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:  9/1/11 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 (CalRecycle) 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 CalRecycle's five-year plan, goals and 
                                                           CONTINUED





                                                                AB 525
                                                                Page 
          2

          priorities for waste tire programs.

           Senate Floor Amendments  of 9/1/11 establish two accounts 
          for the Architectural Paint Recovery Program which was 
          established by AB 1343 (Huffman), Chapter 420, Statutes of 
          2010.

           ANALYSIS  :    

          Existing law:

          1.  Tire Recycling  

             A.    Requires, pursuant to the California Tire 
                Recycling Act (CTRA), 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. 

             B.    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 







                                                                AB 525
                                                                Page 
          3

             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 greater 
             fiscal health.

          2.   Architectural Paint Recovery Program  

             A.    AB 1343 (Huffman) establishes an architectural 
                paint recovery program which requires manufacturers 
                to develop and implement a program to collect, 
                transport, and process postconsumer paint to reduce 
                the public costs and environmental impacts of the 
                management of postconsumer paint in California.  The 
                bill requires CalRecycle to administer the program, 
                approve and disapprove plans, and provide oversight 
                to ensure a level playing field among manufacturers.  


             B.    Due to a drafting error in AB 1343, the Paint 
                Recovery Account and Paint Recovery Penalty 
                Subaccount established in the Integrated Waste 
                Management Fund, as cited in the bill's digest, was 
                not included in the bill.  This bill establishes the 
                Architectural Paint Stewardship Account for fees 
                collected by CalRecycle for implementation of the 
                program.  This bill also establishes the 
                Architectural Paint Stewardship Penalty Subaccount 
                for penalties collected by CalRecycle associated with 
                the program.  Last, this bill provides necessary 
                collection and expenditure authority to CalRecycle 
                for administration of these accounts.

             C.    This bill simply establishes the necessary 
                financial accounts for fees and penalties associated 
                with the architectural paint recovery program.  This 
                bill does not make any substantive changes to the 
                architectural paint recovery program enacted by AB 
                1343.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No







                                                                AB 525
                                                                Page 
          4


          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.

           SUPPORT  :   (Verified  9/1/11)

          California Resource Recovery Association
          California State Association of Counties
          Californians Against Waste
          City of Lakewood
          CRM Company
          Regional Council of Rural Counties


           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  9/1/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****











                                                                AB 525
                                                                Page 
          5