BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2355
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          Date of Hearing:  April 9, 2014

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                           K.H. "Katcho" Achadjian, Chair
                    AB 2355 (Levine) - As Amended:  April 1, 2014
           
          SUBJECT  :  Local governments: streets and highways: recycled  
          materials.

           SUMMARY  :  Requires local agencies with jurisdiction over streets  
          or highways to adopt the Department of Transportation's  
          (Caltrans) standards for recycled paving materials or discuss  
          why they are not adopting those standards at a public hearing.   
          Specifically,  this bill  :  

          1)Requires, by January 1, 2017, a local agency that has  
            jurisdiction over a street or highway to do either of the  
            following:

             a)   Adopt the standards developed by Caltrans pursuant to  
               current law for recycled paving materials and for recycled  
               base, subbase, and pervious backfill materials; or,

             b)   Discuss why the standards are not being adopted at a  
               regularly scheduled public hearing of the local agency's  
               legislative or other governing body.

          2)Allows local agencies to adopt standards that require greater  
            use of, or more recycled content in, paving materials and  
            base, subbase, and pervious backfill materials that  
            incorporate recycled content than is required by Caltrans'  
            standards. 

          3)Provides that, if the Commission on State Mandates determines  
            that this act contains costs mandated by the state,  
            reimbursement to local agencies and school districts for those  
            costs shall be made pursuant to current law governing state  
            mandated local costs.

           EXISTING LAW  requires, pursuant to the California Integrated  
          Waste Management Act of 1989, the Director of Caltrans, upon  
          consultation with the Department of Resources Recycling and  
          Recovery, to review and modify all bid specifications relating  
          to the purchase of specified paving materials and base, subbase,  
          and pervious backfill materials using certain recycled  








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          materials.  These specifications must be based on standards  
          developed by Caltrans for recycled paving materials and for  
          recycled base, subbase, and pervious backfill materials.    
          Caltrans' standards and specifications must not reduce the  
          quality of standards for highway and road construction.

           FISCAL EFFECT  :  This bill is keyed fiscal.

           COMMENTS  :   

           1)Purpose of this bill  .  This bill seeks to encourage local  
            agencies to adopt Caltrans' standards for the use of recycled  
            materials in road building and maintenance.  This bill is  
            author-sponsored.

           2)Author's statement  .  According to the author, "Eighty-one  
            percent of California roads are owned and maintained by cities  
            and counties.  It is estimated that maintenance costs on those  
            roads over the next decade will be more than $8 billion.  We  
            have a shortage of virgin aggregates needed to meet future  
            demand and landfills that are filling rapidly.  Combine these  
            factors and we have a problem with road maintenance and  
            construction from an environmental and economic standpoint.

            "Using recycled material for road maintenance and construction  
            can help alleviate that problem. More recycled material use  
            means less mining, less transportation, and less landfilling.   
            According to data collected by the Federal Highway  
            Administration, using recycled material reduces cost by about  
            1% for every 1% of recycled material used.  

            "Caltrans has been required by the federal government to use  
            recycled materials in road construction and maintenance for  
            the last two decades.  (Current state law) requires Caltrans  
            to adopt standards for recycled material use that will not  
            reduce the quality of construction.  Most cities and counties  
            meet or exceed these Caltrans standards, however, some cities  
            and counties do not."  

           3)Background  .  According to a July 2006 report by the California  
            State Auditor on Caltrans, the availability of virgin  
            aggregate at sites with mining permits as of January 2001 is  
            not expected to meet the demand for such material beyond the  
            next 50 years in various regions 
          of California, including highly urbanized areas.








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            Caltrans has policies and procedures in place to promote the  
            use of recycled material whenever and wherever it is  
            cost-effective to do so.  Caltrans' Standard Specifications  
            enable contractors to use up to 100% recycled aggregate in  
            road base, up to 25% reclaimed asphalt pavement (RAP) in  
            asphalt pavement, and recycled aggregates in concrete,  
            provided they meet performance specifications.  Since recycled  
            materials generally are less costly, contractors have a strong  
            incentive to use as much recycled material possible. 

            Recycled aggregate is produced by crushing concrete or asphalt  
            to reclaim the aggregate.  The primary market for this  
            material is road base and subbase for other paving and  
            engineering projects.  According to the California Integrated  
            Waste Management Board, the use of recycled aggregate saves  
            money for local governments and other purchasers, creates  
            business opportunities, saves energy when recycling is done on  
            site, conserves diminishing resources of urban aggregates, and  
            helps local governments meet the state's waste diversion  
            goals.  The use of recycled aggregate also reduces demand for  
            virgin aggregates, and therefore minimizes the environmental  
            impacts of aggregate mining. 

            Because of its weight, aggregate is expensive to ship;  
            therefore, most public works projects use aggregate from  
            nearby sources.  In California, particularly in urban areas,  
            it is becoming more difficult and expensive to find and ship  
            virgin aggregate.  According to the Federal Highway  
            Administration, the use of recycled aggregate can provide  
            savings in the overall cost of a paving project, "even though  
            the initial production cost of [recycled aggregate] can be  
            higher than that of new aggregate, the location of [recycled  
            aggregate] plants near project areas lowers the final cost,  
            primarily due to reduced hauling and overhead costs."   

           4)Previous legislation  .  AB 812 (Ma), Chapter 230, Statutes of  
            2012, authorizes Caltrans to establish specifications for the  
            use of up to, and possibly in excess of, 40% RAP for hot  
            asphalt mixes on or before January 1, 2014.  It also requires  
            Caltrans to report to the Legislature regarding the progress  
            toward developing and implementing the specification on or  
            before March 1, 2016.
            Caltrans is in the committee review process with the goal of  
            increasing the allowable percentage of RAP to 40% as required  








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            by AB 812.  It is anticipated that the study, along with the  
            revised specification, will be approved by June of 2014.  

           5)State mandate  .  This bill is keyed a state mandate, which  
            means the state could be required to reimburse local agencies  
            and school districts for implementing the bill's provisions if  
            the Commission on State Mandates determines that the bill  
            contains costs mandated by the state.

           6)Arguments in support  .  Supporters state, "Currently, nearly 3  
            million tons of asphalt, concrete, and related materials end  
            up in California landfills, according to the CalRecycles'  
            Waste Characterization Survey.  California also has only  
            one-third of the permitted aggregates needed to meet future  
            demand, according to the California Geological Survey.  While  
            most local governments allow recycled materials, there remain  
            some jurisdictions that do not allow the use of recycled  
            materials.  This bill would set a timetable for local  
            jurisdictions to adopt specifications for the use of recycled  
            materials that are equal to or better than Caltrans.  If the  
            local jurisdictions choose not to adopt specifications, the  
            bill asks that public discussion and deliberation on the issue  
            take place."

           7)Arguments in opposition  .  None on file.

           8)Double-referral  .  This bill is double-referred to the  
            Transportation Committee.

           























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          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Asphalt Pavement Association
          California Chapter of the American Fence Association
          California Construction and Industrial Materials Association
          California Construction Trucking Association
          California Fence Contractors' Association
          California Resource Recovery Association
          Californians against Waste
          Chandler's Sand & Gravel
          Concrush, Inc.
          Flasher Barricade Association
          Graniterock
          Marin Builders Association
          Marin County Hazardous and Solid Waste Management Joint Powers  
          Authority
          P.W. Gillibrand Co., Inc.
          Sespe Consulting, Inc.
          Specialty Minerals, Inc.
          Syar Concrete LLC
          Teichert Materials
          Werner Corporation

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Angela Mapp / L. GOV. / (916) 319-3958 












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