BILL ANALYSIS                                                                                                                                                                                                    



                                                                SB 167
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2009-2010 Regular Session
                                           
           BILL NO:    SB 167            
           AUTHOR:     Ducheny
           AMENDED:    As Introduced
           FISCAL:     Yes               HEARING DATE:     April 20, 2009
           URGENCY:    No                CONSULTANT:       Caroll  
           Mortensen
            
           SUBJECT  :    WASTE TIRES:  BORDER REGION ASSISTANCE

            SUMMARY  :    
           
            Existing law  :

           1) Creates, under the "Environmental and Public Health  
              Protection At the California-Mexico Border Law" (Commencing  
              with Public Resources Code Section 71100 et seq.), a  
              California Border Environmental and Public Health  
              Protection Fund to assist responsible agencies in  
              California and Baja California in implementing projects to  
              identify and resolve environmental and public health  
              problems, including projects related to domestic and  
              industrial wastewater, vehicle and industrial air  
              emissions, hazardous waste transport and disposal, human  
              and ecological risk, and disposal of municipal solid waste.  
               Money in the fund cannot be made available for the purpose  
              of bringing a person or facility into compliance with  
              environmental laws or to provide funds to remediate  
              environmental damage.

           2) Establishes, under the California Integrated Waste  
              Management Act of 1989 (commencing with Public Resources  
              Code Section 40000 et seq.), various waste-related  
              programs, including the waste tires program, California  
              Tire Recycling Act, and the tire hauler registration  
              program, and a fee on new tires to fund tire program  
              activities. 

           3) Requires, under the California Tire Recycling Act  
              (commencing with Public Resources Code Section 42860 et  









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              seq.), the Integrated Waste Management Board (IWMB) to  
              adopt a five-year plan that must be every two years,  
              regarding the waste tire program goals and objectives.   
              Specifically related to border issues the five-year plan  
              must address: 

              a)   Training programs to assist Mexican waste and used  
                tire haulers to meet the requirements for hauling those  
                tires in California. 
              b)   Environmental education training.  
              c)   Development of a waste tire abatement plan, with the  
                appropriate government entities of California and Mexico.  

              d)   Tracking both the legal and illegal waste and used  
                tire flow across the border and recommended revisions to  
                the waste tire policies of California and Mexico. 
              e)   Coordination with businesses operating in the border  
                region and with Mexico, with regard to applying the same  
                environmental and control requirements throughout the  
                border region.

            This bill  :

           1) Requires the IWMB to include in the five-year plan, as a  
              border activity, the development of projects in Mexico in  
              the California-Mexico border region, including education,  
              infrastructure, mitigation, cleanup, prevention, reuse, and  
              recycling projects, that address the movement of used tires  
              from California to Mexico that are eventually disposed in  
              California. 

           2) Authorizes the IWMB, upon appropriation by the Legislature,  
              to use the revenues generated from the California tire fee  
              to fund border activities.

           3) Makes extensive findings and declarations as to the threat  
              posed by California tires in Mexico.

            COMMENTS  :

            1) Purpose of Bill  .  According to the author, every winter,  
              sewage and trash-laden storm water dislodges and carries  
              thousands of waste tires from Tijuana to California through  









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              the Tijuana River channel and open culverts in the border  
              fence.  This flow of waste tires represents economic,  
              environmental and public health challenges to California's  
              border communities. 

            2) Waste Tires in California  .  According to the IWMB,  
              California is faced with the challenge of diverting or  
              safely managing more than 40.2 million reusable and waste  
              tires generated annually in the state.  IWMB staff  
              estimates that of the approximately 40.2 million reusable  
              and waste tires generated in 2004, approximately 30 million  
              of the tires (74.6 percent) were diverted through various  
              alternatives, including reuse, retreading, and combustion.

           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.  The IWMB provides  
              the waste tire management framework by enforcing waste tire  
              facility and waste tire hauler regulations.  As the use of  
              tires as material in commercial applications increases,  
              illegal stockpiling and the need for permitted storage will  
              decrease or cease to exist.

