-------
8.2.5.3 Comparison of VOC Emission Reduction Costs to Paftticulate
Pollution Control Costs. Annualized costs associated with the !regulatory
alternatives for the model plants are presented in Section 8.I.1 When
!
solvent recovery credits are included, VOC emission reduction systems
i
employing carbon adsorber control components are expected to irjcur
annualized costs which are approximately 50 percent less (under Regulatory
Alternative I) and 5 percent higher (under Regulatory Alternative II)
i
than the costs incurred by tire manufacturers for particulate (carbon
black) pollution controls. When recovery credits are excluded, systems
employing carbon adsorbers may have annualized costs that are 45 percent
(under Regulatory Alternative I) and 60 percent (under Regulatory
Alternative II) higher than the costs for particulate pollution controls.
VOC emission reduction systems that use afterburners may have annualized
costs which are 245 to 510 percent above the costs to operate and
maintain particulate pollution controls, depending on the afterburner
type employed and the regulatory alternative involved. The annualized
model plant costs for each regulatory alternative and each VOC control
component are presented and compared to particulate pollution control
costs in Table 8-17. !
8.2.5.4 Comparison of Total Costs of Compliance With Applicable
Regulatory Requirements. VOC emission reduction systems using Icarbon
adsorbers are expected to increase total annualized costs for compliance
with all applicable regulations by approximately 15 percent (under
Regulatory Alternative I with recovery credits) to 50 percent (under
Regulatory Alternative II with recovery credits), or by $0.04 to
$0.12 per tire. Use of afterburner control components is projected to
increase total annualized costs for compliance with all regulatory
requirements by 110 to 140 percent ($0.24 to $0.33 per tire), depending
on the afterburner type employed and the regulatory alternative! involved.
The average annualized costs per tire for non-VOC related regulatory
requirements are totaled and compared to the projected annualized
costs of the VOC emission reduction systems in Table 8-17. ;
8-74
-------
8.3
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
REFERENCES
Letter from P.M. Luysterborghs, Armstrong Rubber Company, to
R.T. Walsh, ESED/CPB/EPA. October 26, 1978. Response to
Section 114 letter.
Letter from E.J. Burkett, The Goodyear Tire and Rubber Company,
to D.R. Goodwin, ESED/OAQPS/EPA. May 17, 1978. Response to
Section 114 letter.
Letter from R.C. Miles, Uniroyal, Inc., to D.R. Goodwin, ESED/
OAQPS/EPA. July 13, 1978. Response to Section 114 letter.
Letter from R.C. Miles, Uniroyal, Inc., to D.R. Goodwin, ESED/
OAQPS/EPA. May 16, 1978. Response to Section 114 letter.
Letter from R.C. Miles, Uniroyal, Inc., to D.R. Goodwin, ESED/
OAQPS/EPA. May 24, 1978. Response to Section 114 letter.
Letter from R.C. Niles, Uniroyal, Inc., to D.R. Goodwin, ESED/
OAQPS/EPA. April 4, 1978. Response to Section 114 letter.
Letter from N. Onstott, Mohawk Rubber Company, to K.J. Zobel,
ESED/OAQPS/EPA. March 21, 1978. Response to Section 114 letter.
Letter from R.M. Walter, The Firestone Tire and Rubber Company,
to D.R. Goodwin, ESED/OAQPS/EPA. May 5, 1978. Response to
Section 114 letter.
Letter from R.M. Walter, The Firestone Tire and Rubber Company,
to D.R. Goodwin, ESED/OAQPS/EPA. June 7, 1978. Response to
Section 114 letter.
Letter from J.W. Lewis, The B.F. Goodrich Company, to R.T. Walsh,
ESED/OAQPS/EPA. May 24, 1978. Response to Section 114 letter.
Letter from L.B. Cooper, Michel in Tire Corporation, to D.R. Goodwin,
ESED/OAQPS/EPA. April 13, 1978. Response to Section 114 letter.
Letter from R.M. Walter, The Firestone Tire an.d Rubber Company,
to R.T. Walsh, ESED/OAQPS/EPA. June 29, 1978. Response to
Section 114 letter.
Letter from L.B. Cooper, Michelin Tire Corporation, to D.R. Goodwin,
ESED/OAQPS/EPA. March 13, 1978. Response to Section 114 letter.
Letter from R.W. Frase, General Tire and Rubber Company, to D.R.
Goodwin, ESED/OAQPS/EPA. May 16, 1978. Response to Section 114
letter.
8-75
-------
15. Letter from E.J. Burkett, The Goodyear Tire and Rubber Company, to
J.R. Farmer, CPB/ESED/OAQPS/EPA. March 31, 1980. Response to
Section 114 follow-on letter.
16. Letter from R.C. Miles, Uniroyal, Inc., to O.R. Farmer, CPfc/ESED/
OAQPS/EPA. April 11, 1980. Response to Section 114 follow-on
letter.
17. Letter from J.R. Laman, The Firestone Tire and Rubber Company, to
D.R. Goodwin, ESED/OAQPS/EPA. April 8, 1980. Response to Section
114 follow-on letter.
18. Letter from J.R. Townhill, The General Tire and Rubber Company, to
K.J. Zobel, CPB/ESED/OAQPS/EPA, April 2, 1980. Response to Section
114 follow-on letter.
19. Letter from R.R. Clark, The BF Goodrich Company, to D.R. Goodwin,
ESED70AQPS/EPA. March 18, 1980. Response to Section 114 follow-on
letter.
20. Letter from F.M. Luysterborghs, Armstrong Rubber Company, to D.R.
Goodwin, ESED/OAQPS/EPA. March 5, 1980. Response to Sectjion 114
follow-on Tetter. i
i
21. Letter from E.J Burkett, The Goodyear Tire and Rubber Company, to
J.R. Farmer, CPB/ESED/OAQPS/EPA. March 21, 1980. Response to
Section 114 follow on letter. ;
" i
i
22. Letter from L. Cooper, Michel in Tire Corporation, to J.R. Farmer,
CPB/ESED/OAQPS/EPA. February 19, 1980;. Response to Section 114
follow on letter.
i
23. Letter from R.C. Miles, Uniroyal, Inc., to J.R. Farmer, CPB/ESED/
OAQPS/EPA. May 12, 1980. Response to Section 114 follow on letter.
24. Letter from J.R. Laman, Firestone Tire and Rubber Company, to D.R.
Goodwin, ESED/OAQPS/EPA, April 17, 1980> Response to Section 114
follow on letter. •
25. Letter from R.R. Clark, The. B-.F. Goodrich Company, to D.R.1 Goodwin,
ESED/OAQPS/EPA. April 16, 1980. Response to Section 114 follow on
letter.
26. Zobel, K.J., and N. Efird. Control of Volatile Organic Emissions
from Manufacture of Pneumatic Rubber Tires. U.S. Environmental
Protection Agency. Research Triangle Park, N.C. Publication No.
EPA-450/2-78-030. December 1978. 59 p.
27. Telecon. Nelson, G., Dow Corning Corporation, with Rinaldi, G.M.,
Monsanto Research Corporation^ August 22, 1978. Composition of
water-based sprays used by the tire industry.
8-76
-------
28. Telecon. Raleigh, W. and A. Wotiz, General Electric Company, with
Rinaldi, 6.M., Monsanto Research Corporation. August 22, 1978.
Composition of water-based sprays used by the tire industry.
29. Telecon. Wittekind, R., SWS Silicones Corporation, with Rinaldi,
G.M., Monsanto Research Corporation. August 22, 1978. Composition
of water-based sprays used by the tire industry.
30. Letter from H.L. Brooks, SWS Silicones Corporation, to K.J. Zobel,
EPA. July 3, 1979. Comments on proposed Guidance Document for the
Group II Control Techniques Guidelines for Volatile Organic,Compounds.
31. Telecon. Brewer, R.M., The C.P. Hall Company, with Aus, B., Pacific
Environmental Services, Inc. September 29, 1980. Composition of
water-based green tire sprays used by the tire industry.
32. Basdekis, H.S., Emissions Control Options for the Synthetic Organic
Chemicals Manufacturing Industry. U.S. Environmental Protection
Agency. Research Triangle Park, N.C. EPA Contract No. 68-02-2577.
February 1980. p. 11-33.
33. Hydrocarbon Pollutant Systems Study, Volume I - Stationary Sources,
Effects, and Control. U.S. Environmental Protection Agency.
Research Triangle Park, N.C. Publication No. APTD-1499. October
1972. 377 p.
34. Letter from G.I. Madden, E.I. DuPont de Nemours and Company, Incorporated,
to E. Karger, Gates Rubber Company. November 9, 1976. Performance
of catalytic incinerator.
35. Danielson, J.A., ed. Air Pollution Engineering Manual, Second
Edition. U.S. Environmental Protection Agency. Research Triangle
Park, N.C. Publication No. AP-40. 1973. 987 p.
36. Lukey, M.E., and M.D. High. Exhaust Gas Conversion Factors, Zurn
Environmental Engineers. Engineering Science, Incorporated.
Washington, D.C. (Presented to the Air Pollution Control Association
Annual Meeting. Miami Beach, FL. June 18-22, 1972.) 16 p. .
37. Sandomirsky, A.G., D.M. Benforado, L.D. Grames, C.E. Pauletta.
Fume Control in Rubber Processing by Direct-Flame Incineration.
Journal of the Air Pollution Control Association. 11:673-676.
December 1966.
38. Rolks, R.W., R.D. Hawthorne, C.R. Garbett, E.R. Slater, and T.T.
Phillips. Afterburner Systems Study. U.S. Environmental Protection
Agency. Research Triangle Park, N.C. Publication No. EPA-R2-72-062.
August 1972. 512 p.
39. Miller, M.R., and H.J. Wilhoyte. A Study of Catalyst Support
Systems for Fume Abatement of Hydrocarbon Solvents. Journal of the
Air Pollution Control Association. 17:791-795. December 1967.
8-77
-------
40. Letter from R.6. Litman, Met Pro Corporation, to B. Aus, Pjacific
Environmental Services, Incorporated. February 5, 1980. Operating
and cost information for catalytic afterburners.
i
41. Letter from F. DeRosa, Engelhard Industries, to B. Aus, Pacific
Environmental Services, Incorporated. February 13, 1980. ; Operating
and cost information for catalytic afterburners.
42. Ross, R.D. Pollution Abatement: Incineration of Solvent-Air
Mixtures. Chemical Engineering Progress. 68:(8):62.
43. Telecon. Kirkland, J., Hirt Combustion Engineers, with Aus, B.,
Pacific Environmental Services, Incorporated. December 14, 1979.
Operating and cost information for direct flame afterburners.
44. Letter from J.J. Sudnick, Trane Thermal Company, to B. Ausi, Pacific
Environmental Services, Incorporated. January 2, 1980. Incineration.
45. Telecon. Oakes, D., Hoyt Manufacturing Corporation, with 'Aus, B.,
Pacific Environmental Services, Incorporated. December 18, 1979.
Operating and cost information for carbon adsorbers. ;
46. Telecon. Karish, R.L., Vulcan Cincinnati, with Aus, B., Pacific
Environmental Services, Incorporated. December 14, 1979. i
i
47. Jongleux, R.F. Volatile Organic Carbon Emission Testing at Armstrong
Rubber Company, Eastern Division, West Haven, Conn. TRW, jEnvironmental
Engineering Division. Durham, N.C. April 1979. ;
48. Telecon. Byrum, R., The E.W. Buschman Company, with Aus, ;B.
Pacific Environmental Services, Inp. November 6, 1980. Cost of
Conveyor Systems.
49. Telecon. Coe, B., Litton Unit Handling Systems, with Aus,; B.,
Pacific Environmental Services, Inc. November 20, 1980. ;Cost of
Conveyor Systems. !
50. Telecon. Johnson, L., Stone Conveyor Division of Honeoye (Industries,
Inc., with Aus, B. Pacific Environmental Services, Inc. November 20,
1980. Cost of Conveyor Systems. :
51. Neveril, R.B., Capital and Operating Costs of Selected Air Pollution
Control Systems. U.S. Environmental Protection Agency, Research
Triangle Park, N.C. Publication No. EPA 450/5-80-002 December
1978.
52. Standard & Poors Industry Surveys
wage rise.
Price boosts to help offset
i
53. Peters, M.S. and Timmerhaus, K.D. Plant Design and Economics for
Chemical Engineers. Second Edition. McGraw-Hill Book Company.
New York, New York. pp. 90-156.
8-78
-------
54. Chemical Marketing Reporter. January 7, 1980. pp 48-57.
55. The Wall Street Journal. January 22,"1980. p. 39.
56. Parmele, C.S., W.L. O'Connel, and H.S. Basdekis. Vapor-Phase
Adsorption Cuts Pollution, Recovers Solvents. Chemical Engineering.
December 31, 1979. pp. 58-70.
57. McAdams, M.T. Trip Report: Armstrong Rubber Company, West Haven,
Conn. July 27, 1979.
58. McAdams, M.T. Trip Report: Firestone Tire and Rubber Company,
Wilson, North Carolina. September 13, 1979.
59. McAdams, M.T. Trip Report: Kelly-Springfield .Tire Company,
Fayetteville, North Carolina. March 18, 1979. (Confidential
file.)
60. Letter from E.J. Burkett, The Goodyear Tire and Rubber Company, to
K.J. Zobel, ESED/OAQPS/EPA. May 14, 1979. Hydrocarbon emission
information related to future tire plants NSPS.
61. Industrial Ventilation: A Manual of Recommended Practice, Twelfth
Edition. American Conference of Governmental Industrial Hygienists.
Committee on Industrial Ventilation. Lansing, Mich. 1972. 337 p.
62. McDermott, H.J. Handbook of Ventilation for Contaminant Control.
Ann Arbor Science Publishers, Incorporated. Ann Arbor, Michigan.
1976. 368 p.
63. Chemical Engineering. December 31, 1979. p. 7.
64. Telecon. DeRosa, F., Engelhard Industries, with Aus, B., Pacific
Environmental Services, Incorporated. January 25, 1980. Catalytic
afterburner size constraints.
65. Perry, R.H., and C.H. Chilton. Chemical Engineers Handbook. 5th
Edition. McGraw-Hill Book Company. New York, New York. 1973.
66. Energy User News. January 21, 1980, p. 15.
67. CE Air Preheater Industrial Gas Cleaning Institute. Report of Fuel
Requirements, Capital Cost and Operating Expense for Catalytic and
Thermal Afterburners. U.S. Environmental Protection Agency.
Research Triangle Park, North Carolina. EPA Publication No.
EPA-450/3-76-031. September 1976.
68. PEDCo Environmental, Incorporated. Cost Analysis Manual for
Standards Support Document. U.S. Environmental Protection Agency,
Research Triangle Park, N.C. Apirl 1979. p. G-9.
8-79
-------
69. Letter from F.T. Ryan, Rubber Manufacturers Associations, to A.B.
Bacon, JACA Corporation. January 16, 1980. Capacitys investment,
and operating parameters for new tire plants.
70. Letter from M.T. McAdams, Pacific Environmental Services,
Incorporated, to K.J. Zobel and D. Patrick, U.S. Environmental
Protection Agency, [date to be added later] Operating parameters
for tire manufacturing plants.
71. U.S. Environmental Protection Agency. Code of Federal Regulations.
Title 40, Chapter I, Part 428. Washington, D.C. Office of the
Federal Register. February 21, 1974. ;
72. United States Congress. Federal Water Pollution Control Ajct, as
amended by the Clean Water Act of 1977. 33 U.S.C. 1251 et; seq.
Washington, D.C. U.S. Government Printing Office.
73. U.S. Environmental Protection Agency. Code of Federal Regulations.
Title 40, Chapter I, Part 129. Washington, D.C. Office of the
Federal Register. January 12, 1977. ,
74. U.S. Environmental Protection Agency. Code of Federal Regulations.
Title 40, Chapter I, Part 403. Washington, D.C. Office of the
Federal Register. June 26, 1978. !
75. Pettigrew, R.J. and F.H. Rom'nger. Rubber Reuse and Solid Waste
Management, Part I: Solid Waste Management in the Fabricated
Rubber Products Industry, 1968. U.S. Environmental Protection
Agency. Washington, D.C. Publication No. SW-22c. 1971. pp.
8-13.
76. U.S. Environmental Protection Agency. Code of Federal Regulations.
Title 40, Chapter I, Part 241. Washington, D.C. Office of the
Federal Register. August 14, 1974.
77. U.S. Environmental Protection Agency. Code of Federal Regulations.
Title 40, Chapter I, Part 50. Washington, D.C. Office ofj the
Federal Register. November 25, 1971. •
78. U.S. Environmental Protection Agency. Code of Federal Regulations.
Title 40, Chapter I, Part 51. Washington, D.C. Office of; the
Federal Register. November 25, 1971. ;
8-80
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9.0 ECONOMIC IMPACT
9.1 INDUSTRY CHARACTERIZATION
9.1.1 General Profile
9.1.1.1 Industry Structure. Presently, 12 firms manufacture tires in
the United States.1 A company's size is based on its daily production rate
of tires, with three size classifications existing within the industry.
Goodyear, Firestone, General, B. F. Goodrich, and Uniroyal, dominate the
industry and are generally referred to as the "Big Five".2 in 1979, the
"Big Five" and their subsidiaries operated 35 of the 55 domestic tire plants,
and manufactured 81 percent of all tires produced domestically. Armstrong,
Cooper, Ounlop, and Michel in are intermediate in size and produce in the
range of 20,000 to 69,000 tires per day. The Mohawk, Denman, and McCreary .
firms are categorized as small companies and produce between 500 to 19,000
tires per day. Tire manufacturers, their locations, and 1979 daily produc-
tion rates are listed in Table 3-1.
