BILL ANALYSIS Ó
AB 525
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 525 (Gordon)
As Amended September 2, 2011
Majority vote
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|ASSEMBLY: |78-0 |(May 31, 2011) |SENATE: |22-12|(September 8, |
| | | | | |2011) |
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Original Committee Reference: NAT. RES.
SUMMARY : Allows the Department of Resources Recycling and
Recovery (DRRR) to award grants from the California Tire
Recycling Management Fund to cities, counties, and other local
government agencies for the funding of public works projects
that use waste tires.
The Senate amendments :
1)Remove language that required, subject to the number of
applicants and available funds, that not less than 16% of the
amount appropriated be used for market development and new
technology activities.
2)Establish the Architectural Paint Stewardship Account and the
Architectural Paint Stewardship Penalty Subaccount in the
Integrated Waste Management Fund.
EXISTING LAW :
1)Requires, pursuant to the California Tire Recycling Act (Act),
DRRR 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)Requires DRRR to adopt a five-year plan, which must be updated
every two years, to establish goals and priorities for the
tire recycling program.
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3)Establishes the California Tire Recycling Management Fund
(Fund), which funds the tire recycling program. The Fund is
supported by the California tire fee, which is a $1.75 per
tire charge imposed on a person who purchases a new tire.
AS PASSED BY THE ASSEMBLY , this bill:
1)Allowed DRRR, as part of the tire recycling program, to award
grants to cities, counties, and other local government
agencies for the funding of public works projects that use
waste tires. The provisions in the Act regarding local
government public works projects will sunset on June 30, 2015.
2)Required DRRR, as part of the five year plan and until June
30, 2015, to describe the grant program's effectiveness to
encourage the use of waste tires, including, but not limited
to, rubberized asphalt concrete technology, in public works
projects.
FISCAL EFFECT : 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 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.
COMMENTS : According to DRRR, since passage of the Act in 1989,
California has dramatically increased the number of waste tires
diverted from landfill disposal and sent to beneficial end uses.
DRRR estimates that in 2009, Californians generated 41.3
million waste tires. The beneficial use of 30 million of these
tires represents a recycling rate of 72.7% in 2009.
Extending June 30, 2010, sunset date : The bill revives a
similar statute that was added by SB 1346 (Kuehl) in 2002,
extended by SB 369 (Simitian) in 2006, and sunset on June 30,
2010. Reviving this statute is important because recycled tires
have a myriad of uses for public works projects. For example,
tires can be used for road paving, street resurfacing,
sidewalks, weed abatement, vibration-damping material in
light-rail systems, overpass fill, levee slurry walls, retaining
wall fill, roadway base fill, and bridge abutment fill. Use of
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recycled tires for public works projects can also lead to
significant cost savings and added benefits. In particular for
road paving, use of recycled tires can provide improvements of
increased skid resistance, reduced road noise, and improved
riding qualities.
Under existing law, DRRR can award grants to public entities
involved in activities and applications that result in reduced
landfill disposal of used whole tires and reduced illegal
disposal or stockpiling of used whole tires. Without the bill,
DRRR can use this authority to award grants to local government
agencies for the funding of public works projects. The purpose
of the bill is to specifically authorize the funding of public
works projects and to ensure that there is at least a minimum
level of funding.
Architectural Paint : The provision establishing the
Architectural Paint Account and Penalty Subaccount was included
at the request of DRRR as a cleanup to AB 1343 (Huffman),
Chapter 420, Statutes of 2010,
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092
FN: 0002686