AB 2908: Tire recycling: California tire regulatory fee and waste tire program.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2018-08-29
(1)The California Tire Recycling Act requires, until January 1, 2024, a person who purchases a new tire to pay a California tire fee of $1.75 per tire, for deposit in the California Tire Recycling Management Fund, for expenditure by the Department of Resources Recycling and Recovery upon appropriation by the Legislature, to fund the waste tire program and for other purposes, including to pay for the costs associated with a waste tire and used tire hauler program and manifest system, as provided. After January 1, 2024, existing law reduces the tire fee to $0.75 per tire.
Existing law requires any person generating waste tires or used tires that are transported or submitted for transportation, for offsite handling, altering, storage, disposal, or for any combination thereof, to complete a California Uniform Waste and Used Tire Manifest, as required by the department. Existing law requires a generator to provide the manifest to the waste and used tire hauler at the time of transfer of the tires, and to submit to the department, on a quarterly schedule, a legible copy of each manifest.
This bill would require, until January 1, 2024, upon a specified finding by the department, a waste tire generator that is a retail seller of new tires to end user purchasers to pay a California tire regulatory fee and to remit that fee to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The bill would require the department to track revenue from the California tire regulatory fee separately and would prohibit those funds from being used for activities other than those specified. The bill would require the department to identify the specific programs that the California tire regulatory fee would fund. The bill would require the department to establish the California tire regulatory fee in an amount that does not exceed $1 per new tire sold, and would require the department to base the amount of the fee on specified criteria, as provided. The bill would authorize the department to differentiate in setting the fees between the waste tire generators who are retail sellers depending upon the nature of the activity generating waste tires, the number of waste tires generated, and other appropriate bases.
The bill would require the department, prior to establishing the California tire regulatory fee or making any adjustment to the fee, to hold a public hearing, as specified. The bill would provide that an adjustment to the fee becomes effective on January 1 of the year following its adoption. The bill would require the department to adopt regulations to implement the initial California tire regulatory fee, and would authorize the department to adopt regulations to adjust the California tire regulatory fee, as specified.
(2)Existing law prohibits the California tire fee from being imposed on a tire sold with, or sold separately for use on, a self-propelled wheelchair, a motorized tricycle or motorized quadricycle, or a vehicle that is similar to a motorized tricycle or motorized quadricycle, as specified.
This bill would prohibit the California tire regulatory fee from being imposed on those same vehicles.
(3)Existing law establishes, as a part of the waste tire program, the tire recycling program, which promotes and develops alternatives to the landfill disposal of used whole tires. The program provides for grants to certain entities involved in activities that result in reduced landfill disposal of whole used tires, and development and implementation of a waste tire incentive payment program to promote increased demand for waste tires recycled in this state. Under the act, until June 30, 2019, the Rubberized Pavement Market Development Act provides for the award of grants to certain public agency projects that use rubberized asphalt concrete.
This bill would extend the operation of the Rubberized Pavement Market Development Act to January 1, 2020, and would enact the Tire Recycling Incentive Program Act. The bill would require the department to establish this incentive program to make payments to eligible entities that purchase tire products that are processed in the state from waste tire material for incorporation in products for sale to end users or for use in local public works projects, as specified. The bill would include as an eligible entity a city, county, city and county, or special district that uses rubberized asphalt products that incorporate California-generated waste tire material for a local public works pavement project, as provided. The bill would require that no less than 50% of the total annual value of incentive payments be made available to those local entities. The bill would require the department, on or before January 1, 2020, to hold a public workshop to develop a plan for the tire recycling incentive payment program, as specified. The bill would require the department to collect data from recipients of incentive payments and release that data annually in the California Waste Tire Market Report, as specified. The bill would require the department to evaluate the program in a public forum and propose changes accordingly. The bill would require the department, upon appropriation by the Legislature, to annually make available an allocation for incentive payments that is not less than 75% of the projected California tire fee revenue for that fiscal year at the time of the enactment of the annual Budget Act. The bill would authorize the department to reduce that allocation before the end of the fiscal year, if the department finds that actual California tire fee revenue falls short of projections.
(4)Existing law declares the intent of the Legislature to reduce the landfill disposal and stockpiling of used whole tires by 25% within 4 years of full implementation of a statewide tire recycling program and to recycle and reclaim used tires and used tire components to the greatest extent possible in order to recover valuable natural resources.
This bill would declare that it is the policy goal of the state that not less than 75% of solid waste tires generated be source reduced or recycled in the state annually. The bill would require the department, if that policy goal is met for 3 consecutive years, to review existing tire recycling programs and make recommendations, as specified.
(5)Existing law requires a person generating waste or used tires that are transported or submitted for transportation to submit a California Uniform Waste and Used Tire Manifest, as defined, to the waste and used tire hauler and to submit copies of the manifest to the department. A waste and used tire hauler is required to possess that manifest while transporting waste or used tires, and the operator of a waste or used tire facility is required to submit a copy of the manifest to the department and the generator. Existing law requires the department to develop and implement a system for auditing manifests, including continuously conducting random sampling and matching of manifests.
This bill would revise those provisions to, among other things, require a waste and used tire hauler, on and after January 1, 2020, to submit an electronic manifest, instead of a paper manifest, to the department within 7 days of the date of the pickup or delivery for each load of waste or used tires transported.
(6)This measure would declare that its provisions are severable.
(1)The California Tire Recycling Act requires, until January 1, 2024, a person who purchases a new tire to pay a California tire fee of $1.75 per tire, for deposit in the California Tire Recycling Management Fund, for expenditure by the Department of Resources Recycling and Recovery upon appropriation by the Legislature, to fund the waste tire program and for other purposes, including to pay for the costs associated with a waste tire and used tire hauler program and manifest system, as provided. After January 1, 2024, existing law reduces the tire fee to $0.75 per tire.
Existing law requires any person generating waste tires or used tires that are transported or submitted for transportation, for offsite handling, altering, storage, disposal, or for any combination thereof, to complete a California Uniform Waste and Used Tire Manifest, as required by the department. Existing law requires a generator to provide the manifest to the waste and used tire hauler at the time of transfer of the tires, and to submit to the department, on a quarterly schedule, a legible copy of each manifest.
This bill would require, until January 1, 2024, upon a specified finding by the department, a waste tire generator that is a retail seller of new tires to end user purchasers to pay a California tire regulatory fee and to remit that fee to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The bill would require the department to track revenue from the California tire regulatory fee separately and would prohibit those funds from being used for activities other than those specified. The bill would require the department to identify the specific programs that the California tire regulatory fee would fund. The bill would require the department to establish the California tire regulatory fee in an amount that does not exceed $1 per new tire sold, and would require the department to base the amount of the fee on specified criteria, as provided. The bill would authorize the department to differentiate in setting the fees between the waste tire generators who are retail sellers depending upon the nature of the activity generating waste tires, the number of waste tires generated, and other appropriate bases.
The bill would require the department, prior to establishing the California tire regulatory fee or making any adjustment to the fee, to hold a public hearing, as specified. The bill would provide that an adjustment to the fee becomes effective on January 1 of the year following its adoption. The bill would require the department to adopt regulations to implement the initial California tire regulatory fee, and would authorize the department to adopt regulations to adjust the California tire regulatory fee, as specified.
(2)Existing law prohibits the California tire fee from being imposed on a tire sold with, or sold separately for use on, a self-propelled wheelchair, a motorized tricycle or motorized quadricycle, or a vehicle that is similar to a motorized tricycle or motorized quadricycle, as specified.
This bill would prohibit the California tire regulatory fee from being imposed on those same vehicles.
(3)Existing law establishes, as a part of the waste tire program, the tire recycling program, which promotes and develops alternatives to the landfill disposal of used whole tires. The program provides for grants to certain entities involved in activities that result in reduced landfill disposal of whole used tires, and development and implementation of a waste tire incentive payment program to promote increased demand for waste tires recycled in this state. Under the act, until June 30, 2019, the Rubberized Pavement Market Development Act provides for the award of grants to certain public agency projects that use rubberized asphalt concrete.
This bill would repeal extend the operation of the Rubberized Pavement Market Development Act to January 1, 2020, and instead would enact the Tire Recycling Incentive Program Act. The bill would require the department to establish this incentive program to make payments to eligible entities that purchase tire products that are processed in the state from waste tire material for incorporation in products for sale to end users or for use in local public works projects, as specified. The bill would include as an eligible entity a city, county, city and county, or special district that uses rubberized asphalt products that incorporate California-generated waste tire material for a local public works pavement project, as provided. The bill would require that no less than 50% of the total annual value of incentive payments be made available to those local entities. The bill would require the department, on or before January 1, 2020, to hold a public workshop to develop a plan for the tire recycling incentive payment program, as specified. The bill would require the department to collect data from recipients of incentive payments and release that data annually in the California Waste Tire Market Report, as specified. The bill would require the department to evaluate the program in a public forum and propose changes accordingly. The bill would require the department, upon appropriation by the Legislature, to annually make available an allocation for incentive payments that is not less than 75% of the projected California tire fee revenue for that fiscal year at the time of the enactment of the annual Budget Act. The bill would authorize the department to reduce that allocation before the end of the fiscal year, if the department finds that actual California tire fee revenue falls short of projections.
(4)Existing law declares the intent of the Legislature to reduce the landfill disposal and stockpiling of used whole tires by 25% within 4 years of full implementation of a statewide tire recycling program and to recycle and reclaim used tires and used tire components to the greatest extent possible in order to recover valuable natural resources.
This bill would declare that it is the policy goal of the state that not less than 75% of solid waste tires generated be source reduced or recycled in the state annually. The bill would require the department, if that policy goal is met for 3 consecutive years, to review existing tire recycling programs and make recommendations, as specified.
(5)Existing law requires a person generating waste or used tires that are transported or submitted for transportation to submit a California Uniform Waste and Used Tire Manifest, as defined, to the waste and used tire hauler and to submit copies of the manifest to the department. A waste and used tire hauler is required to possess that manifest while transporting waste or used tires, and the operator of a waste or used tire facility is required to submit a copy of the manifest to the department and the generator. Existing law requires the department to develop and implement a system for auditing manifests, including continuously conducting random sampling and matching of manifests.
This bill would revise those provisions to, among other things, require a waste and used tire hauler, on and after January 1, 2020, to submit an electronic manifest, instead of a paper manifest, to the department within 7 days of the date of the pickup or delivery for each load of waste or used tires transported.
(6)This measure would declare that its provisions are severable.
(1)The California Tire Recycling Act requires, until January 1, 2024, a person who purchases a new tire to pay a California tire fee of $1.75 per tire, for deposit in the California Tire Recycling Management Fund, for expenditure by the Department of Resources Recycling and Recovery upon appropriation by the Legislature, to fund the waste tire program and for other purposes, including to pay for the costs associated with a waste tire and used tire hauler program and manifest system, as provided. After January 1, 2024, existing law reduces the tire fee to $0.75 per tire.
Existing law requires any person generating waste tires or used tires that are transported or submitted for transportation, for offsite handling, altering, storage, disposal, or for any combination thereof, to complete a California Uniform Waste and Used Tire Manifest, as required by the department. Existing law requires a generator to provide the manifest to the waste and used tire hauler at the time of transfer of the tires, and to submit to the department, on a quarterly schedule, a legible copy of each manifest.
This bill would require, until January 1, 2024, upon a specified finding by the department, a waste tire generator that is a retail seller of new tires to end user purchasers to pay a California tire regulatory fee and to remit that fee to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The bill would require the department to track revenue from the California tire regulatory fee separately and would prohibit those funds from being used for activities other than those specified. The bill would require the department to identify the specific programs that the California tire regulatory fee would fund. The bill would require the department to establish the California tire regulatory fee in an amount that does not exceed $1 per new tire sold, and would require the department to base the amount of the fee on specified criteria, as provided. The bill would authorize the department to differentiate in setting the fees between the waste tire generators who are retail sellers depending upon the nature of the activity generating waste tires, the number of waste tires generated, and other appropriate bases.
The bill would require the department, prior to establishing the California tire regulatory fee or making any adjustment to the fee, to hold a public hearing, as specified. The bill would provide that an adjustment to the fee becomes effective on January 1 of the year following its adoption. The bill would require the department to adopt regulations to implement the initial California tire regulatory fee, and would authorize the department to adopt regulations to adjust the California tire regulatory fee, as specified.
(2)Existing law prohibits the California tire fee from being imposed on a tire sold with, or sold separately for use on, a self-propelled wheelchair, a motorized tricycle or motorized quadricycle, or a vehicle that is similar to a motorized tricycle or motorized quadricycle, as specified.
This bill would prohibit the California tire regulatory fee from being imposed on those same vehicles.
(3)Existing law establishes, as a part of the waste tire program, the tire recycling program, which promotes and develops alternatives to the landfill disposal of used whole tires. The program provides for grants to certain entities involved in activities that result in reduced landfill disposal of whole used tires, and development and implementation of a waste tire incentive payment program to promote increased demand for waste tires recycled in this state. Under the act, until June 30, 2019, the Rubberized Pavement Market Development Act provides for the award of grants to certain public agency projects that use rubberized asphalt concrete.
This bill would repeal the Rubberized Pavement Market Development Act and instead enact the Tire Recycling Incentive Program Act. The bill would require the department to establish this incentive program to make payments to eligible entities that purchase tire products that are processed in the state from waste tire material for incorporation in products for sale to end users or for use in local public works projects, as specified. The bill would include as an eligible entity a city, county, city and county, or special district that uses rubberized asphalt products that incorporate California-generated waste tire material for a local public works pavement project, as provided. The bill would require the department, on or before January 1, 2020, to hold a public workshop to develop a plan for the tire recycling incentive payment program, as specified. The bill would require the department to collect data from recipients of incentive payments and release that data annually in the California Waste Tire Market Report, as specified. The bill would require the department to evaluate the program in a public forum and propose changes accordingly. The bill would require the department, upon appropriation by the Legislature, to annually make available an allocation for incentive payments that is not less than 75% of the projected California tire fee revenue for that fiscal year at the time of the enactment of the annual Budget Act. The bill would authorize the department to reduce that allocation before the end of the fiscal year, if the department finds that actual California tire fee revenue falls short of projections.
(4)Existing law declares the intent of the Legislature to reduce the landfill disposal and stockpiling of used whole tires by 25% within 4 years of full implementation of a statewide tire recycling program and to recycle and reclaim used tires and used tire components to the greatest extent possible in order to recover valuable natural resources.
This bill would declare that it is the policy goal of the state that not less than 75% of solid waste tires generated be source reduced or recycled in the state. state annually. The bill would require the department, if that policy goal is met for 3 consecutive years, to review existing tire recycling programs and make recommendations, as specified.
(5)Existing law requires a person generating waste or used tires that are transported or submitted for transportation to submit a California Uniform Waste and Used Tire Manifest, as defined, to the waste and used tire hauler and to submit copies of the manifest to the department. A waste and used tire hauler is required to possess that manifest while transporting waste or used tires, and the operator of a waste or used tire facility is required to submit a copy of the manifest to the department and the generator. Existing law requires the department to develop and implement a system for auditing manifests, including continuously conducting random sampling and matching of manifests.
This bill would revise those provisions to, among other things, require a waste and used tire hauler, on and after January 1, 2020, to submit an electronic manifest, instead of a paper manifest, to the department within 7 days of the date of the pickup or delivery for each load of waste or used tires transported.
(1)The California Tire Recycling Act requires, until January 1, 2024, a person who purchases a new tire to pay a California tire fee of $1.75 per tire, for deposit in the California Tire Recycling Management Fund, for expenditure by the Department of Resources Recycling and Recovery upon appropriation by the Legislature, to fund the waste tire program and for other purposes, including to pay for the costs associated with a waste tire and used tire hauler program and manifest system, as provided. After January 1, 2024, existing law reduces the tire fee to $0.75 per tire.
Existing law requires any person generating waste tires or used tires that are transported or submitted for transportation, for offsite handling, altering, storage, disposal, or for any combination thereof, to complete a California Uniform Waste and Used Tire Manifest, as required by the department. Existing law requires a generator to provide the manifest to the waste and used tire hauler at the time of transfer of the tires, and to submit to the department, on a quarterly schedule, a legible copy of each manifest.
This bill would require, until January 1, 2024, upon a specified finding by the department, a waste tire generator that is a retail seller of new tires to end user purchasers to pay a California tire regulatory fee and to remit that fee to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The bill would require the department to track revenue from the California tire regulatory fee separately and would prohibit those funds from being used for activities other than those specified. The bill would require the department to identify the specific programs that the California tire regulatory fee would fund. The bill would require the department to establish the California tire regulatory fee in an amount that does not exceed $1 per new tire sold, and would require the department to base the amount of the fee on specified criteria, as provided. The bill would authorize the department to differentiate in setting the fees between the waste tire generators who are retail sellers depending upon the nature of the activity generating waste tires, the number of waste tires generated, and other appropriate bases.
