EOL) material used in sold (net of returns) eligible products.
2. Feedstock conversion or devulcanized rubber (TIP product) 40 cents ffor total crumb rubber or devulcanized crumb rubber used in sold (net of returns) eligible products or for eligible intermediate products.
3. Fine (≤ 50) mesh (TIP product) 50 cents for total crumb rubber used in eligible products sold (net of returns).

Term of Contract:

The Grant Term begins on the date of the Notice to Proceed. Grant-eligible program expenditures may start no earlier than the date indicated in the Notice to Proceed. The Grant Term ends on April 1, 2021 and all eligible program costs must be incurred by this date.

Additional Eligibility Criteria:

Applicants:
-Manufacturers that produce (or will produce) an eligible product.
-Waste tire processors that also manufacture an eligible product.
-Manufactures of devulcanized crumb rubber.
-Rubber compounders.
-Manufacturers of calendered rubber sheeting products.
-Manufacturers that produce products on a contract basis for other companies provided they have that other company’s written permission to produce an eligible product and receive the incentive.

Eligible applicants must be California-based or incorporated in another state (or country) with an existing manufacturing facility in California. The applicant must be qualified to do business in California and in good standing with all applicable California state agencies, including, but not limited to, the Secretary of State and the Franchise Tax Board and have all appropriate licenses and permits. Any and all subsidiaries, divisions and/or affiliated businesses are considered part of the primary business entity for the purpose of applying for and receiving a grant award. A business is considered an “affiliated business” if it has at least one owner with a 20 percent or greater interest in another applicant business.

Specifically excluded from this program would be: crumb rubber used by itself as an intermediate product (i.e., used as infill for a synthetic turf field) except as noted above; tire-derived aggregate; rubberized pavement or rubberized paving products (i.e., chip seal, slurry seal, etc.); rubber nuggets/mulch/bark except as noted above; rubberized sidewalks and tree wells (except as noted above); loose-fill or poured-in-place playgrounds (except as noted above), and playground tiles; sports/running tracks; all weather sports field infill; and similar type products which have enjoyed significant benefit from the Tire-Derived Product Grant Program and its predecessors.

Pre-Application Information:

Timeline:

September 5, 2018: Question and Answer Period and Due Date
-Questions may be submitted from application release date to this date.
-Questions regarding the application and its requirements must be submitted in writing via email
-Questions and answers (Q&A) will be posted periodically during the Q&A period.
-It is the applicant's responsibility to check the Q&A web page regularly to ensure that they are aware of all program details.

September 27, 2018: Application Due Date
-Application Access: Applications must be submitted via the Grants Management System (GMS) by this date.
-Customer service will only be provided until 4:00 p.m. on the application due date.

December 2018: Grants Awarded
-CalRecycle considers funding recommendations, and if approved, conditionally awards grants in this month (tentative).

April 1, 2021: Deadline for: Progress Report 9, Final Report and final Payment Request.

Questions and Answers:
http://www.calrecycle.ca.gov/Tires/Grants/TIP/FY201819/QandA.htm

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

Apply online through the GMS:
http://www.calrecycle.ca.gov/Funding/GMS/default.htm

If you are unable to access GMS or need assistance, you may email:
grantassistance@calrecycle.ca.gov

Questions regarding the application and its requirements must be submitted in writing via email:
grants@CalRecycle.ca.gov.

Cara Rothenbaum
P: (916) 341-6117
F: (916) 319-7162
Cara.Rothenbaum@CalRecycle.ca.gov

URL for Full Text (RFP):

Geographic Focus:

USA: California