BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2658
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          Date of Hearing:   April 28, 2014

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                  AB 2658 (Bocanegra) - As Amended:  April 21, 2014
           
          SUBJECT  :   Recycling:  waste tires:  public works projects

          SUMMARY  :   Clarifies that "parklets" and "greenways" are  
          eligible for grants for public works projects that use tire  
          derived products (TDP) and requires the Department of Resources  
          Recycling and Recovery (CalRecycle), when awarding grants for  
          parklets and greenways, to give priority to projects located in  
          disadvantaged communities.   Extends a sunset date relating to  
          the use of rubberized asphalt concrete (RAC) by the Department  
          of Transportation (Caltrans).  

           EXISTING LAW  establishes the California Tire Recycling Act  
          (Act), which: 

          1)Requires a person who purchases a new tire to pay a California  
            tire fee of $1.75 for each new tire purchased in the state.   
            One dollar of which is deposited into the Tire Recycling Fund  
            for oversight, enforcement, and market development grants  
            relating to waste tire management and recycling.   The  
            remaining $0.75 is deposited into the Air Pollution Control  
            Fund for programs and projects that mitigate or remediate air  
            pollution caused by tires.  

          2)Reduces the fee on January 1, 2015 to $0.75 per tire, to be  
            deposited into the Tire Recycling Fund.  

          3)Requires CalRecycle to adopt a Five-Year Plan, which must be  
            updated every two years, that establishes goals and priorities  
            for the waste tire program, including grant programs.  

          4)Authorizes CalRecycle to award grants, subsidies, rebates, and  
            loans to businesses and public entities that result in reduced  
            landfill disposal of used tires.  

          5)Specifies that the grants awarded by CalRecycle pursuant to  
            their authority under the Act be awarded to local government  
            agencies for the funding of public works projects that use  
            waste tires, including RAC, TDP, and tire derived aggregate  
            (TDA), as prescribed.  While CalRecycle is granted broad  








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            authority to continue grant programs under their existing  
            authority within the Act and the Five-Year Plan, this  
            statutory guidance for the program sunsets on June 30, 2015.  

          6)Pursuant to AB 513 (Frazier), Chapter 499, Statutes of 2013,  
            establishes the Rubberized Asphalt Concrete Market Development  
            Act, which creates a grant program for local government  
            agencies for public works projects that use RAC and for state  
            and local agencies, including regional park districts, for  
            funding disability access projects at parks and Class I  
            bikeways.  Sunsets this program on June 30, 2019.  

          7)Requires Caltrans on an annual average to use not less than  
            11.58 pounds of recycled crumb rubber (from tires) per metric  
            ton of the total amount of asphalt paving materials used.   
            Requires that until January 1, 2015, at least 50 percent of  
            the crumb rubber used be RAC.  After that date, specifies that  
            the material used be any type of asphalt containing crumb  
            rubber.  

          8)Defines RAC as paving material that uses an asphalt rubber  
            binder containing an amount of reclaimed tire rubber that is  
            15 percent or more by weight of the total blend, and that  
            meets required specifications.  [This definition is based on  
            the American Society for Testing and Materials (ASTM) standard  
            specification D6114.] 

          9)Defines asphalt containing crumb rubber as any asphalt  
            pavement construction, rehabilitation, or maintenance material  
            that contains reclaimed tire rubber and that meets required  
            specifications.   

           THIS BILL : 

          1)Extends the requirement that 50 percent of asphalt paving  
            materials used by Caltrans be RAC until January 1, 2020.  

          2)Clarifies that parklets and greenways are eligible for grants  
            awarded by CalRecycle for public works projects that use TDP.   


          3)Requires CalRecycle, when awarding grants for parklets and  
            greenways that use TDP, to give priority to give priority to  
            projects located in disadvantaged communities.  









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          4)Defines "disadvantaged community" as a community with an  
            annual median household income that is less than 80 percent of  
            the statewide median household income.  

          5)Defines "greenway" as a travel corridor for pedestrians,  
            bicycles, nonmotorized vehicle transportation, recreation, or  
            a combination thereof, located along natural landscape  
            features, such as an urban watercourse.  

          6)Defines "parklet" as a small urban park that provides  
            amenities including, but not limited to, seating, tables, bike  
            racks, and landscaping.  

