BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          AB 525 (Gordon)
          
          Hearing Date: 08/25/2011        Amended: 04/25/2011
          Consultant: Brendan McCarthy    Policy Vote: EQ 4-1
          _________________________________________________________________
          ____
          BILL SUMMARY: AB 525 reestablishes a program to provide funding 
          to local governments for construction projects that use recycled 
          tires. The bill specifies that the Department of Resources 
          Recovery and Recycling shall provide grants for these purposes 
          equal to at least 16 percent of total grants provided for market 
          development under the Waste Tire Program.
          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           
          Required grants        About $2,100 per year            Special 
          *
                                                                      
          * California Tire Recycling Management Fund.
          _________________________________________________________________
          ____

          STAFF COMMENTS: SUSPENSE FILE. 

          Under current law, individuals purchasing tires in California 
          pay a fee on those purchases. Revenues from those fees are used 
          to support programs to encourage the use of reclaimed and 
          recycled tires, reduce the dumping of used tires in landfills, 
          and reduce illegal dumping of tires. The Department of Resources 
          Recovery and Recycling operates a Waste Tire program to support 
          these goals. Under prior law, the Department was required to set 
          aside 16 percent of grant funds used to support market 
          development for grants to local governments to support the use 
          of rubberized asphalt concrete, which uses recycled tires. That 
          provision of law sunset in 2010. 

          AB 525 requires the Department to award grants to local 
          governments to support the use of rubberized asphalt concrete 
          and tire derived aggregate. The bill requires the Department to 
          provide no less than 16 percent for market development grants 








          > (>)
          Page 1


          for these purposes. The bill also requires the Department to 
          publicize certain information about projects that use these 
          products. The provisions of the bill will sunset on January 1, 
          2016.

          Based on projected program expenditures, this bill will require 
          at least $2.1 million per year to be provided through grants for 
          the purposes of the bill. Any administrative costs to implement 
          the bill should be absorbable within existing resources. By 
          setting a minimum amount of funding for certain types of grants, 
          this bill will potentially reduce available funds for other 
          uses.