9.1.1.2 Ownership. Three domestic firms, Denman, McCreary, and Dunlop,
are privately held. Michel in is a privately held French-owned corporation
that currently operates three plants within the U.S., with two additional
plants scheduled to come on-stream in 1982.1 Michel in has established a
strong reputation in the U.S. market since its development of the radial
tire. The remaining firms are publicly owned.
9.1.1.3 Diversification. Company product lines can include nontire-
related commodities. The larger firms are the most diversified, producing a
multitude of products and manufactured goods: chemicals, plastics, indus-
trial and aerospace products, rubber goods, flooring, packaging film, foot-
wear, and enriched uranium.3 The smaller companies are typically undiver-
sified firms which primarily market tire-related products.
The major companies are predicted to continue expansion into nontire-
related operations. The industry's trend toward diversification has a number
of contributing factors:1*4
•9-1
-------
• The declining sales of new automobiles
• The accelerating labor problems associated with tire production
• The increasing number of imported tires
• The capital expenditures associated with operating low-effjiciency
pi ants :
• The capital costs for construction of new facilities for radial
tire production. .,jf-
In 1978, the General Tire Company led the industry in the percentage
of pre-tax profits obtained from nontire-related businesses, receiving 67
percent of its pre-tax profits from diversified activities. Goodyear, the
front runner in tire production, has the least diversified product line among
the Big Five tire producers. The company has attributed 80 percent |of its
pre-tax profits to tires and related products over the past 5 years.5
The Big Five also produce tire fabricating materials. All produce
i
the synthetic elastomer styrene-butadiene, which is used as a raw material
in tire production. Three of the major firms, Goodyear, Firestone, |and
Uniroyal, produce their own natural rubber.6 Firestone, also produces
steel, cord, and beadwire.
Armstrong is virtually undiversified. In addition to tires and tubes,
Armstrong produces only wheels and some raw materials.7 Michel in al,so
limits its manufacturing operations to relatively few product lines.
Small and intermediate sized firms are not diversified beyond the
manufacture of tire related products. These firms have product lines which
include:
• Tire repair materials - plugs, patches
• Mechanical goods - hoses, belts
• Rubber products - sporting goods, footwear
• Specialty tires - race cars, antique cars, and off-highway vehicles.
The McCreary Tire Company has taken an approach of product-line specializa-
tion rather than product-line diversification. Its production is aimed
toward specialty tire markets.8
9-2
-------
9.1.1.4 Market Concentration. Tires are described and categorized
according to:
• Type of construction (bias-ply, bias-belted, or radial)
• Vehicle type (passenger car, truck, farm equipment, off-the-road,
other)
• Marketv(original equipment or replacement).
The extent of industry concentration is much greater in the original equip-
ment market than in the replacement market. In 1979, Michel in and the Big
Five supplied automobile manufacturers with approximately 61.2 million tires,
representing 100 percent of the original equipment (O.E.) market share. 1
During the same year, these sane six firms and their subsidiaries sold only
45.2 percent of all passenger tires sold in the replacement market under
their own names. Table 9-1 shows the distribution of original equipment
shares with respect to the firms. Table 9-2 depicts replacement market
shares for passenger car tires by brand name.
9.1.1.5 Raw Materials. The tire industry is the leading consumer of
natural and synthetic rubbers in the U.S. Raw materials used to produce
tires and rubber related goods include, but are not limited to: synthetic
rubber, natural rubber, synthetic fibers, steel, wire, carbon black and
rubber chemicals. In 1978 synthetic rubber accounted for approximately 76
percent of all new rubber consumed in the U.S. Styrene-butadiene rubber
captured 58 percent of the synthetic rubber market in 1978.5 Synthetic
rubbers other than styrene-butadiene include: polybutadiene, butyl, ethylene-
propylene, polychloroprene, nitrile and polyisoprene. These compounds are
used more selectively in special tire or rubber applications.
Presently, a higher ratio of natural rubber to synthetic rubber is being
utilized in tire fabrication than was used 5 years ago. This increase in the
use of natural rubber in tire production is associated with the increase in
production of radial tires. Rubber composition of the average radial tire is
5.5 pounds of natural rubber and 6 pounds of synthetic rubber. The typical
bias-ply tire uses 8 pounds of synthetic rubber and 2 pounds of natural rubber.5
Prices for synthetic rubber fluctuate over a wider range than the prices
of natural rubber. Spiral ing costs for oil and natural gas are directly
9-3
-------
Table 9-1. ESTIMATED SHARES OF ORIGINAL EQUIPMENT MARKET
(1979)9
Goodyear
Uhiroyal
Firestone
General
Goodrich
Michel in
27.8%
24.6%
22.6%
13.0%
9.5%
2.5%
100.0%
aReference
9-4
-------
Table 9-2. BRAND SHARES OF REPLACEMENT PASSENGER TIRE MARKET*
Goodyear
Firestone
Sears
Michel in
Wards
B. F. Goodrich
Kelly-Springfield
K-Mart
Atlas
Uni royal
Penny's
General
Dunlop
Dayton
Delta
Copper
Armstrong
Remington
Multi-Mile
Hercules
Others
14.0%
10.5%
10.0%
5.0%
5.0%
4.5%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
2.2%
1.5%
1.3%
1.2%
1.0%
1.0%
1.0%
20.8%
aReference 1.
9-5
-------
responsible for the higher price of synthetic rubber products, which are
produced from these resources. Tire producers have been faced with rising
costs for raw materials since the oil embargo of 1973.9 As a resuTti the
cost increases incurred by the industry's purchase of raw materials are
passed on to the consumer.
9.1.2 Industry Trends
9.1.2.1 Demand Determinants. In 1979, passenger and truck tire ship-
ments totaled to 228 million units, as shown in Table 9-3.l Estimates of
tire shipments in 1979 varied according to sources from 215 million tires to
237 million tires.3»5 An increasing volume of tires was shipped annually
between 1975 and 1978, although each year the growth in annual shipments
was declining. Fewer tires were shipped in 1979 than were shipped in 1978,
reflected by an 8 percent decrease in shipments. Tire manufacturers' com-
bined profits in 1979 fell approximately 21 percent from those in 1978,
reaching the lowest level since 1971.3 Production slowdowns and decreased
profit margins are attributed to higher direct decline in automobile! travel,
and the longer life-time of radial tires.10
g.1.2.1.1 Replacement market. Passenger tires are the dominant type of
tire sold in the replacement market. In 1979, 72.6 percent of all passenger
tires shipped were in the replacement market, while 81.6 percent of :all tire
shipments were passenger tires. Passenger tires shipped in the replacement
market represented 59.2 percent of all tire shipments in 1979. Demand for
the passenger tire in the replacement market declined about 8.2 percent
between 1978 and 1979, exemplified by shipment figures of 147 million units
in 1978 and 135 million units in 1979. The increased use of radial 'tires and
their extended durability and lifetime have contributed to the declining need
for replacement tires. Demand for replacement tires is also influenced by
the consumer's disposable income and tire preference. In 1980, over] 50
percent of passenger tires shipped to the replacement market are predicted
to be radials.l ;
g.1.2.1.2 Original equipment market. In 1979, the original equipment
market received 26.8 percent of all tire shipments. Passenger tires are the
major type of tire supplied to the original equipment market, capturing 83
percent of the market share; while truck tires represent only 17 percent of
all tires shipped to the original equipment market. A decl ine in domestic
9-6
-------
Table 9-3. INDUSTRY TRENDe
(millions)
1975
Passenger Tires
Replacement
QE
Total
129
40
169
137
50
187
139
58
197
135
51
186C
Truck Tires
Repl acement
OE
Total
Total Tires
21,4
ilil
29.7
198.7
23.4
JJ.2
32.6
219.6
28.5
11.2
39.7
236.7
32b
12
44
247.5
31.8
M-I
42. Od
228.0
^Includes 12 million imports*
bIncludes 3.1 million imports,
clncludes 14.3 million imports both captive and noncaptive.
^includes 5 million imports both captive and noncaptive.
^Reference 1..
9-7
-------
car production has adversely affected the original equipment market, as the
demand for tires in this market is based on the demand for new cars.j Between
1978 and 1979, shipments to this market decreased approximately 10 percent,
from 68.5 million to 61.2 million tires.
I
The Big Five and Michel in supply 100 percent of the tires required in
original equipment market. As shown in Table 9-1, Goodyear is the largest
supplier of tires for new cars, with an estimated 27.8 percent of the market
share. Goodyear supplies Chrysler and /"merican Motors with over half of
their tire needs, as well as roughly 22 percent of both Ford and General
Motor's tire requirements. Uniroyal has captured 24.6 percent of the ori-
ginal equipment market, primarily due to the large supply commitment made
to General Motors.
Firestone is the largest single tire supplier to the Ford Motor Company
and is ranked third among original equipment suppliers, having 22.6 percent
of the market share. General, Goodrich, and Michel in complete the list of
tire suppliers to the original equipment market.
Radial tires are expected to be installed on 80 percent of all new cars
assembled in 1980, as seen' in Table 9-4. In 1972, only 5 percent of all new
cars were equipped with radial tires. In 1979, radials accounted for 63.2
percent of all tires shipped in the original equipment market. ;
9.1.2.1.3 Imports and Foreign Producers. Tire imports made a minimal
contribution to domestic tire supplies until the late 1960's.l° In irecent
years, tire imports have increased steadily, as seen in Table 9-5.U The
Department of Commerce estimated that in 1978, 15 percent of the tire market
was composed of imports.10 Some analysts have attributed the growth of
imports to: 12
• The high quality of imported radial tires
• A lag of innovation and production on behalf of U.S. firms
• The U.S. labor strike of 1976 lowering domestic inventories.
Sales of tires produced by foreign-owned companies are expected to rise when
the new Michel in plants begin operation. Michel in's production increase
could intensify price and market competition.5
9.1.2.1.4 Exports. Export levels peaked in 1974 and 1975, and subse-
quently declined.13 The industry's labor strike'accounted for decreased
9-8
-------
Table 9-4. PASSENGER TIRE SHIPMENTS BY MARKET ,AND TIRE CONTRUCTION FOR 19793
Original Equipment
Repl acement
Total
% of Total
Bias
7.7
44.6
52.3
28.1
Bias-Belt
4.6
25.7
30.3
16.3
Radial
38.7
64.7
103.4
55.6
Total
51
135
186
TREND FOR PASSENGER TIRES
By Percent of Market Shares and Tire Construction
Bias mas-Belt Radial
Original Equipment
1980
1979
1978
1977
Replacement
14
15
13
10
6
9'
18
22
80
76
69
68
1980
1979
1978
1977
30
33
35
36
17
19
23
26
53
48
42
38
Reference 1.
9-9
-------
Table 9-5. TIRE .EXPORTS AND IMPORTS
(000 tires)
Year -'-""
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
Exports9
2,51,8
2,364
1,531
1,589
2,127
4,393
9,229
6,124
4,784
5,390
Import sb»c
N/A
N/A
5,300
6,800
8,700
9,500
10,400
9,600
14,600
15,800
Reference 13.
bReference 11.
cConsisting of import plus Michel in shipments. Since
Michel in's Spartanburg plant began operating in the
early third quarter, 1976, and Greenville plant began
operating in the early second quarter, 1975, the
estimates for 1975 and 1976 are overestimates. The
1977 estimate does not include Michel in sales to the
original equipment market. In addition, the import
estimates are for truck and passenger tires only.
9-10
-------
exports in 1976 because the domestic demand for tires had to be supplied by
existing inventories.
In 1977, the value of export shipments was $310 million, approximately
29 percent of the $1.1 billion value of import shipments.1° Tire exports
contributed to only a minor share of 1977 domestic tire production and
represented 3.6 percent of the total dollar value for domestic shipments.
9.1.2.2 Tire Prices. Goodyear and Firestone have generally led price
increases among the tire producing firms. However, other companies (Uniroyal
and Armstrong) have initiated industrywide price increases. The industry is
often involved in a cost-price strategy aimed at capturing larger market
shares. Price cutting may occur in response to excess capacity, poor sales
or competition. Rising costs for raw materials and labor incurred by the
tire industry initiated four separate price increases followed by discounting
in 1979. The list price of a replacement tire was raised by 19 percent as a
result of the increased production costs.14
The average price paid for a tire has increased by more than 40 percent
in the last 10 years. The most dramatic increase occurred between 1973 and
1974 when the price rose by 16 percent. Table 9-6 lists the tire price index
for years 1968 through 1977 and 1978 median retail tire prices.15* 1-6
9.1.2.3 Expansions and Capacities. The tire industry expanded rapidly
during the 1960's followed by a slowdown in the early seventies. Plant
expansions since 1972 have been to increase production of radial or non-
passenger tires.14»17 A deteriorating business climate during the late 1970's
has forced numerous plant closures. Presently, the tire industry is exper-
iencing a deep recession.14 Current plant operations are estimated to be
functioning at 80 percent of capacity based on a 5-day work week,8 while in
1978, the industry was estimated to have utilized 85 to 90 percent of total
capacity.i8 Twenty individual plant closures have occurred since 1976
(refer to Table 3-2 in Chapter 3). Eight plant closures during the last 2
years have cut the industry's production capacity by 9 percent.8 Addi-
tional plant closures have recently been announced by Firestone, Uniroyal,
and Armstrong. Firestone and its subsidiaries closed five tire plants in
November 1980: Dayton and Barberton, Ohio; Los Angeles and Salinas, Cali-
fornia; and Pottstown, Pennsylvania.^ Uniroyal announced in January 1980,
that it would be closing plants in Detroit, Michigan, and Chicopee Falls,
9-11
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Table 9-6. TIRE PRICE INDICES (1968.1978) AND CURRENT RETAIL PRICESa
Year
1968
1969
. 1970
1971
1972
1973
1974
1975
1976
1977
June 1978
1967 = 100
*December
Year
1979
1978
1977
1976
Passenger Cars
Overall Bias Ply Belted-Bias Radial
102.8 -
102.3 - - -
109.0 -
109.2 -
109.2 -
111.4 -
133.4 , -
148.5 142.1 104.1* . 105.8*
161.5 153.3 112.3* 113.6*
169.3 165.5 117.5 117.4*
179.3 -
unless otherwise specified.
1974 = 100.
MEDIAN TIRE PRICES&
Bias Bias-Belted
37.57 44.94
32.50 47.50
32 . 50 42. 50
29.81 , 37.02
Truck
-
;
-
-
111.3 ,
115.7
141.6 ;
155.4 :
172.8 ;
181.7
_
Radial
69.87
62.5;0
62.50
58.48
Tractor
-
"
-
-
114.4
117.9
147.4
166.9
182.8
194.6
_
,aReferences 15 and 16.
bReference 1.
9-12
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Massachusetts,20 while Armstrong has closed its West Haven, Connecticut
plant. The impact of industry's production decline is most evident in Akron
and Los Angeles, cities once considered as the nation's first and second
largest tire producers. After the announced closings are completed, not a
single passenger tire will be produced in either Akron or Los Angeles.21
Over-capacity for bias-belt production and outdated facilities that were
built in the early 1900's have contributed to plant closures.20 Experts
cite the closing of older plants as "one of the penalties of progress."21
The industry has constructed new facilities arid consolidated older, less
efficient plants to accommodate for the production of radial tires. Capital
expenditures for the rubber industry in 1979 were estimated to be $2.05
billion, up 17 percent from 1978. This increase in capital expenditures
reflects the industry's commitment~to diversification, and other markets
where the business outlook and growth potential are more favorable.5
9.1.3 Industry Growth-and Future Capacity Requirements
The market for passenger tires can be discussed in terms of .two distinct
segments, that is, the original equipment market and the replacement market.
Since to a certain extent market and demand conditions affect these two
segments differently, the potential growth of each segment should be analyzed
separately.
The strength of the original equipment market is virtually entirely
dependent upon the volume production of new automobiles. While year-to-year
fluctuations in auto production have been observed to be as wide as 20
percent, one manufacturer has estimated the long-term (1979-87) growth rate
of United States production as an average annual rate of 2 percent.5
With regard to tires sold in the replacement market, several factors
have combined to indicate slower growth in this area. Specifically, the
increasing popularity of higher mileage radial tires, along with the decline
in overall driving rate, due to increased gasoline prices, has affected the
frequency of tire replacement. Most projections indicate that the growth in
demand for replacement tires should approximate 1 percent per year into the
mid-1980's.5
While the aggregate growth rates for original equipment and replacement
market tires are low, it has been projected that radial tires will account
for increasingly larger portions of both markets up to 1985. It has been
9-13
-------
estimated that in the original equipment market the radial portion will
increase from 69 percent in 1978,1 to 85 percent in 1985.22,23 jn the
replacement tire market the demand for radials has been projected to increase
from 42 percent in 1978^ to 60 percent in 1985.22,23 The growth in demand
for radial tires, along with the economic and technical difficulties of
converting bias tire plants to radial tire product ion,14,24 indicate the
need for several new radial tire plants over the forecast period (1981-85).
The observation that new plants will be constructed for radial tire|produc-
tion, has been supported by industry representatives.25
The needed additions to radial tire productive capacity, in terms of new
plants, have been estimated as described below. It has been assumed that no
portion of the existing radial tire productive capacity will require replace-
ment over the forecast period, due to its relatively recent installation
(i.e., first commercial radial produced in 1965),21 and projected life of
30 years.25 The projections of new plant requirements are based upon the
estimation of several key variables., including: '
• Total passenger tire demand (1985)
• Total radial tire demand (1978)
• Total radial tire demand (1985) '
• Total radial tire capacity (1978) 4
• Total radial tire capacity (1985).
i
New additions to capacity have been estimated through the following procedure.
