BILL ANALYSIS                                                                                                                                                                                                    �



                                                                AB 2658
                                                                Page 1


        ASSEMBLY THIRD READING
        AB 2658 (Bocanegra)
        As Amended  April 21, 2014
        Majority vote 

         NATURAL RESOURCES   5-1         APPROPRIATIONS      12-4        
         
         ----------------------------------------------------------------- 
        |Ayes:|Chesbro, Garcia,          |Ayes:|Gatto, Bocanegra,         |
        |     |Muratsuchi, Stone,        |     |Bradford,                 |
        |     |Williams                  |     |Ian Calderon, Campos,     |
        |     |                          |     |Eggman, Gomez, Holden,    |
        |     |                          |     |Pan, Quirk,               |
        |     |                          |     |Ridley-Thomas, Weber      |
        |     |                          |     |                          |
        |-----+--------------------------+-----+--------------------------|
        |Nays:|Patterson                 |Nays:|Bigelow, Donnelly, Jones, |
        |     |                          |     |Wagner                    |
         ----------------------------------------------------------------- 
         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).  Specifically,  this bill  :  
         
        1)Extends the requirement that 50% 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.  

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

        5)Defines "greenway" as a travel corridor for pedestrians, bicycles,  
          nonmotorized vehicle transportation, recreation, or a combination  








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          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.  

         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 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  








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          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% 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% 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.   

         FISCAL EFFECT  :  According to the Assembly Appropriations Committee:

        1)Negligible, if any costs to Caltrans.

        2)Potential grant funding shifts in the TDP due to prioritizing  
          projects in disadvantaged communities and expanding funding  
          authorization.  

        3)No additional costs for CalRecyle to administer the TDP.

         COMMENTS  :  According to CalRecycle, approximately 40 million waste  
        tires are generated in California every year.  CalRecycle's  
        diversion goal is 90%; the most recent Five-Year Plan (2011) states  
        that the current diversion rate is around 74%.  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.  








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        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.  

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

        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% of asphalt  








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        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 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 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.  

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


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