RAE OVERVIEW. Recycle America Enterprises, LLC

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2 RAE OVERVIEW Started operation January ton/day asphalt shingle recycling facility in Fitchburg, MA Take in about 8,500 tons of post consumer asphalt shingles annually 250 ton/day construction & demolition (C&D) material permit.

3 RAE OVERVIEW Shingle Product Uses Currently have MA DEP approved BUDs for: Aggregate mix or roadway sub-base. Mix ground shingles with aggregate and compact Asphalt substitute in hot mix asphalt Additive to make cold patch Apply to road or construction sites for dust and erosion control

4 RAE OVERVIEW Our Shingle Products For Aggregate Mix & Dust/Erosion Control <1 For HMA <3/8 very clean 2008 Product sales break down: 60% 20% 20% HMA Road Sub-base (aggregate mix) Dust landfills

5 THAT S OUR EXPERIENCE Experience is a wonderful thing. It enables you to recognize a mistake when you make it again!! Rest of presentation on postconsumer shingles in Mass.

6 ASPHALT SHINGLES: WHERE FROM? HOW MUCH? Shingles originate from roof replacement: Roofing contractors Disposal Firms (haulers) DEP s Asphalt Shingle Workgroup estimates from 250,000 to 350,000 tons/yr in Mass. Lets assume 300,000 tons/yr (post-consumer)

7 CURRENT DISPOSAL & RECYCLING PRACTICES Direct to landfill To C&D processors then to landfill - Exception is E. L. Harvey To recycling facilities and HMA plants. About 30,000 t/yr or 10%

8 FOR SUCCESSFUL RECYCLING PROGRAM THREE CONDITIONS NEEDED: 1. Incentive For Recyclers Economic Regulatory 2. Recycling Capacity 3. Market for Recycled Product Economic for user Regulatory incentive (no barriers)

9 #1 INCENTIVES FOR RECYCLERS Economic Shingle recyclers compete on tipping fee with C&D Processors there are 15 in Mass. Landfills Transportation (fuel) $$ influences recycling

10 #1 INCENTIVES FOR RECYCLERS Regulatory There are none!!! However, there are regulatory barriers!! (later)

11 #2 RECYCLING CAPACITY How much do we need? Is there enough? About 300,000 t/yr generated. There are 2 shingle recycling facilities with a capacity of about 255,000 t/yr. That is 85% existing recycling capacity! Shingles are a form of C&D. There are 15 C& D processors with a capacity of > 2M tons per year. The capacity exists!!

12 #3 MARKETS FOR RAS PRODUCTS Hot mix asphalt Aggregate mix or sub-base Erosion and dust control Again, economics & regulations. User must have an incentive! Viable market

13 MARKETS FOR RAS IN Hot Mix Asphalt 2008 MassHighway projects used 2.6 M tons HMA Municipal & private projects - about 4 M tons Total = 6.6 M tons If 5% RAS used in the projects then 330,000 tons of RAS would be recycled. (100%) If 5% RAS used in one half the projects then 165,000 tons of RAS would be recycled. HMA market is very significant!!

14 MARKETS FOR RAS Hot Mix Asphalt (con t) Economics is primary driver December 2008 cost of liquid asphalt per MHD web site is $ 625/t Post consumer shingles are 22% asphalt So a ton of RAS is worth $625 x 0.22 = $135 If sold for $40/ton then $135 - $40 = $95/t which is savings incentive for hot mix facilities. Not all HMA facilities have right equipment.

15 MARKETS FOR RAS Side bar on economics How much is currently being wasted? 270,000 t/yr shingles to landfill x 22% asphalt x $625/ton liquid asphalt $37,000,000 per year into landfill

16 MARKETS FOR RAS Aggregate mix or Sub-base P.J. Keating makes two aggregate mixes or sub-base products Mixes are 50% RAS to aggregate. Commercial Paving in ME makes 3 types of aggregate mix products Recycle 25,000 t/y of RAS. Mixes range is 10% to 50% RAS to aggregate. Positive feed back from contractors with increasing demand.

17 MARKETS FOR RAS Future Uses Fuel Fuel and raw product for manufacture of Portland cement Top coat dressing - hot tar built up roofing. Compressed to form interlocking retaining wall blocks, parking lot bumpers, etc. Component in planting medium for green roofs

18 IS SHINGLE RECYCLING FEASIBLE? Conclusions Incentive for recyclers There is some economic incentive. There are regulatory barriers. There is sufficient recycling capacity There could be a significant market if more use in HMA and aggregate mix. What needs to change?

19 CURRENT DISPOSAL & RECYCLING PRACTICES Direct to landfill To C&D processors then to landfill To recycling facilities To HMA plants.

20 REGULATORY BARRIER Asbestos Testing Shingle recyclers have to test every material in every load and reject upon detection. C&D processors sample much less and reject load if 1% asbestos. HMA plants are not regulated. Landfills have no requirements. Asbestos testing adds 10% cost to tipping fee for recyclers

21 REGULATORY BARRIER Asbestos - Level the playing field! Apply a uniform asbestos management plan with respect to asphalt shingles: For shingle recycling facilities For C&D processors For Asphalt Batch Plants Landfills??

22 REGULATORY BARRIER In Market for RAS Mass Highway specs do not include post consumer shingles for either HMA or Aggregate mix material. Most of the 360± municipalities adopt these specs. The inclusion of post consumer shingles in Mass Highway specs (HMA and sub-base) would make the market!! Limitations on product and uses are expected.

23 OTHER STATES THAT HAVE RAS IN HMA SPECS Florida Georgia Indiana Maryland Michigan New Jersey North Carolina Ohio Pennsylvania Source:

24 REGULATORY BARRIER In Market for RAS First step: MassHighway determine what is needed to justify changing specs. Economic impact? Use of existing studies & field tests? Additional studies & field tests? QA/QC requirements? RAE has applied for DEP grants to conduct lab study (UMass Dartmouth) & field test

25 REGULATORY INCENTIVES Initiate landfill ban on asphalt shingles because: Economically feasible to recycle shingles. Recycling capacity currently exists. Markets will increase if Mass Highway specs change.?? CHICKEN OR EGG??

26 REGULATORY INCENTIVES Consider phasing in ban: Initial landfill ban on source separated loads Ban C&D processors from mixing source separated loads with trash. Regional ban for landfills & transfer stations within, say, 30 miles of a recycling or C&D facility that recycles shingles.

27 REGULATORY INCENTIVES Other Ideas Asphalt shingles to be recycled for all state reroofing and demolition projects. (DCAM) Promote that RAS be used for erosion control for state projects: construction sites, park paths, low volume roads. Promote that RAS be used in state funded roadway projects. Put in standard specifications. (MHD)

28 THE END Kenneth Snow, P.E., LSP