(1) Estimation of total passenger tire demand (1985). Total passenger
tire demand (1985) has been estimated through observation of total 1978
passenger tire shipments (as an approximate of sales), in terms of both
original equipment and replacement tires, and applying the growth rates in
both market segments as noted above. In 1978 total (including exports)
passenger tire shipments amounted to 193.9 million, of which approximately
56 million were original equipment and 137.9 million were replacements.5
According to the growth rates noted above 1985 demand would require 64.4
million [i.e., 56 x (1.02)7] original equipment tires and 147.6 million
[i.e., 137.9 x (1.01)7] replacement tires.
9-14
-------
(2) Estimation of total radial tire demand (1978). As noted above,
radial tires in 1978 accounted for 69 percent of the original equipment
market and 42 percent of the replacement market. According to these per-
centages the total demand levels noted in (1) above, can be expressed in
terms of radial tires. Specifically, in the 19~78 original equipment market,
radial sales amounted to 38.6 million (i.e., 56 x .69) and replacement tires
were about 57.9 million (i.e., 137.9 x .42). Total 1978 radial demand is
therefore estimated to be 96.5 million tires.
(3) Estimation of total radial tire demand (1985). In 1985, radial
tires should account for 85 and 60 percent of the original equipment and
replacement markets, respectively. Therefore, 1985 radial tire demand can
be estimated as 54.7 million (i.e., 64.4 x .85) original equipment and 88.6
million (i.e., 147.6 x .60) replacement radials. Total 1985 radial demand
is therefore estimated as 143.3 million tires.
(4) Estimation of total radial tire capacity (1978). The estimation of
total 1978 radial tire capacity is based on the assumption that radial tire
capacity utilization for that year can be approximated by industry capacity
utilization rates, which for 1978 were about 91 percent.5 Accordingly,
total 1978 radial tire capacity is estimated as 106 million (i.e., 96.5/.91).
(5) Estimation of total required radial tire capacity (1985). The
estimation of total required radial tire capacity is based on a capacity
utilization rate of 85 percent. This rate was determined to be typical of
passenger tire utilization rates since it represents the average capacity
utilizations of such facilities over the six years 1973-78, approximately
one complete business cycle. Assuming future radial tire capacity is used
at a rate of 85 percent, the total radial tire capacity needed in 1985 would
be 168.6 million (i.e., 143.3/.85) tires.
Total required additions to radial tire capacity (1978-85) can therefore
be approximated as required 1985 capacity (168.6 mill ion) less 1978 capacity
(106 million) or 62.6 million radial tires. Assuming this need can be met
through equal annual additions to capacity, each annual increment would need
to add 8.9 million (i.e., 62.6/7 years) tires. However, since the additions
to capacity required for 1979 and 1980 should, theoretically, have already
been made, the net additions for the forecast period 1981-85, are 44.5
million (i.e., 8.9 x 5 years) radial tires.
9-15
-------
Several assumptions have been made in the determination of the new capa-
city requirements noted above, and to the extent those assumptions may prove
invalid, the conclusions as presented will be affected. The assumptions
include:
• The import/export levels over the forecast period will remain
constant at 1978 proportions,
• Radial tire capacity utilization will, over the forecast period,
be 85 percent,
• Additions to radial tire capacity will be made in equal annual
increments, and
• Growth rates for original equipment and replacement market radial
tires will be consistent with those sources cited.
The addition of radial tire productive capacity of 44.5 million tires
per year could be made in a number of ways including the construction of new
plants, or through the retrofit of existing tire production lines. ;The con-
struction of new plants would, given the capacity requirements noted above,
require either 3 large, 5 medium, or 9 small plants. Such requirements are
based upon 269 operating days per year and capacities of 58,825, 35,300, and
17,650 TPD for the large, medium, and small plants, respectively.
If capacity additions are made through the retrofit of existing lines,
a total of 73 retrofits would be required, assuming capacity utilization of
85 percent and output of 6,250 TPD for sidewall cementing lines, 7,5;00 TPD
for tread end and undertread cementing lines, and 12,500 TPD for bead dipping
lines. In terms of specific lines, 23 sidewall cementing lines, 19 of both
tread end and undertread cementing lines, and 12 bead dipping lines1 would be
required. ,
9.2 ECONOMIC IMPACT ANALYSIS !
9.2.1 Introduction and Summary
In the sections which follow, the economic impacts of the regulatory alter-
natives are detailed. Economic impacts are discussed in terms of the potential
price, profitability, and capital availability impacts of each alternative.
With regard to maximum tire price increases, the use of the most economi-
cal VOC control systems could, in the worst case, increase the wholesale price
9-16
-------
of radial tires by .44 percent. This implies a price increase of 15 cents
for a tire which wholesales for $35.26
In the event NSPS costs are not passed to consumers in the form of price
increases, but instead are absorbed by tire manufacturers, the estimated pro-
fitability of new facilities would decline, in the worst case, from a 5.00
percent return on investment (ROI) to 4.78 ROI. The determination of profit-
ability reductions are explained in Section 9.2.3.3.
These conclusions are based upon observations of current capital require-
ments for investment in new tire manufacturing plants, the growth in demand
for radial tires, as well as the current market structure and competitive
nature of the industry. Specific estimates with regard to price and profit-
ability impacts, have been made by assessing the expected responses of indi-
vidual model plants to the capital control and annualized costs summarized in
Chapter 8.
9.2,2 Financial Profile and Market Structure
9.2.2.1 Financial Profile of the Industry. Several factors have contri-
buted to the current depressed profit levels in the rubber tire industry. Gas-
oline shortages and rapidly increasing gasoline prices have served to impact
the growth in demand for new domestically produced automobiles (see Section
9.1.3) as well as to restrict the use of existing autos. The slump in new
car sales has affected the production of tires for the original equipment
market, while the replacement market has felt the impact of reduced driving.27
In the face of sagging demand, the industry has experienced extraordinary in-
put price pressure, due for the most part to increased prices for oil and na-
tural gas, which are basic requirements in the manufacture of synthetic rubber.
However, continued increases in gasoline prices and trends toward energy
conservation have increased the demand for radial tires, which offer distinct
fuel economy advantages.28 The general decline in tire sales .and the shift
in demand toward radial tires has recently forced the closing of numerous bias
tire pi ants.8 However, despite the problems encountered due to the profit-
ability of bias tire production, the demand for radial tires remains strong
and it is generally recognized that new tire plants will be constructed for
the production of radial tires.25
Tables 9-7 and 9-8 demonstrate the overall decline in both gross and net
profits for several tire manufacturing firms. With regard to gross profits
(Table 9-7), margins for the most recent year noted (1978) are the lowest
9-17
-------
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among the ten years listed, with the exception of 1976 during which!the indus-
try experienced major strikes. Industry analysts have predicted only small
improvements in profit levels for I960.5
It should be noted, however, that the profit summaries presented in
Tables 9-7 and 9-8 relate to the profitability of tire manufacturing firms,
and not necessarily the profitability of producing specific types of tires.
Therefore the margins noted are for all tires including bias ply, bias belted
and radials. It is generally accepted however, that the production :of radial
tires typically generates higher profit margins than the manufacture of bias
tires.5»29 Accordingly, the trend toward the manufacture and sale of
radial tires is often cited as the bright spot in the future of those tire
manufacturers who have established radial tire capacity. i
Table 9-9 summarizes the return on equity for tire manufacturing firms,
and in effect, demonstrates the declining profitability of ownership of such
firms. The most recent data^O suggests that the return on equity for tire
and rubber companies was an industry composite of 7.8 percent, for the year
ending December 31, 1979. As in the case of the profit summaries, return on
equity data is presented at the firm level. ;
Profit and related information with regard to the Michel in Tire Corp. is
largely unavailable as noted in Tables 9-7 through 9-9. The scarcity of such
data is due mainly to the fact that the French-owned company, which:started
domestic production in 1974, is essentially privately held, with family mem-
bers owning most of Michel in's stock.31 However, several factors indicate
i
that the profitability of this company is most likely greater than that of
those firms noted. First, the company is a leading manufacturer of radial
tires, having invented the radial in the early 1940's.31 TO the extent
[
that higher profit margins are typically associated with radial tire produc-
tion, 5»29 Michel in's margins should compare favorably with those producers
who manufacture tires of other types of construction, as well as radials.
Second, the company is currently undertaking a rapid expansion of its domes-
tic productive capacity, a fact which indicates that its future earnings
potential is viewed as favorable.
9.2.2.2 Market Structure and Industry Pricing. In its current state
the market for tires can best be described as an oligopoly, characterized by
the existence of two firms which act as "price leaders". In most cases price
leaders exist either because their productive facilities are inherently more
9-20
-------
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efficient, and thus more profitable due to lower average costs, or because
consumers display a strong preference for their products. The existence of
price leader(s), is usually indicated if a disproportionate share of the
total market is controlled by one or two producers.
The basic implication of price leadership is that the leader(s), due to
the disparity in average costs among firms, or the preference of consumers for
the products of the leader(s), have the ability to set prices with the inten-
tion of either increasing market shares or increasing total revenues. However,
within limits, market shares of individual producers will be unaffected. This
is so since, in the face of price reductions on- the part of price leaders, the
remaining industry participants will also lower prices, at the expen'se of their
own profitability, and thus attempt to protect their individual market shares.
!
On the other hand, when price leaders increase prices, the remaining firms will
often raise prices in order to enhance the profitability of their own operations,
Goodyear and Firestone are generally recognized as the tire and rubber
industry price leaders.5 Evidence of their price leadership is ample as ob-
served in the numerous instances of major industry representatives referring
to current pricing practices as "cutthroat", and calling for major producers
to "firm up prices" and institute "more rational pricing".8,28 A more basic
indicator of price leadership can be observed by the fact that together, Good-
year and Firestone share more than half of the total market for tires sold as
original equipment.
The existence of price leadership will have direct implications regarding
the full absorption or full pass through of NSPS control costs. More specifi-
cally, the price leaders, by raising the prices of tires produced atj new plants,
in order to pass through NSPS costs and thus preserve pre-NSPS levels of profit,
will allow other manufacturers to do likewise. On the other hand, if current
levels of price competition persist, the price leaders may choose to absorb the
costs associated with NSPS, therefore reducing industrywide profits for new
plants. In any event, if the price leaders choose to follow a full cost pric-
ing policy, the maximum price increases which could result are small enough to
ensure that market shares among industry participants will not be altered.
Therefore, within the range of price change possible (see Table 9-13), the
demand for tires is essentially price inelastic. The consequences of full
cost pricing and full absorption are estimated in the following sections.
9-22
-------
9.2.3 Economic Impact Methodology
9.2.3.1 Required Investment for New Tire Manufacturing Plants. Table
9-10 provides a summary of the total capital investment requirements for new
radial tire manufacturing facilities. The estimates as presented provide a
basis for determining both return on investment (ROT) and capital availability
impacts as detailed in the following sections.
New plant investment requirements are distinguished by plant size, accor-
ding to the model plant capacities and production rates discussed in Section
6.1.1. Investment totals are therefore presented for radial tire plants with
capacities of 17,650, 35,300, and 58,825 TPD, and producing, with 85 percent
capacity utilization, 15,000, 30,000, and 50,000 TPD. In addition, impacts
upon'a retrofit situation are assessed, with an assumed total retrofit of
44,118 TPD and output of 37,500 TPD for capacity utilization of 85 percent.
Output of 37,500 TPD therefore requires six sidewall cementing Tines (at
6,250 TPD each), five of both tread end and undertread cementing lines (at
7,500 TPD each), and three bead dipping lines (at 12,500 TPD each).
Total investment requirements are identified by three individual compo-
nents: plant and equipment, land, and working capital. Plant and equipment
investment data are based upon industry estimates?5 regarding the cost to
construct and equip facilities of various sizes. Estimates, of land costs have
also been made,25 however.because of the extreme variability of such costs,
due to size, location, and level of improvements needed, a constant estimate
of such costs has been employed for all plants. Land costs have not been
included in the retrofit situation.
Estimates of working capital, that is, the required investment in short-
. term assets such as cash, short-term securities, accounts receivable, and in-
ventories, are based upon observations of working capital requirements, as re-
ported in the annual reports of tire manufacturing companies. According to
those reports the ratio of working capital to sales typically approaches 20
percent. Thus for purpose of the following analysis, working capital require-
ments are estimated as 20 percent of annual plant revenues. The estimation
of annual revenues for each model plant is described in the following section.
9.2.3.2 Annual Revenues of New Tire Manufacturing Plants. Annual reve-
nues, expected to be generated through the manufacture and sale of radial
tires, have been estimated for each model plant. The estimation of annual
revenues allows the determination of maximum tire price increases, as well
9-23
-------
Table 9-10. INVESTMENT REQUIREMENTS FOR NEW RADIAL TIRE MANUFACTURING PLANTS
($000 1979)
Model Plant Size
Investment Capacity (TPD)
Component Output (TPD)
Plant and Equipment
Land
Working Capital
Total Investment
17,650
15,000
149,800
8,000
28,200
186,000
35,300
30,000
243,300
8,000
56,500
307,800
58,825
50,000
347,800
8,000
94,200
450,000
Retrofit
; 44, 118
37,500
284,300
70,600
354,900
Table 9-11. ANNUAL REVENUES FOR NEW RADIAL TIRE MANUFACTURING PLANTS
($000 1979)
Plant Output in Tires/Day
15,000
30.000
50,000
37,500
Days/Year
$/Tire
Annual Revenue
269 269 269 269
$ 35.00 $ 35.00 $ 35.00 $ 35.00
$141,200 $282,500 $470,800 $353,100
9-24
-------
as maximum profit reduction, under the full pass through and full absorption
assumptions employed below.
The derivation of the annual revenues expected of each model plant is
summarized in Table 9-11. The levels of daily production as well as days of
operation per year are explained in Section 6.1, while the average wholesale
value of radial tires is based upon estimates made available by the Department
of Commerce,26
9.2.3.3 Return on Investment (ROI) for New Tire Manufacturing Plants. In
order to estimate the extent to which the profitability of new tire plants,
as well as the prices of tires produced, could be affected by the full absorp-
tion or pass through of NSPS control costs, it is first necessary to identify
a reasonable ROI that can be expected of new tire production facilities in
the absence of NSPS. However, the competitive nature of the industry and the
proprietary status of profit related data, have eliminated the possibility of
identification of a "target" ROI, by industry representatives. However,
publicly available data, in the form of recent rates of return on equity for
the tire and rubber industry, make possible the estimation of the minimum
acceptable ROI for new plant construction.
Since ROI is the expression of net profits (i.e., profit after depreci-
ation, interest payments, and taxes) as a percent of total investment, a
measure of the overall profitability of a new investment can be obtained by:
net profit
Return on Investment =
total investment
x 100
(1)
However, a more appropriate measure of profitability, from the owners'
(shareholders) point-of-view is the return on equity, which recognizes that
only a portion of the total investment has been financed by the owners (share-
holders), with the remainder financed through debt upon which interest payments
are made. The return on equity therefore, recognizes the impact of debt lever-
age upon earnings. Therefore since net profits are determined after the pay-
ment of interest:
or:
Return on Equity .
Return on Equity =
x 100
return on investment
% of total investment financed by equity
(2)
(3)
9-25
-------
The use of current rates of return on equity to estimate minimum accept-
able new plant profitability (ROI), is based on the assumption that the
managers of tire manufacturing firms will not approve the construction of new
tire plants which, due to low projected ROI's, could lower prevailing rates
of return on equity, and thus dilute the earning potential of the firm.
Therefore, only those new plants which can promise ROI high enough to insure
that the return on equity (as estimated by equation (3) above), will at least
not decrease, will be considered as potential investments.
The most recent available data suggests that for 1979 the return on
equity for major tire and rubber manufacturers was an industry composite of
7.8,percent.30 Furthermore, the percentage of debt to debt plus equity has
been observed as an industry average of 36 percent.5 This data indicates
that as an absolute minimum, any new plant must show an ROI (i.e., return
on total investment after taxes, depreciation, and interest) of at least
5 percent since, according to equation (3):
7.8% =
5.0%
(1 - .36)
(3a)
Therefore, for purpose of this analysis, a 5 percent baseline ROI is, assumed
for new tire plants since the investment in new plants which would return
less could result in the reduction of current levels of profitability of
ownership (i.e., return on equity).
This estimate is considered to be conservative since it is based upon
industry-wide rates of return on equity and consequently, reflects the
profitability of producing all types of tires including bias-belted, bias-
ply, and radial tires. However, since new plant construction will be under-
taken in order to satisfy the demand for radial tires, and the manufacture of
radials is generally recognized to yield higher profit margins,5*29 it is
most probable that an estimated return of 5 percent understates the ^actual
ROI for new plants. In addition, to the extent that the declining book value
of total assets is not offset by increasing annual maintenance costs, the ROI
for an individual new plant should increase from year to year.
The 5 percent ROI for new plants, as estimated above, in conjunction -
with the investment and revenue estimates summarized in Tables 9-10'and
9-11, can be employed in the determination of the absolute levels of costs,
9-26
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earnings before federal taxes, federal taxes, and net profits for each model
plant. These estimates are summarized in Table 9-12 and are used in the
approximation of the profitability,; price, and capital availability impacts
as detailed in the following sections. For the retrofit situation profit-
ability impacts have been assessed by treating the new lines as an individual
profit center with ROI identical to that for a new plant.