The bill would require the department, prior to establishing the California tire regulatory fee or making any adjustment to the fee, to hold a public hearing, as specified. The bill would provide that an adjustment to the fee becomes effective on January 1 of the year following its adoption. The bill would require the department to adopt regulations to implement the initial California tire regulatory fee, and would authorize the department to adopt regulations to adjust the California tire regulatory fee, as specified.
(2)Existing law prohibits the California tire fee from being imposed on a tire sold with, or sold separately for use on, a self-propelled wheelchair, a motorized tricycle or motorized quadricycle, or a vehicle that is similar to a motorized tricycle or motorized quadricycle, as specified.
This bill would prohibit the California tire regulatory fee from being imposed on those same vehicles.
(3)Existing law establishes, as a part of the waste tire program, the tire recycling program, which promotes and develops alternatives to the landfill disposal of used whole tires. The program provides for grants to certain entities involved in activities that result in reduced landfill disposal of whole used tires, and development and implementation of a waste tire incentive payment program to promote increased demand for waste tires recycled in this state. Under the act, until June 30, 2019, the Rubberized Pavement Market Development Act provides for the award of grants to certain public agency projects that use rubberized asphalt concrete.
This bill would repeal the Rubberized Pavement Market Development Act and instead enact the Tire Recycling Incentive Program Act. The bill would require the department to establish this incentive program to make payments to eligible entities that purchase tire products that are processed in the state from waste tire material for incorporation in products for sale to end users or for use in local public works projects, as specified. The bill would specify eligible entities for purposes of the act, and would differentiate between entities that sell a tire product to an end user, and entities that use a tire product in a local public works project. The bill would authorize the department, on or after January 1, 2022, to change which type of entities are eligible for incentives for using a tire product in a local public works project. include as an eligible entity a city, county, city and county, or special district that uses rubberized asphalt products that incorporate California-generated waste tire material for a local public works pavement project, as provided. The bill would require the department, on or before January 1, 2020, to hold a public workshop to develop a plan for the tire recycling incentive payment program, as specified. The bill would require the department to collect data from recipients of incentive payments and release that data annually in the California Waste Tire Market Report, as specified. The bill would require the department to evaluate the program in a public forum and propose changes accordingly. The bill would require the department, upon appropriation by the Legislature, to annually make available an allocation for incentive payments that is not less than 75 percent 75% of the projected California tire fee revenue for that fiscal year at the time of the enactment of the annual Budget Act. The bill would authorize the department to reduce that allocation before the end of the fiscal year, if the department finds that actual California tire fee revenue falls short of projections.
(4)Existing law declares the intent of the Legislature to reduce the landfill disposal and stockpiling of used whole tires by 25% within 4 years of full implementation of a statewide tire recycling program and to recycle and reclaim used tires and used tire components to the greatest extent possible in order to recover valuable natural resources.
This bill would declare that it is the policy goal of the state that not less than 75% of solid waste tires generated be source reduced or recycled in the state by the year 2020. state. The bill would require the department, if that policy goal is met for 3 consecutive years, to review existing tire recycling programs and make recommendations, as specified.
(5)Existing law requires a person generating waste or used tires that are transported or submitted for transportation to submit a California Uniform Waste and Used Tire Manifest, as defined, to the waste and used tire hauler and to submit copies of the manifest to the department. A waste and used tire hauler is required to possess that manifest while transporting waste or used tires, and the operator of a waste or used tire facility is required to submit a copy of the manifest to the department and the generator. Existing law requires the department to develop and implement a system for auditing manifests, including continuously conducting random sampling and matching of manifests.
This bill would revise those provisions to, among other things, require a waste and used tire hauler, on and after January 1, 2020, to submit an electronic manifest, instead of a paper manifest, to the department within 7 days of the date of the pickup or delivery for each load of waste or used tires transported.
(1)The California Tire Recycling Act requires, until January 1, 2024, a person who purchases a new tire to pay a California tire fee of $1.75 per tire, for deposit in the California Tire Recycling Management Fund, for expenditure by the Department of Resources Recycling and Recovery upon appropriation by the Legislature, to fund the waste tire program and for other purposes, including to pay for the costs associated with a waste tire and used tire hauler program and manifest system, as provided. After January 1, 2024, existing law reduces the tire fee to $0.75 per tire.
Existing law requires any person generating waste tires or used tires that are transported or submitted for transportation, for offsite handling, altering, storage, disposal, or for any combination thereof, to complete a California Uniform Waste and Used Tire Manifest, as required by the department. Existing law requires a generator to provide the manifest to the waste and used tire hauler at the time of transfer of the tires, and to submit to the department, on a quarterly schedule, a legible copy of each manifest.
This bill would require, until January 1, 2024, upon a specified finding by the department, a waste tire generator that is a retail seller of new tires to end user purchasers to pay a California tire regulatory fee and to remit that fee to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The bill would require the department to track revenue from the California tire regulatory fee separately and would prohibit those funds from being used for activities other than those specified. The bill would require the department to identify the specific programs that the California tire regulatory fee would fund. The bill would require the department to establish the California tire regulatory fee in an amount that does not exceed $1 per new tire sold, and would require the department to base the amount of the fee on specified criteria, as provided. The bill would authorize the department to differentiate in setting the fees between the waste tire generators who are retail sellers depending upon the nature of the activity generating waste tires, the number of waste tires generated, and other appropriate bases.
The bill would require the department, prior to establishing the California tire regulatory fee or making any adjustment to the fee, to hold a public hearing, as specified. The bill would provide that an adjustment to the fee becomes effective on January 1 of the year following its adoption. The bill would require the department to adopt regulations to implement the initial California tire regulatory fee, and would authorize the department to adopt regulations to adjust the California tire regulatory fee, as specified.
(2)Existing law prohibits the California tire fee from being imposed on a tire sold with, or sold separately for use on, a self-propelled wheelchair, a motorized tricycle or motorized quadricycle, or a vehicle that is similar to a motorized tricycle or motorized quadricycle, as specified.
This bill would prohibit the California tire regulatory fee from being imposed on those same vehicles.
(3)Existing law establishes, as a part of the waste tire program, the tire recycling program, which promotes and develops alternatives to the landfill disposal of used whole tires. The program provides for grants to certain entities involved in activities that result in reduced landfill disposal of whole used tires, and development and implementation of a waste tire incentive payment program to promote increased demand for waste tires recycled in this state. Under the act, until June 30, 2019, the Rubberized Pavement Market Development Act provides for the award of grants to certain public agency projects that use rubberized asphalt concrete.
This bill would repeal the Rubberized Pavement Market Development Act and instead enact the Tire Recycling Incentive Program Act. The bill would require the department to establish this incentive program to make payments to eligible entities that purchase tire products that are processed in the state from waste tire material for incorporation in products for sale to end users or for use in local public works projects, as specified. The bill would specify eligible entities for purposes of the act, and would differentiate between entities that sell a tire product to an end user, and entities that use a tire product in a local public works project. The bill would authorize the department, on or after an unspecified date, January 1, 2022, to change which type of entities are eligible for incentives for using a tire product in a local public works project. The bill would require the department, on or before January 1, 2020, to hold a public workshop to develop a plan for the tire recycling incentive payment program, as specified. The bill would require the department to collect data from recipients of incentive payments and release that data annually in the California Waste Tire Market Report, as specified. The bill would require the department to evaluate the program in a public forum and propose changes accordingly. The bill would require the department, upon appropriation by the Legislature, to annually make available an allocation for incentive payments that is not less than 75 percent of the projected California tire fee revenue for that fiscal year at the time of the enactment of the annual Budget Act. The bill would authorize the department to reduce that allocation before the end of the fiscal year, if the department finds that actual California tire fee revenue falls short of projections.
(4)Existing law declares the intent of the Legislature to reduce the landfill disposal and stockpiling of used whole tires by 25% within 4 years of full implementation of a statewide tire recycling program and to recycle and reclaim used tires and used tire components to the greatest extent possible in order to recover valuable natural resources.
This bill would declare that it is the policy goal of the state that not less than 75% of solid waste tires generated be source reduced or recycled in the state by the year 2020. The bill would require the department, if that policy goal is met for 3 consecutive years, to review existing tire recycling programs and make recommendations, as specified.
(5)Existing law requires a person generating waste or used tires that are transported or submitted for transportation to submit a California Uniform Waste and Used Tire Manifest, as defined, to the waste and used tire hauler and to submit copies of the manifest to the department. A waste and used tire hauler is required to possess that manifest while transporting waste or used tires, and the operator of a waste or used tire facility is required to submit a copy of the manifest to the department and the generator. Existing law requires the department to develop and implement a system for auditing manifests, including continuously conducting random sampling and matching of manifests.
This bill would revise those provisions to, among other things, require a waste and used tire hauler, on and after January 1, 2020, to submit an electronic manifest, instead of a paper manifest, to the department within 7 days of the date of the pickup or delivery for each load of waste or used tires transported.
(1)The California Tire Recycling Act requires, until January 1, 2024, a person who purchases a new tire to pay a California tire fee of $1.75 per tire, for deposit in the California Tire Recycling Management Fund, for expenditure by the Department of Resources Recycling and Recovery upon appropriation by the Legislature, to fund the waste tire program and for other purposes, including to pay for the costs associated with a waste tire and used tire hauler program and manifest system, as provided. After January 1, 2024, existing law reduces the tire fee to $0.75 per tire.
Existing law requires any person generating waste tires or used tires that are transported or submitted for transportation, for offsite handling, altering, storage, disposal, or for any combination thereof, to complete a California Uniform Waste and Used Tire Manifest, as required by the department. Existing law requires a generator to provide the manifest to the waste and used tire hauler at the time of transfer of the tires, and to submit to the department, on a quarterly schedule, a legible copy of each manifest.
This bill would require, until January 1, 2024, upon a specified finding by the department, a waste tire generator that is a retail seller of new tires to end user purchasers to pay a California tire regulatory fee and to remit that fee to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The bill would require the department to track revenue from the California tire regulatory fee separately and would prohibit those funds from being used for activities other than those specified. The bill would require the department to identify the specific programs that the California tire regulatory fee would fund. The bill would require the department to establish the California tire regulatory fee in an amount that does not exceed $1 per new tire sold, and would require the department to base the amount of the fee on specified criteria, as provided. The bill would authorize the department to differentiate in setting the fees between the waste tire generators who are retail sellers depending upon the nature of the activity generating waste tires, the number of waste tires generated, and other appropriate bases.
The bill would require the department, prior to establishing the California tire regulatory fee or making any adjustment to the fee, to hold a public hearing, as specified. The bill would provide that an adjustment to the fee becomes effective on January 1 of the year following its adoption. The bill would require the department to adopt regulations to implement the initial California tire regulatory fee, and would authorize the department to adopt regulations to adjust the California tire regulatory fee, as specified.
(2)Existing law prohibits the California tire fee from being imposed on a tire sold with, or sold separately for use on, a self-propelled wheelchair, a motorized tricycle or motorized quadricycle, or a vehicle that is similar to a motorized tricycle or motorized quadricycle, as specified.
This bill would prohibit the California tire regulatory fee from being imposed on those same vehicles.
(3)Existing law establishes, as a part of the waste tire program, the tire recycling program, which promotes and develops alternatives to the landfill disposal of used whole tires. The program provides for grants to certain entities involved in activities that result in reduced landfill disposal of whole used tires, and development and implementation of a waste tire incentive payment program to promote increased demand for waste tires recycled in this state. Under the act, until June 30, 2019, the Rubberized Pavement Market Development Act provides for the award of grants to certain public agency projects that use rubberized asphalt concrete.
This bill would repeal the Rubberized Pavement Market Development Act and instead enact the Tire Recycling Incentive Program Act. The bill would require the department to establish this incentive program to make payments to eligible entities that purchase tire products that are processed in the state from waste tire material for incorporation in products for sale to end users or for use in local public works projects, as specified. The bill would specify eligible entities for purposes of the act, and would differentiate between entities that sell a tire product to an end user, and entities that use a tire product in a local public works project. The bill would authorize the department, on or after an unspecified date, to change which type of entities are eligible for incentives for using a tire product in a local public works project. The bill would require the department, on or before January 1, 2020, to hold a public workshop to develop a plan for the tire recycling incentive payment program, as specified. The bill would require the department to collect data from recipients of incentive payments and release that data annually in the California Waste Tire Market Report, as specified. The bill would require the department to evaluate the program in a public forum and propose changes accordingly. The bill would require the department, upon appropriation by the Legislature, to annually make available an allocation for incentive payments that is not less than 75 percent of the projected California tire fee revenue for that fiscal year at the time of the enactment of the annual Budget Act. The bill would authorize the department to reduce that allocation before the end of the fiscal year, if the department finds that actual California tire fee revenue falls short of projections.
(4)Existing law declares the intent of the Legislature to reduce the landfill disposal and stockpiling of used whole tires by 25% within 4 years of full implementation of a statewide tire recycling program and to recycle and reclaim used tires and used tire components to the greatest extent possible in order to recover valuable natural resources.
This bill would declare that it is the policy goal of the state that not less than 75% of solid waste tires generated be source reduced or recycled in the state by the year 2020. The bill would require the department, if that policy goal is met for 3 consecutive years, to review existing tire recycling programs and make recommendations, as specified.
(5)Existing law requires a person generating waste or used tires that are transported or submitted for transportation to submit a California Uniform Waste and Used Tire Manifest, as defined, to the waste and used tire hauler and to submit copies of the manifest to the department. A waste and used tire hauler is required to possess that manifest while transporting waste or used tires, and the operator of a waste or used tire facility is required to submit a copy of the manifest to the department and the generator. Existing law requires the department to develop and implement a system for auditing manifests, including continuously conducting random sampling and matching of manifests.
This bill would revise those provisions to, among other things, require a waste and used tire hauler, on and after January 1, 2020, to submit an electronic manifest, instead of a paper manifest, to the department within 7 days of the date of the pickup or delivery for each load of waste or used tires transported.
(a)This section shall be known, and may be cited, as the Rubberized Pavement Market Development Act.
(b)In accordance with the tire recycling program authorized by Section 42872, the department shall award grants in the following manner:
(1)To cities, counties, and other local governmental agencies for the funding of public works projects that utilize rubberized pavement.
(2)To state and local governmental agencies, including regional park districts, for the funding of disability access projects at parks and Class I bikeways as defined in subdivision (a) of Section 890.4, relative to projects that utilize rubberized pavement.
(c)(1)Except as provided in paragraph (2), the department shall award the grants pursuant to subdivision (b) in the amount of two dollars ($2) for every 12 pounds of crumb rubber used in a public works or disability access project by a state or local governmental agency, including a regional park district.
(2)The department may adjust the amount of grants awarded pursuant to paragraph (1) to an amount that is greater than, or less than, two dollars ($2) for every 12 pounds of crumb rubber if the department finds this adjustment would further the purposes of this article.
(d)This section shall remain in effect only until January 1, 2020, and as of that date is repealed.
SEC. 2.Section 42872.2 is added to the Public Resources Code, to read:42872.2.(a)This section shall be known, and may be cited, as the Tire Recycling Incentive Program Act.
(b)In accordance with Section 42872, the department shall establish a tire recycling incentive program that makes payments to eligible entities.
(c)Incentive payments shall be made only to eligible entities for incentive-eligible tire products manufactured from California-generated waste tire material that promote the recycling of, the reduction of the disposal of, or the prevention of illegal dumping of California-generated waste tire material.
(d)An entity is eligible to receive an incentive payment only upon demonstrating the following to the department, as applicable:
(1)The entity purchased a tire product that is manufactured completely in California from California-generated waste tire material processed in California.
(2)If the end use of the tire product is for something other than a local public works project, the entity sold an incentive-eligible tire product that is processed and manufactured completely in California incorporating California-generated waste tire material to an end user.
(e)For purposes of this section, eligible entity includes both of the following:
(1)A manufacturer that produces an incentive-eligible tire product incorporating California-generated waste tire material for purchase by an end user. Eligible entity does not include the entity or person that receives the finished product, except as provided in paragraph (2).
(2)A city, county, city and county, or special district that puts out a bid and contracts with an outside entity to use rubberized asphalt products that incorporate California-generated waste tire material for a local public works pavement project, including, but not limited to, a pavement project on a street, road, alley, or other thoroughfare specified in the bid documents. No less than 50 percent of the total annual value of incentive payments made pursuant to this section shall be made available for the eligible entities described in this paragraph.
(f)For purposes of this section, end user includes, but is not limited to, the following:
(1)Cities, counties, and other local governmental agencies, including school districts.
(2)State governmental agencies, including regional park districts.
(3)Private companies and persons.
(g)(1)For purposes of this section, incentive-eligible tire product may include, but is not limited to, the following:
(A)Pavement-related products, such as rubberized asphalt, asphalt rubber, modified binders, and chip seals.
