Processors play an important role in Ontario’s economy and environment, accepting used tires that may have gone toward landfills and burning and recycling these used tires into a range of tire-derived products that can be used to manufacture products such as water troughs, traffic cone bases, drainage beds and quieter, safer roads. The Program will invest in Ontario’s scrap tire Processors, contributing to their growth and economic well-being by providing incentives for selling Tire Derived Products (TDPs).
These incentives will help create a favourable business environment that helps Processors capitalize on the economic growth opportunities created by the Program.
In the first year alone, $23 million in processing incentives will be invested in the Ontario tire recycling industry, stimulating a wider range of products and increasing capacity. Higher-value added products will receive the higher incentives.
Role and Requirements
Once registered with the Ontario Tire Stewardship OTS and the Used Tires Program, Processors are responsible for meeting the following:
•
Registering with the Used Tires Program and signing the Processor Agreement with OTS
•
Providing proof of sale of Tire Derived Products (TDPs)
•
Accepting tires from registered all Haulers for no charge where capacity permits (only applies to the types of tires that the Processor is registered to accept)
•
Providing proof of end use of the TDPs sold and demonstrating that these materials are being used by their customers in a manner compliant with the diversion objectives of the program. This will be reviewed regularly by OTS.
Incentives for Processors
Registered Processors that meet the above Used Tires Program requirements are eligible for the following benefits and incentives:
•
Applicable Processing Incentives (see chart below)
•
In order to encourage the production of higher-value added products, a graduated incentive system will be used for the following product categories, with crumb rubber receiving the highest incentive level:
•
Crumb Rubber
•
Fabricated Products
•
Tire Derived Aggregate
•
This list of approved end-uses may be amended by OTS from time to time as new processing options become available in Ontario.
•
Incentives are fixed for Year 1 and will be updated annually
•
Payment within 35 days of OTS receiving the required proof of sales of Tire-Derived Products (TDP)
•
Your name posted on the OTS website as a registered Processor
Processor Incentive Chart
OTS Product Type
Material Source
Feedstock (Y/N)
Eligible Product Code
Description
Eligible Rates per
Metric Tonne of TDP
TDP1
Off
Y
TDP1FF
TDP1, Off the Road Feedstock
175.00
TDP1
Off
N
TDP1FT
TDP1, Off-the-Road, Whole Tires
337.50
TDP1
On
Y
TDP1NF
TDP1, On-the-Road, Feedstock
140.00
TDP1
On
N
TDP1NT
TDP1, On-the-Road, Whole Tires
270.00
TDP2
Off
Y
TDP2FF
TDP2, Off the Road Feedstock
143.75
TDP2
Off
N
TDP2FT
TDP2, Off-the-Road, Whole Tires
287.50
TDP2
On
Y
TDP2NF
TDP2, On-the-Road, Feedstock
115.00
TDP2
On
N
TDP2NT
TDP2, On-the-Road, Whole Tires
230.00
TDP3
Off
Y
TDP3FF
TDP3, Off the Road Feedstock
81.25
TDP3
Off
N
TDP3FT
TDP3, Off-the-Road, Whole Tires
193.75
TDP3
On
Y
TDP3NF
TDP3, On-the-Road, Feedstock
65.00
TDP3
On
N
TDP3NT
TDP3, On-the-Road, Whole Tires
155.00
TDP4
Off
N
TDP4FT
TDP4, Off-the-Road, Whole Tires
81.25
TDP4
On
N
TDP4NT
TDP4, On-the-Road, Whole Tires
65.00
TDP5
Off
N
TDP5FT
TDP5, Off-the-Road, Whole Tires
150.00
TDP5
On
N
TDP5NT
TDP5,On-the-Road,
Whole Tires
55.00
Recycled Product Manufacturers
Recycled Product Manufacturers (RPMs) manufacture raw materials into many innovative recycled products such as sports fields, playground fill and rubberized asphalt. The Used Tires Program will help promote the development of a province-wide market for such products and provide RPMs with incentives for turning diverted used tires into higher end uses based on the 3Rs (reduction, reuse and recycling) principles.
RPMs that register with the Program may receive manufacturing incentives upon proof of sale of these products in accordance with the Program Plan. Recycled product technologies that are eligible for these incentives include molded goods, calendered goods and extruded goods.
The economic stimulus provided under the Program will help RPMs thrive, build Ontario’s Green economy, and capitalize on emerging growth opportunities.