9.2.3.4 Estimation of Price Impacts Under Full Cost Pricing. In the
event the actions of the price leaders allow the pass through of control
costs, the methodology detailed belo'w has been employed to estimate the
increases in tire prices required to ensure that manufacturers will maintain
baseline levels of ROI. The estimation of price impacts is based upon the
assumption that manufacturers will price their products so that all costs are
covered and a minimum ROI is achieved. In this manner baseline prices are
set by: '
P = TC + (ROI x TI)/(1. ~ t)
~ '
(4)
where;
P = Price Per Unit ($/tire)
TC = Total Costs ($)
TI = Total Investment ($)
Q,= Unit Production Per Year (tires/year)
v t = Federal Tax Rate (.46)
ROI = Return on Total Investment (expressed as a decimal).
When data for any of the model plants summarized in Table 9-12 is sub-
stituted into this equation, an average wholesale price of $35 per tire is
observed. This result is based upon an ROI of 5 percent and 269 operating
days each year.
As a consequence of NSPS controls, new plants will incur increased costs
in the form of capital changes and operating and maintenance costs. In
addition, a larger asset base will be required. Therefore, maximum price
increases can be traced to both cost increases as well as to a return for the
additional capital investment in controls. Consequently, post-NSPS prices
maybe estimated through the following modification of equation (4):
9-27
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Table 9-12. BASELINE REVENUE, COST, TAX AND PROFIT SUMMARY FOR MODEL TIRE
' MANUFACTURING PLANTS
($000 1979)
Total Investmenta
Annual Revenue*3
Total Costsc
Capacity (TPD)
Output (TPD)
Earnings Before Federal Taxd
Federal Tax6
Net Profits^
Mode
17,650
15,000
186,000
141,200
123,978
17,222
7,922
9,300
T Plant
35,300
30,000
307,800
282,500
254,000
28, 500
13,110
15,390
Size
58,825
50,000
450,000
470,800
429,133
41,667
19,167
22,500
Retrofit
44,118
37,500
354,900
353, 100
320,239
32,861
15,116
17,745
a See Table 9-10.
b$ee Table 9-11.
CTotal Costs = Annual Revenue - Earnings Before Federal Tax (Total Costs
includes all operating costs, general and administrative expenses, local and
state taxes, depreciation, and interest).
•^Earnings Before Federal Tax = Net Prof it/(1-. 46) (assumes Federal tax rate
of 46%).
eFederal Tax = Earnings Before Federal Tax x .46.
Profits = Total Investment x .05.
9-28
-------
where;
P- ^ (TC + ACC) + [ROI x (TI + CC)]/(1 - t) ,,,
Q * '
ACC = Annualized Control Costs
CC = Capital Control Costs.
The annualized control costs (ACC) include capital charges for the
annual repayment of principal and interest on a uniform basis, to finance a
loan for the control investment. To be consistent with the method in which
the ROI reported in this analysis was derived, capital changes as mentioned
above are used as a surrogate for the normal depreciation and interest
charges that a typical firm may deduct as allowable expenses for tax pur-
poses. Since firms with 100 percent financing would probably benefit through
the use of accelerated depreciation, it is believed that the procedure used
in this analysis would generate conservative results in the first few years
of a project, such as the radial tire plants summarized in Table 9-12.
The results of the comparison of baseline and post-NSPS prices, under
each regulatory alternative are summarized in Section 9.2.4.1. In that sec-
tion the implications of the full pass through of control costs are expressed
in terms of the percentage increase in average wholesale tire prices where:
Percent Change = Post-NSPS price - baseline price . ,
3 baseline price x iuu ^'
9.2.3.5 Estimation of Rate of Return on Investment Impacts Under Full
Cost Absorption. If due to market conditions, the cost of NSPS controls
cannot be passed to consumers in the form of increased tire prices, the
profitability of new plants will decline. In order to judge the extent of
profitability impacts, the ROI before and after NSPS controls, have been
compared for each model plant, according to the method detailed below.
The baseline ROI for each model plant is essentially:
ROI = (1 - t)(AR. - TO
(7)
9-29
-------
where:
t = Federal Tax Rate (.46)
AR = Annual Revenue ($)
TC = Total Costs ($)
TI = Total Investment ($)
ROI = Return on Total Investment (expressed as decimal).
This equation is simply a restatement of equation (1) noted above, and if used
in conjunction with the investment, cost, and profit data of Table 9-12, an
ROI of 5 percent for each model plant is observed.
The full absorption of control costs implies that the annualized costs
of control will increase total annual costs, and thus decrease earnings
before federal tax for new plants. In addition the need to install control
equipment entails capital control costs and will therefore increase the total
investment required for new plant construction. Considering these additional
costs, the post-control ROI for each model plant may be estimated through the
following modification of equation (7):
ROI1
(1 - t)(AR - TC - ACC)
TI + CC
(8)
where:
ACC = Annualized Control Costs
CC = Capital Control Costs.
It should be noted that the approach described above assumes that both
the capacity utilization rates and marginal tax rates will remain constant
before and after NSPS. The results of the calculation of post-NSPS ROI for
each model plant are summarized in Section 9.2.4.2.
9.2.4 Economic Impacts
9.2.4.1 Price Impacts. Section 9.2.3.4 has detailed the methodology
used to estimate the level of price increases required if the full costs of
NSPS control are passed to consumers in the form of increased tire prices.
Percentage price increases are summarized in Table 9-13 where individual
percentage price increases are distinguished according to model plant size
and control system employed.
• 9-30
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Table 9-13. PERCENT CHANGES IN PRICE UNDER FULL COST PRICING
Model Plant
(TPD)
15,000
30,000
50,000
37,500 (retrofit)
Carbon
Adsorber
.14
.13
.11
.14
Control System
Thermal
Afterburner
.44
.36
.34
.41
Catalytic
Afterburner
.42
.35
.32
.42
9-31
-------
Table 9-13 indicates that maximum average tire percentage price increas-
es are generally low. For example, the table shows that in the worst case,
that is, the most costly control system for the small plant, would increase
prices by .44 percent. Based on an average wholesale radial tire price of
$35, the full pass through of control costs would add 15 cents to the whole-
sale price.
It should be noted, however that the control of VOC emissions through
carbon adsorption is significantly less costly under all circumstances.
For example, the use of carbon adsorption in the worst case situation noted
above would increase prices by .14 percent, or 5 cents for the same $35
tire.
It should also be noted that the costs used to determine both price
and profitability impacts are those related to the control of sidewall,
undertread, bead, and tread end cementing facilities.
The previously discussed price-cutting activities of industry price
leaders, may result in conditions where NSPS costs must be fully absorbed
by all firms operating new plants. Under these circumstances the level of
profit reduction which may result from the full absorption of NSPS control
costs are discussed below.
9.2.4.2 Rate of Return on Investment Impacts. If, for reasons detailed
previously, the full costs of NSPS controls are not passed to consumers in
the form of price increases, the profitability of new tire manufacturing
facilities will be affected. Estimates of the extent to which profitability
may decline, have been made according to the procedure detailed in Section
9.2.3.5. Accordingly, the results summarized in Table 9-14 identify the
post-NSPS ROI resulting from the full absorption of NSPS control costs.
As might be expected, the severity of profitability impacts follow the
same patterns observed with regard to potential price increases. More speci-
fically, the use of carbon adsorption for VOC emission reduction, entails
significantly lower impacts in terms of reductions in ROI. In general, the
retrofit situation entails slightly larger levels of net profit reduction.
ROI reductions of the magnitude noted above, cannot be considered impedi-
ments to new plant construction or retrofit. This is especially true in light
of two important factors. First, it may be recalled that the 5 percent base-
line ROI was estimated in such a way that this base ROI level must be consi-
dered conservative (see Section 9.2.3.3). To the extent the actual ROI for
9-32
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Table 9-14. RETURN ON INVESTMENT (ROI) UNDER FULL COST ABSORPTION
(Baseline ROI * 5.00 percent)
Model Plant
(TPD)
15,000
30,000
50,000
37,500 (retrofit)
Carbon
Adsorber
4.94
4.94
4.94
4.93
Control System
Thermal
Afterburner
4.81
4.83
4.81
4.79
Catalytic
Afterburner
4.82
4.84
4.83
4.78
9-33
-------
new plants is higher, the ROI changes may be slightly overstated. Second,
the existence of price leadership in the industry suggests that profitability
impacts could be altogether avoided if price leaders choose to follow a full
cost pricing policy.
9.2.4.3 Capital Availability Impacts. Since each of the regulatory al-
ternatives requires capital expenditures for VOC control equipment, the need
for such equipment requires that potential investors in new tire manufacturing
facilities must obtain additional capital financing above that which would be
required in the absence of regulation. However, capital availability problems
will not result from the imposition of NSPS for new or retrofitted tire manu-
facturing plants. This is so because in no case, do the capital control costs
represent more than 1 percent of the total investment requirements summarized
in Table 9-10.
9.3 SOCIOECONOMIC AND INFLATIONARY IMPACTS
9.3.1 Fifth-Year Annualized Costs
Fifth-year annualized costs have been estimated in order to determine if
this NSPS qualifies a major regulation under the $100 million criteria speci-
fied by E.O. 12291. Since higher costs are generally associated with the
retrofit of existing lines, fifth-year annualized costs have been estimated
by adding the annualized costs of NSPS for those retrofitted lines expected
to be affected by this standard.
As noted in Section 9.1.3, the growth in demand for radial tires is pro-
jected to be such that 73 retrofitted lines may be required by 1985. Specific
requirements are: 23 sidewall cementing lines, 19 tread end cementing lines,
19 undertread cementing lines, and 12 bead dipping lines. According to these
projections and the annualized costs presented in Table 8-11, the use of the
most expensive control technology would result in fifth-year annualized costs
of $4.8 million. In reality, the use of the most cost-efficient control
systems will reduce this sum to $1.2 million.
9.3.2 Inflationary Impacts
For 1978, the sales of 6 major tire producers amounted to less than 1
percent of that year's GNP.4 This fact in conjunction with the low (.4
percent) maximum price increases (Table 9-13), ensures that the imposition
of the regulatory alternative will cause virtually no increase in the rate
of inflation.
9-34
-------
9.3.3 Employment Impacts
As noted in Section 9.2 the cost of NSPS could have very minimal impacts
upon new plant profitability. Under these conditions the decision to con-
struct new tire plants will be unaffected by NSPS controls. For this reason
the standard will have no impact upon employment trends in the industry.
9.3.4 Small Business Impacts
The Regulatory Flexibility Act of 1980 requires the identification of
possible adverse impacts of Federal regulations upon small entities including
small businesses. Snail businesses are defined as business concerns that are
not dominant in their respective fields. Concerning tire manufacturing, the
Small Business Administration has identified small businesses as those that
employ fewer than 1,000 persons. This employment level has been defined by
the Small Business Administration for purpose of pollution control guarantee
assistance under Public Law 94-305, and is noted in Federal Register 36052,
August 15, 1978.
There are currently three tire manufacturers that have fewer than 1,000
employees, namely Denman of Warren, Ohio; McCreary of Indiana, Pennsylvania;
and Ironside of Louisville, Kentucky.32 since it is most likely that any
new plant would employ at least 1,000 persons,25 the companies noted above
would probably not become subject to NSPS through new plant construction.. If
the small companies are affected through modifications and/or reconstructions
of existing facilities, economic impacts will be very small as estimated
through the analysis of retrofitted plants.
9.4
1.
2.
3.
4.
5.
6.
REFERENCES
1979 Tire Industry Facts. Modern Tire Dealer. 61(2):25-31. January
28, 1980.
Rubber Match. Forbes. October 15, 1979. p. 102.
Standard and Poor's. Industry Surveys: Rubber Fabricating Current
Analysis. December 13, 1979. p. R194.
Tire Makers Seek the Right Product Mix. Chemical Week. December 6,
1978. p. 46-47.
Standard and Poor's. Industry Surveys: Rubber Fabricating Basic Ana-
lysis. June 28, 1979. p. R194-R207.
Meeting between Dominic Olivieri, Jr., Rubber Manufacturers Association,
and Abigail Mumy and Agnes Timothy, JACA Corporation. January 4, 1979.
9-35
-------
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
Securities and Exchange Commission. Armstrong Rubber Company 10-K
Report. September 1978.
A Blowout for the Small Tire Producers. Business Week. October 29,
1979. p. 150.
Standard and Poor's. Industry Surveys: Rubber Fabricating Basic Ana-
lysis. June 22, 1978. p. R205.
Modern Tire Dealer'. February 1978. p. 16.
Rubber World, January 1979, p. 41; Rubber World, February 1978, p. 40;
Non-RMA Shipments, consisting of import plus Michel in shipments.
Modern Tire Dealer. March 1978. p. 42.
United States Department of Commerce. Bureau of Economic Analysis.
Survey of Current Business.
Tire Industry Drops Into Deep Recession: Gasoline Shortage,, Rising
Costs Take Toll. The Wall Street Journal. October 17, 1979. p. 48.
The Handbook of Basic Economic Statistics. Bureau of Economic Statis-
tics, Inc. Economic Statistics Bureau of Washington, DC. Vol. XXXII.
No. 1. January 1978.
United States Department of Labor. Bureau of Labor Statistics. Pro-
ducer Prices and Price Indexes.
Wall Street Journal. May 8, 1979, p. 4.
Goodyear's Solo Strategy. Business Week. August 28, 1978. p. 66-68.
Raleigh News and Observer, Raleigh, NC, March 20, 1980.
Uniroyal Announces Plant Closings. Modern Tire Dealer. 61(3):13.
February 7, 1980.
Bias-Ply Tire Plants Face Uncertain Future. Modern Tire Dealer.
60(20):19. October 5, 1979.
Modern Tire Dealer, May 1978, p. 72.
The Wall Street Transcript. February 5, 1979.
The Philadelphia Inquirer. August 19, 1979. p. 6-D.
Letter from Ryan, Frank T., Rubber Manufacturers Association, to Bacon,
Abigail R., JACA Corp., Janaury 16, 1980. Capacity, investment, and
operating parameters for new tire plants.
Telecon. Blank, David, United States Department of Commerce, with
Costello, Thomas V., JACA Corp., March 7, 1980. Estimates of average
wholesale prices of domestically produced radial tires.
9-36
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27. Will There Ever Be Happiness in Tire Land? Modern Tire Dealer.
62(2):14. January 28, 1980.
28. Tire Industry Heads Share Sobering Outlook. Modern Tire Dealer.
62(2):19. January 28, 1980.
29. Beyond Today's Gloomy Headlines. Modern Tire Dealer. 62(2):12.
January 28, 1980.
30. Business Week's Corporate Scoreboard: How 1,200 Companies Performed
in 1979. Business Week. March 17, 1980. p. 114. . .
31. Michel in Goes /\merican. Business Week. July 16, 1976. p. 58.
32. Telecon. Serumgard, John, Rubber Manufacturers Association, with
Cryer, Christopher B., JACA Corp., June 12, 1981. Extent of small
business 'in the tire manufacturing industry.
9-37
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-------
APPENDIX A
EVOLUTION OF THE PROPOSED STANDARDS
A-l
-------
APPENDIX A - EVOLUTION OF
THE PROPOSED STANDARDS
A.I INTRODUCTION
In December 1974, the Industrial Environmental Research Laboratory
of the U.S. Environmental Protection Agency initiated a Source Assessment/
State-of-the-Art Study of rubber processing. The study was authorized
under Section 313 of the Clean Air Act, which charges the Administrator of
EPA with the responsibility of establishing Federal standards of perfor-
mance for new stationary sources which may significantly contribute to
air pollution. Concurrently, a screening study of nine segments of the
rubber industry was initiated for the purpose of identification and
control of hydrocarbon emissions. As a result of the screening study,
the tire and inner tube industry segment proved to have the highest
potential for reduction of hydrocarbon emissions through implementation
of NSPS. The EPA Priority List (40 CFR 60.16, 44 FR 49222, August 21,
1979) shows tire manufacturing to be a division under the source category
of synthetic rubber, which is ranked twentieth in priority. The method
used to rank the source categories was based on emissions, public
health/welfare, and source mobility. These criteria were set forth by
Congress in the 1977 Clean Air Act Amendements.
Standards development for the rubber tire industry involved collection
of solvent use data and performance of emission measurement; tests to
quantify and identify source emissions. Plant visits were scheduled to
obtain information on process details and emission control equipment,
while literature surveys were conducted to determine plant operating
parameters and the extent of use of emission reduction techniques. EPA
scheduled meetings with Rubber Manufacturing Association (RMA) repre-
sentatives to discuss relevant issues which pertained to the development
of the standards. The significant events relating to the effort of
developing the new source performance standards (NSPS) for the rubber
tire industry are discussed in the chronology below.
A.2 CHRONOLOGY
The following chronology lists important events which have
occurred in the development of background information for the rubber
tire manufacturing NSPS.
A-2
-------
Date
August 1975
May 1976
July 7, 1976
July 20, 1976
August 2, 1976
December 20, 1976
December 21, 1976
December 22, 1976
January 13, 1977
February 8, 1977
November 23, 1977
January 20, 1978
Activity
Preliminary report prepared by the Monsanto
Research Corporation entitled Source Assess-
ment, Rubber Processing, State-of-the-Art.
Screening study of nine segments of the
rubber industry initiated.
Meeting with Environmental Committee
representatives of RMA and EPA to discuss
the screening study.
