BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 525|
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                                 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 
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          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 

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          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

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