(B)Rubberized asphalt base stock to be used in applications other than pavement.
(C)Products used in disability access projects at parks and Class I bikeways, as defined in subdivision (a) of Section 890.4 of the Streets and Highways Code, relative to projects that use recycled tires.
(D)Poured in place and tile playground mats.
(E)Landscape nuggets and mulch.
(F)Walkways and pathways.
(G)Running tracks.
(H)Tire-derived aggregate engineered applications.
(I)Molded, extruded, injected, and calendered products.
(J)Products that use recycled rubber as a substitute for other materials, such as plastic.
(K)Paint and coatings.
(L)Other products, environmentally safe applications, or treatments determined to be appropriate by the department.
(2)Incentive-eligible tire product does not include any of the following:
(A)Tire-derived fuel.
(B)Alternative daily cover, intermediate cover, erosion, or other landfill uses, except tire-derived aggregates used in landfill engineered projects for landfill gas and leachate control systems and other engineering projects designated by the department.
(C)Exports of whole waste tires.
(D)Crumb rubber as an intermediate product before purchase for incorporation into a final end use.
(E)Tire-derived aggregate as an intermediate product before purchase for incorporation into a final end use or as an intermediate product that is shipped out of state.
(F)Rubberized pavement shipped out of state.
(G)Synthetic turf infill.
(H)Loose rubber nugget or mulch playgrounds.
(I)Purchases made to meet procurement requirements established pursuant to Section 42703.
(h)(1)On or before January 1, 2020, the department shall hold a public workshop to develop a plan for the tire recycling incentive payment program established pursuant to subdivision (b). The plan shall be included in the next revision of the five-year plan required pursuant to Section 42885.5.
(2)At the public workshop required pursuant to paragraph (1), the department shall do both of the following:
(A)Consistent with this chapter, determine, among other things, all of the following:
(i)What products, in addition to those listed in paragraph (1) of subdivision (g), are incentive-eligible tire products for purposes of this section.
(ii)The incentive payment amounts to be paid to eligible entities, consistent with the requirements of subdivision (l).
(iii)Conditions to ensure that incentives are paid only for bona fide transactions.
(iv)What is considered a recycled-tire product for purposes of determining the recycling rate for California-generated waste tire material. Recycled-tire product shall include, among other things, some nonincentive-eligible tire-derived products, for those purposes.
(v)A timeline for implementing the tire recycling incentive program and the program commencement date, which shall be no later than July 1, 2020.
(B)(i)Develop a tiered incentive payment structure with no more than three tiers. The tiers shall be designed to ensure that the maximum amount of California-generated waste tires is recycled.
(ii)During the first two years of the program, individual payment amounts for projects in the tier with the highest incentive payments shall be no more than twice the individual payment amounts for projects in the tier with the second highest incentive payments. After the first two years of the program, the department may determine in a public workshop incentive payments for projects in the highest tier that are more than twice the individual payment amounts for those in the tier with the second highest incentive payments. This determination shall be based on market information, program performance, the potential of new products and different market segments, and the departments goal of developing a long-term, sustainable, and diversified demand for tire-derived products. Payments for projects in the tier with the highest incentive payments shall account for no more than 25 percent of the total amount of moneys made available as incentive payments by the program for purposes other than pavement-related activities.
(iii)In developing the tiers, the department shall consider factors, including, but not limited to, the following:
(I)The quantity of waste tires that will be diverted from landfills.
(II)The incentive amount necessary for incentive-eligible tire products to effectively compete with nonrecycled alternatives.
(III)The existing and potential markets for the applicable incentive-eligible tire product.
(IV)The policy goal established pursuant to Section 42872.3.
(V)The market segments for waste tires.
(VI)The pricing structures necessary to increase the use of incentive-eligible tire products by market segment, including pricing structures necessary to achieve the goal established pursuant to Section 42872.3.
(VII)The development of long-term, sustainable, and diversified market demand for California tire-derived products.
(iv)The department shall conduct a waste tire market evaluation to inform the development of the tiers and shall discuss the findings at the public workshop required pursuant to paragraph (1).
(3)The department shall consider the amount of moneys made available for incentive payments pursuant to subdivision (l) and, in the biennial update of the plan following January 1, 2019, shall reduce the amount of moneys expended for waste tire market development grants pursuant to the five-year plan described in Section 42885.5, from the amount that was authorized for such grants as of January 1, 2019, as it deems appropriate. All other tire program activities that are not related to market development grants shall continue as described in the five-year plan.
(i)The department shall collect data from recipients of incentive payments to be released annually in the California Waste Tire Market Report.
(1)Data shall be aggregated to determine the total amount of money paid for each category of incentive-eligible tire products listed in subparagraphs (A) to (L), inclusive, of paragraph (1) of subdivision (g) and how many tires, or passenger tire equivalents as defined in subdivision (b) of Section 42961.5, were recycled. The department shall use the data specified in this paragraph for purposes of the evaluation required pursuant to subdivision (j).
(2)The department shall include in the California Waste Tire Market Report the annual recycling rate, the number of tires, or passenger tire equivalents, as defined in subdivision (b) of Section 42961.5, that were recycled in that year and, to the extent the information is available, the number of tires or passenger tire equivalents of the nonincentive-eligible tire-derived products considered recycled-tire products pursuant to clause (iv) of subparagraph (A) of paragraph (2) of subdivision (h).
(3)The report shall also include the number of tires recycled by the Department of Transportation and, to the extent the information is available, an estimate of the recycling rate of waste tire material recycled by other state and local agencies and by the private sector, as part of the overall recycling rate.
(4)The report shall also analyze the use of incentive payments by the public and private entities that receive incentive payments and shall analyze whether the minimum percentage of the total annual value of incentive payments made available pursuant to paragraph (2) of subdivision (e) should be modified in statute to maximize tire recycling.
(j)As part of the biennial update of the five-year plan required pursuant to Section 42885.5, the department shall evaluate the tire recycling incentive program established pursuant to subdivision (b) in a public forum and propose changes accordingly. Consistent with this chapter, the department may make changes to the tire program, but no more frequently than annually and only after holding a public workshop.
(1)The evaluation required pursuant to this subdivision shall include, but is not limited to, the following elements:
(A)The recycling rate of California-generated waste tire material, including waste tire material recycled through funding pursuant to the tire recycling incentive program, and, to the extent the information is available, an estimate of the recycling rate of waste tire material recycled by other state and local agencies and the private sector.
(B)The amount of California-generated waste tire material entering each market segment.
(C)The amount of waste tire material recycled through expenditures authorized by this chapter.
(2)Based on the findings from the evaluation required pursuant to this subdivision, the department shall reevaluate and prioritize funding for the categories of incentive-eligible tire products that recycle the most waste tires.
(k)For purposes of this section, recipients of incentive payments shall meet specified criteria, as established by the department, that are consistent with the provisions of this article.
(l)For purposes of this section, the department, upon appropriation by the Legislature, shall annually make available an allocation for incentive payments that is not less than 75 percent of the projected California tire fee revenue for that fiscal year at the time of the enactment of the annual Budget Act. If the department finds that actual California tire fee revenue falls short of projections, the department may reduce this allocation to the extent it is unexpended before the end of the fiscal year.
(m)Nothing in this section is intended to limit the use of waste tire products that are not incentive-eligible tire products.
(n)It is the intent of the Legislature that this section encourage activities and expenditures in addition to those under the tire program, other than activities associated with market development grants. Implementation of the tire recycling incentive program shall not result in reduced expenditures for other tire program activities that are not associated with market development grants.
SEC. 3.Section 42872.3 is added to the Public Resources Code, to read:42872.3.(a)The Legislature hereby declares that it is the policy goal of the state that not less than 75 percent of solid waste tires generated be source reduced or recycled in the state annually.
(b)If the state meets the policy goal in subdivision (a) for three consecutive years, the department shall, as part of the five-year plan required pursuant to Section 42885.5, review existing tire recycling programs and make recommendations as to which policies are necessary to maintain and increase the level of waste tire recycling.
SEC. 4.Section 42885 of the Public Resources Code, as amended by Section 31 of Chapter 401 of the Statutes of 2013, is amended to read:42885.(a)(1) For purposes of this section, California tire fee means the fee imposed pursuant to subdivision (b) of this section.
(2)For purposes of this section, a California tire regulatory fee means a fee imposed pursuant to subdivision (c) of this section.
(b)(1)A person who purchases a new tire, as defined in subdivision (h), shall pay a California tire fee of one dollar and seventy-five cents ($1.75) per tire.
(2)The retail seller shall charge the retail purchaser the amount of the California tire fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the retail purchaser.
(3)The retail seller shall collect the California tire fee from the retail purchaser at the time of sale and may retain 11/2 percent of the fee as reimbursement for any costs associated with the collection of the fee. The retail seller shall remit the remainder to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund, which is hereby created in the State Treasury.
(c)(1)Upon a finding by the department that the balance of the California Tire Recycling Management Fund is projected to drop below twenty-five million dollars ($25,000,000) for the next fiscal year, the department shall establish, and a waste tire generator that is a retail seller of new tires to end user purchasers shall pay, a California tire regulatory fee. The amount of the California tire regulatory fee shall be established and adjusted by the department based on the factors specified in paragraph (3), but that amount shall not exceed one dollar ($1) per new tire sold. The department shall set this fee to collect no more than is necessary for the following fiscal year, including a prudent reserve, as specified in subparagraph (B) of paragraph (3). The department may differentiate in setting fees between waste tire generators who are retail sellers of new tires to end user purchasers depending upon the nature of the retail sellers activity generating waste tires, the number of waste tires generated, and other appropriate bases.
(2)A waste tire generator that is a retail seller of new tires to end user purchasers may charge the retail purchaser the amount of the California tire regulatory fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the retail purchaser.
(3)A waste tire generator that is a retail seller of new tires to end user purchasers shall remit the fee assessed pursuant to this subdivision to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The revenue from the California tire regulatory fee shall be tracked separately by the department and shall not be used for activities other than those described in this subdivision.
(4)Prior to establishing or adjusting the California tire regulatory fee, the department shall review at a public hearing the following factors:
(A)The amount necessary to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities associated with waste tires pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950).
(B)The sufficiency of revenues in the California Tire Recycling Management Fund for the department to administer, enforce, and promote its regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), plus a prudent reserve.
(C)Whether additional revenue is necessary to preserve the departments ability to conduct regulatory activities in the following fiscal year.
(D)Whether, at the end of a fiscal year, after making payments pursuant to Sections 42872.1, 42872.2, and 42889, sufficient net fund balance remains in the California Tire Recycling Management Fund to reduce the California tire regulatory fee.
(5)An adjustment to the California tire regulatory fee shall become effective on January 1 of the year following its adoption.
(6)(A)The department shall adopt regulations to establish the California tire regulatory fee.
(B)The department may adopt regulations to adjust the California tire regulatory fee. These regulations shall be deemed to meet the description in subdivision (g) of Section 11340.9 of the Government Code and may be filed by the department pursuant to Section 11343.8 of the Government Code.
(7)The department shall identify the specific programs to be funded by the California tire regulatory fee.
(d)The department, or its agent authorized pursuant to Section 42882, shall be reimbursed for its costs of collection, auditing, and making refunds associated with the California Tire Recycling Management Fund, but the amount of that reimbursement shall not exceed 3 percent of the total annual revenue deposited in the fund.
(e)(1)The California tire fee imposed pursuant to subdivision (b) shall be separately stated by the retail seller on the invoice given to the customer at the time of sale. Any other disposal or transaction fee charged by the retail seller related to the tire purchase shall be identified separately from the California tire fee.
(2)The California tire regulatory fee imposed pursuant to subdivision (c) may be separately stated by the retail seller on the invoice given to the customer at the time of sale. Any other disposal or transaction fee charged by the retail seller related to the tire purchase may be identified separately from the California tire regulatory fee.
(f)A person or business who knowingly, or with reckless disregard, makes a false statement or representation in a document used to comply with this section is liable for a civil penalty for each violation or, for continuing violations, for each day that the violation continues. Liability under this section may be imposed in a civil action and shall not exceed twenty-five thousand dollars ($25,000) for each violation.
(g)In addition to the civil penalty that may be imposed pursuant to subdivision (f), the department may impose an administrative penalty in an amount not to exceed five thousand dollars ($5,000) for each violation of a separate provision or, for continuing violations, for each day that the violation continues, on a person who intentionally or negligently violates a permit, rule, regulation, standard, or requirement issued or adopted pursuant to this chapter. The department shall adopt regulations that specify the amount of the administrative penalty and the procedure for imposing an administrative penalty pursuant to this subdivision.
(h)For purposes of this section, new tire means a pneumatic or solid tire intended for use with onroad or off-road motor vehicles, motorized equipment, construction equipment, or farm equipment that is sold separately from the vehicle or equipment, or a new tire sold with a new or used motor vehicle, as defined in Section 42803.5, including the spare tire, or with construction or farm equipment. New tire does not include retreaded, reused, or recycled tires.
(i)The California tire fee and the California tire regulatory fee shall not be imposed on a tire sold with, or sold separately for use on, any of the following:
(1)A self-propelled wheelchair.
(2)A motorized tricycle or motorized quadricycle, as defined in Section 407 of the Vehicle Code.
(3)A vehicle that is similar to a motorized tricycle or motorized quadricycle and is designed to be operated by a person who, by reason of the persons physical disability, is otherwise unable to move about as a pedestrian.
(j)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date.
SEC. 5.Section 42889 of the Public Resources Code, as amended by Section 152 of Chapter 35 of the Statutes of 2014, is amended to read:42889.(a)Of the moneys collected pursuant to subdivision (b) of Section 42885, an amount equal to seventy-five cents ($0.75) per tire on which the fee is imposed shall be transferred by the California Department of Tax and Fee Administration to the Air Pollution Control Fund. The state board shall expend those moneys, or allocate those moneys to the districts for expenditure, to fund programs and projects that mitigate or remediate air pollution caused by tires in the state, to the extent that the state board or the applicable district determines that the program or project remediates air pollution harms created by tires upon which the fee described in subdivision (b) of Section 42885 is imposed.
(b)The remaining moneys collected pursuant to subdivision (b) of Section 42885 shall be used to fund the waste tire program and the tire recycling incentive program, pursuant to Sections 42872.1 and 42872.2, and shall be appropriated to the department in the annual Budget Act in a manner consistent with the five-year plan adopted and updated by the department. These moneys shall be expended for the payment of refunds under this chapter and for the following purposes, to the extent they are not lawfully payable from funds allocated pursuant to subdivision (c) of Section 42885:
(1)To pay the administrative overhead cost of this chapter, not to exceed 6 percent of the total revenue deposited in the fund annually, or an amount otherwise specified in the annual Budget Act.
(2)To pay the costs of administration associated with collection, making refunds, and auditing revenues in the fund, not to exceed 3 percent of the total revenue deposited in the fund, as provided in subdivision (d) of Section 42885.
(3)To pay the costs associated with operating the tire recycling program specified in Article 3 (commencing with Section 42870).
(4)To pay the costs associated with the development and enforcement of regulations relating to the storage of waste tires and used tires. The department shall consider designating a city, county, or city and county as the enforcement authority of regulations relating to the storage of waste tires and used tires, as provided in subdivision (c) of Section 42850, and regulations relating to the hauling of waste and used tires, as provided in subdivision (b) of Section 42963. If the department designates a local entity for that purpose, the department shall provide sufficient, stable, and noncompetitive funding to that entity for that purpose, based on available resources, as provided in the five-year plan adopted and updated as provided in subdivision (a) of Section 42885.5. The department may consider and create, as appropriate, financial incentives for citizens who report the illegal hauling or disposal of waste tires as a means of enhancing local and statewide waste tire and used tire enforcement programs.
(5)To pay the costs of cleanup, abatement, removal, or other remedial action related to waste tire stockpiles throughout the state, including all approved costs incurred by other public agencies involved in these activities by contract with the department.
(6)To make studies and conduct research directed at promoting and developing alternatives to the landfill disposal of waste tires.
(7)To assist in developing markets and new technologies for used tires and waste tires. The departments expenditure of funds for purposes of this subdivision shall reflect the priorities for waste management practices specified in subdivision (a) of Section 40051.
(8)To pay the costs associated with implementing and operating a waste tire and used tire hauler program and manifest system pursuant to Chapter 19 (commencing with Section 42950).
(9)To pay the costs to create and maintain an emergency reserve, which shall not exceed one million dollars ($1,000,000).
(10)To pay the costs of cleanup, abatement, or other remedial action related to the disposal of waste tires in implementing and operating the Farm and Ranch Solid Waste Cleanup and Abatement Grant Program established pursuant to Chapter 2.5 (commencing with Section 48100) of Part 7.
(11)To fund border region activities specified in paragraph (8) of subdivision (b) of Section 42885.5.