Meeting with Environmental Committee of RMA
and Monsanto Research Corporation
representatives to schedule plant visits to
nine segments of the industry.
RMA's position regarding the development of
guidelines document for the rubber industry
is confirmed.
Information requests sent to rubber industry
regarding data for screening study.
Visit to Armstrong Rubber Company, West
Haven, Connecticut plant - rubber tire
manufacturing.
Visit to Uniroyal, Chieopee Falls, Massachusetts
plant - rubber tire manufacturing.
Plant visit to Uniroyal Incorporated, Red
Oaks, Iowa plant - rubber hose manufacturing.
Visit to Gates Rubber Company, Denver,
Colorado plant - rubber hose and belt
manufacturing.
Second draft of the screening study entitled
"Identification and Control of Hydrocarbon
Emissions from Rubber Processing Operations"
finalized. Decision made to pursue develop-
ment of guidelines document and NSPS for
rubber tires.
Information requests for development of NSPS
sent to eight rubber tire manufacturers.
A-3
-------
Date
May 1978
May 9, 1978
September 13, 1978
October 6, 1978
December 1978
January 22-26, 1979
April 1979
June 6, 1979
July 19, 1979
July 27, 1979
August 21, 1979
August 27 -
September 4, 1979
November 5-9, 1979
Activity
NSPS contract awarded to Monsanto Research
Corporation.
Meeting with RMA Environmental Committee and
EPA to discuss research and development
activities for capture systems in the curing
areas.
Meeting with RMA Environmental Committee and
EPA to initiate work on the design of a
capture system to control emissions from
tire curing operations.
Follow-up information requests sent:to five
rubber tire manufacturers.
Final draft of guidelines document entitled
"Control of Volatile Organic Emissions from
Manufacture of Pneumatic Rubber Tires (CTG)"
released.
Emission tests and measurements performed at
Armstrong Rubber Company, West Haven, Connecticut.
NSPS contract awarded to Pacific Environmental
Services, Incorporated.
Visit to Firestone Tire and Rubber Company,
Wilson, North Carolina plant - rubber tire
manufacturing.
Model plant parameters for rubber tire NSPS
proposed.
Visit to Armstrong Rubber Company, West
Haven, Connecticut plant - rubber tire
manufacturing.
EPA Priority List 40 CFR 60.16, 44 FR 49222,
August 21, 1979, Synthetic Rubber ranked
twentieth in priority.
Emission measurements performed at Armstrong
Rubber Company, West Haven, Connecticut.
Emission measurements performed at Kelly-
Springfield, Fayetteville, North Carolina.
A-4
-------
Date
November 7, 1979
December 31, 1979
January 4, 1980
January 24, 1980
June, 1980
June 2, 1980
June 27, 1980
July 31, 1980
October 31, 1980
November 26, 1980
December 1980
December 2, 1980
January 14, 1981
Activity
Visit to Kelly-Springfield Tire Company*
Fayetteville, North Carolina plant - rubber
tire manufacturing]
Emission fheasureijients performed at Michel in
Tire Company, Greenville, South Carolina
plants
Follow-on information requests sent to eight
rubber tire manufacturers.
Preliminary tests to determine effects of
absorption on evaporation of VOCs from
rubber components.
EPA/CPB and EPA/SDB concurrence on regulatory
approach.
Draft BID, Chapters 2-8 and Appendices B-D,
distributed to EPA Working Group and to
industry members.
Meeting between rubber tire manufacturing
industry representatives and EPA staff to
discuss draft BID.
Draft BID, Chapters 2-9 and Appendices A-D,
distributed to EPA National Air Pollution
Control Techniques Advisory Committee (NAPCTAC),
Draft BID, Chapters 2-9 and Appendices A-D,
distributed to EPA Steering Committee.
EPA Steering Committee review.
NAPCTAC meeting, all comments were recorded.
NAPCTAC meeting minutes released for
public review.
A-5
-------
-------
APPENDIX B
INDEX TO ENVIRONMENTAL CONSIDERATIONS
This appendix consists of a reference system which is cross
indexed with the October 21, 1974, Federal Register (39 FR 37419)
containing EPA guidelines for the preparation of Environmental Impact
Statements. This index can be used to identify sections of the document
which contain data and information germane to any portion of the
Federal Register guidelines.
B-l
-------
APPENDIX B
INDEX TO ENVIRONMENTAL IMPACT CONSIDERATIONS
Agency Guidelines for Preparing
Regulatory Action Environmental
Impact Statements (39 FR 37419}
Location Within the Background
Information Document (BID)
1. Background and Description
of Emissions and Emission
Controls
Statutory Basis for Develop-
ment of New Source Perfor-
mance Standards (NSPS).
Activities Affected
Process Affected
Availability of Control
Technology
Existing Regulations at
State or Local Level
2. Regulatory Alternatives
Regulatory Alternative I
Environmental Impacts
Costs
The statutory basis for NSPS
is given in Chapter 2.
Descriptions of the activities
which emit pollutants to be
affected are given in Chapter 3,
Section 3.1.
The activities to be affected
are listed in Chapter 4,
Section 4.0.
Information on the availability
of control technology is given
in Chapter 4.
A discussion of existing regula-
tions or the industry to be
affected by the standards is
included in Chapter 3, Section 3.3.
The environmental impacts associated
with Regulatory Alternative I
emission control systems are
considered in Chapter 7.
The cost impact of Regulatory
Alternative I emission control
systems is considered in
Chapter 8, Section 8.2.
(Continued)
B-2
-------
INDEX TO ENVIRONMENTAL IMPACT CONSIDERATIONS (Continued)
Agency Guidelines for Preparing
Regulatory Action Environmental
Impact Statements (39 FR 37419)
Location Within the Background
Information Document (BID)
Health and Wei fare Impact
The impact of Regulatory Alter-
native I emission control
systems on health and welfare
is considered in Chapter 6.
Regulatory Alternative II
Environmental Impacts
Costs
Health and Welfare Impact
Regulatory Alternative III
Environmental Impacts
Costs
Health and Welfare Impact
3. Environmental Impact of
Regulatory Alternatives
Air Pollution
The environmental impacts associated
with Regulatory Alternative II
emission control systems are
considered in Chapter 7.
The cost impact of Regulatory
Alternative II emission control
systems is considered in
Chapter 8, Section 8.2.
The impact of Regulatory Alter-
native II emission control
systems on health and welfare
is considered in Chapter 6.
The environmental impacts associated
with Regulatory Alternative III
emission control systems are
considered in Chapter 7.
The cost impact of Regulatory
Alternative III emission control
systems is considered in
Chapter 8, Section 8.2.
The impact of Regulatory Alter-
native III emission control
systems on health and welfare
is considered in Chapter 6.
The air pollution impact of the
regulatory alternatives is
considered in Chapter 6,
Section 6.1.
(Continued)
B-3
-------
INDEX TO ENVIRONMENTAL IMPACT CONSIDERATIONS (Concluded)
Agency Guidelines for Preparing
Regulatory Action Environmental
Impact Statements (39 FR 37419)
Location Within the Background
Information Document (BID)
Water Pollution
Solid Waste Disposal
Energy
Costs
The impact of the regulatory
alternatives on water pollu-
tion is considered
-------
APPENDIX C - EMISSION DATA
C-l
-------
C.I SUMMARY OF ACTIVITY
Methods and data used to calculate emissions from rubber tire
manufacturing plants are presented in this appendix. Emission test
methods and data from tests at two rubber tire manufacturing plants
are also presented. Information used to calculate industry emission
rates and uncontrolled emission factors was obtained from industry
responses to two U.S. Environment Protection Agency inquiries conducted
under authority of Section 114 of the Clean Air Act. Industry Survey I
was a request for information which reported quantities of VOCs used
and operating parameters for all solvent consuming operations within a
tire plant. Survey I information reported data for the most recent
year available: some plants responded with data for 1976 while ;others
reported 1977 information. Industry Survey II concentrated on acquisition
of VOC consumption data and process description data for selected
solvent-consuming plant processes. Industry Survey II data pertained
to tire manufacturing for the three year period, 1977-1979.
Two stages of tests were performed at two rubber tire manufacturing
plants in order to assist in the development of emissions data for the
industry. The objectives of the first stage of tests performed at one
plant were: (1) to determine VOC removal efficiency of the carbon
adsorber used at the undertread cementing operation, (2) to determine
cement usage at the undertread operation, and (3) to compare two test
methods for VOC measurement. The second stage of tests was conducted
at two plants; one was the same plant at which the first stage of
tests was performed. Test objectives at both plants were: (1) to
determine evaporation rates for VOCs applied to rubber components at
tread end cementing and bead cementing operations, (2) to determine
cement usage at tread end cementing and bead cementing operations, (3)
to determine the mass of VOC to mass of cement used at tread end
cementing operations, and (4) to compare any variations in VOC emissions
between different tread end cement and bead cement application methods.
C.2 PRESENTATION OF SOLVENT CONSUMPTION DATA AND OPERATING, PARAMETERS
Section 114 requests for information were necessary on two occassions
to obtain solvent consumption data for tire manufacturing plants.
C-2
-------
Information requested in Industry Survey I was used for: (1) determining
which tire producing processes would be considered for emission control
and (2) developing model plant parameters. Information obtained from
Industry Survey II provided for: (1) expansion of the data base for
specific solvent-consuming processes to a three year period, and (2)
detailed process descriptions of cement or spray application methods.
Tables C-l through C-18 present solvent consumption data and/or
properties of the exit gas for all tire manufacturing plants that
responded to the surveys.
Table C-l lists the total annual consumption of volatile organic
compounds at 42 tire manufacturing plants, representing eight companies
that responded to Industry Survey I. Tables C-2 through C-18 list
annual solvent consumption data as reported in Industry Surveys I and
II. Out of a total of thirty-six plants, representating seven tire
companies reporting Industry Survey II information, only thirty-two
plants are listed in the tables, as four plants that exclusively
produce tires other than those considered in development of the standard
were excluded.
In order to arrive at solvent consumption values presented in the
following tables, densities of specific organic compounds were used to
convert solvent consumption, reported in gallons, to mass. Assumptions
used in the conversions include:
• the density of naphtha and any "rubber solvents" of
unspecified composition is 5.49 Ib/gal (666 gm/1);
• the density of gasoline is equal to that of octane,
5.87 Ib/gal (703 gm/1);
The density of heterogeneous solvents were calculated by summing the
weighted densities of individual VOC constituents. Solvent consumption
data is used to generate emission factors. These factors represent
100 percent of solvent usage reported in the Section 114 responses,
except in the case of water-based green tire sprays. In the case of
water-based green tire sprays the organic solvent content, expressed
as weight percent, is incorporated into the calculation in order to
report the mass of VOCs used.
C-3
-------
Table C-l. TOTAL SOLVENT CONSUMPTION DATA
FROM TIRE MANUFACTURING PLANTS IN 1977
(Industry Survey I)
Plant
Code
A
B
c
D
E
I
K
L
M
0
P
Q
*\
R
T
V
W
X
Y
z
BB
DD
VOC
Mg
1,042
33
567
962
774
852
1,296
249
2,578
1,719
1,341
1,371
1,218
712
1,705
266
1,025
1,188
1,646
56
790
CONSUMPTION
Tons
1,149
36
625
1,061
853
939
1 ,429
275
2,842
1,895
1,478
1,512
1,343
785
1,880
293
1,130
1,310
1,815
62
871
Plant
Code
EE
FF
GG
HH
JJ
LL
NN
00
PP
QQ
RR
SS
TT
UU
ww
XX
YY
ZZ
AAA
' BBB
CCC
VOC
Mg
963
209
1,564
1,342
1,334
4,337
624
856
385
1,213
476
673
1,334
1,032
1,719
1,287
1,053
202
605
743
223
CONSUMPTION
Tpns^
1,062
230
1,724
1,480
1,471
4,837
688
944
424
1,337
525
742
1,471
1,138
1 ,895
1,419
1,166
223
667
819
246
C-4
-------
Table C-2. OPERATING PARAMETERS FOR UNDERTREAD CEMENTING
(Industry Survey I)
Number of
undertread
Plant cementing
Code lines
a
"a
B
C 2
D 3
E 4
I 2
K 2
I -
h "a
M 'a
0
P*5
O_
Q
R -3
T 8
V 8
W 2
X 13
Y 1
ZQ "a
BB -,
DO . -I
EE -
CC.
FF 1
66 4,
HH -a
JJ 2
LL 5
NN . 2,
00 -
PP 4
nn ' a
QQ -
RR 2
SS 2
TT -
UU 4
WW 3
XX
YY 3a
LL ™g
AAA -\
BBB -,
CCC
*Not available.
°Not calculated
Ambient
Fxit. gas properties
Flow rate,
Average
b
~tj
1.5
2.0
2.8
2.6
3'b
"b
~_b
n
2.5
3.6
3.8
3.3
3.3
5.7
-bb
"b
~b
2.6
2.8
_b
, 2.4
1.4
1.5
-b
1.0
_b
2.0
3.2
-b
1.8
3.8
-
4'S
"b
"b
"b
m-i/s per line.
Range
_a
"a
0.6,2.4
-
1.2-4.4
— Q
Q
"a
"a
"a
Id
"a
Id
1.9g3.8
»
3.2-3.5
_d
_e
a
la
_a
a
- "J
""3
"d
d
"a
— j
a
a
1.4-2.6
_d
_a
a
"a
"a
"a
"a
"a
pAll units have
Only one value
Temperature,
°C
_a
"a
"c
"c
-c
~c
"c
"a
"a
~c
"a
"c
^
"c
c
^c
_
"a
~a
"a
c
"c
"a
~c
"c
~c
"a
25-30
_c
_c
27
_a
c
2a '
c
"c
"c
~a
"a
same exit gas- flow
reported .
6auge Pressure
Pa
_a . •
"a
530-800
0
0
0
_a
_a
530,
a
0
130a
*•
n
0
0
_a
_a
"a
"a
530a
a
800,
a
530.
0
0
270-2,500
-3
_a
0
_a
0
0
.
_a
rate.
C-5
-------
Table C-3. SOLVENT CONSUMPTION DATA FOR UNDERTREAtf CEMENTING
(Industry Survey I)
Plant
Code
A
B
C
D
E
I
K
L
M
0
P
Q
R
T
V
W
X
Y
Z
BB
DD
VOC
Mg
b
b
203
296
494
189
305
D
b
586
197
361
641
b
230
472
511
b
26
b
CONSUMPTION
Tons
b
224
326
545
208
336
17
b
b
648
217
398
709
b
253
520
563
b
29
Plant
Code
EE
FF
GG
HH
JJ
LL
NN
00
PP
QQ
RR
SS
TT
UU
ww
XX
YY
zz;
AAA
BBB
CCC
VOC
Mg
248
177
968
b
416
236
195
b
84
.b
301
113,
479
459
804
470
758
b
94
297
31
CONSUMPTION
Tons
273
195
1,067
b,
459
260
215
b
93
b
332
125
528
506
886
518
836
b
104
327
34
Not available.
Not calculated.
cAmbient. ,
All units have same exit*gas flow rate.
eOnly one value reported.
C-6
-------
Table C-4. SOLVENT CONSUMPTION DATA FOR UNDERTREAD CEMENTING
(Industry Survey II)
Plant Code
A
B
C
E
F
G
H
I
J
K
L
N
P
R
S
T
• U .
V
W
X
z
AA
BE
CC
DD
EE
FF
GG
HH
II
JJ
VOC CONSUMPTION 1977
Mg Tons
a
a
464.9
482.3
229.7
591.6
54.0
440.2
a
390.4
7.00.6
191.0
352.0
501.7
37.2
505.3
373.0
846.1
476.2
802.4
241.0
53.9
490.9
a
258.2
858.1
422.5
a
180.3
274.7
1036.5
a
a
.512.5
531.6'
253.2
652.1
(59.6,
485. 2b
a
430. 3b
772. 2b
210.5
388.0
553.0
(41.0
556. 913
411.2
932. 6L
524. 913
884. 4b
265.6
59.4
541. lb
a
284.6
945.9
465.7
a
198.7
302.8
1142.6
VOC CONSUMPTION 1978
Mg Tons
a
17.0
409.2
418.4
231.6
669.7
48.8
468.6
a
999.0
650.1
256.5
351.5
277.3
29.8
505.3
372.7
279.8
560.5
847.8
683.6
66.8
290.9
845.1
241.9
388.9
410.6
a
a
256.7
904.6
a
15.8
451.0
461.2
255.3
738.2
53.8
516. 5b
a
1101 .Z?
716. 6b
.28-2.7
' 387.5
305.7
(32.8,
556.8°
410.9
308.4
617. 8&
934. 5b
753.5
(73. 6U
320. 7b
931.3
266.7
428.7
452.6
a
a
282.9
997.2
VOC CONSUMPTION 1979
Mg Tons
a
90.5
245.3
436.6
224.1
550.3
41.3
437.7
a
827.5
651.0
212.6
289.4
277.2
28.8
546.9
358.6
163.7
556.8
747.0
730.0
53.4
266.7
a
270.7
283.8
353.9
a
a
193.1
471.4
a
99.7
270.4
481 . 3
247.0
606.6
45 6
t V • V
482. 5b
a
912. 2b
717. 6b
234.4
319.0
305.5
31.7
602. 8b
395.3
180.4
613.7b
823. 4b
804.6
58.9
294. Ob
a
298.4
312.8
390.1
a
a
212.9
519.6
Blank indicates that annual mass of solvent consumption could not be
calculated.
Sidewall and undertread cementing were reported together in the same
number.
