BILL ANALYSIS Ó AB 2355 Page 1 Date of Hearing: April 28, 2014 ASSEMBLY COMMITTEE ON TRANSPORTATION Bonnie Lowenthal, Chair AB 2355 (Levine) - As Amended: April 1, 2014 SUBJECT : Local agencies: recycled materials SUMMARY : Encourages local agencies to adopt standards for recycled materials. Specifically, this bill : 1)Requires, by January 1, 2017, local agencies with jurisdiction over streets or highways to do either of the following: a) Adopt the California Department of Transportation (Caltrans) standards for recycled paving materials and for recycled base, sub-base, and previous backfill materials; or, b) Discuss why the standards are not being adopted at a regularly scheduled public hearing of the local agency's legislative or other governing body. 2)Authorizes local agencies to adopt standards that require even more recycled materials than the Caltrans standards. EXISTING LAW : 1)Requires state agencies to make maximum use of recycled products. 2)Requires Caltrans, upon consultation with the Department of Resources Recycling and Recovery, to review and update its bid standards related to the purchase of recycled paving materials and recycled base, sub-base, and previous backfill materials. 3)Defines "recycled materials" to include, but not be limited to, recycled asphalt, crushed concrete sub-base, foundry slag, ash, glass, glassy aggregates, and paving materials utilizing crumb rubber from automobile tires. 4)Requires that the standards provide for the use of recycled materials and prohibits them from reducing the quality of standards for highway and road construction. AB 2355 Page 2 5)Allows Caltrans to establish standards for the use of up to, and possibly in excess of, 40% reclaimed asphalt pavement for hot asphalt mixes on or before January 1, 2014, and requires Caltrans to report to the Legislature regarding the progress toward developing and implementing the standards on or before March 1, 2016. FISCAL EFFECT : This bill has been identified as imposing a state-mandated local program for which the state could be liable for costs to implement. COMMENTS : According to the California Integrated Waste Management Board, recycling asphalt pavement can save money for local governments and other purchasers, create additional business opportunities, save energy when recycling is done on site, conserve diminishing resources of aggregates and petroleum products, and help local governments meet the state's waste diversion goals. Furthermore, the use of recycled aggregates reduces demands for virgin aggregates and, therefore, minimizes the environmental impacts of aggregate mining. According to the Federal Highway Administration, "The same materials used to build the original highway system can be reused to repair, reconstruct, and maintain it. Where appropriate, recycling of aggregates and other highway construction materials makes sound economic, environmental, and engineering sense. The economic benefits from the reuse of nonrenewable highway materials can provide a great boost to the highway industry. Recycling highway construction materials can be a cost-saving measure, freeing funds for additional highway construction, rehabilitation, preservation, or maintenance." Caltrans has policies and procedures in place to promote the use of recycled material whenever and wherever it is cost-effective to do so. Caltrans' standards enable contractors to use up to 100% recycled aggregate in road base, up to 25% reclaimed asphalt pavement in asphalt pavement, and recycled aggregates in concrete, provided they meet performance standards. Since recycled materials generally are less costly, contractors have a strong incentive to use as much recycled material possible. Many California cities and counties already use Caltrans's recycled materials standards, although some more rural counties have not adopted the standards because recycled materials are AB 2355 Page 3 not readily available. In addition, despite the many benefits of using recycled materials, they are not always the best material for specific projects where material characteristics must be tightly controlled. By encouraging local agencies to adopt Caltrans recycled materials standards related to recycled materials and, where appropriate, allow them to opt not to adopt the standards, this bill provides flexibility for local agencies to decide upon standards that work best for them after a public hearing. The author's intent in introducing AB 2355 is to get more cities and counties using more recycled road materials in road construction. The author believes that if cities and counties have to formally consider adopting Caltrans recycled materials standards or not, the discussion itself will necessarily include the benefits of using recycled material, and thus, the bill will lead to a greater use of recycled materials. Supporters of this bill explain that when cities and counties use standards other than Caltrans general standards, their costs increase because they have to stop production and restart with an entirely different mix. Increasing the number of agencies that use identical standards will lower production costs for the supplier. Previous legislation: AB 812 (Ma), Chapter 230, Statutes of 2012, allows Caltrans to establish standards for the use of 40% reclaimed asphalt pavement (RAP) for hot asphalt mixes on or before January 1, 2014, and requires Caltrans to report to the Legislature regarding the progress toward developing and implementing the standards on or before March 1, 2016. AB 484 (Nava) of 2007 would have prohibited Caltrans and its contractors from dumping recyclable materials in landfills. That bill was vetoed by then Governor Schwarzenegger on the grounds that the bill was duplicative. AB 735 (Wiggins) of 2007 would have required Caltrans and its contractors to track information regarding the use of recycled and virgin materials used for sub-base, base, and lean concrete base. That bill was vetoed by then Governor Schwarzenegger based on cost implications. AB 2355 Page 4 AB 574 (Wolk), Chapter 693, Statutes 2005, defined recycled concrete and exempted Caltrans and DGS from purchasing recycled concrete unless it is specifically requested and approved by Caltrans or DGS. SB 403 (Machado) of 2001 would have authorized the use of recycled concrete, as defined, if the end user had been fully informed that the concrete was recycled concrete. That bill was vetoed by then Governor Davis on the grounds that the bill would have circumvented the process by which standards for construction and building materials are appropriately developed and that it would pose a substantial risk to public safety. Double-referred: The bill was heard in the Local Government Committee were it was approved 9-0. REGISTERED SUPPORT / OPPOSITION : Support Argent Materials California Asphalt Pavement Association California Chapter of American Fence Association California Construction and Industrial Materials Association California Construction Trucking Association California Fence Contractors' Association California Municipal Utilities Association California Resource Recovery Association Californians Against Waste Canyon Rock Co., Inc. Cemex Construction Materials Pacific LLC. Chandler's Sand and Gravel, LLC Flasher Barricade Association George Reed Inc. General Engineering Contractor Granite Construction Incorporated Granite Rock Company Hanson Lehigh Hanson Livingston's Concrete Service, Inc. Marin Builders Association Marin County Hazardous and Solid Waste Management Joint Powers Authority P.W. Gillibrand Co. Inc. Specialty Aggregates Specialty Minerals Inc. AB 2355 Page 5 Teichert Materials Union Roofing Contractors Association Vulcan Materials Opposition None on file Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093