BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        SB 225|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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                                   THIRD READING 


          Bill No:  SB 225
          Author:   Wieckowski (D)
          Introduced:2/13/15  
          Vote:     21  

           SENATE ENVIRONMENTAL QUALITY COMMITTEE:  5-2, 4/15/15
           AYES:  Wieckowski, Hill, Jackson, Leno, Pavley
           NOES:  Gaines, Bates

          SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           SUBJECT:   Recycling:  used tires


          SOURCE:    Author


          DIGEST:  This bill requires the Department of Resources  
          Recycling and Recovery (CalReycle), when updating the five-year  
          plan and expending funds pursuant to the California Tire  
          Recycling Act, to ensure that the plan and expenditure of those  
          funds reflect the California Integrated Waste Management Act's  
          priorities for waste reduction and recycling.


          ANALYSIS:   

          Existing law:

          1) Under the California Integrated Waste Management Act of 1989  
             (Public Resources Code (PRC) §40000 et seq.): 

              a)     Specifies a state policy goal of 75% of recycling,  
                 composting or source reduction of solid waste by 2020. 









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              b)     Requires each local jurisdiction to divert 50% of  
                 solid waste from landfill disposal.

          2) Under the California Tire Recycling Act (PRC §42860 et seq.):

              a)     Requires CalRecycle to administer a tire recycling  
                 program that promotes and develops alternatives to the  
                 landfill disposal of waste tires.  The tire recycling  
                 program may include, among other things, grants,  
                 subsidies, and loans to businesses or other enterprises  
                 and public entities involved in activities that result in  
                 reduced landfill disposal or stockpiling of waste tires.   
                 Activities eligible for funding may include the  
                 manufacturing of products made from used tires such as  
                 rubberized asphalt and crash barriers.

              b)     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.  

              c)     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, including  
                 grant programs.  

              d)     Authorizes CalRecycle to award grants, subsidies,  
                 rebates, and loans to businesses and public entities that  
                 result in reduced landfill disposal of used tires.  

          This bill requires CalRecycle, when updating the five-year plan  
          and expending funds pursuant to the California Tire Recycling  
          Act, to ensure that the plan and expenditure of those funds  
          reflect the California Integrated Waste Management Act's  
          priorities for waste reduction and recycling.

          Background








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          According to CalRecycle, approximately 40 million waste tires  
          are generated in California every year.  The California Tire  
          Recycling Act requires CalRecycle to administer a tire recycling  
          program that promotes and develops alternatives to the landfill  
          disposal of waste tires.  The tire recycling program may  
          include, among other things, grants, subsidies, and loans to  
          businesses or other enterprises and public entities involved in  
          activities that result in reduced landfill disposal or  
          stockpiling of waste tires.  Activities for funding may include  
          the manufacturing of products made from used tires, such as  
          rubberized asphalt and crash barriers.  

          The California Tire Recycling Act requires CalRecycle to adopt a  
          five-year plan, which must be updated every two years.  The  
          five-year plan establishes goals and priorities for the waste  
          tire recycling program and identifies programmatic and fiscal  
          issues, performance objectives, and measurement criteria. 

          Comments
          
          1) Purpose of bill.  According to the author, "The California  
             Integrated Waste Management Act specifies the statewide goal  
             of diverting from landfills not less than 75% of solid waste  
             by source-reducing, recycling or composting by 2020.   
             However, the statutory goal does not address how various  
             waste streams will be reduced to meet the goal.  This bill is  
             intended to address a particular source of waste in meeting  
             the 75% goal by ensuring that the state's five-year plan for  
             recycling waste tires and that funds appropriated for this  
             purpose reflect the state's overall priorities for solid  
             waste reduction and recycling."

          2) Waste tire diversion rates.  According to CalRecycle, the  
             department has a diversion goal of 90% for waste tires, with  
             the overall diversion rate increased from 81% in 2010 to 88%  
             in 2011.  However, CalRecycle notes that this increase was  
             largely due to the continued, unprecedented rapid growth in  
             the export of waste tires to Pacific Rim nations, largely for  
             use as tire-derived fuel (TDF), which is now the largest  
             single end-use destination for California waste tires.  If  
             waste tire exports, TDF, and use as alternative daily cover  








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             for landfills are not included, then the diversion rate is  
             only 44%.  In addition, CalRecycle states that five million  
             tires were landfilled in 2011.  This bill is meant to ensure  
             that the waste tire diversion rate is consistent with the  
             state's 75% goal of reducing solid waste by recycling,  
             composting, or source reduction by 2020.

          Related/Prior Legislation
          
          AB 2658 (Bocanegra, 2014) would have clarified that "parklets"  
          and "greenways" are eligible for grants for public works that  
          use tire-derived products and requires CalRecycle, when awarding  
          grants for parklets and greenways, to give priority to projects  
          located in disadvantaged communities.  AB 2658 also would have  
          extended a sunset date relating to the use of rubberized asphalt  
          concrete by the Department of Transportation.  AB 2658 failed  
          (4-3) in the Senate Transportation and Housing Committee.

          AB 513 (Frazier, Chapter 499, Statutes of 2013) established the  
          Rubberized Asphalt Concrete (RAC) Market Development Act, which  
          codified CalRecycle's RAC grant program for local public works  
          projects.  

          AB 8 (Perea and Skinner, Chapter 401, Statutes of 2013) extended  
          until January 1, 2024, various vehicle-related state and local  
          fees and surcharges, including the California tire fee of $1.75  
          per tire, to fund vehicle-related air quality, greenhouse gas  
          and related programs.

          AB 1647 (Gordon, Chapter 534, Statutes of 2012) revised the  
          hearing and enforcement process for waste tire facility and  
          waste tire hauling violations.

          SB 758 (Fuller, 2011) would have reduced the per tire fee  
          required under the California Tire Recycling Act from $1.75 to  
          $1.15.  SB 758 died in the Senate Environmental Quality  
          Committee. 

          AB 525 (Gordon, Chapter 573, Statutes of 2011) required  
          CalRecycle to award grants to cities, counties, and other local  
          government agencies for the funding of public works projects  
          that use waste tires; made the public works waste tire grant  








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          program inoperative on June 30, 2015; repealed the provision  
          authorizing this program on January 1, 2016; and established the  
          Architectural Paint Stewardship Account in the Integrated Waste  
          Management Fund and the Architectural Paint Stewardship Penalty  
          Subaccount in the Integrated Waste Management Fund, for purposes  
          of program implementation.  

          SB 369 (Simitian, Chapter 300, Statutes of 2006) extended the  
          sunset date on the local government RAC grant program from 2007  
          to 2011, revised eligibility requirements for the program, and  
          made related amendments.

          AB 338 (Levine, Chapter 709, Statutes of 2005) required the  
          Department of Transportation to use certain percentages of  
          "asphalt containing crumb rubber" for state highway or repair  
          projects using asphalt as a construction material under certain  
          conditions.
           
           FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          SUPPORT:   (Verified4/27/15)


          None received


          OPPOSITION:   (Verified4/27/15)


          None received
           

          Prepared by:Joanne Roy / E.Q. / (916) 651-4108
          5/1/15 14:40:12


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