BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2355
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 2355 (Levine)
          As Amended  June 11, 2014
          Majority vote
           
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          |ASSEMBLY:  |78-0 |(May 15, 2014)  |SENATE: |35-0 |(August 20,    |
          |           |     |                |        |     |2014)          |
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           Original Committee Reference:    L. GOV.  

           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 at  
          a regularly scheduled public hearing why those standards are not  
          being adopted.  

           The Senate amendments  delete a provision allowing 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.

           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  
          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.

           AS PASSED BY THE ASSEMBLY  , this bill:  

          1)Required, 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,








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             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)Allowed 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)Provided that, if the Commission on State Mandates  
            (Commission) 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.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, unknown, likely minor reimbursable mandate costs  
          (General Fund).  Actual costs would depend on what duties the  
          Commission determines are reasonably necessary to implement the  
          bill.  These costs could be minor to the extent that a local  
          agency simply puts a discussion item on the agenda for a public  
          hearing, but could be greater if the Commission approves a claim  
          for reimbursement related to duties associated with adopting  
          recycled materials standards.
           
           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  








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            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.

            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  








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            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.

          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.

           
          Analysis Prepared by  :    Angela Mapp / L. GOV. / (916) 319-3958 










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