BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 1239 (Gordon) - Tire recycling: California tire regulatory
fee and waste tire program
-----------------------------------------------------------------
| |
| |
| |
-----------------------------------------------------------------
|--------------------------------+--------------------------------|
| | |
|Version: August 1, 2016 |Policy Vote: E.Q. 5 - 1 |
| | |
|--------------------------------+--------------------------------|
| | |
|Urgency: No |Mandate: No |
| | |
|--------------------------------+--------------------------------|
| | |
|Hearing Date: August 8, 2016 |Consultant: Narisha Bonakdar |
| | |
-----------------------------------------------------------------
This bill meets the criteria for referral to the Suspense File.
Bill
Summary: AB 1239 establishes the Tire Recycling Incentive
Program Act and the policy goal of source reducing or recycling
75 percent of solid waste tires in the state by 2020.
Fiscal
Impact:
Approximately $880,000 annually (California Tire Management
Fund) to California Department of Resources Recycling and
Recovery (CalRecycle) for the first three years, some of which
would be offset by fees.
After year three, ongoing costs of approximately $642,000
annually (California Tire Management Fund) to CalRecycle, some
of which would be offset by fees.
Background: Diversion of waste tires in California. According to
CalRecycle, approximately 40 million waste tires are generated
in California every year. CalRecycle's diversion goal is 90
AB 1239 (Gordon) Page 1 of
?
percent, 87.3 percent of which California has achieved according
to the California Waste Tire Market Report: 2013. CalRecycle's
"affiliated goals" to achieve its 90 percent diversion rate for
tires include the following: (1) develop a 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.
Waste tire management. CalRecycle's tire management program is
divided into two functional areas: (1) permitting and
enforcement activities and (2) tire recycling and marketing
development activities. The tire permitting and enforcement
activities ensure that reusable and waste tires are stored and
transported safely. CalRecycle coordinates with local and
regional agencies to mitigate unsafe situations at existing
abandoned tire pile sites and to provide technical assistance.
Tire recycling activities include offering financial assistance,
engaging in recycling and marketing research, and technical
assistance.
Tire incentive program. According to CalRecycle's report,
"Evaluation of Tire Incentive and Extended Producer
Responsibility Policies" (June 2, 2012), incentives offer a
range of potential benefits, including increased diversion,
strengthened in-state infrastructure and some relief against
export-induced disruptions. CalRecycle is in the process of
adjusting its waste tire market development programs, in
accordance with its Five-Year Plan, to more effectively focus
its resources on diversifying and expanding markets. CalRecycle
has also indicated a long-term vision of increasing tire
recycling, rather than just diversion. Specifically, CalRecycle
has begun crafting a new incentive program that would
differentiate incentive payments, with higher payments going to
"preferred end users" that recycle waste tires into new products
such as rubberized asphalt concrete, moderate payments for end
uses such as tire-derived aggregate, and lower payments for
less-preferred non-disposal management such as energy
generation.
Waste/used tire manifest program. According to CalRecycle, PRC
AB 1239 (Gordon) Page 2 of
?
§42961.5 requires CalRecycle to develop a "California Uniform
Waste and Used Tire Manifest." The intent is to "close the loop"
on accountability by requiring copies of each manifest or
comprehensive trip log to be submitted to CalRecycle for
monitoring tire movement within the state. The law also allows
for data to be submitted electronically to CalRecycle.
Proposed Law: This bill:
1) Establishes the Tire Recycling Incentive Program Act and a
policy goal of source reducing or recycling 75 percent of
solid waste tires in the state by 2020.
2) Requires CalRecycle to establish a tire recycling incentive
program and develop a plan for the program to include a
tiered incentive payment structure.
3) Requires CalRecycle to annually allocate at least $20 million
for the tire recycling incentive program between July 1, 2018
and January 1, 2024, and authorizes CalRecycle to allocate
funding for the program based on available funding
thereafter.
4) Authorizes CalRecycle to establish a fee in an amount
sufficient cover reasonable costs incurred for regulatory
activities, not to exceed $1 per new tire sold.
5) Requires CalRecycle to adopt regulations to implement the
initial fee and authorizes CalRecycle to adjust the fee based
on specified factors.
6) Requires a waste tire generator to pay a California tire
regulatory fee and remit the fee to the state for deposit in
the California Tire Recycling Management Fund.
7) Requires CalRecycle to identify specific programs that the
California tire regulatory fee would fund.
8) Makes an entity eligible to receive an incentive payment upon
demonstrating to CalRecycle that the entity purchased
California-generated waste tire material processed in the
state and sold an incentive-eligible tire product
incorporating that material to an end user.
AB 1239 (Gordon) Page 3 of
?
9) Specifies that an "eligible entity" to receive incentive
payments includes, but is not limited to, a manufacturer that
produces a product using California generated waste tires for
purchase by an end user.
10)Includes examples of "incentive-eligible tire products" such
as pavement-related products (e.g. rubberized asphalt),
walkways and pathways, poured in place and tile playground
mats, and landscape nuggets and mulch.
11)Excludes specified products from "incentive-eligible tire
products."
12)Requires a waste and used tire hauler, on and after January
1, 2018, to submit an electronic manifest, instead of a paper
manifest, to CalRecycle within seven days of the date of the
pickup or delivery for each load of waste or used tires
transported.
13)Repeals the Rubberized Pavement Market Development Act.
14)If the 75 percent policy goal is met for three consecutive
years, requires CalRecycle to review existing tire recycling
programs and make recommendations, as specified.
15)Sunsets the provisions of this bill on January 1, 2024.
Staff
Comments:
Purpose of Bill. According to the author, "Californians
generate 42 million passenger tires every single year, and the
management of these tires has proven difficult - illegally
dumped tires pose a significant cost to local governments and
the state, large abandoned tire piles have resulted in
weeks-long fires, and the overall recycling rate has remained
largely stagnant. In order to drastically increase tire
recycling, in addition to the intrinsic environmental and
economic benefits of recovering this material, CalRecycle
recently recommended that the Legislature 'implement an expanded
incentive program that provides payments for desired end-uses of
tires.' AB 1239 will help expand the state's tire recycling
infrastructure to reduce greenhouse gases, create jobs, and cut
AB 1239 (Gordon) Page 4 of
?
the statewide and local costs associated with tire pile
cleanup."
Impact on CalRecycle. According to CalRecycle, this bill will
result in the following efficiencies:
Market Development: An incentive payment program as prescribed
in the bill can more efficiently move existing resources toward
market development activities to increase recycling. Whereas
grants are cycle-based and may experience reversions (unspent
money coming back to the department), incentive payments are for
proven market transactions that demonstrate use of recycled
tires.
Manifest/regulatory duties: Additionally, the bill will
automate the existing paper manifest system by requiring
electronic manifesting. These changes to the manifest program
will save the department approximately $220,000 annually. This
will improve the timeliness and accuracy of waste tire manifest
data and allow for more timely alerts to identify potential
violations and public safety hazards.
-- END --