BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1239|
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THIRD READING
Bill No: AB 1239
Author: Gordon (D) and Atkins (D)
Amended: 8/16/16 in Senate
Vote: 21
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-1, 6/29/16
AYES: Wieckowski, Hill, Jackson, Leno, Pavley
NOES: Gaines
NO VOTE RECORDED: Bates
SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/11/16
AYES: Lara, Beall, Hill, McGuire, Mendoza
NOES: Bates, Nielsen
ASSEMBLY FLOOR: 50-29, 6/2/15 - See last page for vote
SUBJECT: Tire recycling: California tire regulatory fee and
waste tire program
SOURCE: Author
DIGEST: This bill establishes the Tire Recycling Incentive
Program Act and the policy goal of source reducing or recycling
75% of solid waste tires in the state by 2020.
ANALYSIS:
Existing law:
1) Establishes, pursuant to the California Integrated Waste
Management Act of 1989, a state policy goal that 75% of solid
waste generated be diverted from landfill disposal by 2020.
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(Public Resources Code (PRC) §40000 et seq.)
2) Establishes the California Tire Recycling Act (Act) (PRC
§42860 et seq.), which:
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. One dollar 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, 2024 to $0.75 per tire,
to be deposited into the Tire Recycling Fund.
c) Authorizes the Department of Resources Recycling and
Recovery (CalRecycle) to award grants, loans, subsidies,
and rebates and pay incentives for various purposes
related to reducing landfill disposal of waste tires.
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.
e) Defines "waste tire generator" as any person whose act
or process produces any amount of waste or used tires, or
causes a waste or used tire hauler to transport those
waste or used tires, or otherwise causes waste or used
tires to become subject to regulation.
This bill:
1) Establishes the Tire Recycling Incentive Program Act and a
policy goal of source reducing or recycling 75% 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 in order to maximize the
amount of California generated waste tire material recycled.
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3) Establishes the "California tire regulatory fee".
a) Authorizes CalRecycle to establish the fee in an
amount, not to exceed $1 per new tire sold, that is
sufficient to generate revenue equivalent to the
reasonable costs incurred by the CalRecycle related for
regulatory activities regarding waste tires.
b) Requires CalRecycle to adopt regulations to implement
the initial fee and authorizes CalRecycle to adjust the
fee based on specified factors.
c) 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.
d) Requires CalRecycle to identify specific programs that
the California tire regulatory fee would fund.
4) 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.
5) 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.
6) 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.
7) Excludes specified products from "incentive-eligible tire
products."
8) 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
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pickup or delivery for each load of waste or used tires
transported.
9) Repeals the Rubberized Pavement Market Development Act.
10)If the 75% policy goal is met for three consecutive years,
requires CalRecycle to review existing tire recycling
programs and make recommendations, as specified.
11)Sunsets the provisions of this bill on January 1, 2024.
Background
1) 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%; according to the California Waste Tire Market
Report: 2013, California has achieved an overall diversion
rate of 87.3%. Of the 40.8 million tires generated: 12.3
million were exported (for fuel or reuse); 7.9 million were
recycled as ground rubber; 0.5 million were used in civil
engineering projects; 6.6 million were reused (either sold as
used tires or retreaded); 8.2 million were used as
tire-derived fuel in cement kilns or at co-generation
facilities; 1.2 million were used as cover at landfills; and,
5.3 million were disposed in landfills.
CalRecycle's "affiliated goals" to achieve its 90% diversion
rate for tires are:
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.
2) Waste tire management. CalRecycle's tire management program
is divided into two functional areas: 1) permitting and
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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 provide technical
assistance. Tire recycling activities include offering
financial assistance, engaging in recycling and marketing
research, and technical assistance.
Waste tire management activities that CalRecycle has developed
and funded to stimulate diversion of reusable and waste tires
from landfill disposal include:
Business development assistance to California
enterprises.
Research to expand the use and recyclability of tires.
Assistance to local governments to manage waste tires.
Regulation of waste tire facilities and waste tire
haulers, to help ensure the protection of public health,
safety, and the environment.
Public education.