(12)For expenditure pursuant to paragraph (3) of subdivision (a) of, and paragraph (3) of subdivision (b) of, Section 17001.
(c)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date.
SEC. 6.Section 42961.5 of the Public Resources Code is amended to read:42961.5.(a)For purposes of this chapter, the following definitions shall apply:
(1)California Uniform Waste and Used Tire Manifest or manifest means a shipping document signed by a waste or used tire hauler and a generator of waste or used tires, or the operator of a waste or used tire facility or other destination that contains all of the information required by the department, including, but not limited to, an accurate measurement of the number of tires being shipped, the date the shipment originated or terminated, and the origin and final destination of the shipment.
(2)Electronic Manifest means a manifest that is submitted to the department electronically in a manner specified by the department.
(3)Waste and used tire hauler or hauler means any person required to be registered with the department pursuant to subdivision (a) of Section 42951.
(b)For purposes of this section, Passenger Tire Equivalent or PTE means either of the following:
(1)A unit of measurement, such that one PTE equals 20 pounds of waste or used tires, and one PTE equals one waste or used tire.
(2)A unit of measurement, such that 10 PTEs equals one cubic yard of waste or used tires, and one PTE equals one waste or used tire.
(c)(1)A hauler transporting waste or used tires for offsite handling, altering, storage, or disposal, or for any combination thereof, shall complete a manifest.
(2)A hauler shall have the manifest in his or her possession while transporting waste or used tires. The manifest shall be shown upon demand to any representative of the department, any officer of the Department of the California Highway Patrol, or any peace officer, as defined in Section 830.1 or 830.2 of the Penal Code.
(3)A hauler shall provide the manifest, or otherwise provide all required manifest information, to the generator of waste or used tires or to the operator of a waste or used tire facility or other destination at the time of transfer of the tires.
(4)The hauler shall submit a manifest to the department for each load of waste or used tires transported within seven days of the date of the pickup or delivery. The department may grant an extension before the seventh day upon a showing of good cause by the hauler.
(5)Notwithstanding the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code), on and after January 1, 2020, the hauler shall submit only an electronic manifest, and not a paper manifest, to the department within seven days of the date of the pickup or delivery for each load of waste or used tires transported.
(6)If approved by the department, a hauler may submit an electronic manifest prior to January 1, 2020. The electronic manifest shall include all information required to be on the manifest and any other information required by the department.
(d)The authorized representative for the person generating or accepting waste or used tires shall verify that the information on the manifest is correct, including the number of tires and other information specified by the department, and shall sign the manifest. The person generating or accepting waste or used tires shall maintain a copy of the manifest and any other information required that the department deems necessary to track the flow of waste and used tires through the state.
(e)The department may require an electronic manifest submitted by a hauler to the department to include verification from a hauler, and a generator of waste or used tires, or the operator of a waste or used tire facility or other destination, that the information on the manifest is correct, including the number of tires and other information specified by the department.
(f)The department shall develop and implement a system for auditing manifests submitted to the department pursuant to this section, for the purpose of enforcing this section.
(g)If the amount of waste or used tires recorded on a manifest is by weight or volume, the department shall determine the number of waste or used tires being transported by converting the weight or volume into PTEs.
(h)The department may require a hauler to attend trainings and demonstrate understanding and proficiency with the provisions of this chapter, Chapter 16 (commencing with Section 42800), Chapter 17 (commencing with Section 42860), and any rules, regulations, or requirements issued or adopted pursuant to this chapter, Chapter 16, or Chapter 17 prior to receiving a waste and used tire hauler registration or a waste and used tire hauler registration renewal.
SEC. 7.The provisions of this measure are severable. If any provision of this measure or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(a)This section shall be known, and may be cited, as the Rubberized Pavement Market Development Act.
(b)In accordance with the tire recycling program authorized by Section 42872, the department shall award grants in the following manner:
(1)To cities, counties, and other local governmental agencies for the funding of public works projects that utilize rubberized pavement.
(2)To state and local governmental agencies, including regional park districts, for the funding of disability access projects at parks and Class I bikeways as defined in subdivision (a) of Section 890.4, relative to projects that utilize rubberized pavement.
(c)(1)Except as provided in paragraph (2), the department shall award the grants pursuant to subdivision (b) in the amount of two dollars ($2) for every 12 pounds of crumb rubber used in a public works or disability access project by a state or local governmental agency, including a regional park district.
(2)The department may adjust the amount of grants awarded pursuant to paragraph (1) to an amount that is greater than, or less than, two dollars ($2) for every 12 pounds of crumb rubber if the department finds this adjustment would further the purposes of this article.
(d)This section shall become inoperative on June 30, 2019, and, as of January 1, 2020, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2020, deletes or extends the dates on which it becomes inoperative and is repealed.(d)This section shall remain in effect only until January 1, 2020, and as of that date is repealed.
SEC. 2.Section 42872.1 42872.2 is added to the Public Resources Code, to read:42872.1.42872.2.(a)This section shall be known, and may be cited, as the Tire Recycling Incentive Program Act.
(b)In accordance with Section 42872, the department shall establish a tire recycling incentive program that makes payments to eligible entities.
(c)Incentive payments shall be made only to eligible entities for incentive-eligible tire products manufactured from California-generated waste tire material that promote the recycling of, the reduction of the disposal of, or the prevention of illegal dumping of California-generated waste tire material.
(d)An entity is eligible to receive an incentive payment only upon demonstrating the following to the department, as applicable:
(1)The entity purchased a tire product that is processed manufactured completely in California from California-generated waste tire material. material processed in California.
(2)If the end use of the tire product is for something other than a local public works project, the entity sold an incentive-eligible tire product that is processed and manufactured completely in California incorporating California-generated waste tire material to an end user.
(e)For purposes of this section, eligible entity includes, but is not limited to, includes both of the following:
(1)A manufacturer that produces an incentive-eligible tire product incorporating California-generated waste tire material for purchase by an end user. Eligible entity does not include the entity or person that receives the finished product, except as provided in paragraph (2).
(2)(A)A city, county, city and county, or special district that puts out a bid and contracts with an outside entity to use rubberized asphalt products that incorporate California-generated waste tire material for a local public works pavement project, including, but not limited to, a pavement project on a street, road, alley, or other thoroughfare specified in the bid documents. No less than 50 percent of the total annual value of incentive payments made pursuant to this section shall be made available for the eligible entities described in this paragraph.
(B)On or after January 1, 2022, the department may revise the list of eligible entities pursuant to subparagraph (A), if, after holding a public workshop and seeking public input, the department makes a determination that funding other entities would result in greater use of rubberized asphalt products.(f)For purposes of this section, end user includes, but is not limited to, the following:
(1)Cities, counties, and other local governmental agencies, including school districts.
(2)State governmental agencies, including regional park districts.
(3)Private companies and persons.
(g)(1)For purposes of this section, incentive-eligible tire product may include, but is not limited to, the following:
(A)Pavement-related products, such as rubberized asphalt, asphalt rubber, modified binders, and chip seals.
(B)Rubberized asphalt base stock to be used in applications other than pavement.
(C)Products used in disability access projects at parks and Class I bikeways, as defined in subdivision (a) of Section 890.4 of the Streets and Highways Code, relative to projects that use recycled tires.
(D)Poured in place and tile playground mats.
(E)Landscape nuggets and mulch.
(F)Walkways and pathways.
(G)Running tracks.
(H)Tire-derived aggregate engineered applications.
(I)Molded, extruded, injected, and calendered products.
(J)Products that use recycled rubber as a substitute for other materials, such as plastic.
(K)Paint and coatings.
(L)Other products, environmentally safe applications, or treatments determined to be appropriate by the department.
(2)Incentive-eligible tire product does not include any of the following:
(A)Tire-derived fuel.
(B)Alternative daily cover, intermediate cover, erosion, or other landfill uses, except tire-derived aggregates used in landfill engineered projects for landfill gas and leachate control systems and other engineering projects designated by the department.
(C)Exports of whole waste tires.
(D)Crumb rubber as an intermediate product before purchase for incorporation into a final end use.
(E)Tire-derived aggregate as an intermediate product before purchase for incorporation into a final end use or as an intermediate product that is shipped out of state.
(F)Rubberized pavement shipped out of state.
(G)Synthetic turf infill.
(H)Loose rubber nugget or mulch playgrounds.
(I)Purchases made to meet procurement requirements established pursuant to Section 42703.
(h)(1)On or before January 1, 2020, the department shall hold a public workshop to develop a plan for the tire recycling incentive payment program established pursuant to subdivision (b). The plan shall be included in the next revision of the five-year plan required pursuant to Section 42885.5.
(2)At the public workshop required pursuant to paragraph (1), the department shall do both of the following:
(A)Consistent with this chapter, determine, among other things, all of the following:
(i)What products, in addition to those listed in paragraph (1) of subdivision (g), are incentive-eligible tire products for purposes of this section.
(ii)The incentive payment amounts to be paid to eligible entities, consistent with the requirements of subdivision (l).
(iii)Conditions to ensure that incentives are paid only for bona fide transactions.
(iv)What is considered a recycled-tire product for purposes of determining the recycling rate for California-generated waste tire material. Recycled-tire product shall include, among other things, some nonincentive-eligible tire-derived products, for those purposes.
(v)A timeline for implementing the tire recycling incentive program and the program commencement date, which shall be no later than July 1, 2020.
(B)(i)Develop a tiered incentive payment structure with no more than three tiers. The tiers shall be designed to ensure that the maximum amount of California-generated waste tires is recycled.
(ii)During the first two years of the program, individual payment amounts for projects in the tier with the highest incentive payments shall be no more than twice the individual payment amounts for projects in the tier with the second highest incentive payments. After the first two years of the program, the department may determine in a public workshop incentive payments for projects in the highest tier that are more than twice the individual payment amounts for those in the tier with the second highest incentive payments. This determination shall be based on market information, program performance, the potential of new products and different market segments, and the departments goal of developing a long-term, sustainable, and diversified demand for tire-derived products. Payments for projects in the tier with the highest incentive payments shall account for no more than 25 percent of the total amount of moneys made available as incentive payments by the program for purposes other than pavement-related activities.
(iii)In developing the tiers, the department shall consider factors, including, but not limited to, the following:
(I)The quantity of waste tires that will be diverted from landfills.
(II)The incentive amount necessary for incentive-eligible tire products to effectively compete with nonrecycled alternatives.
(III)The existing and potential markets for the applicable incentive-eligible tire product.
(IV)The policy goal established pursuant to Section 42872.2. 42872.3.
(V)The market segments for waste tires.
(VI)The pricing structures necessary to increase the use of incentive-eligible tire products by market segment, including pricing structures necessary to achieve the goal established pursuant to Section 42872.2. 42872.3.
(VII)The development of long-term, sustainable, and diversified market demand for California tire-derived products.
(iv)The department shall conduct a waste tire market evaluation to inform the development of the tiers and shall discuss the findings at the public workshop required pursuant to paragraph (1).
(3)The department shall consider the amount of moneys made available for incentive payments pursuant to subdivision (l) and, in the biennial update of the plan following January 1, 2019, shall reduce the amount of moneys expended for waste tire market development grants pursuant to the five-year plan described in Section 42885.5, from the amount that was authorized for such grants as of January 1, 2019, as it deems appropriate. All other tire program activities that are not related to market development grants shall continue as described in the five-year plan.
(i)The department shall collect data from recipients of incentive payments to be released annually in the California Waste Tire Market Report.
(1)Data shall be aggregated to determine the total amount of money paid for each category of incentive-eligible tire products listed in subparagraphs (A) to (L), inclusive, of paragraph (1) of subdivision (g) and how many tires, or passenger tire equivalents as defined in subdivision (b) of Section 42961.5, were recycled. The department shall use the data specified in this paragraph for purposes of the evaluation required pursuant to subdivision (j).
(2)The department shall include in the California Waste Tire Market Report the annual recycling rate, the number of tires, or passenger tire equivalents, as defined in subdivision (b) of Section 42961.5, that were recycled in that year and, to the extent the information is available, the number of tires or passenger tire equivalents of the nonincentive-eligible tire-derived products considered recycled-tire products pursuant to clause (iv) of subparagraph (A) of paragraph (2) of subdivision (h).
(3)The report shall also include the number of tires recycled by the Department of Transportation and, to the extent the information is available, an estimate of the recycling rate of waste tire material recycled by other state and local agencies and by the private sector, as part of the overall recycling rate.
(4)The report shall also analyze the use of incentive payments by the public and private entities that receive incentive payments and shall analyze whether the minimum percentage of the total annual value of incentive payments made available pursuant to paragraph (2) of subdivision (e) should be modified in statute to maximize tire recycling.
(j)As part of the biennial update of the five-year plan required pursuant to Section 42885.5, the department shall evaluate the tire recycling incentive program established pursuant to subdivision (b) in a public forum and propose changes accordingly. Consistent with this chapter, the department may make changes to the tire program, but no more frequently than annually and only after holding a public workshop.
(1)The evaluation required pursuant to this subdivision shall include, but is not limited to, the following elements:
(A)The recycling rate of California-generated waste tire material, including waste tire material recycled through funding pursuant to the tire recycling incentive program, and, to the extent the information is available, an estimate of the recycling rate of waste tire material recycled by other state and local agencies and the private sector.
(B)The amount of California-generated waste tire material entering each market segment.
(C)The amount of waste tire material recycled through expenditures authorized by this chapter.
(2)Based on the findings from the evaluation required pursuant to this subdivision, the department shall reevaluate and prioritize funding for the categories of incentive-eligible tire products that recycle the most waste tires.
(k)For purposes of this section, recipients of incentive payments shall meet specified criteria, as established by the department, that are consistent with the provisions of this article.
(l)(1)For purposes of this section, the department, upon appropriation by the Legislature, shall annually make available an allocation for incentive payments that is not less than 75 percent of the projected California tire fee revenue for that fiscal year at the time of the enactment of the annual Budget Act. If the department finds that actual California tire fee revenue falls short of projections, the department may reduce this allocation to the extent it is unexpended before the end of the fiscal year.
(2)No less than 50 percent of the total annual value of incentive payments made pursuant to this section shall be made available for pavement-related products, as described in subparagraph (A) of paragraph (1) of subdivision (g).(m)Nothing in this section is intended to limit the use of waste tire products that are not incentive-eligible tire products.
(n)It is the intent of the Legislature that this section encourage activities and expenditures in addition to those under the tire program, other than activities associated with market development grants. Implementation of the tire recycling incentive program shall not result in reduced expenditures for other tire program activities that are not associated with market development grants.
SEC. 3.Section 42872.2 42872.3 is added to the Public Resources Code, to read:42872.2.42872.3.(a)The Legislature hereby declares that it is the policy goal of the state that not less than 75 percent of solid waste tires generated be source reduced or recycled in the state annually.
(b)If the state meets the policy goal in subdivision (a) for three consecutive years, the department shall, as part of the five-year plan required pursuant to Section 42885.5, review existing tire recycling programs and make recommendations as to which policies are necessary to maintain and increase the level of waste tire recycling.
SEC. 4.Section 42885 of the Public Resources Code, as amended by Section 31 of Chapter 401 of the Statutes of 2013, is amended to read:42885.(a)(1) For purposes of this section, California tire fee means the fee imposed pursuant to subdivision (b) of this section.
(2)For purposes of this section, a California tire regulatory fee means a fee imposed pursuant to subdivision (c) of this section.
(b)(1)A person who purchases a new tire, as defined in subdivision (h), shall pay a California tire fee of one dollar and seventy-five cents ($1.75) per tire.
(2)The retail seller shall charge the retail purchaser the amount of the California tire fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the retail purchaser.
(3)The retail seller shall collect the California tire fee from the retail purchaser at the time of sale and may retain 11/2 percent of the fee as reimbursement for any costs associated with the collection of the fee. The retail seller shall remit the remainder to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund, which is hereby created in the State Treasury.
(c)(1)Upon a finding by the department that the balance of the California Tire Recycling Management Fund is projected to drop below twenty-five million dollars ($25,000,000) for the next fiscal year, the department shall establish, and a waste tire generator that is a retail seller of new tires to end user purchasers shall pay, a California tire regulatory fee. The amount of the California tire regulatory fee shall be established and adjusted by the department based on the factors specified in paragraph (3), but that amount shall not exceed one dollar ($1) per new tire sold. The department shall set this fee to collect no more than is necessary for the following fiscal year, including a prudent reserve, as specified in subparagraph (B) of paragraph (3). The department may differentiate in setting fees between waste tire generators who are retail sellers of new tires to end user purchasers depending upon the nature of the retail sellers activity generating waste tires, the number of waste tires generated, and other appropriate bases.
(2)A waste tire generator that is a retail seller of new tires to end user purchasers may charge the retail purchaser the amount of the California tire regulatory fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the retail purchaser.
