BILL ANALYSIS Ó
AB 1239
Page 1
(Without Reference to File)
CONCURRENCE IN SENATE AMENDMENTS
AB
1239 (Gordon and Atkins)
As Amended August 16, 2016
Majority vote
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|ASSEMBLY: |50-29 |(June 2, 2015) |SENATE: |25-13 |(August 22, |
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|COMMITTEE VOTE: |6-2 |(August 30, |RECOMMENDATION: |concur |
| | |2016) | | |
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Nat. Res.
Original Committee Reference: NAT. RES.
AB 1239
Page 2
SUMMARY: Establishes the Tire Recycling Incentive Program
(TRIP) Act to provide incentives for tire recycling activities
in California. Establishes a new tire regulatory fee, set by
the Department of Resources Recycling and Recovery (CalRecycle),
to cover regulatory costs associated with waste and used tire
management.
The Senate amendments:
1)Establish a state policy goal that 75% of solid waste tires
generated in California be source reduced or recycled by 2020.
2)If the 75% goal is met for three consecutive years, requires
CalRecycle to review existing tire recycling programs and make
recommendations as to which policies are necessary to maintain
and increase the level of waste tire recycling.
3)Clarify the entities and types of projects that are eligible
for funding.
4)Require CalRecycle to conduct a public workshop prior to
establishing or adjusting the amount of the tire regulatory
fee and specifies factors that CalRecycle must consider when
establishing or adjusting the tire regulatory fee.
5)Require CalRecycle to fund the TRIP with California Tire
Management Fund reserves until CalRecycle finds that the
reserve is insufficient to cover the costs.
6)Require waste and used tire haulers, 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.
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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)Establishes the California Tire Recycling Act (Act), 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 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.
FISCAL EFFECT: According to the Senate Appropriations
Committee, this bill has the following fiscal impacts:
AB 1239
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1)$880,000 annually (California Tire Management Fund) to
CalRecycle for the first three years, some of which would be
offset by fees.
2)After year three, ongoing costs of approximately $642,000
annually (California Tire Management Fund) to CalRecycle, some
of which would be offset by fees.
COMMENTS: 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 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.
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. 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
AB 1239
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payments for end uses such as tire-derived aggregate and lower
payments for less-preferred non-disposal management such as
energy generation.
CalRecycle's analysis of past grants indicates that about 25% of
the total sales of California-produced tire-derived products
were supported by grants, while about 12.5% of California crumb
rubber sold to paving applications was supported by CalRecycle
paving grants. In order to achieve CalRecycle's long-term goals
for tire recycling, it is in the process of redirecting
approximately half of its budget for the Tire Derived Product
Grant Program to a new Tire Incentive Program that will focus on
promoting new tire-derived product development and shift
established product manufacturers to use of ground rubber from
other feedstock. CalRecycle is also replacing the Tire-Derived
Product Business Assistance Program, which offered a wide
variety of assistance to manufacturers, with a new Tire Outreach
and Market Analysis (TOMA) program. TOMA will focus exclusively
on outreach and education to promote tire-derived products.
This bill is consistent with the direction and recommendations
of CalRecycle's 2015 Five Year Plan.
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. The law also allows, but does not require, that data
to be submitted electronically to CalRecycle. This bill updates
the tire manifest system and requires that electronic reporting.
AB 1239
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Analysis Prepared by:
Elizabeth MacMillan / NAT. RES. / (916) 319-2092
FN: 0005007