Currently, the recycling markets in California do not consume
all of the waste tires generated. Waste tires need to be
stored safely until sufficient markets are in place to
increase the consumption of waste tires. CalRecycle provides
the proper waste tire management framework by enforcing waste
tire facility and waste tire hauler regulations. As the use
of tires as feedstock material in commercial applications
increases, illegal stockpiling and the need for permitted
storage will decrease or cease to exist.
1) 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
CalRecycle resources on diversifying and expanding markets.
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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.
2) Waste/used tire manifest program. According to CalRecycle,
PRC §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.
The Waste Tire Manifest System is a tracking mechanism used by
CalRecycle to monitor the generation, transportation, and
ultimate disposal of used/waste tires in California. The
goal of the system is to help eliminate the illegal storage
or disposal of used/waste tires by allowing CalRecycle to
focus enforcement efforts on worst offenders. The waste tire
manifest system program applies to all persons, businesses,
nonprofits, and government agencies that generate, transport,
or receive waste or used tires. CalRecycle and tire
enforcement agency staff members inspect and investigate
waste and used tire generators, end-use facilities, and
haulers to ensure that manifests are properly completed,
handled, and submitted to CalRecycle.
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
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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
the statewide and local costs associated with tire pile
cleanup."
Related/Prior Legislation
SB 47 (Hill, 2015), as heard in Senate Environmental Quality
Committee, would have required the Office of Environmental
Health Hazard Assessment to conduct a study by July 1, 2017,
analyzing potential adverse health impacts from synthetic turf
made from waste tires and would have prohibited the awarding of
grants or other funding assistance for the manufacturing or
installation of synthetic turf made from waste tires. SB 47 was
returned to Secretary of Senate pursuant to Joint Rule 62(a).
AB 2658 (Bocanegra, 2014), would have clarified that "parklets"
and "greenways" were eligible for grants for public works
projects that use tire-derived products and would have required
CalRecycle, when awarding grants for parklets and greenways, to
give priority to projects located in disadvantaged communities.
Senate Transportation & Housing Committee (failed 4-3).
AB 513 (Frazier, Chapter 499, Statutes of 2013), established the
Rubberized Asphalt Concrete Market Development Act, which
codified the CalRecycle RAC grant program for local public works
projects.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee:
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Approximately $880,000 annually (California Tire Management
Fund) to 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.
SUPPORT: (Verified8/15/16)
Alameda Waste Management Authority and Recycling Board
(StopWaste)
BAS Recycling
California Association of Local Conservation Corps
California League of Conservation Voters
California State Association of Counties
CRM Company
Don't Waste LA
Los Angeles Alliance for a New Economy
Marin County Hazardous and Solid Waste Management JPA (Zero
Waste Marin)
Mojave Desert and Mountain Recycling
Napa Recycling & Waste Services
Rural County Representatives of California
Sonoma County, AB 939 Local Task Force
WILDCOAST
Zanker Recycling
OPPOSITION: (Verified8/15/16)
None received
ASSEMBLY FLOOR: 50-29, 6/2/15
AYES: Alejo, Bloom, Bonilla, Bonta, Brown, Burke, Calderon,
Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd,
Eggman, Frazier, Cristina Garcia, Eduardo Garcia, Gatto,
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Gipson, Gomez, Gonzalez, Gordon, Gray, Roger Hernández,
Holden, Jones-Sawyer, Levine, Lopez, Low, McCarty, Medina,
Mullin, Nazarian, O'Donnell, Perea, Quirk, Rendon,
Ridley-Thomas, Rodriguez, Santiago, Mark Stone, Thurmond,
Ting, Weber, Williams, Wood, Atkins
NOES: Achadjian, Travis Allen, Baker, Bigelow, Brough, Chang,
Dahle, Beth Gaines, Gallagher, Grove, Hadley, Harper, Irwin,
Jones, Kim, Lackey, Linder, Maienschein, Mathis, Mayes,
Melendez, Obernolte, Olsen, Patterson, Salas, Steinorth,
Wagner, Waldron, Wilk
NO VOTE RECORDED: Chávez
Prepared by:Joanne Roy / E.Q. / (916) 651-4108
8/16/16 17:38:45
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