BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair AB 525 (Gordon) Hearing Date: 07/11/2011 Amended: 04/25/2011 Consultant: Brendan McCarthy Policy Vote: EQ 4-1 _________________________________________________________________ ____ BILL SUMMARY: AB 525 reestablishes a program to provide funding to local governments for construction projects that use recycled tires. The bill specifies that the Department of Resources Recovery and Recycling shall provide grants for these purposes equal to at least 16 percent of total grants provided for market development under the Waste Tire Program. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund Required grants About $2,100 per year Special * * California Tire Recycling Management Fund. _________________________________________________________________ ____ STAFF COMMENTS: This bill meets the criteria for referral to the Suspense File. Under current law, individuals purchasing tires in California pay a fee on those purchases. Revenues from those fees are used to support programs to encourage the use of reclaimed and recycled tires, reduce the dumping of used tires in landfills, and reduce illegal dumping of tires. The Department of Resources Recovery and Recycling operates a Waste Tire program to support these goals. Under prior law, the Department was required to set aside 16 percent of grant funds used to support market development for grants to local governments to support the use of rubberized asphalt concrete, which uses recycled tires. That provision of law sunset in 2010. AB 525 requires the Department to award grants to local governments to support the use of rubberized asphalt concrete and tire derived aggregate. The bill requires the Department to > (>) Page 1 provide no less than 16 percent for market development grants for these purposes. The bill also requires the Department to publicize certain information about projects that use these products. The provisions of the bill will sunset on January 1, 2016. Based on projected program expenditures, this bill will require at least $2.1 million per year to be provided through grants for the purposes of the bill. Any administrative costs to implement the bill should be absorbable within existing resources. By setting a minimum amount of funding for certain types of grants, this bill will potentially reduce available funds for other uses.