BILL ANALYSIS                                                                                                                                                                                                    �



                                                               AB 2658
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                              Senator Jerry Hill, Chair
                              2013-2014 Regular Session
                                           
           BILL NO:    AB 2658
           AUTHOR:     Bocanegra
           AMENDED:    April 21, 2014
           FISCAL:     Yes               HEARING DATE:     June 18, 2014
           URGENCY:    No                CONSULTANT:       Joanne Roy
            
           SUBJECT  :    RECYCLING:  WASTE TIRES:  PUBLIC WORKS PROJECTS

            SUMMARY  :    
           
            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 rubberized asphalt  
              concrete (RAC), tire derived products (TDPs), and tire  









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              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 disability access projects at parks  
              and Class I bikeways.  Sunsets this program on June 30,  
              2019.  

           7) Requires the California Department of Transportation  
              (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.   

            This bill  :  

           1) Extends the requirement that 50% of asphalt paving  
              materials used by Caltrans be RAC from January 1, 2015 to  
              January 1, 2020.  

           2) Clarifies that parklets and greenways are eligible for  









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              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 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 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.  

            COMMENTS  :

            1) Purpose of 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?" 

            2) Tire management in California .  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  









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                   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; and,  
                        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.  

            1) Waste Tire Recycling and Grant Programs  .  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.  

               a)    TDP Grant Program  .  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.  

               b)    TDA Grant Program  .  The TDA grant program provides  









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                 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.  

               c)    RAC Grant Program  .  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.  

            2) 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% 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  
              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.  

            3) Double Referral to Senate Transportation and Housing  
              Committee  .  If this measure is approved by the Senate  
              Environmental Quality Committee, the do pass motion must  
              include the action to re-refer the bill to the Senate  









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              Transportation and Housing Committee.


            SOURCE  :        Author  

           SUPPORT  :       California League of Conservation Voters
                          City of Los Angeles 
                          Crumb Rubber Manufacturers of Rancho Dominguez
                          Rubber Pavements Association
            
           OPPOSITION  :    None on file