BILL ANALYSIS                                                                                                                                                                                                    



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          SENATE THIRD READING
          SB 167 (Ducheny)
          As Amended  April 22, 2009
          Majority vote 

           SENATE VOTE  :25-9  
           
           NATURAL RESOURCES   7-2         APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Skinner, Gilmore,         |Ayes:|De Leon, Ammiano,         |
          |     |Brownley, Chesbro, De     |     |Charles Calderon, Coto,   |
          |     |Leon, Hill, Huffman       |     |Davis,                    |
          |     |                          |     |Fuentes, Hall, John A.    |
          |     |                          |     |Perez,                    |
          |     |                          |     |Skinner, Solorio,         |
          |     |                          |     |Torlakson, Hill           |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Knight, Logue             |Nays:|Conway, Harkey, Miller,   |
          |     |                          |     |Nielsen,                  |
          |     |                          |     |Audra Strickland          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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.  Specifically,  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 Assembly Appropriations  
          Committee, this bill has negligible costs to CIWMB to include  
          additional information in the five-year plan.  Annual cost  








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          pressures of an unknown amount, at least several hundreds of  
          thousands of dollars, for administrative and legal staff to  
          implement the new grant program authorized by this bill, should  
          it be implemented.   

           COMMENTS :  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. 

           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  
          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.

           California's Tire Program  .  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.  The remaining $1.00 per tire is deposited into the  
          Fund.  There are approximately 33 million tires sold in  
          California annually.  California's waste tire management and  
          recycling efforts are divided into two functional areas: tire  
          permitting and enforcement activities, and tire recycling and  








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          market development activities.  

          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 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.  

           Use of the Tire Fund 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.  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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           Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092 


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