BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 513
                                                                  Page  1

          Date of Hearing:   May 8, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 513 (Frazier) - As Amended:  April 23, 2013 

          Policy Committee:                              Natural  
          ResourcesVote:9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill establishes the Rubberized Asphalt Concrete (RAC)  
          Market Development Act at CalRecyle to provide grants for local  
          and state public works projects.  Specifically, this bill: 

          1)Requires CalRecyle to allocate and annually expend $10 million  
            from the Tire Recycling Fund to award grants to cities,  
            counties and other local governmental agencies for public  
            works projects that utilize RAC.  Also eligible are state and  
            local parks with Americans Disabilities Act (ADA) compliance  
            and bicycle trail maintenance projects.

          2)Requires grant payments of $2 per 12 pounds of crumb rubber  
            used.

          3)Requires CalRecycle to randomly select from all eligible  
            applicants if grant applications exceed the allocated funding.

           FISCAL EFFECT  

          No additional costs to CalRecyle.  However, this bill redirects  
          existing Tire Recycling Act funds to the RAC grant program.  The  
          unused balance in the Tire Recycling Fund is projected to be $32  
          million in the 2013-14 Fiscal Year.

          CalRecyle, per its five-year plan, currently allocates $3  
          million annually for RAC grants to local governments from the  
          Tire Recycling Act.   This bill redirects resources and staff  
          from existing programs, such as the Tire-Derived Aggregate Grant  
          Program, Tire-Derived Product Grant Program, and Tire Incentive  
          Grant Program to the RAC grant program.  








                                                                  AB 513
                                                                  Page  2


           COMMENTS  
           
          1)Purpose.   This bill is intended to increase the use of RAC  
            throughout California by expanding eligibility for  
            CalRecycle's existing program and ensuring the grants will pay  
            $2 per 12 pounds of crumb rubber used.  This is approximately  
            the weight of one passenger tire.

            Additionally, this bill addresses the budget challenges facing  
            state and local agencies to maintain bicycle trails and fund  
            ADA compliance projects.

           2)Background.     RAC is a road paving material made by blending  
            ground-up recycled tires with asphalt to produce a binder,  
            which is then mixed with conventional aggregate materals.   
            While there are a number of recycling technologies for waste  
            tires, RAC continues to be among the highest and best uses.  

             RAC has a number of benefits, both environmental and economic.  
             RAC does not require as thick an application as conventional  
            asphalt and has a longer life-span due to its resistance to  
            cutting and cracking.  Some studies suggest that RAC lasts up  
            to 50% longer.  RAC also provides significant noise reduction  
            over conventional asphalt and concrete roads.  Moreover, RAC  
            uses a lot of tires.  A two-inch thick resurfacing project  
            uses about 2,000 waste tires per lane mile.  
             

          Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081