BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 525| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 525 Author: Gordon (D) Amended: 8/30/11 in Senate Vote: 21 SENATE ENVIRONMENTAL QUALITY COMMITTEE : 4-1, 6/20/11 AYES: Simitian, Hancock, Kehoe, Lowenthal NOES: Strickland NO VOTE RECORDED: Blakeslee, Pavley SENATE APPROPRIATIONS COMMITTEE : 6-3, 8/25/11 AYES: Kehoe, Alquist, Lieu, Pavley, Price, Steinberg NOES: Walters, Emmerson, Runner ASSEMBLY FLOOR : 78-0, 5/31/11 - See last page for vote SUBJECT : Solid waste: tire recycling SOURCE : Author DIGEST : This bill requires the Department of Resources Recycling and Recovery to provide outreach to local agencies regarding a program it may establish under existing law to award grants to cities, counties, and other local government agencies for the funding of public works projects that use waste tires. This bill makes the public works waste tire grant program inoperative on June 30, 2015, and repeals the provision authorizing this program on January 1, 2016. This bill also makes conforming changes with regard to the department's five-year plan, goals and CONTINUED AB 525 Page 2 priorities for waste tire programs. NOTE: This bill is to be amended with new language. ANALYSIS : Existing law: 1. Requires, pursuant to the California Tire Recycling Act (CTRA), Department of Resources Recycling and Recovery (CalRecycle) to administer a tire recycling program that promotes and develops alternatives to the landfill disposal of used whole tires. The tire recycling program may include, among other things, the awarding of grants, subsidies, and loans to businesses or other enterprises, and public entities, involved in activities that result in reduced landfill disposal or stockpiling of used whole tires. Activities eligible for funding may include the manufacturing of products made from used tires such as rubberized asphalt and crash barriers. 2. The tire recycling program under the CTRA is funded by the Tire Recycling Management Fund (TRMF). The TRMF is supported by the California tire fee, which is a $1.75 per tire charge imposed on a person who purchases a new tire. The author's office contends the set aside for local public works projects that use waste tires, which had been authorized by statute that has since expired, needs to be continued. Public works projects, specifically roadway projects, the author notes, divert waste tires from landfill. And, the author's office claims, roadways made with waste tire products are superior to other road surface materials in several ways and, therefore, are the more cost-effective option for local governments. The author's office contends, however, that local governments, most of who are financially strapped, frequently base their capital decisions on up-front expense, not long-term cost-effectiveness. The author's office argues for continuing guaranteed funding for such local public works projects so their superiority may be demonstrated to local governments and others who will be making decisions about capital projects in what, hopefully, will be times of CONTINUED AB 525 Page 3 greater fiscal health. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee, 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 this bill. Any administrative costs to implement this bill should be absorbable within existing resources. ASSEMBLY FLOOR : 78-0, 5/31/11 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Campos, Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao, Wagner, Wieckowski, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Charles Calderon, Gorell DLW:kc 8/30/11 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END **** CONTINUED