DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT
Solid and Hazardous Waste Commission/Division of Environmental Health and Sustainability
6 CCR 1007-2
PART 4 - Regulations Pertaining to the Waste Tire Processor and End User Reimbursement Program

Amendment of Section 1 – Rules for Reimbursements from the Processors and End Users Fund

(Adopted by the Solid and Hazardous Waste Commission on February 19, 2013)

1) Replace Section 1 (Rules for Reimbursements from the Processors and End Users Fund) in its entirety to read as follows: 

DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT
Solid and Hazardous Waste Commission/ Division of Environmental Health and Sustainability
6 CCR 1007-2
PART 4 - Regulations Pertaining to the Waste Tire Processor and End User Reimbursement pROGRAM

Section 1 - Rules for Reimbursements from the Processors and End Users Fund 

 1.1 PURPOSE 

The purpose of these rules is to implement the provisions of section 25-17-202.5, C.R.S. The purpose of such partial reimbursements shall be to assist new and existing waste tire recycling technologies to become economically feasible and to thereby encourage the use of waste tires and reduce the storage of waste tires in Colorado. 

1.2 DEFINITIONS 

“Applicant” means any person or business seeking partial reimbursement under 25-17-202.5, C.R.S. 

“Authorized signature” means the signature of an individual who has authority to sign on behalf of, and bind, an applicant. 

“Buffings” the residual rubber material removed from the supporting structure of a waste tire or a retreaded or recapped tire.

“Daily cover” means using processed waste tires as an alternate cover placed upon exposed solid waste in a permitted solid waste facility to control disease vectors, fires, odors, blowing litter and scavenging, without presenting a threat to human health or the environment. 

“Department” means the Colorado Department of Public Health & Environment. 

“Economic value” is an attribute of a product, which is producing or capable of producing a profit, or is valued through a recognized medium of exchange. 

“End use” or “End used” means: 

a. For energy recovery: utilizing the heat content or other forms of energy from the burning or pyrolysis of waste tires or tire-derived product; 

b. For other eligible uses where the tire-derived product is virtually indistinguishable from shredded or baled tires, the end use is the installation of the tire-derived product (e.g. landscape mulch, civil engineering projects, aggregate, etc.); 

c. For other eligible uses where the tire-derived product is a product that needs no installation to be recognized as that product (e.g. ground mats and furniture), the end use is the manufacturing of the final end product.

“End User” means a person who uses a tire-derived product for a commercial or industrial purpose. 

“HMWMD” means the Hazardous Materials and Waste Management Division.

“Partial reimbursement” means reimbursement from the Waste Tire Processors and End Users Fund. 

“Processor” means a person who processes waste tires in Colorado for recycling or beneficial use. 

“Pyrolysis” means thermal treatment of waste tires or tire-derived product to separate the waste tires or tire-derived product into other components with economic value.  Pyrolysis differs from burning waste tires or tire-derived product for energy because burning uses the entire waste tire or tire-derived product and results in energy and residual waste.  Conversely, pyrolysis involves thermal decomposition of organic compounds in an oxygen limited environment for the purpose extracting the waste tire’s individual components – typically gas, oil and char products.

“Recapped or retreaded tire” means a previously worn tire which has gone through a remanufacturing process designed to extend its useful service life.
 	
“Tire” means a tire for any passenger vehicle, including any truck, weighing less than fifteen thousand pounds, and for any truck, including any truck tractor, trailer, or semitrailer, weighing more than fifteen thousand pounds; except that “tire” does not include:
	
a. Tires that are recapped or otherwise reprocessed for use.
	
b. Tires that are used for:

1) Farm equipment exempt from sales and use taxes pursuant to section 39-26-716, C.R.S.; or

2) A farm tractor or implement of husbandry exempt from registration pursuant to section 42-3-104, C.R.S.

“Tire-derived Product” means matter that:

a. Is derived from a process that uses whole tires as a feedstock, including shredding, crumbing and chipping; and

b. Has been sold and removed from the facility of a processor.

“Waste Tire” means a tire that is no longer mounted on a motor vehicle and is no longer suitable for use as a tire due to wear, damage, or deviation from the manufacturer’s original specifications. Waste tires include the following types of tires that are not organized for resale by size in a rack or a stack in a manner that allows the inspection of each individual tire: a repairable tire, scrap tire, altered waste tire, and a used tire. “Waste Tire” does not include a tire-derived product or crumb rubber.  

