BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                AB 513
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Jerry Hill, Chair
                              2013-2014 Regular Session
                                           
           BILL NO:    AB 513
           AUTHOR:     Frazier
           AMENDED:    June 24, 2013
           FISCAL:     Yes               HEARING DATE:     July 3, 2013
           URGENCY:    No                CONSULTANT:       Joanne Roy
            
           SUBJECT  :    TIRE RECYCLING PROGRAM:  RUBBERIZED ASPHALT  
                          CONCRETE (RAC)

            SUMMARY  :    
           
            Existing law  :

           1) Pursuant to the California Integrated Waste Management Act  
              of 1989, establishes a state policy goal that 75% of solid  
              waste generated be diverted from landfill disposal by 2020.

           2) Under the California Tire Recycling Act, requires the  
              California Department of Resources Recycling and Recovery  
              (CalRecycle) to manage and regulate waste tires within the  
              state, and specifically:

              a)    Requires a person who purchases a new tire to pay a  
                 California tire fee of $1.75 for each new tire purchased  
                 in the state, $1 of which is deposited into the Tire  
                 Recycling Fund for oversight, enforcement, and market  
                 development grants relating to waste tire management and  
                 recycling.  The remaining $0.75 is deposited into the  
                 Air Pollution Control Fund for programs and projects  
                 that mitigate or remediate air pollution caused by  
                 tires.

              b)    Reduces the fee on January 1, 2015 to $0.75 per tire,  
                 to be deposited into the Tire Recycling Fund.

              c)    Authorizes CalRecycle to award grants, loans,  
                 subsidies, and rebates and pay incentives for various  
                 purposes related to reducing landfill disposal of waste  
                 tires.









                                                                AB 513
                                                                 Page 2


              d)    Requires CalRecycle to adopt a Five-Year Plan, which  
                 must be updated every two years, that establishes goals  
                 and priorities for the waste tire program.

            This bill  establishes the Rubberized Asphalt Concrete (RAC)  
           Market Development Act, which would do the following:

           1) Requires CalRecycle to award grants to:  a) local agencies  
              to fund public works projects utilizing RAC; and, b) state  
              and local agencies, including regional park districts, to  
              fund disability access projects at parks and Class I  
              bikeways that utilize RAC.

           2) Requires CalRecycle to provide a grant that gives $2 for  
              every 12 pounds of crumb rubber used in a paving project.

           3) Appropriates $10M to CalRecycle each year from the  
              California Tire Recycling Management Fund for RAC grants  
              awarded pursuant to this bill.

           4) Sunsets the provisions of this bill on January 1, 2020.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, "In California,  
              waste tires continue to be landfilled, burned, and exported  
              at alarmingly high rates.  About 13.8 million out of 40.8  
              million tires generated are landfilled or burned each year.  
               An additional 9.6 million are exported overseas, where  
              they are burned in kilns.  

           If not managed correctly, these waste tires are a potential  
              threat to both California's environment and public health  
              and safety.  Waste tires that are illegally stockpiled are  
              a fire risk and an appealing habitat for rodents and  
              insects.

           The tire fire in Tracy, California contained about 7 million  
              illegally stockpiled tires that burned for over two years.   
              Tire fires emit carbon monoxide, sulfur oxides, and  
              nitrogen oxides that have severe and costly impacts on air,  
              water, and soil and can cause many long lasting health  









                                                                AB 513
                                                                 Page 3

              problems including cancer, depression, and nervous system  
              ailments.  The cleanup for tire fires can cost millions and  
              put many communities, firefighters, and cleanup teams at  
              risk.

           Furthermore, waste tires provide an ideal mosquito breeding  
              ground, since tires are insulated, they can hold water, and  
              provide shelter.  Mosquitoes pose a major health risk and  
              can transfer deadly diseases like Malaria, Dengue Fever,  
              West Nile Virus, Yellow Fever, and Arboviral Encephalitis.