(2)(3)A waste tire generator that is a retail seller of new tires to end user purchasers shall remit the fee assessed pursuant to this subdivision to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The revenue from the California tire regulatory fee shall be tracked separately by the department and shall not be used for activities other than those described in this subdivision.
(3)(4)Prior to establishing or adjusting the California tire regulatory fee, the department shall review at a public hearing the following factors:
(A)The amount necessary to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities associated with waste tires pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950).
(B)The sufficiency of revenues in the California Tire Recycling Management Fund for the department to administer, enforce, and promote its regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), plus a prudent reserve.
(C)Whether additional revenue is necessary to preserve the departments ability to conduct regulatory activities in the following fiscal year.
(D)Whether, at the end of a fiscal year, after making payments pursuant to Sections 42872.1 42872.1, 42872.2, and 42889, sufficient net fund balance remains in the California Tire Recycling Management Fund to reduce the California tire regulatory fee.
(4)(5)An adjustment to the California tire regulatory fee shall become effective on January 1 of the year following its adoption.
(5)(6)(A)The department shall adopt regulations to establish the California tire regulatory fee.
(B)The department may adopt regulations to adjust the California tire regulatory fee. These regulations shall be deemed to meet the description in subdivision (g) of Section 11340.9 of the Government Code and may be filed by the department pursuant to Section 11343.8 of the Government Code.
(6)(7)The department shall identify the specific programs to be funded by the California tire regulatory fee.
(d)The department, or its agent authorized pursuant to Section 42882, shall be reimbursed for its costs of collection, auditing, and making refunds associated with the California Tire Recycling Management Fund, but the amount of that reimbursement shall not exceed 3 percent of the total annual revenue deposited in the fund.
(e)(1)The California tire fee imposed pursuant to subdivision (b) shall be separately stated by the retail seller on the invoice given to the customer at the time of sale. Any other disposal or transaction fee charged by the retail seller related to the tire purchase shall be identified separately from the California tire fee.
(2)The California tire regulatory fee imposed pursuant to subdivision (c) may be separately stated by the retail seller on the invoice given to the customer at the time of sale. Any other disposal or transaction fee charged by the retail seller related to the tire purchase may be identified separately from the California tire regulatory fee.
(f)A person or business who knowingly, or with reckless disregard, makes a false statement or representation in a document used to comply with this section is liable for a civil penalty for each violation or, for continuing violations, for each day that the violation continues. Liability under this section may be imposed in a civil action and shall not exceed twenty-five thousand dollars ($25,000) for each violation.
(g)In addition to the civil penalty that may be imposed pursuant to subdivision (f), the department may impose an administrative penalty in an amount not to exceed five thousand dollars ($5,000) for each violation of a separate provision or, for continuing violations, for each day that the violation continues, on a person who intentionally or negligently violates a permit, rule, regulation, standard, or requirement issued or adopted pursuant to this chapter. The department shall adopt regulations that specify the amount of the administrative penalty and the procedure for imposing an administrative penalty pursuant to this subdivision.
(h)For purposes of this section, new tire means a pneumatic or solid tire intended for use with onroad or off-road motor vehicles, motorized equipment, construction equipment, or farm equipment that is sold separately from the vehicle or equipment, or a new tire sold with a new or used motor vehicle, as defined in Section 42803.5, including the spare tire, or with construction or farm equipment. New tire does not include retreaded, reused, or recycled tires.
(i)The California tire fee and the California tire regulatory fee shall not be imposed on a tire sold with, or sold separately for use on, any of the following:
(1)A self-propelled wheelchair.
(2)A motorized tricycle or motorized quadricycle, as defined in Section 407 of the Vehicle Code.
(3)A vehicle that is similar to a motorized tricycle or motorized quadricycle and is designed to be operated by a person who, by reason of the persons physical disability, is otherwise unable to move about as a pedestrian.
(j)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date.
SEC. 5.Section 42889 of the Public Resources Code, as amended by Section 152 of Chapter 35 of the Statutes of 2014, is amended to read:42889.(a)Of the moneys collected pursuant to subdivision (b) of Section 42885, an amount equal to seventy-five cents ($0.75) per tire on which the fee is imposed shall be transferred by the California Department of Tax and Fee Administration to the Air Pollution Control Fund. The state board shall expend those moneys, or allocate those moneys to the districts for expenditure, to fund programs and projects that mitigate or remediate air pollution caused by tires in the state, to the extent that the state board or the applicable district determines that the program or project remediates air pollution harms created by tires upon which the fee described in subdivision (b) of Section 42885 is imposed.
(b)The remaining moneys collected pursuant to subdivision (b) of Section 42885 shall be used to fund the waste tire program and the tire recycling incentive program, pursuant to Section 42872.1, Sections 42872.1 and 42872.2, and shall be appropriated to the department in the annual Budget Act in a manner consistent with the five-year plan adopted and updated by the department. These moneys shall be expended for the payment of refunds under this chapter and for the following purposes, to the extent they are not lawfully payable from funds allocated pursuant to subdivision (c) of Section 42885:
(1)To pay the administrative overhead cost of this chapter, not to exceed 6 percent of the total revenue deposited in the fund annually, or an amount otherwise specified in the annual Budget Act.
(2)To pay the costs of administration associated with collection, making refunds, and auditing revenues in the fund, not to exceed 3 percent of the total revenue deposited in the fund, as provided in subdivision (d) of Section 42885.
(3)To pay the costs associated with operating the tire recycling program specified in Article 3 (commencing with Section 42870).
(4)To pay the costs associated with the development and enforcement of regulations relating to the storage of waste tires and used tires. The department shall consider designating a city, county, or city and county as the enforcement authority of regulations relating to the storage of waste tires and used tires, as provided in subdivision (c) of Section 42850, and regulations relating to the hauling of waste and used tires, as provided in subdivision (b) of Section 42963. If the department designates a local entity for that purpose, the department shall provide sufficient, stable, and noncompetitive funding to that entity for that purpose, based on available resources, as provided in the five-year plan adopted and updated as provided in subdivision (a) of Section 42885.5. The department may consider and create, as appropriate, financial incentives for citizens who report the illegal hauling or disposal of waste tires as a means of enhancing local and statewide waste tire and used tire enforcement programs.
(5)To pay the costs of cleanup, abatement, removal, or other remedial action related to waste tire stockpiles throughout the state, including all approved costs incurred by other public agencies involved in these activities by contract with the department.
(6)To make studies and conduct research directed at promoting and developing alternatives to the landfill disposal of waste tires.
(7)To assist in developing markets and new technologies for used tires and waste tires. The departments expenditure of funds for purposes of this subdivision shall reflect the priorities for waste management practices specified in subdivision (a) of Section 40051.
(8)To pay the costs associated with implementing and operating a waste tire and used tire hauler program and manifest system pursuant to Chapter 19 (commencing with Section 42950).
(9)To pay the costs to create and maintain an emergency reserve, which shall not exceed one million dollars ($1,000,000).
(10)To pay the costs of cleanup, abatement, or other remedial action related to the disposal of waste tires in implementing and operating the Farm and Ranch Solid Waste Cleanup and Abatement Grant Program established pursuant to Chapter 2.5 (commencing with Section 48100) of Part 7.
(11)To fund border region activities specified in paragraph (8) of subdivision (b) of Section 42885.5.
(12)For expenditure pursuant to paragraph (3) of subdivision (a) of, and paragraph (3) of subdivision (b) of, Section 17001.
(c)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date.
SEC. 6.Section 42961.5 of the Public Resources Code is amended to read:42961.5.(a)For purposes of this chapter, the following definitions shall apply:
(1)California Uniform Waste and Used Tire Manifest or manifest means a shipping document signed by a waste or used tire hauler and a generator of waste or used tires, or the operator of a waste or used tire facility or other destination that contains all of the information required by the department, including, but not limited to, an accurate measurement of the number of tires being shipped, the date the shipment originated or terminated, and the origin and final destination of the shipment.
(2)Electronic Manifest means a manifest that is submitted to the department electronically in a manner specified by the department.
(3)Waste and used tire hauler or hauler means any person required to be registered with the department pursuant to subdivision (a) of Section 42951.
(b)For purposes of this section, Passenger Tire Equivalent or PTE means either of the following:
(1)A unit of measurement, such that one PTE equals 20 pounds of waste or used tires, and one PTE equals one waste or used tire.
(2)A unit of measurement, such that 10 PTEs equals one cubic yard of waste or used tires, and one PTE equals one waste or used tire.
(c)(1)A hauler transporting waste or used tires for offsite handling, altering, storage, or disposal, or for any combination thereof, shall complete a manifest.
(2)A hauler shall have the manifest in his or her possession while transporting waste or used tires. The manifest shall be shown upon demand to any representative of the department, any officer of the Department of the California Highway Patrol, or any peace officer, as defined in Section 830.1 or 830.2 of the Penal Code.
(3)A hauler shall provide the manifest, or otherwise provide all required manifest information, to the generator of waste or used tires or to the operator of a waste or used tire facility or other destination at the time of transfer of the tires.
(4)The hauler shall submit a manifest to the department for each load of waste or used tires transported within seven days of the date of the pickup or delivery. The department may grant an extension before the seventh day upon a showing of good cause by the hauler.
(5)Notwithstanding the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code), on and after January 1, 2020, the hauler shall submit only an electronic manifest, and not a paper manifest, to the department within seven days of the date of the pickup or delivery for each load of waste or used tires transported.
(6)If approved by the department, a hauler may submit an electronic manifest prior to January 1, 2020. The electronic manifest shall include all information required to be on the manifest and any other information required by the department.
(d)The authorized representative for the person generating or accepting waste or used tires shall verify that the information on the manifest is correct, including the number of tires and other information specified by the department, and shall sign the manifest. The person generating or accepting waste or used tires shall maintain a copy of the manifest and any other information required that the department deems necessary to track the flow of waste and used tires through the state.
(e)The department may require an electronic manifest submitted by a hauler to the department to include verification from a hauler, and a generator of waste or used tires, or the operator of a waste or used tire facility or other destination, that the information on the manifest is correct, including the number of tires and other information specified by the department.
(f)The department shall develop and implement a system for auditing manifests submitted to the department pursuant to this section, for the purpose of enforcing this section.
(g)If the amount of waste or used tires recorded on a manifest is by weight or volume, the department shall determine the number of waste or used tires being transported by converting the weight or volume into PTEs.
(h)The department may require a hauler to attend trainings and demonstrate understanding and proficiency with the provisions of this chapter, Chapter 16 (commencing with Section 42800), Chapter 17 (commencing with Section 42860), and any rules, regulations, or requirements issued or adopted pursuant to this chapter, Chapter 16, or Chapter 17 prior to receiving a waste and used tire hauler registration or a waste and used tire hauler registration renewal.
SEC. 7.The provisions of this measure are severable. If any provision of this measure or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(a)This section shall be known, and may be cited, as the Tire Recycling Incentive Program Act.
(b)In accordance with Section 42872, the department shall establish a tire recycling incentive program that makes payments to eligible entities.
(c)Incentive payments shall be made only to eligible entities for incentive-eligible tire products manufactured from California-generated waste tire material that promote the recycling of, the reduction of the disposal of, or the prevention of illegal dumping of California-generated waste tire material.
(d)An entity is eligible to receive an incentive payment only upon demonstrating the following to the department, as applicable:
(1)The entity purchased a tire product that is processed in California from California-generated waste tire material.
(2)If the end use of the tire product is for something other than a local public works project, the entity sold an incentive-eligible tire product incorporating California-generated waste tire material to an end user.
(e)For purposes of this section, eligible entity includes, but is not limited to, both of the following:
(1)A manufacturer that produces an incentive-eligible tire product incorporating California-generated waste tire material for purchase by an end user. Eligible entity does not include the entity or person that receives the finished product, except as provided in paragraph (2).
(2)(A)A city, county, city and county, or special district that puts out a bid and contracts with an outside entity to use rubberized asphalt products that incorporate California-generated waste tire material for a local public works pavement project, including, but not limited to, a pavement project on a street, road, alley, or other thoroughfare specified in the bid documents.
(B)On or after January 1, 2022, the department may revise the list of eligible entities pursuant to subparagraph (A), if, after holding a public workshop and seeking public input, the department makes a determination that funding other entities would result in greater use of rubberized asphalt products.
(f)For purposes of this section, end user includes, but is not limited to, the following:
(1)Cities, counties, and other local governmental agencies, including school districts.
(2)State governmental agencies, including regional park districts.
(3)Private companies and persons.
(g)(1)For purposes of this section, incentive-eligible tire product may include, but is not limited to, the following:
(A)Pavement-related products, such as rubberized asphalt, asphalt rubber, modified binders, and chip seals.
(B)Rubberized asphalt base stock to be used in applications other than pavement.
(C)Products used in disability access projects at parks and Class I bikeways, as defined in subdivision (a) of Section 890.4 of the Streets and Highways Code, relative to projects that use recycled tires.
(D)Poured in place and tile playground mats.
(E)Landscape nuggets and mulch.
(F)Walkways and pathways.
(G)Running tracks.
(H)Tire-derived aggregate engineered applications.
(I)Molded, extruded, injected, and calendered products.
(J)Products that use recycled rubber as a substitute for other materials, such as plastic.
(K)Paint and coatings.
(L)Other products, environmentally safe applications, or treatments determined to be appropriate by the department.
(2)Incentive-eligible tire product does not include any of the following:
(A)Tire-derived fuel.
(B)Alternative daily cover, intermediate cover, erosion, or other landfill uses, except tire-derived aggregates used in landfill engineered projects for landfill gas and leachate control systems and other engineering projects designated by the department.
(C)Exports of whole waste tires.
(D)Crumb rubber as an intermediate product before purchase for incorporation into a final end use.
(E)Tire-derived aggregate as an intermediate product before purchase for incorporation into a final end use or as an intermediate product that is shipped out of state.
(F)Rubberized pavement shipped out of state.
(G)Synthetic turf infill.
(H)Loose rubber nugget or mulch playgrounds.
(I)Purchases made to meet procurement requirements established pursuant to Section 42703.
(h)(1)On or before January 1, 2020, the department shall hold a public workshop to develop a plan for the tire recycling incentive payment program established pursuant to subdivision (b). The plan shall be included in the next revision of the five-year plan required pursuant to Section 42885.5.
(2)At the public workshop required pursuant to paragraph (1), the department shall do both of the following:
(A)Consistent with this chapter, determine, among other things, all of the following:
(i)What products, in addition to those listed in paragraph (1) of subdivision (g), are incentive-eligible tire products for purposes of this section.
(ii)The incentive payment amounts to be paid to eligible entities, consistent with the requirements of subdivision (l).
(iii)Conditions to ensure that incentives are paid only for bona fide transactions.
(iv)What is considered a recycled-tire product for purposes of determining the recycling rate for California-generated waste tire material. Recycled-tire product shall include, among other things, some nonincentive-eligible tire-derived products, for those purposes.
(v)A timeline for implementing the tire recycling incentive program and the program commencement date, which shall be no later than July 1, 2020.
(B)(i)Develop a tiered incentive payment structure with no more than three tiers. The tiers shall be designed to ensure that the maximum amount of California-generated waste tires is recycled.
(ii)During the first two years of the program, individual payment amounts for projects in the tier with the highest incentive payments shall be no more than twice the individual payment amounts for projects in the tier with the second highest incentive payments. After the first two years of the program, the department may determine in a public workshop incentive payments for projects in the highest tier that are more than twice the individual payment amounts for those in the tier with the second highest incentive payments. This determination shall be based on market information, program performance, the potential of new products and different market segments, and the departments goal of developing a long-term, sustainable, and diversified demand for tire-derived products. Payments for projects in the tier with the highest incentive payments shall account for no more than 25 percent of the total amount of moneys made available as incentive payments by the program for purposes other than pavement-related activities.
(iii)In developing the tiers, the department shall consider factors, including, but not limited to, the following:
(I)The quantity of waste tires that will be diverted from landfills.
(II)The incentive amount necessary for incentive-eligible tire products to effectively compete with nonrecycled alternatives.
(III)The existing and potential markets for the applicable incentive-eligible tire product.
(IV)The policy goal established pursuant to Section 42872.2.
(V)The market segments for waste tires.
(VI)The pricing structures necessary to increase the use of incentive-eligible tire products by market segment, including pricing structures necessary to achieve the goal established pursuant to Section 42872.2.
(VII)The development of long-term, sustainable, and diversified market demand for California tire-derived products.
(iv)The department shall conduct a waste tire market evaluation to inform the development of the tiers and shall discuss the findings at the public workshop required pursuant to paragraph (1).
(3)The department shall consider the amount of moneys made available for incentive payments pursuant to subdivision (l) and, in the biennial update of the plan following January 1, 2019, shall reduce the amount of moneys expended for waste tire market development grants pursuant to the five-year plan described in Section 42885.5, from the amount that was authorized for such grants as of January 1, 2019, as it deems appropriate. All other tire program activities that are not related to market development grants shall continue as described in the five-year plan.