C-7
-------
Table C-5. SOLVENT CONSUMPTION DATA FOR TREAD END CEMENTING*
(Industry Survey I)
Plant
Code
A
B
C
D
E
• I
K
L
M
0
P
Q
R
T
V
W
X
Y
z
BB
DD
VOC
Mg
7
/
a
22
75
12
30
40
a
a
a
120
158
18
a
10
18
29
52
a
a
a
CONSUMPTION
Tons
8
i— i
a
24
83
13
33
44
a
a
a
132
174
20
a
11
20
32
57
a
a
a
Plant
Code
EE
FF
GG
HH
JJ
LL
NN
00
pp
QQ
RR
SS
TT
UU
WW
XX
YY
ZZ
AAA
BBB
CCC
VOC
Mg
31
21
28
a
135
22
57
36
a
a
33
210
89
167
18
46
22
a
4
31
9
CONSUMPTION
Tons
34
23
31
, a
149
24
63
40
a
a
36
232
'98
184
20
51
24
a
4
34
10
aBlank indicates that annual iiiass of VOC emissions could not be
calculated.
-------
Table C-6. SOLVENT CONSUMPTION DATA FOR TREAD END CEMENTING
(Industry Survey II)
Plant
Code
A
B
C
F
G
H
I
J
K
L
M
N
0
P
R
. T
U
U
X
Y '
z .
AA
BB
CC
DD
EE
GG
HH
II
JJ
Solvent Consumption 1977
Mg Jons
15.2
39.7
5.2
21.2
15.1
5.6
22.8
112.4
16.8
43.8
5.8
23.4
16.6
6.1
25.1
123.9
43.0 j 47.4
a I a
150.8 166.3
15.7 i 17.3
97.7
7.5
a
a
109.9
107.7
8.3
a
a
120.6
18.6 • 20.5
28.8
9.7
47.5
47.7
a
171.5
29.8
0.9
5.4
25.3
31.7
10.7
52.3
52.6
a
189.0
32.9
1.0
6.0
27.9
51.2 • 56.4
54.0 : 59.6
308.2 339.7
Solvent Consumption 1978
Mg Tons
14.2
37.5
4.6
48.1
21.5
6.1
25.2
100.1
35.6
a
134.1
17.8
85.3
9.4
80,2
86.9
123.4
17.7
29.9
10.5
61.6
47.6
a
171.0
27.8
0.4
7.2
48.2
45.6
48.8
288.3
15.7
41.4
5.1
53.0
23.7
6.7
27.8
110.4
39.2
a
147.9
19. .6
94.0
10.4
88.4
95.8
136.0
19.6
32.9
11.6
67.9
52.5
a
188.6
30.8
0.4
7.9
53.2
50.3
53.8
317.8
Solvent Consumption 1979
Mg Tons
12.9
44.7.
3.2
39.9
20.4
5.2
17.0
92.5
27.2
, a
98.8
17.7
60.5
8.0
61.6
36.3
99.2
16.7
26.2
11.3
58.2
39.2
a
123.1
21.5
0.9
6.7
27.1
48.8
41.4
182.3
14.2
49.2
3.6
44.0
22.5
5.7
18.8
102.0
30.0
a
109.0
19.5
66.7
8.8
67.9
40.0
109.3
18.4
28.8
12.4
64.2
43.2
a
135.7
23.6
1.0
7.4
29.9
53.7
45.6
208.9
Blank indicates that annual mass of solvent consumption could not be calculated.
C-9
-------
Table C-7. SOLVENT CONSUMTPION DATA FOR SIDEWALL CEMENTING
(Industry Survey II)
-
Plant Code
C
E
G
H
I
J
K
M
N
0
P
Q
T
U
V
X
Y
Z
AA
BB
CC
DD
EE
FF
GG
II
00
VOC CONSUMPTION 1977
Mg Tons
a
8.7 9.6
a
352.0 388.0
a
a
a
a
a
a
a
33.9 37-. 3
a
a
a
a
167.2 184.3
a
a
a
a
131.5 144.9
a
a
a
a
a
a
a
a
a
VOC CONSUMPTION 1978
Mg Tons
a
3.6 3.9
a
351.5 387.5
a
a
-
.
a
337. 4h 41.3
314. 9b 347.1
a
a
a
92.4 101.9
a
,
a
„
148,8 164.0
a
_
a
a
— *
VOC CONSUMPTION 1979
Mg Tons
a
6.4 7.0
a
289.4 319.0
a '
a
a
a
a
a
a
40.3. 44.5
370. 6D 408.5
a
a
a
92.4 101.8
a
a
a
a
122.3 134.8
a
a
a
a
a
a
a
a
a
___ —
....... indicates that annual mass of solvent consumption could not be
calculated.
consumption from bead cementing.
C-10
-------
Table C-8. OPERATING PARAMETERS FOR BEAD CEMENTING
(Industry Survey I)
Plant
Code
A
B
C
. D
E
I
K
L
M
o
P
q
R
T
V
w
X
Y
1
BB
' DO
EE
FF
GG
HH
JJ
LL
NN
00
PP
QQ
RR
SS
TT
UU
WW
XX
'YY
ZZ
AAA
8BB
CCC
Number of
bead dipping
operations
1
_c
1
c
~c
1
1
_c
1
_c
3
c
1
c
~c
_c
1
_c
_c
~c
"c
"c
1
4
_c
1
_c
1
2.
c
"c
1-
c
c
"c
4
1
_c
"c
"c
"c
"c
Exit gas properties
Flow rate, m-Vs
Average
3.0
Id
0.9
^d
4.7
j
-Q
d
"d
"d
2.4
-d
3 6
"9
"d
"d
"d
"d
"d
"d
"d
"d
"d
"d
~d
2.4
^3
2.4
3.3
d
"d
"d
"d
"d
~d
sis
"d
"d
"d
_d
jjer operation
Range
a
"c
"a
"c
"c
"a
"e
"c
"e
"c
~g
_c
"a
"c
~c
c
"e
^c
e
"e
"c :
"e
"e
"e
~c
_a
"c
"a
_a
c
"c
_e
_c
~e
"c
_g
"a
"c
"c
"c
"e
"d
Temperature,
°C
b
"c
"b
"c
"fa
^b
, "f
"c
"f
"c
"b
"c
"b
~c
_c
"c
. "f
"c
"f
"f
"c
. "f
"f
"f
"c
"b
"c
_b
21
_c
c
"^
f
"c
"f
^c
2i
_b
c
"c
"c
"f
"c
Gauge pressure
Pa
°c
4
-
0
"f
c
~c
4
-
0
-
"c
•f
. "f
~c
"f
"f
"'f
-
2,000
_c
1,470
.c
c
"f
~c
"f
-
0
0
-
-
~f
-
?0nly one value reported.
°Ambient.
cNot available.
Not calculated.
?No invidivuals ventilation system(s).
Not applicable.
3A11 units have same exit gas flow rate.
C-11
-------
Table C-9. SOLVENT CONSUMPTION DATA FOR BEAD CEMENTING
(Industry Survey I)
Plant
Code
A
B
c
n
\j
E
T
j*
K
L
M
0
P
n
X
R
T
v
W
X
Y
Z
BB
DD
VOC
Mg
34
*5
73.6
d
7.7
17.9
9.3
a
2.1,
d
31.3
d
106.6
13.7
d
d
7.7
d
d
CONSUMPTION
tons
3.7
d
81.1
d
8.5
19.7
10.3
d
2.3
d
34.5
d
117.5
15.1
d
d
8.5
d
4.4
d
d
Plant
Code
EE
FF
GG
HH
JJ
LL
NN
00
PP
QQ
RR
SS
TT
UU
WW
XX
YY
II
AAA
BBB
CCC
VOC
Mg
2.4
1 -T
13.2
59.5
93.9
15.8
d
53.2
d
28.3
VI
36.6
59.9
H
VI
d
VI
2.2
CONSUMPTION
Tons
2.6
T -,2
.
14.6
65.d5
103.5
17.4
d
\Ji
587
VI
31.3
d
40.4
66 yO
d
u
d
u
^rf*
aOnly one value reported.
Ambient.
cNot available.
dNot calculated.
eNo individualized ventilation system(s),
Not applicable.
9A11 units have same exit gas flow rate.
C-12
-------
Table C-10. SOLVENT CONSUMPTION DATA FOR BEAD CEMENTING
(Industry Survey II)
Plant Code
A .
B
c
D
E
F
G
H
I
J
K
L
N
0
P
Q
. R
S
T
U
V
• w
X
U
AA
CC
FF
GG
HH
II
JJ
VOC CONSUMPTION 1977
Mg Tons
a
21.8
22.7
68.6
31.2
a
a
15.6
10.2
a
a
9.3
a
32.9
4.3
3.3
a
8.8
a
14.1
33.4
28.8
88.3
2.0
a
a
a
78.5
7.9
47.9
61.3
24.0
25.0
45.6
34.4
17.2
11.2
10.0
36.3
4.7
3.6
9.7
15.5
36.8
31.7
97.4
2.2
86.6
8.7
'52.6
67.5
VOC CONSUMPTION 1978
Mg Tons
a
8.1
22.3
19.0
31.2
a
a
20.4
34.3
a
a
9.0
89.9
37.3
2.5
3.1
a
52.0
a.
15.2
33.7
29.9
a
2.0
a
a
a
83.5
65.5
49.7
46.2
8.9
24.6
21.0
34.4
22.5
37.8
9.9
99.1
41.1
2.8
3.4
57.3
,
16.8
37.1
32.9
2.2
92.1
72.2
54.8
51.0
VOC CONSUMPTION 1979
Mg Tons
a
10.3
14.9
15.8
25.7
a
a
18.7
7.5
a
a
5.5
98.3
38.5
0.6
2.9
a
28.4
a
16.4
31.5
26.2
a
2.0
a
a
a
77.9
47.9
46.7
43.9
11.3
16.5
17.4
28.3
20.6
8.3
6.0
108.3
42.5
0.7
3.2,
31.2
18.1
34.8
28.8
2.2
85.9
52.8
51.5
48.4
Blank indicates that annual mass of solvent consumption could not
be calculated.
C-13
-------
Table C-11. OPERATING PARAMETERS FOR GREEN TIRE SPRAYING
(Industry Survey I)
Plant
Code
A
B
C
0
£
I
K
L
H
0
P
Q
R
T
V
W
X
Y
Z
BB
00
EE
FF
GG
HH
00
LL
NN
00
PP
QQ
RR
SS
TT
UU
WW
XX
YY
ZZ
AAA
8BB
CCC
Number of
spray
booths
_a
2
2
3a
_a
a
4.
a
10
7
6a
7.
a
8,
d
5
1
fa
a
8,
ct
8
3
4
13
2
4,
Cl
la
a
3
fa
9a
a
3
i.
a
4
3
?Not available.
"Not calculated.
Ambient.
Exit gas properties
Flow rate, m-Vs per booth Temperature,
Average Range
b a
"" ~^J
3.3 -d
„ 2.4 1.5-3.3
_b _a
_b a
-b _a
3.0 2.6-3.3
-b _a
8.4, 3.1-29.3
-b .a
4.0 1.5-5.7
-b -a
3,1 1.5-4.1
-b -a
3.5 -d
_b _a
0.9 -d
16.8 -f-
3,7 1.7-5.7
-b .a
-b _a
3.8 1.3-6.0
-b, -a
3.8 -d
3.9 -a
7.0 3.8-11.3
1.7 1.0-2.8
5.7 -d
3.0 2.4-3.3
-b _a
4.7 -f
_b .a
3.7 3.6-3.8
4.3 1.7-5.7
-b _a;
5.2 3.2-9.4
-b .a
.b _a
9.9 -f
_b _a
3.4 1.4-5.7
2.0 0.6-2.7
All units have same exit
^Maximum value.
Only one value reported.
°C
_c
27e
_c
_c
_a
"a
_c
_c
~_c.
"c
~_c_
_a
_c
_a
_c
_a
_c
_c
_c
_a
la
_c
-a •
3c
21-29
" _C
_c
_c
21-38
_a
c
^a
13-24
_c
_a
21
_a
_a
_c
_c
_c
^c
gas flow rate.
Gauge pressure
Pa
0
_a
530
n
\J
_a
_a
0
0
.a
_a
530-2,000
.a
0
.a
_a
_a
0
0
_a
.a
_a
_a
_a
_a
0
930-2,000
.a
1 ,470
_a
_a
0
' _a
.a
_a
.a
0
_a
_a
o
_a
_a
0
•
C-14 -
-------
Table C-12. SOLVENT CONSUMPTION DATA FOR GREEN TIRE SPRAYING
(Industry Survey I)
Plant
Code
A
B
C
D
E
I
K
L
M
0
P
Q
R
T
V
W
X
Y
Z
BB
DO
VOC
Mg
b
30
153
439
b
116
776
61
932
624
512
502
255
b
475
b
157
343
675
b
CONSUMPTION
Tons
b
33
174
484
b
128
855.5
67.3
1,028
683
564
553
281
• b
524
b
173
378
744
b
b
Plant
Code
EE
FF
GG
HH
JJ
LL
NN
00
PP
QQ
RR
SS
TT
UU
ww
XX
YY
II
AAA
BBB
CCC
VOC
Mg
433
b
457
78
499
157
230
428
b
h
u
h
U
444
D
864
b
76
b
28
382
130
CONSUMPTION
Tons
477
b-
504
' 86
550
173
254
472
b
!_
0
»_
0
b
490
b
953 '
b
83.8
b
31
421
198
aNot available.
bNot calculated.
cAmbient.
dAll units have same exit gas flow rate,
eflaximur, value.
fOnly one value reported.
C-15
-------
Table C-13. SOLVENT CONSUMPTION DATA FOR INSIDE ORGANIC
SOLVENT-BASED GREEN TIRE SPRAYING
(Industry Survey II)
Plant Code
A
B
C
D
E
F
G
H
I
J
K
L
M
N
0
P
Q
T
V
W
Y
Z
AA
BB
CC
DD
EE
FF
GG
HH
II
VOC CONSUMPTION 1977
Mg Tons
63.8 70.3
a
a
12.7 14.0
a
a
b
b
b
b
a
b
443.6 489.0
362.6 400.0
a
b
b
180.9 199.4
b
b
6
b
' b
•"*• b
b
b
a
a
325.0 358.3
b
160.6 177.0
VOC CONSUMPTION 1978
Mg Tons
56.3 62.0
a
a
b
a
a
b
a
b
b
385.3 424.7
b
441.0 486.1
132.0 145.6
a
b
b
179.1 197.4
a
b
a
b
b
b
b
b
a
a
80.8 89.1
a
b
VOC CONSUMPTION 1979
Mg Tons
27.6 30.4
b
b
b
b
167.0 184.0
b
a
b'
b
506.6 558.4
b
436.0 480.6
60.0 66.2
b
b
b
175.6 a 193.6
a
b
a
b
b
b
b
b
b
a
b
a
b
aBlank indicates that annual mass of solvent consumption could not be
calculated.
The plant used water-based sprays only.
C-16
-------
Table C-14. SOLVENT CONSUMPTION FOR OUTSIDE ORGANIC
SOLVENT-BASED GREEN TIRE SPRAYING
(Industry Survey II)
Plant
Code
A
B
C
. P
E
F
G
H
I
J
K
L
M
N
0
P
Q
R
S
T
U
V
u
X
Y
Z
AA
BB
CC
DD
EE,
VOC Consumption 1977
Mg Tons
93.8
207.7
264.1
341.0
553.7
214.2
503.1
. 297.9
303.6
601.3
520.6
511.3
749.7
496.1
69.1
363.3
714.6
a
a
a
a
b
b
b
a
a
a
a
a
b
a
103.4
229.0
291.1
375.8
610.4
236.1
554.6
328.4
334.6
662.8
573.9
563.6
826.4
546.9
76.2
400.5
787.7
VOC Consumption 1978
Mg Tons
91.5
235.9
121.6
298.2
550.3
234.9
447.2
59.0
206.3
222.6
525.5
404.7
269.2
596.5
763.6
882.1
64.0
38.4
809.5
a
a
a
b
b
b
a
a
a
a
b
a
100.9
260.0
134.0
328.7
606.6
260.0
493.0
•65.0
227.4
245.3
579.3
446.1
296.7
657.5
841.7
972.4
70.5
42.3
892.3
VOC Consumption 1979
Mg Tons
107.5
210.4
88.4
271 .9
545.7
185.8
192.1
31.2
365.6
441.8
492.3
576.4
740.6
422.4
35.8
371.8
a
b
b
a
b
b
b
b
b
b
a
* '»
a
b
b
a
118.5
231.9
97.4
299.7
601.5
204.8
211.7
34.4
402.9
487.0
542.7
635.4
816.3
465.6
39.5
409.8
Blank Indicates that annual mass of solvent consumption could not be calculated.
HThe plant used water-based sprays only.
