BILL ANALYSIS                                                                                                                                                                                                    �






           SENATE TRANSPORTATION & HOUSING COMMITTEE       BILL NO: ab 2658
          SENATOR MARK DESAULNIER, CHAIRMAN              AUTHOR:  bocanegra
                                                         VERSION: 4/21/14
          Analysis by:  Eric Thronson                    FISCAL:  yes
          Hearing date:  June 26, 2014



          SUBJECT:

          Caltrans use of asphalt containing crumb rubber

          DESCRIPTION:

          This bill extends the requirement for the California Department  
          of Transportation (Caltrans) to use rubberized asphalt concrete  
          for at least 50% of its rubberized asphalt from 2015 until 2020.

          ANALYSIS:

          In 2005, the Legislature passed and the governor signed AB 338  
          (Levine), Chapter 709, which requires Caltrans to use a specific  
          percentage of crumb rubber per metric ton of the total amount of  
          asphalt paving materials it uses each year.  Specifically, as of  
          2013 Caltrans is required to use, on an annual average, 11.58  
          pounds of crumb rubber per metric ton of the total amount of  
          asphalt paving materials Caltrans used in the course of  
          constructing and repairing the state highway system.  According  
          to Caltrans, in order to comply with this requirement, 35% of  
          all asphalt it uses must be asphalt containing crumb rubber.

          AB 338 also specifies that, until 2015, at least 50% of the  
          asphalt containing crumb rubber Caltrans uses must be a specific  
          type of product, called rubberized asphalt concrete (RAC).   
          After January 1, 2015, Caltrans is no longer required to use a  
          certain percentage of RAC, and can use any amount of any type of  
          rubberized asphalt in order to meet the statutory minimum  
          requirements.
          
          In 1990, the Legislature passed and the governor signed SB 937  
          (Vuich), Chapter 35, also known as the California Tire Recycling  
          Act, which, among other things, authorizes the California  
          Department of Resources Recycling and Recovery (CalRecycle) to  
          award grants, subsidies, rebates, and loans to businesses and  
          public entities that result in reduced landfill disposal of used  
          tires.




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           This bill  :
          
           Extends the requirement that Caltrans use RAC for at least 50%  
            of the total required crumb-rubber asphalt from 2015 to 2020

           Clarifies that CalRecycle can award grants for greenways and  
            parklets, as defined
          



          COMMENTS:

           1.Purpose  .  According to the author, this bill will increase the  
            market for both RAC and for tire-derived products made from  
            recycled waste tires, thereby decreasing the amount of tires  
            that end up in landfills.  The author contends that this bill  
            will help to alleviate the detrimental public health and  
            environmental impacts of waste tires, while furthering the  
            innovation of new and useful applications for products made  
            from waste tires.  

           2.Redirecting used tires  .  The Legislature, through a variety of  
            bills like AB 338, has communicated clearly its priority that  
            used tires be redirected to reuse and not dumped in landfills.  
             According to CalRecycle, California produces more than 40  
            million used tires each year.  Without identifying new uses  
            for these worn-out tires, they end up in landfills or  
            elsewhere, where they take decades to decompose.  CalRecycle  
            is dedicated to finding new uses for this valuable resource,  
            and in 2010 over 80% of these tires were diverted from  
            landfills through various alternatives, including reuse,  
            retreading, and civil engineering projects.    

            According to Caltrans, it can effectively utilize used tires  
            in a number of ways in construction and repair of the state  
            highway system.  For example, recently Caltrans used 270,000  
            tires as lightweight fill in the realignment of State Highway  
            101 in Mendocino County.  Caltrans has also used ground tires  
            for retaining walls and as fill to repair landslides.  AB 338  
            provides another example, as it requires Caltrans to use  
            shredded tires, called crumb rubber, in the asphalt paving of  
            state highways.  According to Caltrans, its use of  
            crumb-rubber asphalt diverted more than 4.5 million waste  
            tires in 2012.  




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           3.Two ways to use crumb rubber in asphalt  .  In relatively simple  
            terms, there are primarily two ways in which used tires can be  
            added to asphalt:  

                 Rubberized asphalt concrete.  Also known as the field  
               blend process, RAC consists of finely-shredded rubber  
               fragments mixed into the concrete, similar to the way small  
               gravel and other aggregates are used for various purposes.   


                 Rubber-modified binder.  Alternatively, rubber-modified  
               binder, also known as terminal blend, is a product created  
               at a refinery by essentially melting rubber into the  
               concrete mix before the other aggregates are added to  
               create the asphalt.  

            According to Caltrans, these two options perform similarly but  
            are often used in different settings.  For example, Caltrans  
            asserts that it only applies RAC as a thin top layer to  
            highway lanes because of its properties, whereas the terminal  
            blend binder can be applied more thickly.  