(i)The department shall collect data from recipients of incentive payments to be released annually in the California Waste Tire Market Report.
(1)Data shall be aggregated to determine the total amount of money paid for each category of incentive-eligible tire products listed in subparagraphs (A) to (L), inclusive, of paragraph (1) of subdivision (g) and how many tires, or passenger tire equivalents as defined in subdivision (b) of Section 42961.5, were recycled. The department shall use the data specified in this paragraph for purposes of the evaluation required pursuant to subdivision (j).
(2)The department shall include in the California Waste Tire Market Report the annual recycling rate, the number of tires, or passenger tire equivalents, as defined in subdivision (b) of Section 42961.5, that were recycled in that year and, to the extent the information is available, the number of tires or passenger tire equivalents of the nonincentive-eligible tire-derived products considered recycled-tire products pursuant to clause (iv) of subparagraph (A) of paragraph (2) of subdivision (h).
(3)The report shall also include the number of tires recycled by the Department of Transportation and, to the extent the information is available, an estimate of the recycling rate of waste tire material recycled by other state and local agencies and by the private sector, as part of the overall recycling rate.
(j)As part of the biennial update of the five-year plan required pursuant to Section 42885.5, the department shall evaluate the tire recycling incentive program established pursuant to subdivision (b) in a public forum and propose changes accordingly. Consistent with this chapter, the department may make changes to the tire program, but no more frequently than annually and only after holding a public workshop.
(1)The evaluation required pursuant to this subdivision shall include, but is not limited to, the following elements:
(A)The recycling rate of California-generated waste tire material, including waste tire material recycled through funding pursuant to the tire recycling incentive program, and, to the extent the information is available, an estimate of the recycling rate of waste tire material recycled by other state and local agencies and the private sector.
(B)The amount of California-generated waste tire material entering each market segment.
(C)The amount of waste tire material recycled through expenditures authorized by this chapter.
(2)Based on the findings from the evaluation required pursuant to this subdivision, the department shall reevaluate and prioritize funding for the categories of incentive-eligible tire products that recycle the most waste tires.
(k)For purposes of this section, recipients of incentive payments shall meet specified criteria, as established by the department, that are consistent with the provisions of this article.
(l)(1)For purposes of this section, the department, upon appropriation by the Legislature, shall annually make available an allocation for incentive payments that is not less than 75 percent of the projected California tire fee revenue for that fiscal year at the time of the enactment of the annual Budget Act. If the department finds that actual California tire fee revenue falls short of projections, the department may reduce this allocation to the extent it is unexpended before the end of the fiscal year.
(2)No less than 50 percent of the total annual value of incentive payments made pursuant to this section shall be made available for pavement-related products, as described in subparagraph (A) of paragraph (1) of subdivision (g).
(m)Nothing in this section is intended to limit the use of waste tire products that are not incentive-eligible tire products.
(n)It is the intent of the Legislature that this section encourage activities and expenditures in addition to those under the tire program, other than activities associated with market development grants. Implementation of the tire recycling incentive program shall not result in reduced expenditures for other tire program activities that are not associated with market development grants.
SEC. 3.Section 42872.2 is added to the Public Resources Code, to read:42872.2.(a)The Legislature hereby declares that it is the policy goal of the state that not less than 75 percent of solid waste tires generated be source reduced, reduced or recycled in the state. state annually.
(b)If the state meets the policy goal in subdivision (a) for three consecutive years, the department shall, as part of the five-year plan required pursuant to Section 42885.5, review existing tire recycling programs and make recommendations as to which policies are necessary to maintain and increase the level of waste tire recycling.
SEC. 4.Section 42885 of the Public Resources Code, as amended by Section 31 of Chapter 401 of the Statutes of 2013, is amended to read:42885.(a)(1) For purposes of this section, California tire fee means the fee imposed pursuant to subdivision (b) of this section.
(2)For purposes of this section, a California tire regulatory fee means a fee imposed pursuant to subdivision (c) of this section.
(b)(1)A person who purchases a new tire, as defined in subdivision (h), shall pay a California tire fee of one dollar and seventy-five cents ($1.75) per tire.
(2)The retail seller shall charge the retail purchaser the amount of the California tire fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the retail purchaser.
(3)The retail seller shall collect the California tire fee from the retail purchaser at the time of sale and may retain 11/2 percent of the fee as reimbursement for any costs associated with the collection of the fee. The retail seller shall remit the remainder to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund, which is hereby created in the State Treasury.
(c)(1)Upon a finding by the department that the balance of the California Tire Recycling Management Fund is projected to drop below twenty-five million dollars ($25,000,000) for the next fiscal year, the department shall establish, and a waste tire generator that is a retail seller of new tires to end user purchasers shall pay, a California tire regulatory fee. The amount of the California tire regulatory fee shall be established and adjusted by the department based on the factors specified in paragraph (3), but that amount shall not exceed one dollar ($1) per new tire sold. The department shall set this fee to collect no more than is necessary for the following fiscal year, including a prudent reserve, as specified in subparagraph (B) of paragraph (3). The department may differentiate in setting fees between waste tire generators who are retail sellers of new tires to end user purchasers depending upon the nature of the retail sellers activity generating waste tires, the number of waste tires generated, and other appropriate bases.
(2)A waste tire generator that is a retail seller of new tires to end user purchasers shall remit the fee assessed pursuant to this subdivision to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The revenue from the California tire regulatory fee shall be tracked separately by the department and shall not be used for activities other than those described in this subdivision.
(3)Prior to establishing or adjusting the California tire regulatory fee, the department shall review at a public hearing the following factors:
(A)The amount necessary to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities associated with waste tires pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950).
(B)The sufficiency of revenues in the California Tire Recycling Management Fund for the department to administer, enforce, and promote its regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), plus a prudent reserve.
(C)Whether additional revenue is necessary to preserve the departments ability to conduct regulatory activities in the following fiscal year.
(D)Whether, at the end of a fiscal year, after making payments pursuant to Sections 42872.1 and 42889, sufficient net fund balance remains in the California Tire Recycling Management Fund to reduce the California tire regulatory fee.
(4)An adjustment to the California tire regulatory fee shall become effective on January 1 of the year following its adoption.
(5)(A)The department shall adopt regulations to establish the California tire regulatory fee.
(B)The department may adopt regulations to adjust the California tire regulatory fee. These regulations shall be deemed to meet the description in subdivision (g) of Section 11340.9 of the Government Code and may be filed by the department pursuant to Section 11343.8 of the Government Code.
(6)The department shall identify the specific programs to be funded by the California tire regulatory fee.
(d)The department, or its agent authorized pursuant to Section 42882, shall be reimbursed for its costs of collection, auditing, and making refunds associated with the California Tire Recycling Management Fund, but the amount of that reimbursement shall not exceed 3 percent of the total annual revenue deposited in the fund.
(e)The California tire fee imposed pursuant to subdivision (b) shall be separately stated by the retail seller on the invoice given to the customer at the time of sale. Any other disposal or transaction fee charged by the retail seller related to the tire purchase shall be identified separately from the California tire fee.
(f)A person or business who knowingly, or with reckless disregard, makes a false statement or representation in a document used to comply with this section is liable for a civil penalty for each violation or, for continuing violations, for each day that the violation continues. Liability under this section may be imposed in a civil action and shall not exceed twenty-five thousand dollars ($25,000) for each violation.
(g)In addition to the civil penalty that may be imposed pursuant to subdivision (f), the department may impose an administrative penalty in an amount not to exceed five thousand dollars ($5,000) for each violation of a separate provision or, for continuing violations, for each day that the violation continues, on a person who intentionally or negligently violates a permit, rule, regulation, standard, or requirement issued or adopted pursuant to this chapter. The department shall adopt regulations that specify the amount of the administrative penalty and the procedure for imposing an administrative penalty pursuant to this subdivision.
(h)For purposes of this section, new tire means a pneumatic or solid tire intended for use with onroad or off-road motor vehicles, motorized equipment, construction equipment, or farm equipment that is sold separately from the vehicle or equipment, or a new tire sold with a new or used motor vehicle, as defined in Section 42803.5, including the spare tire, or with construction or farm equipment. New tire does not include retreaded, reused, or recycled tires.
(i)The California tire fee and the California tire regulatory fee shall not be imposed on a tire sold with, or sold separately for use on, any of the following:
(1)A self-propelled wheelchair.
(2)A motorized tricycle or motorized quadricycle, as defined in Section 407 of the Vehicle Code.
(3)A vehicle that is similar to a motorized tricycle or motorized quadricycle and is designed to be operated by a person who, by reason of the persons physical disability, is otherwise unable to move about as a pedestrian.
(j)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date.
SEC. 5.Section 42889 of the Public Resources Code, as amended by Section 152 of Chapter 35 of the Statutes of 2014, is amended to read:42889.(a)Of the moneys collected pursuant to subdivision (b) of Section 42885, an amount equal to seventy-five cents ($0.75) per tire on which the fee is imposed shall be transferred by the California Department of Tax and Fee Administration to the Air Pollution Control Fund. The state board shall expend those moneys, or allocate those moneys to the districts for expenditure, to fund programs and projects that mitigate or remediate air pollution caused by tires in the state, to the extent that the state board or the applicable district determines that the program or project remediates air pollution harms created by tires upon which the fee described in subdivision (b) of Section 42885 is imposed.
(b)The remaining moneys collected pursuant to subdivision (b) of Section 42885 shall be used to fund the waste tire program and the tire recycling incentive program, pursuant to Section 42872.1, and shall be appropriated to the department in the annual Budget Act in a manner consistent with the five-year plan adopted and updated by the department. These moneys shall be expended for the payment of refunds under this chapter and for the following purposes, to the extent they are not lawfully payable from funds allocated pursuant to subdivision (c) of Section 42885:
(1)To pay the administrative overhead cost of this chapter, not to exceed 6 percent of the total revenue deposited in the fund annually, or an amount otherwise specified in the annual Budget Act.
(2)To pay the costs of administration associated with collection, making refunds, and auditing revenues in the fund, not to exceed 3 percent of the total revenue deposited in the fund, as provided in subdivision (d) of Section 42885.
(3)To pay the costs associated with operating the tire recycling program specified in Article 3 (commencing with Section 42870).
(4)To pay the costs associated with the development and enforcement of regulations relating to the storage of waste tires and used tires. The department shall consider designating a city, county, or city and county as the enforcement authority of regulations relating to the storage of waste tires and used tires, as provided in subdivision (c) of Section 42850, and regulations relating to the hauling of waste and used tires, as provided in subdivision (b) of Section 42963. If the department designates a local entity for that purpose, the department shall provide sufficient, stable, and noncompetitive funding to that entity for that purpose, based on available resources, as provided in the five-year plan adopted and updated as provided in subdivision (a) of Section 42885.5. The department may consider and create, as appropriate, financial incentives for citizens who report the illegal hauling or disposal of waste tires as a means of enhancing local and statewide waste tire and used tire enforcement programs.
(5)To pay the costs of cleanup, abatement, removal, or other remedial action related to waste tire stockpiles throughout the state, including all approved costs incurred by other public agencies involved in these activities by contract with the department.
(6)To make studies and conduct research directed at promoting and developing alternatives to the landfill disposal of waste tires.
(7)To assist in developing markets and new technologies for used tires and waste tires. The departments expenditure of funds for purposes of this subdivision shall reflect the priorities for waste management practices specified in subdivision (a) of Section 40051.
(8)To pay the costs associated with implementing and operating a waste tire and used tire hauler program and manifest system pursuant to Chapter 19 (commencing with Section 42950).
(9)To pay the costs to create and maintain an emergency reserve, which shall not exceed one million dollars ($1,000,000).
(10)To pay the costs of cleanup, abatement, or other remedial action related to the disposal of waste tires in implementing and operating the Farm and Ranch Solid Waste Cleanup and Abatement Grant Program established pursuant to Chapter 2.5 (commencing with Section 48100) of Part 7.
(11)To fund border region activities specified in paragraph (8) of subdivision (b) of Section 42885.5.
(12)For expenditure pursuant to paragraph (3) of subdivision (a) of, and paragraph (3) of subdivision (b) of, Section 17001.
(c)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date.
SEC. 6.Section 42961.5 of the Public Resources Code is amended to read:42961.5.(a)For purposes of this chapter, the following definitions shall apply:
(1)California Uniform Waste and Used Tire Manifest or manifest means a shipping document signed by a waste or used tire hauler and a generator of waste or used tires, or the operator of a waste or used tire facility or other destination that contains all of the information required by the department, including, but not limited to, an accurate measurement of the number of tires being shipped, the date the shipment originated or terminated, and the origin and final destination of the shipment.
(2)Electronic Manifest means a manifest that is submitted to the department electronically in a manner specified by the department.
(3)Waste and used tire hauler or hauler means any person required to be registered with the department pursuant to subdivision (a) of Section 42951.
(b)For purposes of this section, Passenger Tire Equivalent or PTE means either of the following:
(1)A unit of measurement, such that one PTE equals 20 pounds of waste or used tires, and one PTE equals one waste or used tire.
(2)A unit of measurement, such that 10 PTEs equals one cubic yard of waste or used tires, and one PTE equals one waste or used tire.
(c)(1)A hauler transporting waste or used tires for offsite handling, altering, storage, or disposal, or for any combination thereof, shall complete a manifest.
(2)A hauler shall have the manifest in his or her possession while transporting waste or used tires. The manifest shall be shown upon demand to any representative of the department, any officer of the Department of the California Highway Patrol, or any peace officer, as defined in Section 830.1 or 830.2 of the Penal Code.
(3)A hauler shall provide the manifest, or otherwise provide all required manifest information, to the generator of waste or used tires or to the operator of a waste or used tire facility or other destination at the time of transfer of the tires.
(4)The hauler shall submit a manifest to the department for each load of waste or used tires transported within seven days of the date of the pickup or delivery. The department may grant an extension before the seventh day upon a showing of good cause by the hauler.
(5)Notwithstanding the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code), on and after January 1, 2020, the hauler shall submit only an electronic manifest, and not a paper manifest, to the department within seven days of the date of the pickup or delivery for each load of waste or used tires transported.
(6)If approved by the department, a hauler may submit an electronic manifest prior to January 1, 2020. The electronic manifest shall include all information required to be on the manifest and any other information required by the department.
(d)The authorized representative for the person generating or accepting waste or used tires shall verify that the information on the manifest is correct, including the number of tires and other information specified by the department, and shall sign the manifest. The person generating or accepting waste or used tires shall maintain a copy of the manifest and any other information required that the department deems necessary to track the flow of waste and used tires through the state.
(e)The department may require an electronic manifest submitted by a hauler to the department to include verification from a hauler, and a generator of waste or used tires, or the operator of a waste or used tire facility or other destination, that the information on the manifest is correct, including the number of tires and other information specified by the department.
(f)The department shall develop and implement a system for auditing manifests submitted to the department pursuant to this section, for the purpose of enforcing this section.
(g)If the amount of waste or used tires recorded on a manifest is by weight or volume, the department shall determine the number of waste or used tires being transported by converting the weight or volume into PTEs.
(h)The department may require a hauler to attend trainings and demonstrate understanding and proficiency with the provisions of this chapter, Chapter 16 (commencing with Section 42800), Chapter 17 (commencing with Section 42860), and any rules, regulations, or requirements issued or adopted pursuant to this chapter, Chapter 16, or Chapter 17 prior to receiving a waste and used tire hauler registration or a waste and used tire hauler registration renewal.
(a)This section shall be known, and may be cited, as the Tire Recycling Incentive Program Act.
(b)In accordance with Section 42872, the department shall establish a tire recycling incentive program that makes payments to eligible entities.
(c)Incentive payments shall be made only to eligible entities for incentive-eligible tire products manufactured from California-generated waste tire material that promote the recycling of, the reduction of the disposal of, or the prevention of illegal dumping of California-generated waste tire material.
(d)An entity is eligible to receive an incentive payment only upon demonstrating the following to the department, as applicable:
(1)The entity purchased a tire product that is processed in California from California-generated waste tire material.
(2)If the end use of the tire product is for something other than a local public works project, the entity sold an incentive-eligible tire product incorporating California-generated waste tire material to an end user.
(e)(1)If the end use of the tire product is for something other than a local public works project, For purposes of this section, eligible entity includes, but is not limited to, a both of the following:
(1)A manufacturer that produces an incentive-eligible tire product incorporating California-generated waste tire material for purchase by an end user. Eligible entity pursuant to this paragraph does not include the entity or person that receives the finished product. product, except as provided in paragraph (2).
(2)(A)If the end use of the tire product is for a local public works project, eligible entity means a A city, county, city and county, or special district that puts out a bid and contracts with an outside entity to use rubberized asphalt products that incorporate California-generated waste tire material to pave projects, for a local public works pavement project, including, but not limited to, streets, roads, alleys, and other thoroughfares a pavement project on a street, road, alley, or other thoroughfare specified in the bid documents.
