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