SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 SB 225 THIRD READING Bill No: Author: Introduced: Vote: SB 225 Wieckowski (D) 2/13/15 21 SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-2, 4/15/15 AYES: Wieckowski, Hill, Jackson, Leno, Pavley NOES: Gaines, Bates SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8 SUBJECT: Recycling: used tires SOURCE: Author DIGEST: This bill requires the Department of Resources Recycling and Recovery (CalReycle), when updating the five-year plan and expending funds pursuant to the California Tire Recycling Act, to ensure that the plan and expenditure of those funds reflect the California Integrated Waste Management Act’s priorities for waste reduction and recycling. ANALYSIS: Existing law: 1) Under the California Integrated Waste Management Act of 1989 (Public Resources Code (PRC) §40000 et seq.): a) Specifies a state policy goal of 75% of recycling, composting or source reduction of solid waste by 2020. b) Requires each local jurisdiction to divert 50% of solid waste from landfill disposal. SB 225 Page 2 2) Under the California Tire Recycling Act (PRC §42860 et seq.): a) Requires CalRecycle to administer a tire recycling program that promotes and develops alternatives to the landfill disposal of waste tires. The tire recycling program may include, among other things, grants, subsidies, and loans to businesses or other enterprises and public entities involved in activities that result in reduced landfill disposal or stockpiling of waste tires. Activities eligible for funding may include the manufacturing of products made from used tires such as rubberized asphalt and crash barriers. b) 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. c) 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. d) Authorizes CalRecycle to award grants, subsidies, rebates, and loans to businesses and public entities that result in reduced landfill disposal of used tires. This bill requires CalRecycle, when updating the five-year plan and expending funds pursuant to the California Tire Recycling Act, to ensure that the plan and expenditure of those funds reflect the California Integrated Waste Management Act’s priorities for waste reduction and recycling. Background According to CalRecycle, approximately 40 million waste tires are generated in California every year. The California Tire Recycling Act requires CalRecycle to administer a tire recycling program that promotes and develops alternatives to the landfill disposal of waste tires. The tire recycling program may include, among other things, grants, subsidies, and loans to businesses or other enterprises and public entities involved in activities that result in reduced landfill disposal or SB 225 Page 3 stockpiling of waste tires. Activities for funding may include the manufacturing of products made from used tires, such as rubberized asphalt and crash barriers. The California Tire Recycling Act requires CalRecycle to adopt a five-year plan, which must be updated every two years. The five-year plan establishes goals and priorities for the waste tire recycling program and identifies programmatic and fiscal issues, performance objectives, and measurement criteria. Comments 1) Purpose of bill. According to the author, “The California Integrated Waste Management Act specifies the statewide goal of diverting from landfills not less than 75% of solid waste by source-reducing, recycling or composting by 2020. However, the statutory goal does not address how various waste streams will be reduced to meet the goal. This bill is intended to address a particular source of waste in meeting the 75% goal by ensuring that the state’s five-year plan for recycling waste tires and that funds appropriated for this purpose reflect the state’s overall priorities for solid waste reduction and recycling.” 2) Waste tire diversion rates. According to CalRecycle, the department has a diversion goal of 90% for waste tires, with the overall diversion rate increased from 81% in 2010 to 88% in 2011. However, CalRecycle notes that this increase was largely due to the continued, unprecedented rapid growth in the export of waste tires to Pacific Rim nations, largely for use as tire-derived fuel (TDF), which is now the largest single end-use destination for California waste tires. If waste tire exports, TDF, and use as alternative daily cover for landfills are not included, then the diversion rate is only 44%. In addition, CalRecycle states that five million tires were landfilled in 2011. This bill is meant to ensure that the waste tire diversion rate is consistent with the state’s 75% goal of reducing solid waste by recycling, composting, or source reduction by 2020. Related/Prior Legislation AB 2658 (Bocanegra, 2014) would have clarified that “parklets” and “greenways” are eligible for grants for public works that use tire-derived products and requires CalRecycle, when awarding grants for parklets and greenways, to give priority to projects located in disadvantaged communities. AB 2658 also would have extended a sunset date relating to the use of rubberized asphalt concrete by the Department of Transportation. AB 2658 failed (4-3) in the Senate Transportation and Housing Committee. SB 225 Page 4 AB 513 (Frazier, Chapter 499, Statutes of 2013) established the Rubberized Asphalt Concrete (RAC) Market Development Act, which codified CalRecycle’s RAC grant program for local public works projects. AB 8 (Perea and Skinner, Chapter 401, Statutes of 2013) extended until January 1, 2024, various vehicle-related state and local fees and surcharges, including the California tire fee of $1.75 per tire, to fund vehicle-related air quality, greenhouse gas and related programs. AB 1647 (Gordon, Chapter 534, Statutes of 2012) revised the hearing and enforcement process for waste tire facility and waste tire hauling violations. SB 758 (Fuller, 2011) would have reduced the per tire fee required under the California Tire Recycling Act from $1.75 to $1.15. SB 758 died in the Senate Environmental Quality Committee. AB 525 (Gordon, Chapter 573, Statutes of 2011) required CalRecycle to award grants to cities, counties, and other local government agencies for the funding of public works projects that use waste tires; made the public works waste tire grant program inoperative on June 30, 2015; repealed the provision authorizing this program on January 1, 2016; and established the Architectural Paint Stewardship Account in the Integrated Waste Management Fund and the Architectural Paint Stewardship Penalty Subaccount in the Integrated Waste Management Fund, for purposes of program implementation. SB 369 (Simitian, Chapter 300, Statutes of 2006) extended the sunset date on the local government RAC grant program from 2007 to 2011, revised eligibility requirements for the program, and made related amendments. AB 338 (Levine, Chapter 709, Statutes of 2005) required the Department of Transportation to use certain percentages of “asphalt containing crumb rubber” for state highway or repair projects using asphalt as a construction material under certain conditions. FISCAL EFFECT: Appropriation: No SUPPORT: (Verified 4/27/15) None received Fiscal Com.: Yes Local: No SB 225 Page 5 OPPOSITION: (Verified 4/27/15) None received Prepared by: Joanne Roy / E.Q. / (916) 651-4108 5/1/15 14:40:12 **** END ****