           FISCAL EFFECT  :   Unknown 

           COMMENTS  :   

           1)Tire management in California  .  According to CalRecycle,  
            approximately 40 million waste tires are generated in  
            California every year.  CalRecycle's diversion goal is 90  
            percent; the most recent Five-Year Plan (2011) states that the  
            current diversion rate is around 74 percent.  According to the  
            California Waste Tire Market Report:  2011, of the 40.8  
            million tires generated:  8.8 million were recycled as ground  
            rubber, of which 4.9 million were used as RAC; 2 million were  
            used in civil engineering projects; 6.9 million were reused  
            (either sold as used tires or retreaded); 6.2 million were  
            used as "tire derived fuel" in cement kilns or at  
            co-generation facilities; and, 5 million were disposed in  
            landfills.  The remaining 2.1 million were otherwise recycled  
            (generally other forms of reuse, such as dock bumpers) or used  
            as landfill cover.  

            California's recent economic downturn and relatively high  
            unemployment rate has contributed to a decline in waste tires  
            generated.  The same factors, along with local government  
            budget constraints and a decline in use by Caltrans, has  
            resulted in diminishing numbers of tires being recycled.   
            Export, generally for energy generation in Asia, has nearly  
            tripled since 2009.  Appropriate tire recycling in California  
            provides significant environmental benefits and creates green  
            jobs.  

           2)Waste tire recycling  .  There are a number of alternatives for  
            recycling waste tires.  CalRecycle currently has three grant  








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            programs available to local government agencies for public  
            works projects that use recycled tires.  

            The TDP grant program provides funding for recycled-content  
            products that contain waste tires generated in California.   
            Grant applications for this program must use a minimum of  
            2,500 tires, but one application may be submitted for multiple  
            projects within a jurisdiction.  Eligible projects include  
            agricultural and landscaping, recreational, and transportation  
            projects.  The types of projects that have received funding  
            under this program include tire-derived mulch, playground  
            surfacing, weed abatement coverings, horse stalls and arenas,  
            sport field surfacing, sidewalks and pathways, railroad ties,  
            and sound barriers.  
           
             The TDA grant program provides funding for projects that use a  
            minimum of 500 tons of California -generated TDA, which is  
            construction aggregate made from shredded waste tires.  It is  
            used for a wide range of public works projects and other civil  
            engineering applications, including slope stabilization,  
            retaining wall backfill, lightweight embankment fill,  
            vibration mitigation, and some landfill applications.   

             The RAC grant program provides grants for recycled-content  
            road surfacing products derived from waste tires generated in  
            California.  The grant amount is based on the difference in  
            cost between conventional asphalt concrete and RAC.  Eligible  
            projects must use a minimum of 3,500 tons of RAC or 35,000  
            square yards of RAC chip seal material.  

           3)RAC use by Caltrans  .  AB 338 (Levine), Chapter 709, Statutes  
            of 2005 established the requirement that Caltrans use a  
            minimum amount of recycled tires in paving projects, including  
            the requirement that 50 percent of asphalt containing crumb  
            rubber be RAC.  This bill extends this requirement for an  
            additional five years, until 2020.  When AB 338 was enacted,  
            it was expected that there would be an American Society for  
            Testing and Materials (ASTM) standard specification for other  
            types of asphalt containing crumb rubber before the sunset  
            date of 2015; however, ASTM has not yet developed additional  
            standards.  

          According to CalRecycle, RAC reduces overall project costs due  
            to less maintenance, increases safety due to its  
            skid-resistant surface and prolonged color contrast, and  








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            reduces noise pollution with noticeably lower tire noise.  It  
            has an additional benefit of being manufactured in California  
            using California-generated tires.  Alternative types of  
            asphalt containing crumb rubber are primarily manufactured out  
            of state (out of non-California tires) and transported by rail  
            into California.  

           4)This bill .  According to the author:  

               AB 2658 will ensure that parklets and greenways receive due  
               consideration for TDP grants, and will ensure that  
               preference is given to projects in disadvantaged  
               communities, which are often "park poor," offering little  
               relief from the urban environment.  Additionally, by  
               continuing to require [Caltrans] to use RAC for state  
               highway construction and repair, AB 2658 will help  
               California continue to lead the way in resource recovery  
               and recycling?  


           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Californians against Waste
          California League of Conservation Voters
          CRM Company 
          Los Angeles County Solid Waste Management Committee/Integrated  
          Waste Management Task Force
          Rubber Pavements Association

           Opposition 
           
          None on file

           
          Analysis Prepared by  :    Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092