            3) California's Tire Program.
            
              a)   Funding:  The California Tire Recycling Act authorized  
                the creation of the Tire Recycling Program and the  
                California Tire Recycling Management Fund.  A fee is  
                assessed on the sale of new tires, and collected revenue  
                is deposited quarterly into the tire fund.  The CIWMB  
                allocates funds annually based on availability and  
                changing program needs.  The fee is currently $1.75 for  
                each new tire sold in the state.  However, $0.75 of the  
                $1.75 is transferred to the Air Pollution Control Fund  
                for use by the Air Resources Board for air pollution  
                activities.  So, $1.00 per tire is deposited into the  
                Tire Fund for use by the IWMB for the tire related  
                activities.  There are approximately 33 million tires  
                sold in California annually. 

              b)   Program Structure:  California's waste tire management  
                and recycling efforts are divided into two functional  









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                areas: tire permitting and enforcement activities, and  
                tire recycling and market development activities.  The  
                tire permitting and enforcement activities ensure that  
                reusable and waste tires are stored and transported  
                safely.  IWMB staff also 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 providing technical assistance.

              c)   Current Border Efforts at the IWMB:  The IWMB supports  
                activities in the border region, conducted in  
                coordination with the California Environmental Protection  
                Agency, that include: 1) dedicating a portion of the  
                funding for the Local Government Waste Tire Cleanup Grant  
                Program for cleanups that occur along the California  
                border region; 2) providing funding for a study of the  
                tire flow to and from Mexico; 3) providing technical  
                assistance for the development of an integrated waste  
                tire management plan for the State of Baja California,  
                Mexico; 4) providing training workshops for teachers on  
                the environmental education curriculum titled  
                Conservation and Pollution Prevention at a Shared Border;  
                5) providing training and technical support to Mexico  
                tire haulers; and 6) participating in Border 2012 Task  
                Force, Resource Conservation Challenge Border Group, and  
                the 2008 Border Governors Conference.  Specifically, the  
                IWMB has recently approved contracts to:  1) study the  
                flow of used and waste tires into Mexico; 2) develop  
                school curricula for Mexican schools on the problem of  
                waste tires; 3) develop a model waste tire management  
                plan for municipal governments in Baja California; and 4)  
                remediate tires in the Tijuana River River Valley and  
                install a trash boom system for nearby Goat Canyon to  
                intercept trash and tires carried by floodwaters into  
                California.

            4) Challenges to Managing Tires in the Border Region  .  About 2  
              million waste and used tires are transported from  
              California to Mexico.  This is a legal practice and a  
              market outlet for California tires.  Tires that have usable  
              tread are sold and reused.  Others are used for inexpensive  









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              building materials and used as erosion control.  However,  
              many of those tires end up in illegal tire piles or  
              otherwise improperly discarded on the Mexico side of the  
              border.   This poses public health and environmental  
              challenges on both sides of the border.  As mentioned  
              above, the IWMB has been working on efforts to combat this  
              problem.

            5) Caution on Use of the Tire Fund in the Border Region  .  Use  
              of the funds from the tire fee is restricted to just  
              address tires on which the fee has been paid and within  
              California.  The use of the tire fee to manage tires in the  
              border region raises legal challenges.  The IWMB has not  
              funded the remediation of tires from illegal piles in  
              Mexico due to legal constraints.  The fee was assessed on  
              the material (tires) that pose a public health and  
              environmental threat (illegal disposal and improper  
              management) in California.  However, this bill uses the  
              argument that used tires  from California  make their way  
              into Mexico only to become waste tires in a short period of  
              time thus the funds should be available to address that  
              issue.   

            6) SB 167 Legal Issues  .  The approach in this bill is that the  
              funds may be used for  "Development of projects  in Mexico   
              in the California-Mexico border region, as defined by the  
              La Paz Agreement, that include, but are not limited to,  
              education, infrastructure, mitigation, cleanup, prevention,  
              reuse, and recycling projects  , that address the movement of  
              used tires from California to Mexico that are eventually  
              disposed in California  . (emphasis added)" .   This was  
              carefully drafted to ensure that the funds could be used to  
              address California tires in Mexico that are eventually  
              disposed in California.  While this clarifies the ability  
              to use the funds on the Mexico side of the border, if this  
              bill becomes law, caution must be exercised by the IWMB to  
              ensure that the projects are consistent with the intent of  
              the bill.  

              The author should continue to work with the IWMB to  
              establish if additional amendments are needed to provide  
              further clarity as to the types of projects that would be  
              eligible and ways to determine that the tires involved are  









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              from California.

            7)Amendment Needed:   To correct a cross reference; on page 7,  
             line#1 of the bill. Section 42855.5 should be Section  
             42885.5.

            SOURCE  :        Senator Ducheny  

           SUPPORT  :       American Federation of State, County and  
                          Municipal Employees (AFSCME), AFL-CIO, Rubber  
                          Manufacturers Association  

           OPPOSITION  :    None on file