BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 167
                                                                  Page  1

          Date of Hearing:  June 22, 2009

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Nancy Skinner, Chair
                    SB 167 (Ducheny) - As Amended:  April 22, 2009

           SENATE VOTE  :  25-9
           
          SUBJECT  :  Solid waste:  waste tires

           SUMMARY  :  Requires the California Integrated Waste Management  
          Board (CIWMB) to include additional information relating to  
          waste tires in the California-Mexico Border Region and  
          authorizes funds generated by the California tire fee to be used  
          for related border activities.  

           EXISTING LAW:
           
          1)Under the Environmental and Public Health Protection at the  
            California-Mexico Border Law, creates the 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.  

          2)Under the California Integrated Waste Management Act of 1989,  
            establishes various waste-related programs, including the  
            waste tire program, California Tire Recycling Act, and the  
            tire hauler registration program, and a fee on new tires to  
            fund tire program activities. 

          3)Under the California Tire Recycling Act, requires CIWMB to  
            adopt a five-year plan that must be updated every two years,  
            regarding the waste tire program goals and objectives.  As  
            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; 









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             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; and, 

             e)   Coordination with businesses operating in the border  
               region and with Mexico to apply the same environmental and  
               control requirements throughout the border region.
           
          THIS BILL  : 

          1)Requires CIWMB to include in the five-year plan 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 CIWMB, upon appropriation by the Legislature, to  
            use the revenues generated from the California tire fee to  
            fund border activities.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, this bill has  
          negligible state costs.  

           COMMENTS  :   

           1)Purpose of the 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  
            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 CIWMB, California is  
            faced with the challenge of diverting or safely managing more  
            than 40 million reusable and waste tires generated annually in  
            the state.  CIWMB staff estimates that of the approximately  
            40.2 million reusable and waste tires generated in 2004,  
            approximately 30 million of the tires (74.6%) were diverted  
            through various alternatives, including reuse, retreading, and  








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            combustion.

            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.  CIWMB 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.

           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 (Fund).  A fee is  
               assessed on the sale of new tires, and collected revenue is  
               deposited quarterly into the Fund.  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; $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 Fund.  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  
               areas: tire permitting and enforcement activities, and tire  
               recycling and market development activities.  The tire  
               permitting and enforcement activities are intended to  
               ensure that reusable and waste tires are stored and  
               transported safely.  CIWMB 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  :  CIWMB supports activities in  
               the border region 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  








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               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; 5)  
               providing training and technical support to Mexican tire  
               haulers; and, 6) participating in Border 2012 Task Force,  
               Resource Conservation Challenge Border Group and the 2008  
               Border Governors Conference.  

           4)Challenges to Managing Tires in the Border Region  .  About 2  
            million waste and used tires are legally transported from  
            California to Mexico.  Tires that have usable tread are sold  
            for reuse; others are used for inexpensive building materials  
            and erosion control.  However, many end up in illegal tire  
            piles or otherwise improperly discarded.  This poses public  
            health and environmental challenges on both sides of the  
            border.  

           5)Use of the Tire Fund in the Border Region  .  The Fund may only  
            be used to address tires for which the fee has been collected  
            and within California.  CIWMB has not funded the remediation  
            of tires from illegal piles in Mexico due to these legal  
            constraints.  The fee was assessed on tires that pose a public  
            health and environmental threat in California.  However, this  
            bill is based on 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 Fund should be available to  
            address that issue.  

            This bill specifies that tire funds may be used for the  
            "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."  This was 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 CIWMB to  
            ensure that the projects are consistent with the intent of the  
            bill.  









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           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Break the Tire Cycle Coalition (co-sponsor)
          Wildcoast (co-sponsor)
          AFSCME
          City of Imperial Beach
          City of San Diego 
          Heal the Bay
          Natural Resources Defense Council 
          Planning and Conservation League
          Rubber Manufacturers Association
          San Diego Coastkeeper
          Southwest Wetlands Interpretive Association
          Surfrider San Diego
          Tijuana River Citizens' Council 
          Tijuana River Valley Equestrian Association
          1 individual 
           
            Opposition 
           
          None on file 


           Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092