BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 525
                                                                  Page 1

          Date of Hearing:  April 4, 2011

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                 AB 525 (Gordon) - As Introduced:  February 15, 2011
           
          SUBJECT  :  Solid waste:  tire recycling

           SUMMARY  :  Allows CalRecycle to award grants from the California 
          Tire Recycling Management Fund to cities, counties, and other 
          local government agencies for the funding of public works 
          projects that use waste tires.  

           EXISTING LAW  :

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

          2)Requires CalRecycle to adopt a five-year plan, which must be 
            updated every two years, to establish goals and priorities for 
            the tire recycling program.  Every two years, CalRecycle is 
            required to submit the adopted five-year plan to the 
            Legislature.

          3)The tire recycling program under the Act is funded by the 
            California Tire Recycling Management Fund (Fund).  The Fund is 
            supported by the California tire fee, which is a $1.75 per 
            tire charge imposed on a person who purchases a new tire.

           THIS BILL  :

          1)Allows CalRecycle, as part of the tire recycling program, to 
            award grants to cities, counties, and other local government 
            agencies for the funding of public works projects that use 
            waste tires.  The provisions in the Act regarding local 








                                                                  AB 525
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            government public works projects will sunset on June 30, 2015.

          2)Requires CalRecycle, as part of the five year plan and until 
            June 30, 2015, to describe the grant program's effectiveness 
            to encourage the use of waste tires, including, but not 
            limited to, rubberized asphalt concrete technology, in public 
            works projects.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :

           1)Background  :  According to CalRecycle, since passage of the Act 
            in 1989, California has dramatically increased the number of 
            waste tires diverted from landfill disposal and sent to 
            beneficial end uses.  CalRecycle estimates that in 2009, 
            Californians generated 41.3 million waste tires.  The 
            beneficial use of 30 million of these tires represents a 
            recycling rate of 72.7 percent in 2009.

           2)Extending June 30, 2010 Sunset Date  :  The bill revives a 
            similar statute that was added by SB 1346 (Kuehl) in 2002, 
            extended by SB 369 (Simitian) in 2006, and sunset on June 30, 
            2010.  Reviving this statute is important because recycled 
            tires have a myriad of uses for public works projects.  For 
            example, tires can be used for road paving, street 
            resurfacing, sidewalks, weed abatement, vibration-damping 
            material in light-rail systems, overpass fill, levee slurry 
            walls, retaining wall fill, roadway base fill, and bridge 
            abutment fill.  Use of recycled tires for public works 
            projects can also lead to significant cost savings and added 
            benefits.  In particular for road paving, use of recycled 
            tires can provide improvements of increased skid resistance, 
            reduced road noise, and improved riding qualities.

            Under existing law, CalRecycle can award grants to public 
            entities involved in activities and applications that result 
            in reduced landfill disposal of used whole tires and reduced 
            illegal disposal or stockpiling of used whole tires.  Without 
            the bill, CalRecycle can use this authority to award grants to 
            local government agencies for the funding of public works 
            projects.  The purpose of the bill, however, is to 
            specifically authorize the funding of public works projects 
            and to ensure that there is at least a minimum level of 
            funding.








                                                                  AB 525
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           3)Suggested Amendments  :  The bill requires that to the extent 
            possible, the funds appropriated for these public works 
            projects "shall not be less than __ percent" of the amount of 
            funds appropriated for market development and new technology 
            activities for waste tires.  The statute that sunset on June 
            30, 2010 provided a 16 percent standard for this requirement. 
            The author may wish to consider amending the bill to include 
            the 16 percent standard unless there are compelling reasons to 
            adopt a different percentage.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
          
          Californians Against Waste
          California Resource Recovery Association
          California State Association of Counties
          City of Lakewood
          CRM Company
          Regional Council of Rural Counties

           Opposition 
           
          Rubber Manufacturers Association

           
          Analysis Prepared by  :  Mario DeBernardo / NAT. RES. / (916) 
          319-2092