C-17
-------
Table C-15. SOLVENT CONSUMPTION FOR INSIDE
WATER-BASED GREEN TIRE SPRAYING
(Industry Survey II)
Plant
Code
A
B
c
D
E
F
G
H
I
0
K
L
H
N
0
P
Q
R
S
T
U
V
U
X
Y
Z
AA
BB
CC
DD
EE
VOC
Mg
5.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
3.3
0.0
0.0
0.0
0.0
Consumption 1977
Tons
a
a
b
a
a
a
b
b
a
a
a
b
a
b
a
a
a
a
6.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
3.7
o.o
0.0
0.0
0.0
VOC
Mg
5.6
0.0
0.0
0.0
0.0
0.0
0.0
1.2
5.5
D.O
0.0
0.0
2.3
0.0
0.0
0.0
0.0
Consumption 1978
Tons
a
a
a
a
a
a
b
a
a
b
a
a
a
a
6.2
0.0
0.0
0.0
0.0
0.0
0.0
1.3
6.0
0.0
0.0
0.0
2.5
0.0
0.0
0.0
0.0
VOC
Mg
0.0
4.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
8.6
0.0
0.0
0.0
0.0
0.0
0.0
2.4
0.0
0.0
0.0
0.0
Consumption 1979
Tons
0.0
4.9:
a
0.0
0.0
0.0
0.0
0.0
0.0
0.0
a
0.0
b
0.0
9.4
0.0
a
0.0
0.0
0.0
0.0
b
0.0
2.6
0.0
0.0
a
a
0.0
a
0.0
aBlank Indicates that annual mass of solvent consumption could not be calculated.
H'he plant used organic-based sprays only. .
C-18
-------
Table C-16. SOLVENT CONSUMPTION FOR OUTSIDE
WATER-BASED GREEN TIRE SPRAYING
(Industry Survey II)
Plant
Code
A
B
C.
D
E
F
G
H
I
J
K
L
M
N
0
P
Q
R
S
T
U
V
w
X
Y
Z
AA
BB
CC
DO
EE
VOC Consumption 1977
Mg Tons
a
a
b
8.9 9.8
b
b
0.0 0.0
b
a
a
b
0.0 0.0
b
0.0 0.0
b
b
2.0 2.3
b
b
a
b
b
a
b
b
b
b
b
a
b
b
VOC
Mg
8.8
0.0
0.0
0.0
1.7
0.0
0.0
Consumption 1978
Tons
a
a
a
9.7
b
b
0.0
b
a
a
a
0.0
b
0.0
b
b
1.9
0.0
b
a
b
b
b
b
b
a
b
0.0
a
b
b
VOC
Mg
7.2
8.9
0.0
0.0
0.0
7.8
5.2
0.0
0.0
0.0
1.6
7-9
8.5
0.0
0.0
0.0
Consumption 1979
Tons
a
a
b
a
b
b
b
b
b
b
b
a
a
b
b
8.0
9.8
0.0
0.0
0.0
8.6
5.8
0.0
0.0
0.0
1.8
8.7
9.4
0.0
0.0
0.0
aBlank indicates that annual mass of solvent consumption could not be calculated.
Tfce plant used organic-based sprays only.
C-19
-------
Table C-17. SOLVENT CONSUMPTION DATA AND OPERATING PARAMETERS
FOR TIRE BUILDING3
(Industry Survey I)
Plant
Code
A
B
C
D
E
I
K
L
M
0
P
Q
R
T
V
W
X
Y
Z
BB
DD
VOC
Mg
a
a
63
a
a
a
a
a
a
a
53
a
a
a
a
a
a
a
a
a
a
CONSUMPTION
Tons
148
a
100
74
153
a
a
163
645
295
76
280
a
a
a
20
n
a
112
9
a
Plant
Code
EE
FF
GG
HH
JJ
LL
NN
00
PP
QQ
RR
SS
TT
UU
WW
XX
YY
ZZ
AAA
BBB
CCC
VOC
Mg
a
33
a
a
61
a
50
a
a
a
67
a
a
42
a
a
a
a
a
a
i a
CONSUMPTION
Tons
281
a
a
13
120
a
24
29
238
a
72
9
88
62
a
488
a
a
a
25
2
aBlanks indicate that the number of machines was not available or that
VOC emissions could not be calculated.
C-20
-------
Table C-18. SOLVENT CONSUMPTION DATA FOR FINISHING*
(Industry Survey I)
Plant
Code
A
B
C
D
E •
I
K
L
M
0
P
Q
R
T
V
W
X
Y
Z
BB
DD
VOC
Mg
a
a
17.1
23.7
1.2
a
17.9
a
1.4
a
8.5
a
a
17.2
a
a
a
116.5
a
3.3
a
CONSUMPTION
Tons
a
a
18.8
26.1
1.3
a
19,7
a
1.5
a
9.4
a
a
19.0
a
a
a
128.4
a
3.6
a
Plant
Code
EE
FF
GG
HH
JJ
LL
NN
00
PP
QQ
RR
SS
TT
uu
ww
XX
YY
II
AAA
BBB
CCC
VOC
Mg
0.7
1.1
31.4
3.0
99.1
a
12.8
8.6
a
a
9.8
11.3
16.0
14.9
a
a
a
a
1,1
a
2.6
CONSUMPTION
Tons
0.8
1.2
34.6 .
. 3.3
109.3
a
14.1
9.5
a
a
10.8
12.5
17.6
16.4
a
a
a
a
1.2
a
2.9
Blanks indicate that annual mass of VOC emissions could not be calculated.
C-21
-------
C.3 CALCULATION OF MEAN EMISSION FACTORS FOR SOLVENT-CONSUMING;
FACILITIES
Average gram-per-tire emission factors were developed in an
effort to illustrate the relative quantities of VOCs emitted from each
solvent-consuming process. Three methods of calculation, each dependent
upon one of the data sets, were used to generate emission factors for
the various tire manufacturing operations. Table C-19 shows the
resulting emission factors.
C.3.1 Calculation Methodology for Undertread. Tread-end. Sidewall,
and Bead Cementing Operations
Mean emission factors for undertread cementing, tread end cementing,
sidewall cementing, and bead cementing operations were calculated from
Industry Survey II data. The industry mean gram-per-tire emission
factor for each of these four processes was calculated in the following
manner:
(1) Annual solvent consumption values, in grams, were totaled
for each reporting plant for 1977-1979;
(2) This sum was divided by the total number of finished
tires produced at .the plant between 1977 and 1979;
(3) Resultant values represented individual plant gram-per-
tire emissions factors;
(4) Individual plant emission factors were totaled, and
divided by the total number of reporting plants.
C.3.2 Calculation Methodology for Tire Building and Finishing
Mean emission factors for tire building and finishing processes
were calculated from Industry Survey I data. The industry mean gram-per-
tire emission factors for these operations were derived in the following
manner:
(1) Solvent consumption, in grams, was established for each
plant;
(2) This value was divided by the total number of finished
tires produced at that same plant during the reported year;
C-22
-------
(3) Resultant values, representing individual plant
gram-per-tire emission factors, are then summed, and divided by the
total number of reporting plants.
C,3.3 Calculation Methodology for Inside and Outside Green Tire
Spraying
Mean emission factors for inside and outside green tire spraying
processes were developed using Industry Survey II data. The industry
mean gram-per-tire emission factors for these processes were calculated
in the following manner:
(1) Annual water-based green tire spray consumption values
for each plant are converted from units of volume to units of mass
using vendor- and industry-supplied density values;
(2) Water-based green tire spray mass consumption values
are multiplied by the volume percent of VOCs contained in the spray
and divided by the total number of finished tires produced;
(3) Solids contained in organic solvent-based green tire
sprays are assumed to be in solution; thus the green tire spray mass
consumption values are divided directly by the total number of finished
tires produced;
(4) Per-tire solvent consumption values for each plant are
averaged over 3 years, weighted by tire production; then the 3-year
plant averages are totaled and divided by the total number of plants
reporting data. (Note: Per-tire inside and outside organic green
tire spray values are calculated in a manner similar to that for
undertread, sidewall, tread end, and bead cementing);
Through comparison, gram-per-tire emission factors reflect the
relative importance of VOC emissions from each tire processing operation.
The emission factors are also used in calculating the industry's total
VOC emissions and aid in projecting the percent reduction of emissions
associated with proposed regulatory alternatives. The gram-per-tire
scheme is also utilized to project environmental, economic, and cost
impacts from the proposed levels of emission reduction.
C-23
-------
TABLE C-19. MEAN EMISSION FACTORS BASED ON SOLVENT CONSUMPTION DATA
(1977 through 1979)
Operation
Solvent Use
(gms/tire)
Undertread Cementing
Sidewall Cementing
Automatic tread-end
Cementing
Manual tread-end
Cementing
Tread-end Cementing
Aggregate
Bead Cementing
Inside Green Tire
Spraying
Organic Solvent-based
Water based
Outside Green Tire
Spraying
Organic Solvent-based
Water-based
63.2
41.1
23.8
9.9
15.1
8.3
48.2
0.1
89.0
1.4
aWhere solvent consumption for undertread cementing facilities and
sidewall cementing facilities were reported as one figure.
C.4 CALCULATION OF VOC EMISSIONS FROM HIGH-TEMPERATURE TIRE MANUFACTURING
OPERATIONS
A temperature-weight loss correlation proposed by S.M. Rappaport
has been used to estimate emissions from tire curing. Emissions from
other high-temperature tire manufacturing processes are approximated
using the ratio of the operating temperature to 180°C (the temperature
at which curing emissions were measured) as a correction factor. In
addition, the numerical constants must be reduced by a factor of 10
when estimating volatile organic compound emissions, because 90 percent
C-24
-------
-------
TABLE C-19. MEAN EMISSION FACTORS BASED ON SOLVENT CONSUMPTION DATA
(1977 through 1979)
Operation
Solvent Use
(gms/tire)
Undertread Cementing
Sidewall Cementing
Automatic tread-end
Cementing
Manual tread-end
Cementing
Tread-end Cementing
Aggregate
Bead Cementing
Inside Green Tire
Spraying
Organic Solvent-based
Water based
Outside Green Tire
Spraying
Organic Solvent-based
Water-based
63.2
41.1
23.8
9.9
15.1
8.3
48.2
0.1
89.0
1.4
Where solvent consumption for undertread cementing facilities and
sidewall cementing facilities were reported as one figure.
C.4 CALCULATION OF VOC EMISSIONS FROM HIGH-TEMPERATURE TIRE MANUFACTURING
OPERATIONS - !
A temperature-weight loss correlation proposed by S.M. Rappaport
has been used to estimate emissions from tire curing. Emissions from
other high-temperature tire manufacturing processes are approximated
using the ratio of the operating temperature to 180°C (the temperature
at which curing emissions were measured) as a correction factor,. In
addition, the numerical constants must be reduced by a factor of 10
when estimating volatile organic compound emissions, because 90 percent
C-24
-------
of the weight losses that were observed coulti b$ attributed to evaporation
of water.* Thus, the modified temperature-weight loss equation is:
C = 1.24 x 10
-3
(C-l)
where C = weight loss, grams per kilogram;
T = operating temperature, °C.
In compounding, the mechanical release of heat normally raises
the temperature of the rubber stock to 100°C. Twenty percent of the
volatile species emitted are assumed to be adsorbed on carbon black
particulate that are simultaneously released. Therefore, the emission
factor fpr compounding is:
(0.8) (1.27 x 10"3) (100) = 0.1 g/kg
(C-2)
A representative tire mass is required to convert the emission
factor from equation C-2 to grams-per-tire. A passenger car tire was
chosen for this purpose because it represents approximately 80 percent
of the total number of tires produced by the industry, according to
the information shown in Table 3-1. Data supplied by three plants
that produce only passenger car tires were used to calculate an average
tire mass of 11.5 kilograms. Using this value, the estimated emission
factor for compounding is one gram per tire.
C.5 EMISSION TEST ACTIVITIES
C.5.1 Stage 1 Emission Tests
Emission tests were performed at the undertread cementing operation
at one plant in order to: (1) determine VOC removal efficiency of the carbon
*Presentation, R.C. Miles, Uniroyal, Incorporated, to K.J. Zobel,
ESED, OAQPS, EPA. September 8, 1977, Durham, North Carolina.
C-25
-------
adsorber, (2) determine cement usage, and (3) compare mass emissions
using flame ionization detection (FID) method and EPA Method 25* The
operation is equipped with a capture system which encloses the cement
application area and conveyor leaving the application area,, Captured
VOCs are vented to a dual bed carbon adsorber. ;
Carbon adsorber removal efficiency was tested using the flame
ionization detection (FID) method and EPA Method 25. The removal
efficiency agreed closely for both methods. Three one-day tests of
the carbon adsorption system removal efficiency were conducted using
the FID method. Carbon adsorber inlet and outlet concentrations were
measured and compared. The mean inlet concentration was 8.7 x ,10 ppmv
and the mean outlet concentration was approximately 1.1 x 10 ppmv,
for a mean removal efficiency of 87.9 percent. On a mass basis, the
removal efficiency for VOC was about 88.7 percent, with a reduction in
the mean inlet quantity of 47.8 milligrams per square centimeter (mg/cm )
of undertread cemented to a mean outlet quantity of 5.39 mg/cnT. See
Table'C-20 for a summary of data. Five two-hour tests of the carbon
adsorption system were conducted using EPA Method 25. The mean removal
efficiency for VOC was 86.7 percent. See Table C-21 for a summary of
the test results using EPA Method 25.
Data scatter in the results was attributed to two variables: (1)
the type of tread being processed (radial versus non-radial), and (2)
variations in the effectiveness of the enclosure, due to length of
time the operator needed access to the cement application equipment.
Cement usage data was collected over a two-day period. As shown ,
in Table C-22, there was a wide variation in cement usage between
measurement periods. The variation was considered reasonable based on
potential process variations during the test period and testing conditions.
For example, the cement usage rate varied with respect to the type of
tread being processed (radial versus non-radial). It was concluded
that the measurement method would be reliable for estimating average
cement usage provided that tests are conducted over a sufficient
number of days. However, because of the limited amount of data collected
at this site, any conclusions about cement usage are limited.
C-26
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C-27
-------
Table C-21. CARBON ADSORBER EFFICIENCY—EPA METHOD 25
RUN
S
1
2
3
4
5
AVERAGE'
INLET
(ppnw)
4314
8845
4623
5592
8614
—,—,
OUTLET
(ppmv)
774
917
534
779
702
— ,T-
" REMOVAL' " ;
EFFICIENCY :
(X)
82.1 . :
89.6
'88.5
86.1
91.9
87.6
C-28
-------
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C-29
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For further detail about these tests see the final test report.**
C.5.2 Stage 2 Emission Tests
Emission tests were performed at the tread end cementing and bead
cementing facilities of two plants. The test objectives were: (1) to
determine VOC evaporation rates from cemented components, (2) to
determine cement usage rates, and (3) to measure VOC mass emissions
using FID analysis and EPA Method 25.
C.5.2.1 Tread End Cementing. The tread end cementing operation
at Plant Number One was equipped with automatic spray arms, one for
each tread end, which are triggered by an electric eye system as the
tread passes on a conveyor. At Plant Number Two each tread passes a
cementing station on a conveyor belt where cement is manually applied
to both bevel-cut ends of the tread. An operator paints the cement on
the tread using a sponge which he dips into an open tray containing
the cement. After cementing, the treads are conveyed to "bopkers" who
place the treads onto a series of trays which resemble the pages of an
open book.
Each test was performed by taking a freshly cemented tread off
the conveyor just after cement application and placing it into a
ventilated enclosure as quickly as possible. The ventilated enclosure's
exhaust VOC concentration and air volume was measured so a VOC mass
emitted from the cemented tread could be calculated. Individual tests
were considered complete when the test enclosure VOC concentration had
decayed to 5 percent of its peak initial concentration. The.length of
time required for 90 and 95 percent reduction of the peak VOC "flash
off" concentration was also recorded at both plants. The length of
time required for 99 percent reduction of the peak VOC "flash off"
concentration was also recorded at Plant Number Two; however, due to
high background concentrations, too few results could be recorded for
any conclusions to be drawn. "Flash off" times are shown below:
**0ongleux, R.F., Volatile Organic Carbon Emission Testing at Armstrong
Rubber Company, Eastern Division, West Haven, Connecticut,;TRW,
Environmental Engineering Division. Durham, North Carolina. April 1979.
C-30
-------
Time
Plant No. 1
Plant No. 2
95
gg
Number of
Tests
34
28
47
33
6
Averaged
Flash-Off
Time (Seconds)
82.7
112.0
108
125
113
Range
(Seconds)
58 to 148
69 to 204
68 to 218
77 to 185
94 to 147
Standard
Deviation
(Seconds)
21.5
33.1
31
29
20
Tread end cementing VOC emission results are expressed as mass of
carbon emitted (in grams) per unit area (square centimeters) of tread
cemented. These results are divided into six categories; VOC(FID)go,
Flash-Off VOC(FID)go, VOC(FID)g5, Flash-Off VOC(FID)g5, VOC(FID)gg,
and Flash-Off VOC(FID)gg. VOC(FID) values represent emissions recorded
from initial instrument response (after encosure) to time tgQ, tg5, or
tgg. Flash-off VOC(FID) values represent emissions from VOC(FID) plus
an estimate of emissions from cement application to initial instrument
response after placement in the test enclosure. Values are shown
below:
VOC Name
Plant No. 1
VOC(FID)g0
Flash-off VOC(FID)g0
VOC(FID)g5
Flash-off VOC(FID)g5
Number
of
Tests
Averaged
VOC Mass
Per Area
(q/cm2)
Range
(q/cm2)
Standard
Deviation
(q/cm2)
33
33
26
26
0.0025
0,0027
0.0027
0.0030
0.0009 to 0.0043 0.0006
0.0010 to 0.0046 0.0007
0.0020 to 0.0048 0.0007
0.0022 to 0.0051 0.0008
C-31
-------
Number
of
Tests
47
47
33
33
6
6
Averaged
VOC Mass
Per Area
(g/cm2)
0.0033
0.0035
0.0033
0.0035
0.0019
0.0020
Range
(g/cm2!