1.3 ELIGIBILITY FOR PARTIAL REIMBURSEMENT 
A.  General Requirements:
1.  Only Colorado-generated waste tires and tire-derived product created from Colorado-generated waste tires qualify for partial reimbursement.
2. The Department will not reimburse a processor for processing waste tires unless the processor has end used the tire-derived product or unless the tire-derived product has been sold for an end use and moved off-site.  In such cases, the Department will pay the processor only if the end use is allowed in the jurisdiction in which it will be used.
3. The Department will pay a processor only for Colorado waste tires the processor processes in Colorado.
4. The Department will pay a processor who processes waste tires in Colorado that are sold for an out of state end use only as a processor, not as an end user.  In such cases, the Department will pay the processor only if the end use complies with all local requirements in the jurisdiction in which it will be used.
5. The Department will not reimburse an end user who end uses waste tires or tire-derived product outside the State of Colorado.
6. The Department will reimburse an end user only if the end use complies with all local requirements in the jurisdiction it was used.
7. The Department will not reimburse a processor for processing a waste tire into a feedstock that is then further processed into a tire-derived product.  A processor is only eligible for processing a waste tire one time – that is, when he or she processes the waste tire into the final tire-derived product.	
8. An end user cannot receive end use reimbursement for end using tire-derived product that was previously end used.  This includes any tire-derived product that was previously denied reimbursement and any tire-derived product for which the end user failed to apply for funds at the time of end use.
9. Processors who process waste tires in one month and use the tire-derived product in a subsequent month are eligible for the processor reimbursement only after they use the tire-derived product.  Processors who process waste tires in one month and sell the tire-derived product in a subsequent month are eligible for the processor reimbursement only after the tire-derived product is sold and moved offsite.  Applicants must provide documentation to verify sale, use and moving offsite of tire-derived product.
10. Waste tires processed at the location of the illegal disposal with funds from the Waste Tire Cleanup Fund are not eligible to receive a processor reimbursement from the Processor and End User Fund. Waste tires removed from the location of the illegal disposal with funds from the Waste Tire Cleanup Fund and processed at a separate location are eligible to receive a processor reimbursement from the Processor and End User Fund.  
11. The Department may deny reimbursements to any end user the Department determines has accumulated a commercially unreasonable quantity of waste tire end products.
B. Eligible Processes. Processes that are eligible include:
	1. Stamping;
	2. Stripping;
	3. Shredding;
	4. Pyrolysis;
	5. Crumbing;
6. Baling for end use.  To receive the processor reimbursement for processing waste tires into tire bales, the processor must submit the Tire Bale Processor/End User Approval Form, available on the Department’s website; and 
	7. Other technologies for the conversion of waste tires into tire-derived 	product. 
C. Ineligible Processing. Processes that are ineligible for a partial reimbursement include:
1.	Recapping or retreading of waste tires or previously recapped tires; and
2.	Creating buffings.
D. Eligible End Uses.  The end uses of waste tires or tire-derived product that are eligible for partial reimbursement include, but are not limited to: 
1. Civil engineering applications, meeting applicable American Society for Testing and Materials (ASTM) or similar standards, which utilize tire-derived product as a substitute for soil, sand, or aggregate in a construction project's land or surface applications, road bed base, embankments, fill materials for construction projects, daily cover at a permitted solid waste facility, and/or civil engineering applications as approved by the state or local jurisdictions;
2. Pyrolysis or burning of waste tires or tire-derived product for energy recovery or supplemental fuel;
3. Manufacturing of products such as molded rubber products, rubberized asphalt, or other products utilizing tire-derived product; and
4. Tire bales.  To receive the end user reimbursement for using tire bales, the applicant must submit the Tire Bale Processor/End User Approval Form, available on the Department’s website.  
E. Ineligible End Uses.  Uses that are not eligible for partial reimbursement include: 
1. Reuse as a vehicle tire;
2. Burning without energy recovery; 
3. Buffings generated from the recapping or retreading process used in the manufacturing of an end product; 
4. Land filling for disposal; and
5. Any use of a whole waste tire, other than pyrolysis or energy recovery or supplemental fuel.
F.  Eligible applicants:
1. A business or person who is required by law to be registered with the Secretary of State’s office to conduct business in the State of Colorado must be in “Good Standing” to be eligible to apply for reimbursement. 
2. To be eligible to receive a partial reimbursement for processing waste tires, a person must be currently registered with the HMWMD as a waste tire processor at the address at which that person claims processing of waste tires.
3. To be eligible to receive a partial reimbursement for end using tire-derived product, a person must be currently registered with the HMWMD as a waste tire end user at the address of the end user facility or business address.
4. To be eligible to receive a partial reimbursement for end using a whole waste tire for pyrolysis, energy recovery or supplemental fuel, a person must receive a beneficial use approval from the HMWMD.

