Tire-Derived Product Business Assistance Program, FY 2006-07

Notice of Funds Availability

The grant application period is now closed. The application deadline was April 3, 2007. At its June 2007 business meeting, the Board awarded $1.7 million in grants to 14 businesses for the 2006-2007 fiscal year.

The California Integrated Waste Management Board (CIWMB) offers the Tire-Derived Product Business Assistance Program (Program) to eligible businesses. The Program seeks to improve the operational and cost efficiencies of tire-derived product (TDP) businesses by providing technical and consultative assistance and, where necessary, reimbursement for specifically identified equipment. Eligible businesses may receive assistance grants of up to $175,000 (See the Application Appendices [Adobe PDF, 218 KB | MS Word, 255 KB] for categories and funding levels) in the form of assistance that may include, but is not limited to:

1. Evaluate and improve their business plan and operations.
2. Improve their manufacturing process.
3. Enhance marketing efforts.
4. Test and certify new products.
5. Purchase necessary equipment.

Eligible Applicants
Eligible applicants are for-profit California-based TDP businesses, Qualifying California Indian Tribes and those for-profit TDP businesses domiciled in other states but with an existing or demonstrated commitment to an operational presence in California. Eligible applicants must produce in California, or demonstrate commitment to produce, products made from recycled 100 percent California-generated waste tires for the recycled rubber portion of the product.

Eligible subsidiary and/or affiliated businesses that apply for an assistance grant will receive an initial assessment (limited to two entities per fiscal year period), and are limited to a maximum combined assistance grant of $175,000 per year for all related entities. 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.

Ineligible Applicants/Activities
Ineligible Applicants/Activities include, but are not limited to:

• Businesses that perform waste tire incineration, pyrolysis, gasification, and/or liquefaction.
• Waste tire collectors and/or haulers, also the tire collection and/or hauling portion of other businesses.
• Businesses, or that portion of business’ operation, that shred or chip tires for use as Alternative Daily Cover (ADC) or Tire-Derived Fuel (TDF).
• Entities that perform only research and testing and are not in business to produce and/or sell products.
• Wholesalers and/or distributors.
• De novo businesses (from concept stage to less than six months of actual operation/sales).*
• Micro businesses (businesses that produced and/or sold less than 5,000 Passenger Tire Equivalents (PTE) in 2006).*

Available Funds

• Up to $175,000 per eligible applicant (See the Application Appendices [Adobe PDF, 218 KB | MS Word, 255 KB] for categories and funding levels).
• An estimated $1,700,000 is available for awards (subject to change depending on monies committed for sector and industry-wide activities).
• A maximum of 30 percent of available funds will be reserved for businesses in the startup, small, custom manufacturer, and non-production categories.

The CIWMB reserves the right to not fund any particular project or any part of a project, or not to award any grants.

If requests exceed available monies, applicant businesses will be ranked by the number of PTE diverted in 2006 or, in the case of expanding or feedstock conversion projects, the contractor’s, business representative’s and the CIWMB program manager’s consensus estimate of annual PTE diverted upon project completion. Requests will be approved in descending order (starting with the greatest number of tires diverted), subject to the 30 percent maximum allocation for businesses in the startup, small, custom manufacturer, and non-production categories.

Business assistance grants will be primarily in the form of technical and consultative assistance rather than cost reimbursement. Consult your attorney or tax advisor regarding any tax consequences associated with accepting the assistance grant.

Process
There will be one application period early in 2007 for the 2006/2007 fiscal year funding. The amount of the business assistance grants awarded to eligible businesses will be based on available funding, historical tire diversion, business category, and other factors approved by the CIWMB (See the Application Appendices [Adobe PDF, 218 KB | MS Word, 255 KB] for categories and funding levels). Businesses may only be awarded a business assistance grant once each 12 months.

Application Submittal Deadline
Applications must be postmarked by Tuesday, April 3, 2007. Hand-delivered applications will also be accepted at the Cal/EPA Headquarters Building located at 1001 I Street, Sacramento, CA until 3:00 p.m. on Tuesday, April 3, 2007. Faxed or e-mailed applications will not be accepted. Late applications will be returned and will not be considered for grant assistance.

Applications mailed or sent by U.S. Postal Service or a commercial delivery service should be sent by a means that allows for tracking by the sender and that provides an addressed and dated receipt. Failure to do so is at the risk of the applicant, and if delivery is delayed or the application is lost by the Post Office or delivery service, the burden is on the applicant to demonstrate timely mailing or delivery of the application.

Question and Answer Process
Questions must be submitted in writing by Friday, March 16, 2007, to the address below. Responses will be provided as soon as possible and posted continually on the Questions and Answers page of this grant program’s website. Similar or related questions may be grouped together or reworded for clarity and responded to as one question.

Note: Periodically check this grant program’s website for updates.

To submit questions, request an application, or for more information:

• E-Mail: tiregrants@ciwmb.ca.gov
• Phone: (916) 341-6441
• Mail:
  California Integrated Waste Management Board
  Tire-Derived Product Business Assistance Program, MS 9A
  P.O. Box 4025
  Sacramento, CA 95812-4025

FY 2006-07 Cycle Home | TDP Business Assistance Home | Tire Grants Home

Last updated: December 02, 2007