            Because of the processes through which each product is  
            created, there are differences in the way Caltrans confirms  
            the amount of rubber each contains.  RAC producers participate  
            in a Caltrans review process called a Material Plant Quality  
            Program in which Caltrans employees regularly test and verify  
            the producers' various mechanisms for creating RAC.  Terminal  
            blend producers, on the other hand, because the product is  
            produced at refineries, are regulated by the Division of  
            Measurement Standards (Weights and Measures) within the  
            California Department of Food and Agriculture.  Weights and  
            Measures provides to Caltrans a certificate of compliance  
            verifying the refineries' rubberized asphalt-making  
            mechanisms.

           1.Existing law favors one product over the other  .  As previously  
            mentioned, AB 338 specified that at least 50% of the asphalt  
            Caltrans uses to meet statutory requirements must be RAC.   
            Caltrans reports that, due to the state's contract rules, this  
            requirement has led to Caltrans using RAC almost exclusively  
            to meet the minimum threshold.  In its recent report, Caltrans  
            indicated that 92% of all the applied asphalt containing crumb  
            rubber was RAC in 2012.  The other eight percent Caltrans used  
            was only through pilot testing of the terminal blend products.




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            Californians Against Waste (CAW), the sponsor of AB 338,  
            contends that favoring RAC over other crumb-rubber products at  
            the time was intentional for two reasons.  First, Caltrans had  
            developed specifications for RAC and had not yet done so for  
            other products.  Therefore, RAC was immediately accessible.   
            Second, CAW recognized other environmental benefits to RAC  
            that were not, at the time, apparent with the other products.   
            In the past 10 years, Caltrans has addressed both these  
            concerns and CAW has indicated that favoring RAC over other  
            products may not be reasonable if it potentially limits  
            Caltrans' ability to properly recycle as many used tires as  
            possible.

            This bill continues to favor RAC over alternative crumb-rubber  
            products for five additional years.
          
           2.Let Caltrans use as much crumb rubber as possible  .  The  
            Legislature has prioritized recycling used tires, and part of  
            that effort includes pushing Caltrans to adopt means for  
            incorporating crumb rubber in its asphalt.  In 2005, when AB  
            338 became law, there were questions about how Caltrans might  
            pursue this effort.  Today, Caltrans has demonstrated an  
            appetite for crumb-rubber asphalt and seems intent on meeting  
            the Legislature's expectations.  It seems reasonable, at this  
            time, for the Legislature to simply set a minimum threshold of  
            crumb rubber for Caltrans to achieve, and then let Caltrans  
            determine the best way to get there.  

            At the same time, by providing Caltrans more flexibility to  
            meet the Legislature's expectation, it seems reasonable to  
            increase that minimum threshold to some degree, forcing  
            Caltrans to stretch and continue improving.  

            Producers of both types of crumb rubber products suggest they  
            can manufacture products at a certain quality level.  The  
            Legislature should require Caltrans to meet that quality  
            expectation by putting in statute that the asphalt containing  
            crumb rubber used to meet the minimum threshold must contain  
            at least 20% rubber.

            Finally, it is important that Caltrans be able to verify that  
            its contractors are using the amount of rubber called for in  
            their contracts.  It seems unfair for one producer-type to be  
            subject to Caltrans' Material Plant Quality Program, while  
            other producers are exempt from this verification process.




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            To that end, the committee may wish to amend the bill in the  
            following manner:

                 Change the 50% RAC requirement back to sunset in 2015  
               instead of 2020.

                 Set a new goal of more crumb rubber per ton of asphalt  
               to ensure Caltrans continues to increase its recycling  
               measures.
                 Require all asphalt rubber used to meet the minimum  
               threshold to contain at least 20% rubber.
               
                 Require that all producers of crumb-rubber asphalt be  
               subject to some sort of Material Plant Quality Program  
               process approved by Caltrans.

           1.Double-referral  .  Senate Environmental Quality Committee heard  
            this bill on June 18th and dealt with the provisions related  
            to CalRecycle at that time.  The bill passed out of that  
            committee on a 5 to 1 vote.

           2.Technical amendments :

                 On page 2, line 9, replace "6.62" with "6.01"
                 On page 3, line 1, delete "metric"
                 On page 3, line 4, replace "8.27" with "7.50"
                 On page 3, line 5, delete "metric"
                 On page 3, line 8, replace "11.58" with "10.51"
                 On page 3, line 9, delete "metric"
          
          Assembly Votes:

               Floor:    54-22
               Appr: 12-4
               Nat Res:  5-1

          POSITIONS:  (Communicated to the committee before noon on  
          Monday,June 23, 2014.)

               SUPPORT:  California League of Conservation Voters
                         Californians Against Waste
                         City of Los Angeles, Mayor Eric Garcetti
                         CRM Company 
                         Manhole Adjusting, Inc.
                         Rubber Pavements Association




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                         Western Pavement Maintenance Association

               OPPOSED:  Ergon Asphalt & Emulsions
                         Pacific Northwest Oil Company
                         Paramount Petroleum Company
                         San Joaquin Refining Co.
                         Telfer Oil Company 
                         Valero