1.4 APPLICATION PROCEDURES 

A. A processor or end user is eligible for partial reimbursement for the processing of waste tires or the end use of waste tires or tire-derived product only if their application for partial reimbursement is complete and complies with all of the provisions of these rules. 

B. An applicant’s initial application in any state fiscal year (July 1 through June 30) must be for a minimum of 50 tons of either processed and/or end used waste tires or tire-derived product. The applicant cannot receive reimbursement for waste tires or tire-dervied product processed or end used in a previous fiscal year. After submitting an initial application for a minimum of 50 tons, the applicant is eligible to apply for any ton amount in subsequent months in that fiscal year. 

C. Applicants must certify the processed waste tires, whole tires or tire-derived product are not being provided to a local government securing or having secured a grant from the Recycling Incentives Program (section 25-17-202.6(2)(b)(I), C.R.S.). 

D. To be eligible as a Colorado-generated waste tire, the waste tire must be documented as such in a manner acceptable to the Department. Acceptable documentation must include a certifying statement signed by the applicant stating the waste tires are Colorado-generated in accordance with the requirements of Section 1.3 of these rules. 

E. Applicants must provide weight tickets from a scale that meets the requirements of the Colorado Measurement Standards Act, section 35-14-101 – 35-14-134, C.R.S. to document weights of waste tires or tire-derived product processed or end used.  Other forms of documentation may be acceptable on a case by case basis.  

F. An applicant for partial reimbursement must file the appropriate Department form (Processor and End User Application), providing at a minimum: 

1. Applicant's name and address. 

2. Name and location where end use or processing occurred. 

3. A description of the end use or processing. 

4. For processors: a listing of end users that purchased the tire-derived product.

5. For processors: the Waste Tire Certificate of Registration number of the facility where the processing occurred. 

6. For end users: source of waste tires or tire-derived product. 

7. For end users: the Waste Tire Certificate of Registration number of the end user facility.

8. The amount of waste tires or tire-derived product processed or end used, by weight (in tons). 

9. The time period in which the waste tires or tire-derived product were processed or end used. 

10. Other supporting documentation required by the Department.

11. An authorized signature. 

G. Applications for monthly partial reimbursement will be accepted no later than the stated due date on the application and/or website. Applications received after the due date will be considered late and partial reimbursement will not be considered for that calendar month. The Department will not accept adjustments for processed applications from prior calendar months. The Department will not accept combining previous calendar months with the current months’ application except as defined in Section 1.4 (B), above. 

1.5 PARTIAL REIMBURSEMENT RATE 

A. The amount of the partial reimbursement for waste tires processed or end used may be up to $65.00 per ton. 

B. Every month the Department will reimburse processors and end users of waste tires from the fund according to the following method: 

1. The Department will pay end users twice as much per ton for each ton of waste tires used as it will pay processors for each ton of waste tires processed; 

2. Any one waste tire is eligible for reimbursement one time for the processing of that waste tire and one time for the end use of that waste tire; 

3. If using this method the end use reimbursement rate exceeds $65 per ton, then the excess funds will be distributed to the processors; 

4. If using this method both the end use reimbursement rate and the processor reimbursement rate exceed $65 per ton, then the excess funds will remain in the fund to be distributed the following month. 

C. Funds will be disbursed pro-rata, based on the amount of revenue received in the preceding month made available to the Department for partial reimbursements, divided by the requests received by the date in Section 1.4 (G), above, as expressed in tons. Distribution of funds cannot exceed available balance at any time. 