           When recycled, however, these tires provide significant  
              environmental benefits, and result in job creation through  
              processing and remanufacturing."

            2) Background:  RAC  .  According to CalRecycle, 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 materials.  This mix is then placed  
              and compacted into a road surface. There are two primary  
              types of binders for RAC, asphalt-rubber and terminal  
              blend.

           Asphalt-rubber is defined by American Society for Testing and  
              Materials (ASTM) Standard D6114 as 'a blend of paving grade  
              asphalt cement, ground recycled tire (that is, vulcanized)  
              rubber and other additives, as needed, for use as binder in  
              pavement construction.  The rubber shall be blended and  
              interacted in the hot asphalt cement sufficiently to cause  
              swelling of the rubber particles prior to use.'  The  
              asphalt-rubber binder is field blended (at the hot mix  
              plant) and requires specialized mobile mixing equipment to  
              produce.  Typical crumb rubber modifier (CRM) content for  
              asphalt-rubber ranges from 18-22%.  Asphalt-rubber has been  
              successfully used in California for over 30 years.

           Terminal blends are binder materials that use finely ground  
              (less than 30 mesh) crumb rubber modifier and are typically  
              blended at the asphalt refinery.  Historically, terminal  
              blend binders contained 10 percent or less crumb rubber  
              modifier.  However, in recent years the crumb rubber  
              modifier content has been increased to 15-25% in some  
              projects.  Terminal blend has 20 years of successful use in  









                                                                AB 513
                                                                 Page 4

              California."

            3) CalRecycle Tire Management:  Tire recycling, cleanup, and  
              enforcement grants  .  According to CalRecycle, the  
              department's "grant programs are designed to encourage  
              activities that promote reducing the number of waste tires  
              going to landfills for disposal and eliminating the  
              stockpiling of waste tires.  Activities include tire pile  
              cleanup and enforcement, market development, and  
              demonstration projects.  Revenue for the grants is  
              generated from a tire fee on each new tire sold in  
              California.  

           4) Tire Recycling Fund  .  The unused balance in the fund is  
              projected to be $32 million in Fiscal Year 2013-14.   
              CalRecycle, per its five-year plan, currently allocates $3  
              million annually for RAC grants to local governments from  
              the fund.  Other programs that utilize monies from this  
              fund include:  Tire-Derived Aggregate Grant Program,  
              Tire-Derived Product Grant Program, and Tire Incentive  
              Grant Program.

            5) Flexibility in giving grants  .  This bill requires  
              CalRecycle to award grants at a specific rate of $2 for  
              every 12 pounds of crumb rubber used in an eligible  
              project.  However, it would be prudent to provide  
              CalRecycle flexibility in adjusting this rate in order to  
              maximize grant funds.  An amendment is needed to authorize  
              CalRecycle to adjust this rate if the department finds that  
              $2/12 pounds of crumb rubber is insufficient to adequately  
              fund RAC projects.

            6) Fiscal year, not calendar year  .  AB 513 commences  
              appropriation of $10M to the fund beginning with the 2014  
              calendar year.  In addition, AB 513 sunsets the provisions  
              of this bill on January 1, 2020.  However, CalRecycle  
              programs operate on fiscal years, not calendar years and it  
              would make more sense to sunset the program at the end of  
              the fiscal year.  Amendments are needed to begin the  
              appropriation on July 1, 2014 and change the sunset date  
              from January 1, 2020, to June 30, 2019.
           










                                                                AB 513
                                                                 Page 5

            SOURCE  :        Californians Against Waste  

           SUPPORT  :       California Assoc. of Recycling Market  
                          Development Zones
           California Park & Recreation Society
           California State Association of Counties
           Council of San Benito County Governments
           East Bay Regional Park District
           Natural Resources Defense Council
           Mojave Desert and Mountain Recycling Authority
            

           OPPOSITION  :    None on file