(B)On or after January 1, 2022, the department may revise the list of eligible entities pursuant to subparagraph (A), if, after holding a public workshop and seeking public input, the department makes a determination that funding other entities would result in greater use of rubberized asphalt products.(f)For purposes of this section, end user includes, but is not limited to, the following:
(1)Cities, counties, and other local governmental agencies, including school districts.
(2)State governmental agencies, including regional park districts.
(3)Private companies and persons.
(g)(1)For purposes of this section, incentive-eligible tire product may include, but is not limited to, the following:
(A)Pavement-related products, such as rubberized asphalt, asphalt rubber, modified binders, and chip seals.
(B)Rubberized asphalt base stock to be used in applications other than pavement.
(C)Products used in disability access projects at parks and Class I bikeways, as defined in subdivision (a) of Section 890.4 of the Streets and Highways Code, relative to projects that use recycled tires.
(D)Poured in place and tile playground mats.
(E)Landscape nuggets and mulch.
(F)Walkways and pathways.
(G)Running tracks.
(H)Tire-derived aggregate engineered applications.
(I)Molded, extruded, injected, and calendered products.
(J)Products that use recycled rubber as a substitute for other materials, such as plastic.
(K)Paint and coatings.
(L)Other products, environmentally safe applications, or treatments determined to be appropriate by the department.
(2)Incentive-eligible tire product does not include any of the following:
(A)Tire-derived fuel.
(B)Alternative daily cover, intermediate cover, erosion, or other landfill uses, except tire-derived aggregates used in landfill engineered projects for landfill gas and leachate control systems and other engineering projects designated by the department.
(C)Exports of whole waste tires.
(D)Crumb rubber as an intermediate product before purchase for incorporation into a final end use.
(E)Tire-derived aggregate as an intermediate product before purchase for incorporation into a final end use or as an intermediate product that is shipped out of state.
(F)Rubberized pavement shipped out of state.
(G)Synthetic turf infill.
(H)Loose rubber nugget or mulch playgrounds.
(I)Purchases made to meet procurement requirements established pursuant to Section 42703.
(h)(1)On or before January 1, 2020, the department shall hold a public workshop to develop a plan for the tire recycling incentive payment program established pursuant to subdivision (b). The plan shall be included in the next revision of the five-year plan required pursuant to Section 42885.5.
(2)At the public workshop required pursuant to paragraph (1), the department shall do both of the following:
(A)Consistent with this chapter, determine, among other things, all of the following:
(i)What products, in addition to those listed in paragraph (1) of subdivision (g), are incentive-eligible tire products for purposes of this section.
(ii)The incentive payment amounts to be paid to eligible entities, consistent with the requirements of subdivision (l).
(iii)Conditions to ensure that incentives are paid only for bona fide transactions.
(iv)What is considered a recycled-tire product for purposes of determining the recycling rate for California-generated waste tire material. Recycled-tire product shall include, among other things, some nonincentive-eligible tire-derived products, for those purposes.
(v)A timeline for implementing the tire recycling incentive program and the program commencement date, which shall be no later than July 1, 2020.
(B)(i)Develop a tiered incentive payment structure with no more than three tiers. The tiers shall be designed to ensure that the maximum amount of California-generated waste tires is recycled.
(ii)During the first two years of the program, individual payment amounts for projects in the tier with the highest incentive payments shall be no more than twice the individual payment amounts for projects in the tier with the second highest incentive payments. After the first two years of the program, the department may determine in a public workshop incentive payments for projects in the highest tier that are more than twice the individual payment amounts for those in the tier with the second highest incentive payments. This determination shall be based on market information, program performance, the potential of new products and different market segments, and the departments goal of developing a long-term, sustainable, and diversified demand for tire-derived products. Payments for projects in the tier with the highest incentive payments shall account for no more than 25 percent of the total amount of moneys made available as incentive payments by the program for purposes other than pavement-related activities.
(iii)In developing the tiers, the department shall consider factors, including, but not limited to, the following:
(I)The quantity of waste tires that will be diverted from landfills.
(II)The incentive amount necessary for incentive-eligible tire products to effectively compete with nonrecycled alternatives.
(III)The existing and potential markets for the applicable incentive-eligible tire product.
(IV)The policy goal established pursuant to Section 42872.2.
(V)The market segments for waste tires.
(VI)The pricing structures necessary to increase the use of incentive-eligible tire products by market segment, including pricing structures necessary to achieve the goal established pursuant to Section 42872.2.
(VII)The development of long-term, sustainable, and diversified market demand for California tire-derived products.
(iv)The department shall conduct a waste tire market evaluation to inform the development of the tiers and shall discuss the findings at the public workshop required pursuant to paragraph (1).
(3)The department shall consider the amount of moneys made available for incentive payments pursuant to subdivision (l) and, in the biennial update of the plan following January 1, 2019, shall reduce the amount of moneys expended for waste tire market development grants pursuant to the five-year plan described in Section 42885.5, from the amount that was authorized for such grants as of January 1, 2019, as it deems appropriate. All other tire program activities that are not related to market development grants shall continue as described in the five-year plan.
(i)The department shall collect data from recipients of incentive payments to be released annually in the California Waste Tire Market Report.
(1)Data shall be aggregated to determine the total amount of money paid for each category of incentive-eligible tire products listed in subparagraphs (A) to (L), inclusive, of paragraph (1) of subdivision (g) and how many tires, or passenger tire equivalents as defined in subdivision (b) of Section 42961.5, were recycled. The department shall use the data specified in this paragraph for purposes of the evaluation required pursuant to subdivision (j).
(2)The department shall include in the California Waste Tire Market Report the annual recycling rate, the number of tires, or passenger tire equivalents, as defined in subdivision (b) of Section 42961.5, that were recycled in that year and, to the extent the information is available, the number of tires or passenger tire equivalents of the nonincentive-eligible tire-derived products considered recycled-tire products pursuant to clause (iv) of subparagraph (A) of paragraph (2) of subdivision (h).
(3)The report shall also include the number of tires recycled by the Department of Transportation and, to the extent the information is available, an estimate of the recycling rate of waste tire material recycled by other state and local agencies and by the private sector, as part of the overall recycling rate.
(j)As part of the biennial update of the five-year plan required pursuant to Section 42885.5, the department shall evaluate the tire recycling incentive program established pursuant to subdivision (b) in a public forum and propose changes accordingly. Consistent with this chapter, the department may make changes to the tire program, but no more frequently than annually and only after holding a public workshop.
(1)The evaluation required pursuant to this subdivision shall include, but is not limited to, the following elements:
(A)The recycling rate of California-generated waste tire material, including waste tire material recycled through funding pursuant to the tire recycling incentive program, and, to the extent the information is available, an estimate of the recycling rate of waste tire material recycled by other state and local agencies and the private sector.
(B)The amount of California-generated waste tire material entering each market segment.
(C)The amount of waste tire material recycled through expenditures authorized by this chapter.
(2)Based on the findings from the evaluation required pursuant to this subdivision, the department shall reevaluate and prioritize funding for the categories of incentive-eligible tire products that recycle the most waste tires.
(k)For purposes of this section, recipients of incentive payments shall meet specified criteria, as established by the department, that are consistent with the provisions of this article.
(l)(1)For purposes of this section, the department, upon appropriation by the Legislature, shall annually make available an allocation for incentive payments that is not less than 75 percent of the projected California tire fee revenue for that fiscal year at the time of the enactment of the annual Budget Act. If the department finds that actual California tire fee revenue falls short of projections, the department may reduce this allocation to the extent it is unexpended before the end of the fiscal year. No
(2)No less than 50 percent of the total annual value of incentive payments made pursuant to this section shall be made available for pavement-related products, as described in subparagraph (A) of paragraph (1) of subdivision (g).
(m)Nothing in this section is intended to limit the use of waste tire products that are not incentive-eligible tire products.
(n)It is the intent of the Legislature that this section encourage activities and expenditures in addition to those under the tire program, other than activities associated with market development grants. Implementation of the tire recycling incentive program shall not result in reduced expenditures for other tire program activities that are not associated with market development grants.
SEC. 3.Section 42872.2 is added to the Public Resources Code, to read:42872.2.(a)The Legislature hereby declares that it is the policy goal of the state that not less than 75 percent of solid waste tires generated be source reduced, or recycled in the state, by the year 2020. state.
(b)If the state meets the policy goal in subdivision (a) for three consecutive years, the department shall, as part of the five-year plan required pursuant to Section 42885.5, review existing tire recycling programs and make recommendations as to which policies are necessary to maintain and increase the level of waste tire recycling.
SEC. 4.Section 42885 of the Public Resources Code, as amended by Section 31 of Chapter 401 of the Statutes of 2013, is amended to read:42885.(a)(1) For purposes of this section, California tire fee means the fee imposed pursuant to subdivision (b) of this section.
(2)For purposes of this section, a California tire regulatory fee means a fee imposed pursuant to subdivision (c) of this section.
(b)(1)A person who purchases a new tire, as defined in subdivision (h), shall pay a California tire fee of one dollar and seventy-five cents ($1.75) per tire.
(2)The retail seller shall charge the retail purchaser the amount of the California tire fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the retail purchaser.
(3)The retail seller shall collect the California tire fee from the retail purchaser at the time of sale and may retain 11/2 percent of the fee as reimbursement for any costs associated with the collection of the fee. The retail seller shall remit the remainder to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund, which is hereby created in the State Treasury.
(c)(1)Upon a finding by the department that the balance of the California Tire Recycling Management Fund is projected to drop below twenty-five million dollars ($25,000,000) for the next fiscal year, the department shall establish, and a waste tire generator that is a retail seller of new tires to end user purchasers shall pay, a California tire regulatory fee. The amount of the California tire regulatory fee shall be established and adjusted by the department based on the factors specified in paragraph (3), but that amount shall not exceed one dollar ($1) per new tire sold. The department shall set this fee to collect no more than is necessary for the following fiscal year, including a prudent reserve, as specified in subparagraph (B) of paragraph (3). The department may differentiate in setting fees between waste tire generators who are retail sellers of new tires to end user purchasers depending upon the nature of the retail sellers activity generating waste tires, the number of waste tires generated, and other appropriate bases.
(2)A waste tire generator that is a retail seller of new tires to end user purchasers shall remit the fee assessed pursuant to this subdivision to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The revenue from the California tire regulatory fee shall be tracked separately by the department and shall not be used for activities other than those described in this subdivision.
(3)Prior to establishing or adjusting the California tire regulatory fee, the department shall review at a public hearing the following factors:
(A)The amount necessary to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities associated with waste tires pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950).
(B)The sufficiency of revenues in the California Tire Recycling Management Fund for the department to administer, enforce, and promote its regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), plus a prudent reserve.
(C)Whether additional revenue is necessary to preserve the departments ability to conduct regulatory activities in the following fiscal year.
(D)Whether, at the end of a fiscal year, after making payments pursuant to Sections 42872.1 and 42889, sufficient net fund balance remains in the California Tire Recycling Management Fund to reduce the California tire regulatory fee.
(4)An adjustment to the California tire regulatory fee shall become effective on January 1 of the year following its adoption.
(5)(A)The department shall adopt regulations to establish the California tire regulatory fee.
(B)The department may adopt regulations to adjust the California tire regulatory fee. These regulations shall be deemed to meet the description in subdivision (g) of Section 11340.9 of the Government Code and may be filed by the department pursuant to Section 11343.8 of the Government Code.
(6)The department shall identify the specific programs to be funded by the California tire regulatory fee.
(d)The department, or its agent authorized pursuant to Section 42882, shall be reimbursed for its costs of collection, auditing, and making refunds associated with the California Tire Recycling Management Fund, but the amount of that reimbursement shall not exceed 3 percent of the total annual revenue deposited in the fund.
(e)The California tire fee imposed pursuant to subdivision (b) shall be separately stated by the retail seller on the invoice given to the customer at the time of sale. Any other disposal or transaction fee charged by the retail seller related to the tire purchase shall be identified separately from the California tire fee.
(f)A person or business who knowingly, or with reckless disregard, makes a false statement or representation in a document used to comply with this section is liable for a civil penalty for each violation or, for continuing violations, for each day that the violation continues. Liability under this section may be imposed in a civil action and shall not exceed twenty-five thousand dollars ($25,000) for each violation.
(g)In addition to the civil penalty that may be imposed pursuant to subdivision (f), the department may impose an administrative penalty in an amount not to exceed five thousand dollars ($5,000) for each violation of a separate provision or, for continuing violations, for each day that the violation continues, on a person who intentionally or negligently violates a permit, rule, regulation, standard, or requirement issued or adopted pursuant to this chapter. The department shall adopt regulations that specify the amount of the administrative penalty and the procedure for imposing an administrative penalty pursuant to this subdivision.
(h)For purposes of this section, new tire means a pneumatic or solid tire intended for use with onroad or off-road motor vehicles, motorized equipment, construction equipment, or farm equipment that is sold separately from the vehicle or equipment, or a new tire sold with a new or used motor vehicle, as defined in Section 42803.5, including the spare tire, or with construction or farm equipment. New tire does not include retreaded, reused, or recycled tires.
(i)The California tire fee and the California tire regulatory fee shall not be imposed on a tire sold with, or sold separately for use on, any of the following:
(1)A self-propelled wheelchair.
(2)A motorized tricycle or motorized quadricycle, as defined in Section 407 of the Vehicle Code.
(3)A vehicle that is similar to a motorized tricycle or motorized quadricycle and is designed to be operated by a person who, by reason of the persons physical disability, is otherwise unable to move about as a pedestrian.
(j)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date.
SEC. 5.Section 42889 of the Public Resources Code, as amended by Section 152 of Chapter 35 of the Statutes of 2014, is amended to read:42889.(a)Of the moneys collected pursuant to subdivision (b) of Section 42885, an amount equal to seventy-five cents ($0.75) per tire on which the fee is imposed shall be transferred by the California Department of Tax and Fee Administration to the Air Pollution Control Fund. The state board shall expend those moneys, or allocate those moneys to the districts for expenditure, to fund programs and projects that mitigate or remediate air pollution caused by tires in the state, to the extent that the state board or the applicable district determines that the program or project remediates air pollution harms created by tires upon which the fee described in subdivision (b) of Section 42885 is imposed.
(b)The remaining moneys collected pursuant to subdivision (b) of Section 42885 shall be used to fund the waste tire program and the tire recycling incentive program, pursuant to Section 42872.1, and shall be appropriated to the department in the annual Budget Act in a manner consistent with the five-year plan adopted and updated by the department. These moneys shall be expended for the payment of refunds under this chapter and for the following purposes, to the extent they are not lawfully payable from funds allocated pursuant to subdivision (c) of Section 42885:
(1)To pay the administrative overhead cost of this chapter, not to exceed 6 percent of the total revenue deposited in the fund annually, or an amount otherwise specified in the annual Budget Act.
(2)To pay the costs of administration associated with collection, making refunds, and auditing revenues in the fund, not to exceed 3 percent of the total revenue deposited in the fund, as provided in subdivision (d) of Section 42885.
(3)To pay the costs associated with operating the tire recycling program specified in Article 3 (commencing with Section 42870).
(4)To pay the costs associated with the development and enforcement of regulations relating to the storage of waste tires and used tires. The department shall consider designating a city, county, or city and county as the enforcement authority of regulations relating to the storage of waste tires and used tires, as provided in subdivision (c) of Section 42850, and regulations relating to the hauling of waste and used tires, as provided in subdivision (b) of Section 42963. If the department designates a local entity for that purpose, the department shall provide sufficient, stable, and noncompetitive funding to that entity for that purpose, based on available resources, as provided in the five-year plan adopted and updated as provided in subdivision (a) of Section 42885.5. The department may consider and create, as appropriate, financial incentives for citizens who report the illegal hauling or disposal of waste tires as a means of enhancing local and statewide waste tire and used tire enforcement programs.
(5)To pay the costs of cleanup, abatement, removal, or other remedial action related to waste tire stockpiles throughout the state, including all approved costs incurred by other public agencies involved in these activities by contract with the department.
(6)To make studies and conduct research directed at promoting and developing alternatives to the landfill disposal of waste tires.
(7)To assist in developing markets and new technologies for used tires and waste tires. The departments expenditure of funds for purposes of this subdivision shall reflect the priorities for waste management practices specified in subdivision (a) of Section 40051.
(8)To pay the costs associated with implementing and operating a waste tire and used tire hauler program and manifest system pursuant to Chapter 19 (commencing with Section 42950).
(9)To pay the costs to create and maintain an emergency reserve, which shall not exceed one million dollars ($1,000,000).
(10)To pay the costs of cleanup, abatement, or other remedial action related to the disposal of waste tires in implementing and operating the Farm and Ranch Solid Waste Cleanup and Abatement Grant Program established pursuant to Chapter 2.5 (commencing with Section 48100) of Part 7.
