BILL ANALYSIS Ó
AB 1239
Page 1
Date of Hearing: May 27, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
1239 (Gordon) - As Amended May 5, 2015
-----------------------------------------------------------------
|Policy |Natural Resources |Vote:|6 - 3 |
|Committee: | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| | | | |
| | | | |
| | | | |
-----------------------------------------------------------------
Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill establishes the Tire Recycling Incentive Program
(TRIP) to provide incentives for tire recycling activities in
California. Requires CalRecycle to establish a new tire
regulatory fee to cover its regulatory costs associated with
AB 1239
Page 2
waste and used tire management. Specifically, this bill:
1)Requires retail sellers of new tires to pay a new regulatory
fee established by CalRecycle in an amount sufficient to
generate revenues equivalent to reasonable regulatory costs
but not to exceed $1.25 per new tire.
2)Requires CalRecycle to establish a tire recycling incentive
program for specified California manufacturers and consumers
of recycled tire products.
3)Requires CalRecycle to award $2 for every 12 pounds of crumb
rubber. Allows CalRecycle to adjust the amount to further the
purposes of the program.
4)Requires CalReycle to transfer $30 million annually from the
existing Waste Tire Program to TRIP unless or until the
existing tire regulatory fee is less than $1.75
FISCAL EFFECT:
1)Increased annual revenue of approximately $38.5 million
resulting from the fee (special fund).
This figure is based on a fee of $1.25 on 30.8 million new
tires sold annually.
2)Annual transfers of $30 million from the Waste Tire Program to
TRIP (special fund) while the existing fee remains no less
than $1.75.
AB 1239
Page 3
3)Increased CalEPA administrative costs of approximately $1
million annually (special fund).
COMMENTS:
1)Purpose. According to the author, this bill will help expand
the state's tire recycling infrastructure to reduce greenhouse
gases, create jobs, and cut the statewide and local costs
associated with tire pile cleanup. This bill establishes a
program to provide incentive payments for recycled tire
end-users, including local governments and manufacturers of
products made with recycled materials. This bill provides
CalRecycle with the authority to increase the state tire fee
to cover the costs of regulating waste tires (in an amount not
to exceed $1.25/tire.)
2)Background. According to CalRecycle, approximately 40 million
waste tires are generated in California every year.
CalRecycle's diversion goal is 90%. According to the
California Waste Tire Market Report: 2013, California has
achieved an overall diversion rate of 87.3%.
In order to achieve its 90% diversion rate for tires,
CalRecycle established the following goals: 1) develop
long-term, sustainable, and diversified market demand for
California tire-derived products; 2) ensure the protection of
public health, safety, and the environment while developing a
safe and high-quality supply infrastructure to meet that
demand; and 3) foster information flow and technology and
product development so that environmental protection and
diversion goals are achieved with supply and demand in
balance.
CalRecycle is in the process of adjusting its waste tire
market development programs, in accordance with its Five Year
Plan, to more effectively focus CalRecycle resources on
AB 1239
Page 4
diversifying and expanding markets.
This bill is consistent with the direction and recommendations
of CalRecycle's 2015 Five Year Plan.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081