Scrap Tire Market Development Grants

Purpose:  To issue grants for projects that will result in the development of increased markets for scrap tires.


Goals of the Program:  To use available funding to promote increased markets for scrap tire material in order to ensure appropriate markets for this material exist in an effort to reduce the public health and environmental concerns associated with scrap tires.


Eligibility:  The applicant's project must demonstrate new or increased uses of scrap tires in manufactured products, such as modified asphalt, molded or extruded rubber products, or aggregate replacement materials; or the project must be for the research and development of methods to increase the use of scrap tires.  The project must be located in Michigan, and the applicant must be registered to do business in Michigan.  Scrap tires must be purchased from a Michigan processor or other Michigan generator of scrap tires.  The applicant must submit documentation of the property owner's permission for the applicant to do business at that location.  The applicant must not be in litigation with the state or any other public entity concerning compliance with the Part 169, Scrap Tires, or Part 115, Solid Waste Management, of the Natural Resources and Environmental Protection Act, 1994, PA 451, as amended.  The applicant must first submit a Letter of Interest, [Form EQP5154], and be approved in order to submit a full application for funding.  See grant application for full eligibility requirements.


Criteria:  Each letter of interest and full application will be evaluated by DEQ staff.  The following descriptions of the criteria to be used are brief and designed to provide a general explanation of the criteria that will be considered: the amount of Michigan scrap tires to be used; the cost per scrap tire for the project; project must be feasible, market oriented and demonstrate viable markets for the proposed product; research and development grant applicants must provide data or other documentation to show that the project is for new research that will expand the market for scrap tires in Michigan, and must demonstrate commitment to the project through a business plan and investment.  The applicant's overall compliance with Michigan environmental laws, rules, and regulations will be evaluated.  Priority will be given to projects as outlined in the grant application package.  See grant application for complete criteria.


Application Process:

  • Submission of a completed, current Scrap Tire Market Development Letter of Interest.
  • Letters of Interest are reviewed by DEQ for eligibility.
  • Upon DEQ approval, submission of a completed, current Scrap Tire Market Development Grant Application package.
  • Eligible applications are prioritized by the DEQ and grants are approved by the DEQ Director.
  • Contracts are issued to the prioritized, eligible applicants, based on the amount of funds appropriated by the Legislature.


Nominating Procedures:

Grant applications are approved for funding by the DEQ Director based on eligibility and criteria in the grant application package.


Deadlines:  Grant deadlines are announced for each grant cycle, typically in September.  Letters of Interest for Fiscal Year 2014 grants are due by 5:00 p.m. October 25, 2013


Timelines:  The application review and funding process generally takes about four months, with projects to be underway by spring.  All projects funded must commence prior to September 30 of the fiscal year in which they are awarded, and must proceed in a continuous manner.  Typical projects must be completed within 18 months of the start date.


Dollar Amount(s) Available (Min or Max):  Funding is contingent upon Legislative appropriation and all other necessary approvals.


Required Match:  Grants are available for up to 50% of the cost of purchasing equipment, or for research and development costs.  The applicant must commit to at least 50% of the total project amount, in cash.  In-kind services are not allowed as part of the match, but will be considered during the application evaluation process.  Grants are also available for the cost of purchasing scrap tires.  Reimbursement cannot exceed $50 per ton. 


Source(s) of Funds:  Scrap Tire Regulatory Fund.


Authority:  Part 169, Scrap Tires, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended.


Responsible Division and Contact(s):  Office of Waste Management and Radiological Protection, Rich Brim 517-284-6545.


Phase-out/Expansion/Changes for Next Year:  None.


Related Grants:  Scrap Tire Cleanup Grants


Recent Awards/Example Project:  Cobalt Holdings has been awarded $750,000 for the development of plastic/rubber peletization to be used in injection molding.


Request for Proposals/Application:  Letter of Interest, and Scrap Tire Market Development Grant Application for Funding [Form EQP 5155]