AB 525 Page 1 Date of Hearing: April 4, 2011 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Wesley Chesbro, Chair AB 525 (Gordon) – As Introduced: February 15, 2011 SUBJECT: Solid waste: tire recycling SUMMARY: Allows CalRecycle to award grants from the California Tire Recycling Management Fund to cities, counties, and other local government agencies for the funding of public works projects that use waste tires. EXISTING LAW: 1) Requires, pursuant to the California Tire Recycling Act (Act), the Department of Resources Recycling and Recovery (CalRecycle) to administer a tire recycling program that promotes and develops alternatives to the landfill disposal of used whole tires. The tire recycling program may include, among other things, the awarding of grants, subsidies, and loans to businesses or other enterprises, and public entities, involved in activities that result in reduced landfill disposal or stockpiling of used whole tires. Activities eligible for funding may include the manufacturing of products made from used tires such as rubberized asphalt and crash barriers. 2) Requires CalRecycle to adopt a five-year plan, which must be updated every two years, to establish goals and priorities for the tire recycling program. Every two years, CalRecycle is required to submit the adopted five-year plan to the Legislature. 3) The tire recycling program under the Act is funded by the California Tire Recycling Management Fund (Fund). The Fund is supported by the California tire fee, which is a $1.75 per tire charge imposed on a person who purchases a new tire. THIS BILL: 1) Allows CalRecycle, as part of the tire recycling program, to award grants to cities, counties, and other local government agencies for the funding of public works projects that use waste tires. The provisions in the Act regarding local government public works projects will sunset on June 30, 2015. 2) Requires CalRecycle, as part of the five year plan and until June 30, 2015, to describe the grant program’s effectiveness to encourage the use of waste tires, including, but not limited to, rubberized asphalt concrete technology, in public works projects. FISCAL EFFECT: Unknown COMMENTS: 1) Background: According to CalRecycle, since passage of the Act in 1989, California has dramatically increased the number of waste tires diverted from landfill disposal and sent to beneficial end uses. CalRecycle estimates that in 2009, Californians generated 41.3 million AB 525 Page 2 waste tires. The beneficial use of 30 million of these tires represents a recycling rate of 72.7 percent in 2009. 2) Extending June 30, 2010 Sunset Date: The bill revives a similar statute that was added by SB 1346 (Kuehl) in 2002, extended by SB 369 (Simitian) in 2006, and sunset on June 30, 2010. Reviving this statute is important because recycled tires have a myriad of uses for public works projects. For example, tires can be used for road paving, street resurfacing, sidewalks, weed abatement, vibration-damping material in light-rail systems, overpass fill, levee slurry walls, retaining wall fill, roadway base fill, and bridge abutment fill. Use of recycled tires for public works projects can also lead to significant cost savings and added benefits. In particular for road paving, use of recycled tires can provide improvements of increased skid resistance, reduced road noise, and improved riding qualities. Under existing law, CalRecycle can award grants to public entities involved in activities and applications that result in reduced landfill disposal of used whole tires and reduced illegal disposal or stockpiling of used whole tires. Without the bill, CalRecycle can use this authority to award grants to local government agencies for the funding of public works projects. The purpose of the bill, however, is to specifically authorize the funding of public works projects and to ensure that there is at least a minimum level of funding. 3) Suggested Amendments: The bill requires that to the extent possible, the funds appropriated for these public works projects "shall not be less than __ percent" of the amount of funds appropriated for market development and new technology activities for waste tires. The statute that sunset on June 30, 2010 provided a 16 percent standard for this requirement. The author may wish to consider amending the bill to include the 16 percent standard unless there are compelling reasons to adopt a different percentage. REGISTERED SUPPORT / OPPOSITION: Support Californians Against Waste California Resource Recovery Association California State Association of Counties City of Lakewood CRM Company Regional Council of Rural Counties Opposition Rubber Manufacturers Association Analysis Prepared by: Mario DeBernardo / NAT. RES. / (916) 319-2092