1.6 PROCESSING OF APPLICATIONS 
The Department will review the Processor and End User Application by the first of the month following the application deadline as defined in Section 1.4 (G), above according to a four-step process: (1) review for completeness, (2) review for compliance with applicable laws and regulations, (3) review for eligible processes and end uses, and (4) determination of reimbursement amount. 

A. Completeness: If an application is not complete, then the Department will notify the applicant and grant the applicant a 5 business day grace period to submit the missing information. The Department will defer partial reimbursement to all applicants until adequate information is received. If adequate information is not received in the prescribed time period, then the Department shall deny reimbursement for that month. 
B.  Compliance:  After the Department has determined all applications submitted in a given month are complete, it will conduct a compliance verification to ensure each applicant both is in compliance with all applicable laws and regulations and was in compliance with all applicable laws and regulations during the time period for which they are seeking reimbursement.  
C. Eligibility: After compliance verification, the Department determines which applicants are eligible for reimbursement based on their claimed processing and end use.  
D. Reimbursement amount:  The Department will calculate the amount of reimbursement per Section 1.5 of these Regulations and notify each applicant of its determination and distribute funds.

1.7 APPEALS PROCESS
A. For approved applications, if an applicant believes the Department has made a calculation error in the response to an approved application, the applicant shall notify the Department in writing within 10 business days of receiving the Department’s response. The notice shall contain a copy of the application and the Department’s response, a brief statement describing the believed error, and copies of any documents supporting the statement. The Department shall review the notice and attached documents and may further investigate the matter.
1.  If the Department concludes an error has been made and the Department has not yet paid the monthly reimbursements, then the Department shall reinstate the application and recalculate the pro-rata payment before paying the monthly reimbursements.
2.  If the Department concludes an error has been made and the Department has already made the monthly reimbursements, then the Department will notify the applicant and reimburse the applicant from the next month’s reimbursement money, as available, according to the following method:  (1) The Department will determine what the applicant should have been paid had the Department not erred;  (2)The Department will pay the applicant that amount from the next month’s reimbursement money; (3)  The next month’s reimbursement money will be reduced accordingly.
3. If the Department concludes no calculation error was made, then it will notify the applicant that its previous determination was not in error and is final.  This determination is subject to appeal pursuant to section 24-4-106, C.R.S.
B. For denied applications:  If an applicant believes his or her application was wrongly denied, the applicant shall, within 10 business days of denial, submit the following to the Department:  (1) a copy of the denied application and supporting documents, (2) the denial letter, (3) a statement explaining why the applicant believes the Department erred, and (4) all other information the applicant believes relevant.  
1.  If the Department concludes it erred in denying the application, and the Department has not yet paid the monthly reimbursements, then the Department shall reinstate the application and recalculate the pro-rata payment before paying the monthly reimbursements.
2.  If the Department concludes it erred in denying the application and the Department has already made the monthly reimbursements, then the Department will notify the applicant and  reimburse the applicant from the next month’s reimbursement money, as available, according to the following method: (1)  The Department will determine what the applicant should have been paid had the Department not erred; (2)  The Department will pay the applicant that amount from the next month’s reimbursement money; (3)  The next month’s reimbursement money will be reduced accordingly.
3. If the Department concludes no error was made, then it will notify the applicant that its previous determination was not in error and is final.  This determination is subject to appeal pursuant to section 24-4-106, C.R.S.

1.8 ENFORCEMENT 

A. A processor or end user who applies for a partial reimbursement is subject to a review by the Department at any time. Applicants shall allow access to all records related to waste tire management activities during normal business hours for the purpose of determining compliance with these rules for five years from the date of partial reimbursement. 

B. If information is provided by an applicant that constitutes a trade secret, confidential personnel information, or proprietary commercial or financial information, in accord with § 24-72-204(3), C.R.S., then the applicant may request the Department withhold such documents from disclosure in the event the Department receives a request for records in accord with the Colorado Open Records Act, § 24-72-101 et seq. All such documents must be clearly marked with the term “Proprietary Information” on each appropriate page. Records marked as containing trade secret, confidential, personnel, or proprietary information that do not actually contain such information may be released pursuant to an Open Records Act request. 

C. In addition to any other penalty imposed by law, any applicant who provides false information to the Department when applying for a partial reimbursement shall be ineligible to receive any future partial reimbursement under these rules. 

D. The Department may reasonably deny reimbursements to an applicant who is out of compliance with operational requirements of any state law or regulation.