0.0011 to 0.0078
0.0011 to 0.0081
0.0011 to 0.0088
0.0011 to 0.0091
0.0015 to 0.0024
0.0016 to 0.0016
Standard
Deviation
(g/cm2)
0.0019
0.0019
0.0019
0.0020
0.0003
0.0004
VOC Name
Plant No. 2
VOC(FID)go
Flash-off VOC(FID)go
VOC(FID)95
Flash-off VOC(FID)95
VOC(FID)99
Flash-off VOC(FID)gg
During each tread end cementing material balance test run at both
plants, the quantity of cement used over a selected time period and
the total surface area of treads cemented were measured. Each test
period coincided with the duration of a production run for treads of
common size and identification number. Material balance test results
are shown below:
Average
raent Usage
(g/cm2)
Range
(g/cm2)
Standard
Deviation
(g/cm2)
Plant No. 1 0.017 0.004 to 0.036 :0.002
Plant No. 2 0.016 Q.013 to 0.019 0.003
VOC mass emitted per mass of cement applied tests were'performed
using FID analysis and EPA Method 25 in order to measure the 'VOC mass
content of tread end cements used at Plant Number 1 and Plant Number 2.
Results are shown below:
VOC mass (g voc as carbon emitted per g '
of cement dried)
Tread End Cementing
Plant Number 1
Plant Number 2
0.95
0.84
C-32
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For more details of the test methodology, see the final test results.***
C.5.2.2 Bead Cementing. Tests were performed at the bead cementing
facility at one plant in order to quantify the VOC mass which was
emitted by a freshly cemented bead or group of beads, and to correlate
this mass with bead surface area upon which the cement was applied.
Tests were performed at the bead cementing facilities of the plant at
which Stage 1 emissions tests were conducted and at an additional
plant, in order to determine the quantity (mass) of cement used for
bead production over a selected period of time. This mass was compared
to the total bead surface area cemented during the same time period.
The bead cementing facility at Plant No. 1 was composed of two
cement-filled tanks which were covered when not in use. Groups of
about 50 beads were dipped into the tank at one time and placed on a
rack above and behind the tank to dry. Excess cement dripped onto a '
splash board and dried or was returned to the tank.
The bead cementing facility at Plant No. 2 was part of the bead
formation apparatus. An extruder fuses a rubber coating onto continuous
strands of wire. The wire/rubber combination exits the extruder as
one flat strip. This flat strip then passes over a wheel which is
partially submerged in a cement bath. Contact with the wheel causes
it to rotate, thereby coating one side of the passing wire/rubber
strip with cement.
Bead cementing VOC emission tests were only performed at Plant
No. 1, since there was no effective way to directly measure VOC
emissions from the application equipment used at Plant No. 2. At
plant No. 1, each test was performed by taking one or a pair of
***Ringquist, D.E., and R.T. Harrison. Volatile Organic Compound
Emission Measurements for Tread End Cementing and Bead Cementing
at a Tire Manufacturing Plant, Kelly-Springfield Tire Company,
Fayetteville, North Carolina. U.S. Environmental Protection
Agency. Research Triangle Park, North Carolina.
Rinquist, D.E., and R.T. Harrison. Volatile Organic Compound
Emission Measurements for Tread End Cementing and Bead Dipping
Operations at a Tire Manufacturing Plant. Armstrong Rubber
Company, West Haven, Connecticut. U.S. Environmental Protection
Agency. Research Triangle Park, North Carolina.
C-33
-------
uncetnented beads and manually dipping them into the cement, bath.
After dipping, beads were withdrawn from the cement bath and allowed
to drain for deliberately varied time periods of between 1.1 and
11.2 seconds. The degree to which the beads were allowcsd to drain
prior to being placed in the test enclosure directly affected the VOC
mass emitted from them during drying. The freshly cemented beads were
placed into the ventilated enclosure for drying in the same manner as
for the tread end cementing tests.
The length of time required for 90 and 95 percent reduction of
the peak VOC "flash-off" concentration was recorded. A summary of the
results is shown below:
Time
U90
b95
Number of
Tests
37
37
Averaged Flash-off
Time (Seconds)
118
161
Range
(Seconds)
83 to 149
111 to 213
Standard
Deviation
(Seconds)
15.1
24.3
Bead cementing VOC emission results are expressed as mass of
carbon emitted (in grams) per unit area (square centimeters) of tread
cemented. These results are divided into four categories; VOC(FID)go,
Flash-off VOC(FID)go, VOC(FID)g5', and Flash-off VOC (FID) gy VOC(FID)
values represent emissions recorded from initial instrument response
(after enclosure) to time tgQ, tg5,tg5, or tgg. Flash-off V0C(FID)
values represent emissions from VOC(FID) plus an estimate of cement
application to initial instrument response after placement in the test
enclosure. Values are shown below:
VOC Name Tests
VOC(FID)gQ 21
Flash-off VOC(FID)go 21
VOC(FID)g5 21
Flash-off VOC(FID)g5 21
Number Averaged VOC
of Mass/Area
2
(gm/cm )
0.0347
0.0370
0.0390
0.0410
Range
(gm/cm )
0.2970 to 0.0413
0.0318 to 0.0432
0.0327 to 0.0466
!
0.0348 to 0.0485
Standard
Deviation
2
(gm/cm )
0.003
0.003
0.004
0.004
C-34
-------
During each bead cementing material balance test run at the two
plants, both the quantity of cement used over a selected time period
and the total bead surface area cemented were measured. Tests were
run over a 4-day period at each plant. Material balance test results
are shown below:
Average
Cement Usage
(q/cm2)
Plant Number 1
Plant Numer 2
0.036
0.0034
Range
(q/cm2)
0.024 to 0.053
0.0014 to 0.0079
Standard
Deviation
(g/cm2)
0.009
0.0020
VOC mass emitted per mass of cement applied tests were performed
using FID analysis and EPA Method 25 to measure the VOC mass content
of bead cements used at Plants No. 1 and Plant No. 2. Results are
shown below:
VOC mass (g voc as carbon emitted per g
of cement dried)
Bead end cement
Plant Number 1
0.77
Plant Number 2
0.97
For more details of the test methodology, see the final test reports.***
***Ringquist, D.E., and R.T. Harrison. Volatile Organic Compound
Emission Measurements for Tread End Cementing and Bead Cementing
at a Tire Manufacturing Plant, Kelly-Springfield Tire Company,
Fayetteville, North Carolina. U.S. Environmental Protection
Agency. Research Triangle Park, North Carolina.
Rinquist, D.E., and R.T. Harrison. Volatile Organic Compound
Emission Measurements for Tread End Cementing and Bead Dipping
Operations at a Tire Manufacturing Plant. Armstrong Rubber
Company, West Hanover, Connecticut. U.S. Environmental Protection
Agency. Research Triangle Park, North Carolina.
C-35
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APPENDIX D
EMISSION MEASUREMENT AND CONTINUOUS MONITORING
D-1
-------
Appendix D - Emission Measurement
and Continuous Monitoring
D-l Emission Measurement Methods
During the standard support study for the rubber tire manufacturing
industry, the U.S Environmental Protection Agency conducted tests at two
tire manufacturing plants.
The purposes of this test program were: (1) to determine the
amount of cement used at various types of operations within these plants
(2) to compare cement usage rates for different methods of cement
application for the same operation, (3) to determine the VOC removal
efficiency of a carbon adsorption system, and (4) to determine the rate
at which VOC emissions evaporated when applied at the various types of
operations at these plants. The summary of the results of these tests is
described in Appendix C.
To determine the rate of cement usage at each operation of interest,
a material balance test procedure was used. The following is a general
description of the material balance test procedure; specific details :may
be obtained from the Emission Test Report Numbers 79-rRBM-l, 79-RBM-6 ;
and 79-RBM-7.
The material balance consisted of determining the weight of
cement used over a selected time period and the total surface area
of the product to which cement was applied during that same time
D-2
-------
period. The cement usage was determined by pre- and post-weighing the
container from which the cement was used. For three operations - two
bead cementing and one undertread cementing operation - it was necessary
to determine the initial level in the container; and at the end of the
test run, refill the container to the initial level and weigh the cement
additions. The total surface area of the product cemented was determined
as follows: (a) For undertread cementing, the nominal line speed was
multiplied by the elapsed time for a tread run and the nominal booking
width of the tread. This surface area cemented per tread run was then
added together for all tread runs tested, (b) For tread ends cementing,
the nominal tread width for each tread size was multiplied by the number
of treads of that size and the average tread cemented length. The
average tread cemented length was determined from measurements made on
several treads. For the manual cement application technique, this value
was determined for each tread size; for the spray application technique,
a single value was determined for all tread sizes. The surface area
cemented per tread run was then added together for all tread runs tested.
(c) For bead cementing, the cemented surface area was determined from
the nominal wire size and number of turns per bead (obtained from factory
specifications) and multiplied by the total quantity of beads cemented.
Cement usage results were reported per surface area cemented to allow
comparison of different methods of application. Data were also obtained
to relate emission results in terms of nominal weight of the finished
tire.
To determine the VOC removal efficiency of the carbon adsorption
system, simultaneous emission tests were performed on the inlet and
.exhaust of the carbon adsorption system using both EPA Method 25 and a
D-3
-------
flame ionization detector (FID) procedure to determine the VOC concentration
and following EPA Methods 1,2, and 4 to determine volumeteric flow
rates. Sampling runs were scheduled to correspond with the adsorption cycle
of one of the carbon beds of the two-bed system. Some runs were performed
on both beds. .„... ffr ,
,.., ;' <•'•'" . V ••"':'' i » • : -
The rate a't which VOC emissions evaporated when cement was applied
was determined for two types of tread end cementing (one type at each of
two plants) and for one type of bead cementing application technique-.
For tread end cementing, each test was performed by taking a freshly
cemented tread off the conveyor just after cement application and placing
it in a ventilated enclosure as quickly as possible. The ventilated
enclosure exhaust VOC concentration was monitored with a flame ionization
detector analyzer (FID), and the air volume was measured with a positive
displacement type meter so a mass of VOC could be calculated. Propane
was used to calibrate the FID. The VOC concentration was monitored and
recorded on a strip chart recorder. Records were maintained of the
elapsed time from cement application to tread enclosure, elapsed time to
90 and 95 percent reduction of the peak VOC concentration. It was
assumed that the solvent had evaporated 90 and 95 percent within the
time specified by the corresponding peak VOC concentration percent
reduction.
The evaporation rate for one method of bead cementing was similarly
determined; however, because of sampling equipment limitations, the
normal plant operation was simulated with a smaller number of beads.
This simulation appears to have increased the apparent cement usage per -
i
surface area cemented, however it is not certain what effect this would
D-4
-------
have on the evaporation rate. However, since the apparent cement usage
rate was increased, it would appear that the recorded time to evaporate
a specified percentage would be greater than normal plant operations.
D-5
-------
D.2 PERFORMANCE TEST METHODS
Performance test methods are needed to determine the VOC content of
coating and to determine the overall control efficiency of an add-on'
VOC control system. •
D.2.1 Volatile Organic Compound Content of the Coating.
The volatile organic content of the coating may be determined by
manufacturer's formulation or from Reference Method 24, "Determination
t
of Volatile Organic Content (as Mass) of Paint, Varnish, Lacquer, or
Related Products."
Reference Method 24 combines several ASTM standard methods which
determine the volatile matter content, density, and water content of
the coatings. From this information, the mass of volatile organic compounds
(VOC) per unit mass of coating is calculated. The estimated cost of
analysis per coating sample is $150. For aqueous coatings, there is an
additional $100 per sample for water content determination. Because
the testing equipment is standard laboratory apparatus, no additional
purchasing costs are expected.
D.2.2 Control Efficiency of VOC Add-on Control System . !
If the VOC content of the coatings used exceeds the level of the
recommended standard the efficiency of the add-on control system must
be determined. This would be used in conjunction with the mass of ;
solvent used to determine compliance with the recommended standard.
For those types of control systems which do not destroy or change the
nature of VOC emissions, the recommended procedure is a material balance
system where the mass of the VOC recovered by the control system is
determined and used in conjunction with the mass of VOC used over the
D-6
-------
same period of time. The length of time during which this material
balance is conducted will be dependent on the Agency's decision on whether
to require continual compliance or to demonstrate compliance during an
initial performance test. Examples of control systems where this
procedure would be applicable are refrigeration and carbon adsorption
systems.
For those control systems which alter the VOC emissions (such as
incinerators) a different approach is recommended. Ideally, the procedure
would directly measure all VOC emitted to the atmosphere. However, this
would require measurement of the VOC emissions which escape capture
prior to the incinerator (control system) by construction of a complex
ducting system and measurement of the VOC emissions exhausting to
atmosphere from the control system.
The recommended procedure requires simultaneous measurement of the
mass of VOC (as carbon) entering the control system and exiting the control
system to the atmosphere. Methods 1, 2, 3, and 4 are recommended to
determine the volumetric flow measurements. Reference Method 25
is recommended to determine the VOC (as carbon) concentration. These
results are then combined to give th.e mass of VOC (as carbon) entering
the control system and exiting the control system to the atmosphere. The
control efficiency of the control system is determined from these data.
The average of three runs should be adequate to characterize the control
efficiency of the control system. The length of each, run would be dependent
on the operational cycle of the control system employed. Minimum sampling
time would be in the range of 30 minutes and would be dependent on the
size of the evacuated tanks and the sampling rate employed to obtain a
D-7
-------
sample. The control agency should also consider the representativeness
of the solvents used during the test program. Although the actual testing
time using Reference Method 25 is only a minimum of 1 1/2 hours, the total
time required for one complete performance test is estimated at 8 hours, with
an estimated overall cost of $4,000.
D.3 MONITORING SYSTEMS AND DEVICES
The purpose of monitoring is to ensure that the emission control
system is being properly operated and maintained after the performance
test. One can either directly monitor the regulated pollutant, or instead,
monitor an operational parameter of the emission control system. The aim
is to select a relatively inexpensive and simple method which will indicate
that the facility is properly operated and maintained.
For carbon adsorption systems, the recommended monitoring test is
identical to the performance test. A solvent inventory record is
maintained, and the control efficiency is calculated every month. Excluding
reporting costs, this monitoring procedure should not incur any additional
costs for the affected facility because these process data are normally
recorded anyway and the liquid volume meters were already installed for
the earlier performance test.
For incinerators, two monitoring approaches were considered:
(1) directly monitoring the VOC content of the inlet, outlet, and fugitive
vents so that the monitoring test would be similar to the performance tests;
(2) monitoring the operating temperature of the incinerator as an
indicator of compliance. The first alternative would require at least
two continuous hydrocarbon monitors with recorders, (about $4,000 each),
and frequent calibration and maintenance. Instead, it is recommended
that a record be kept of the incinerator temperature. The temperature
D-8
-------
level for indication of compliance should be related to the average
temperature measured during the performance test. The averaging time
for the temperature for monitoring purposes should be related to the
time period for the performance test, in this case 1 1/2 hours. Since
a temperature monitor is usually included as a standard feature for
incinerators, it is expected that this monitoring requirement will not
incur additional costs for the plant. The cost of purchasing and
installing an accurate temperature measurement device and recorder
is estimated at $1,000.
D-9
-------
TECHNICAL REPORT DATA
(Please read Instructions on the reverse before completing)
1, REPORT NO.
EPA 450/3-81-008a
3. RECIPIENT'S ACCESSION NO.
4. TITLE AND SUBTITLE
Rubber Tire Manufacturing Industry - Background
Information for Proposed Standards
5. REPORT DATE
July 1981
6. PERFORMING ORGANIZATION CODE
7. AUTHOR(S)
8. PERFORMING ORGANIZATION REPORT NO
9. PERFORMING ORGANIZATION NAME AND ADDRESS
Office of Air Quality Planning and Standards
U.S. Environmental Protection Agency
Research Triangle Park, North Carolina 27711
10. PROGRAM ELEMENT NO.
11. CONTRACT/GR^ANT NO.
68-02-3060
12. SPONSORING AGENCY NAME AND ADDRESS
Director for Air Quality Planning and Standards
Office of Air, Noise, and Radiation
U.S. Environmental Protection Agency
Research Triangle Park, North Carolina 27711
13. TYPE OF REPORT AND PERIOD COVERED
14. SPONSORING AGENCY CODE
EPA/200/04
16. SUPPLEMENTARY NOTES
This report discusses the regulatory alternatives considered during
development of the proposed new source performance standards and the environmental
and economic impacts associated with each regulatory alternative.
16. ABSTRACT
Standards of Performance for the control of VOC emissions from the rubber tire manu-
facturing industry are being proposed under Section ill of the Clean1 Air Act. These
standards would apply to the following cement application operations: undertread
cementing, sidewall cementing, tread end cementing, bead cementing, inside green tire
spraying, and outside green tire spraying. This document contains background infor-
mation and environmental and economic impact assessments of the regulatory alternatives
considered in developing the proposed standards.
7.
KEY WORDS AND DOCUMENT ANALYSIS
DESCRIPTORS
b.lDENTIFIERS/OPEN ENDED TERMS
c. COSATI Field/Group
Air Pollution NSPS
Pollution Control
Standards of Performance
Rubber Tire Manufacture
Volatile Organic Compounds (VOC)
Air Pollution Control
13 b
8, DISTRIBUTION STATEMENT
Unlimited
19. SECURITY CLASS (This Report)
Unclassified
21. NO. OF PAGES
20. SECURITY CLASS (This page)
'Unclassified
22. PRICE
EPA Form 2220-1 (Rev. 4-77) PREVIOUS EDITION is OBSOLETE
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