(11)To fund border region activities specified in paragraph (8) of subdivision (b) of Section 42885.5.
(12)For expenditure pursuant to paragraph (3) of subdivision (a) of, and paragraph (3) of subdivision (b) of, Section 17001.
(c)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date.
SEC. 6.Section 42961.5 of the Public Resources Code is amended to read:42961.5.(a)For purposes of this chapter, the following definitions shall apply:
(1)California Uniform Waste and Used Tire Manifest or manifest means a shipping document signed by a waste or used tire hauler and a generator of waste or used tires, or the operator of a waste or used tire facility or other destination that contains all of the information required by the department, including, but not limited to, an accurate measurement of the number of tires being shipped, the date the shipment originated or terminated, and the origin and final destination of the shipment.
(2)Electronic Manifest means a manifest that is submitted to the department electronically in a manner specified by the department.
(3)Waste and used tire hauler or hauler means any person required to be registered with the department pursuant to subdivision (a) of Section 42951.
(b)For purposes of this section, Passenger Tire Equivalent or PTE means either of the following:
(1)A unit of measurement, such that one PTE equals 20 pounds of waste or used tires, and one PTE equals one waste or used tire.
(2)A unit of measurement, such that 10 PTEs equals one cubic yard of waste or used tires, and one PTE equals one waste or used tire.
(c)(1)A hauler transporting waste or used tires for offsite handling, altering, storage, or disposal, or for any combination thereof, shall complete a manifest.
(2)A hauler shall have the manifest in his or her possession while transporting waste or used tires. The manifest shall be shown upon demand to any representative of the department, any officer of the Department of the California Highway Patrol, or any peace officer, as defined in Section 830.1 or 830.2 of the Penal Code.
(3)A hauler shall provide the manifest, or otherwise provide all required manifest information, to the generator of waste or used tires or to the operator of a waste or used tire facility or other destination at the time of transfer of the tires.
(4)The hauler shall submit a manifest to the department for each load of waste or used tires transported within seven days of the date of the pickup or delivery. The department may grant an extension before the seventh day upon a showing of good cause by the hauler.
(5)Notwithstanding the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code), on and after January 1, 2020, the hauler shall submit only an electronic manifest, and not a paper manifest, to the department within seven days of the date of the pickup or delivery for each load of waste or used tires transported.
(6)If approved by the department, a hauler may submit an electronic manifest prior to January 1, 2020. The electronic manifest shall include all information required to be on the manifest and any other information required by the department.
(d)The authorized representative for the person generating or accepting waste or used tires shall verify that the information on the manifest is correct, including the number of tires and other information specified by the department, and shall sign the manifest. The person generating or accepting waste or used tires shall maintain a copy of the manifest and any other information required that the department deems necessary to track the flow of waste and used tires through the state.
(e)The department may require an electronic manifest submitted by a hauler to the department to include verification from a hauler, and a generator of waste or used tires, or the operator of a waste or used tire facility or other destination, that the information on the manifest is correct, including the number of tires and other information specified by the department.
(f)The department shall develop and implement a system for auditing manifests submitted to the department pursuant to this section, for the purpose of enforcing this section.
(g)If the amount of waste or used tires recorded on a manifest is by weight or volume, the department shall determine the number of waste or used tires being transported by converting the weight or volume into PTEs.
(h)The department may require a hauler to attend trainings and demonstrate understanding and proficiency with the provisions of this chapter, Chapter 16 (commencing with Section 42800), Chapter 17 (commencing with Section 42860), and any rules, regulations, or requirements issued or adopted pursuant to this chapter, Chapter 16, or Chapter 17 prior to receiving a waste and used tire hauler registration or a waste and used tire hauler registration renewal.
(a)This section shall be known, and may be cited, as the Tire Recycling Incentive Program Act.
(b)In accordance with Section 42872, the department shall establish a tire recycling incentive program that makes payments to eligible entities.
(c)Incentive payments shall be made only to eligible entities for incentive-eligible tire products manufactured from California-generated waste tire material that promote the recycling of, the reduction of the disposal of, or the prevention of illegal dumping of California-generated waste tire material.
(d)An entity is eligible to receive an incentive payment only upon demonstrating the following to the department, as applicable:
(1)The entity purchased a tire product that is processed in California from California-generated waste tire material.
(2)If the end use of the tire product is for something other than a local public works project, the entity sold an incentive-eligible tire product incorporating California-generated waste tire material to an end user.
(e)(1)If the end use of the tire product is for something other than a local public works project, eligible entity includes, but is not limited to, a manufacturer that produces an incentive-eligible tire product incorporating California-generated waste tire material for purchase by an end user. Eligible entity pursuant to this paragraph does not include the entity or person that receives the finished product.
(2)(A)If the end use of the tire product is for a local public works project, eligible entity means a city, county, city and county, or special district that puts out a bid and contracts with an outside entity to use rubberized asphalt products that incorporate California-generated waste tire material to pave projects, including, but not limited to, streets, roads, alleys alleys, and other thoroughfares specified in the bid documents.
(B)On or after January 1, ____, 2022, the department may revise the list of eligible entities pursuant to subparagraph (A), if, after holding a public workshop and seeking public input, the department makes a determination that funding other entities would result in greater use of rubberized asphalt products.
(f)For purposes of this section, end user includes, but is not limited to, the following:
(1)Cities, counties, and other local governmental agencies, including school districts.
(2)State governmental agencies, including regional park districts.
(3)Private companies and persons.
(g)(1)For purposes of this section, incentive-eligible tire product may include, but is not limited to, the following:
(A)Pavement-related products, such as rubberized asphalt, asphalt rubber, modified binders, and chip seals.
(B)Rubberized asphalt base stock to be used in applications other than pavement.
(C)Products used in disability access projects at parks and Class I bikeways, as defined in subdivision (a) of Section 890.4 of the Streets and Highways Code, relative to projects that use recycled tires.
(D)Poured in place and tile playground mats.
(E)Landscape nuggets and mulch.
(F)Walkways and pathways.
(G)Running tracks.
(H)Tire-derived aggregate engineered applications.
(I)Molded, extruded, injected, and calendered products.
(J)Products that use recycled rubber as a substitute for other materials, such as plastic.
(K)Paint and coatings.
(L)Other products, environmentally safe applications, or treatments determined to be appropriate by the department.
(2)Incentive-eligible tire product does not include any of the following:
(A)Tire-derived fuel.
(B)Alternative daily cover, intermediate cover, erosion, or other landfill uses, except tire-derived aggregates used in landfill engineered projects for landfill gas and leachate control systems and other engineering projects designated by the department.
(C)Exports of whole waste tires.
(D)Crumb rubber as an intermediate product before purchase for incorporation into a final end use.
(E)Tire-derived aggregate as an intermediate product before purchase for incorporation into a final end use or as an intermediate product that is shipped out of state.
(F)Rubberized pavement shipped out of state.
(G)Synthetic turf infill.
(H)Loose rubber nugget or mulch playgrounds.
(I)Purchases made to meet procurement requirements established pursuant to Section 42703.
(h)(1)On or before January 1, 2020, the department shall hold a public workshop to develop a plan for the tire recycling incentive payment program established pursuant to subdivision (b). The plan shall be included in the next revision of the five-year plan required pursuant to Section 42885.5.
(2)At the public workshop required pursuant to paragraph (1), the department shall do both of the following:
(A)Consistent with this chapter, determine, among other things, all of the following:
(i)What products, in addition to those listed in paragraph (1) of subdivision (g), are incentive-eligible tire products for purposes of this section.
(ii)The incentive payment amounts to be paid to eligible entities, consistent with the requirements of subdivision (l).
(iii)Conditions to ensure that incentives are paid only for bona fide transations. transactions.
(iv)What is considered a recycled-tire product for purposes of determining the recycling rate for California-generated waste tire material. recycled-tire Recycled-tire product shall include, among other things, some nonincentive-eligible tire-derived products, for those purposes.
(v)A timeline for implementing the tire recycling incentive program and the program commencement date, which shall be no later than July 1, 2020.
(B)(i)Develop a tiered incentive payment structure with no more than three tiers. The tiers shall be designed to ensure that the maximum amount of California-generated waste tires is recycled.
(ii)During the first two years of the program, individual payment amounts for projects in the tier with the highest incentive payments shall be no more than twice the individual payment amounts for projects in the tier with the second highest incentive payments. After the first two years of the program, the department may determine in a public workshop incentive payments for projects in the highest tier that are more than twice the individual payment amounts for those in the tier with the second highest incentive payments. This determination shall be based on market information, program performance, the potential of new products and different market segments, and the departments goal of developing a long-term, sustainable, and diversified demand for tire-derived products. Payments for projects in the tier with the highest incentive payments shall account for no more than 25 percent of the total amount of moneys made available as incentive payments by the program for purposes other than pavement-related activities.
(iii)In developing the tiers, the department shall consider factors, including, but not limited to, the following:
(I)The quantity of waste tires that will be diverted from landfills.
(II)The incentive amount necessary for incentive-eligible tire products to effectively compete with nonrecycled alternatives.
(III)The existing and potential markets for the applicable incentive-eligible tire product.
(IV)The policy goal established pursuant to Section 42872.2.
(V)The market segments for waste tires.
(VI)The pricing structures necessary to increase the use of incentive-eligible tire products by market segment, including pricing structures necessary to achieve the goal established pursuant to Section 42872.2.
(VII)The development of long-term, sustainable, and diversified market demand for California tire-derived products.
(iv)The department shall conduct a waste tire market evaluation to inform the development of the tiers and shall discuss the findings at the public workshop required pursuant to paragraph (1).
(3)The department shall consider the amount of moneys made available for incentive payments pursuant to subdivision (l) and, in the biennial update of the plan following January 1, 2018, 2019, shall reduce the amount of moneys expended for waste tire market development grants pursuant to the five-year plan described in Section 42885.5, from the amount that was authorized for such grants as of January 1, 2018, 2019, as it deems appropriate. All other tire program activities that are not related to market development grants shall continue as described in the five-year plan.
(i)The department shall collect data from recipients of incentive payments to be released annually in the California Waste Tire Market Report.
(1)Data shall be aggregated to determine the total amount of money paid for each category of incentive-eligible tire products listed in subparagraphs (A) to (L), inclusive, of paragraph (1) of subdivision (g) and how many tires, or passenger tire equivalents as defined in subdivision (b) of Section 42961.5, were recycled. The department shall use the data specified in this paragraph shall be used by the department for purposes of the evaluation required pursuant to subdivision (j).
(2)The department shall include in the California Waste Tire Market Report the annual recycling rate, the number of tires, or passenger tire equivalents, as defined in subdivision (b) of Section 42961.5, that were recycled in that year and, to the extent the information is available, the number of tires or passenger tire equivalents of the nonincentive-eligible tire-derived products considered tire recycled recycled-tire products pursuant to clause (iv) of subparagraph (A) of paragraph (2) of subdivision (h).
(3)The report shall also include the number of tires recycled by the Department of Transportation and, to the extent the information is available, an estimate of the recycling rate of waste tire material recycled by other state and local agencies and by the private sector, as part of the overall recycling rate.
(j)As part of the biennial update of the five-year plan required pursuant to Section 42885.5, the department shall evaluate the tire recycling incentive program established pursuant to subdivision (b) in a public forum and propose changes accordingly. Consistent with this chapter, the department may make changes to the tire program, but no more frequently than annually and only after holding a public workshop.
(1)The evaluation required pursuant to this subdivision shall include, but is not limited to, the following elements:
(A)The recycling rate of California-generated waste tire material, including waste tire material recycled through funding pursuant to the tire recycling incentive program, and, to the extent the information is available, an estimate of the recycling rate of waste tire material recycled by other state and local agencies and the private sector.
(B)The amount of California-generated waste tire material entering each market segment.
(C)The amount of waste tire material recycled through expenditures authorized by this chapter.
(2)Based on the findings from the evaluation required pursuant to this subdivision, the department shall reevaluate and prioritize funding for the categories of incentive-eligible tire products that recycle the most waste tires.
(k)For purposes of this section, recipients of incentive payments shall meet specified criteria, as established by the department, that are consistent with the provisions of this article.
(l)For purposes of this section, the department, upon appropriation by the Legislature, shall annually make available an allocation for incentive payments that is not less than 75 percent of the projected California tire fee revenue for that fiscal year at the time of the enactment of the annual Budget Act. If the department finds that actual California tire fee revenue falls short of projections, the department may reduce this allocation to the extent it is unexpended before the end of the fiscal year. No less than 50 percent of the total annual value of incentive payments made pursuant to this section shall be made for pavement-related products, as described in subparagraph (A) of paragraph (1) of subdivision (g).
(m)Nothing in this section is intended to limit the use of waste tire products that are not incentive-eligible tire products.
(n)It is the intent of the Legislature that this section encourage activities and expenditures in addition to those under the tire program, other than activities associated with market development grants. Implementation of the tire recycling incentive program shall not result in reduced expenditures for other tire program activities that are not associated with market development grants.
SEC. 3.Section 42872.2 is added to the Public Resources Code, to read:42872.2.(a)The Legislature hereby declares that it is the policy goal of the state that not less than 75 percent of solid waste tires generated be source reduced, or recycled in the state, by the year 2020.
(b)If the state meets the policy goal in subdivision (a) for three consecutive years, the department shall, as part of the five-year plan required pursuant to Section 42885.5, review existing tire recycling programs and make recommendations as to which policies are necessary to maintain and increase the level of waste tire recycling.
SEC. 4.Section 42885 of the Public Resources Code, as amended by Section 31 of Chapter 401 of the Statutes of 2013, is amended to read:42885.(a)(1) For purposes of this section, California tire fee means the fee imposed pursuant to subdivision (b) of this section.
(2)For purposes of this section, a California tire regulatory fee means a fee imposed pursuant to subdivision (c) of this section.
(b)(1)A person who purchases a new tire, as defined in subdivision (h), shall pay a California tire fee of one dollar and seventy-five cents ($1.75) per tire.
(2)The retail seller shall charge the retail purchaser the amount of the California tire fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the retail purchaser.
(3)The retail seller shall collect the California tire fee from the retail purchaser at the time of sale and may retain 11/2 percent of the fee as reimbursement for any costs associated with the collection of the fee. The retail seller shall remit the remainder to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund, which is hereby created in the State Treasury.
(c)(1)Upon a finding by the department that the balance of the California Tire Recycling Management Fund is projected to drop below twenty-five million dollars ($25,000,000) for the next fiscal year, the department shall establish, and a waste tire generator that is a retail seller of new tires to end user purchasers shall pay, a California tire regulatory fee. The amount of the California tire regulatory fee shall be established and adjusted by the department based on the factors specified in paragraph (3), but that amount shall not exceed one dollar ($1) per new tire sold. The department shall set this fee to collect no more than is necessary for the following fiscal year, including a prudent reserve, as specified in subparagraph (B) of paragraph (3). The department may differentiate in setting fees between waste tire generators who are retail sellers of new tires to end user purchasers depending upon the nature of the retail sellers activity generating waste tires, the number of waste tires generated, and other appropriate bases.
(2)A waste tire generator that is a retail seller of new tires to end user purchasers shall remit the fee assessed pursuant to this subdivision to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The revenue from the California tire regulatory fee shall be tracked separately by the department and shall not be used for activities other than those described in this subdivision.
(3)Prior to establishing or adjusting the California tire regulatory fee, the department shall review at a public hearing the following factors:
(A)The amount necessary to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities associated with waste tires pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950).
(B)The sufficiency of revenues in the California Tire Recycling Management Fund for the department to administer, enforce, and promote its regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), plus a prudent reserve.
(C)Whether additional revenue is necessary to preserve the departments ability to conduct regulatory activities in the following fiscal year.
(D)Whether, at the end of a fiscal year, after making payments pursuant to Sections 42872.1 and 42889, sufficient net fund balance remains in the California Tire Recycling Management Fund to reduce the California tire regulatory fee.
(4)An adjustment to the California tire regulatory fee shall become effective on January 1 of the year following its adoption.
(5)(A)The department shall adopt regulations to establish the California tire regulatory fee.
(B)The department may adopt regulations to adjust the California tire regulatory fee. These regulations shall be deemed to meet the description in subdivision (g) of Section 11340.9 of the Government Code and may be filed by the department pursuant to Section 11343.8 of the Government Code.
(6)The department shall identify the specific programs to be funded by the California tire regulatory fee.
(d)The department, or its agent authorized pursuant to Section 42882, shall be reimbursed for its costs of collection, auditing, and making refunds associated with the California Tire Recycling Management Fund, but the amount of that reimbursement shall not exceed 3 percent of the total annual revenue deposited in the fund.
(e)The California tire fee imposed pursuant to subdivision (b) shall be separately stated by the retail seller on the invoice given to the customer at the time of sale. Any other disposal or transaction fee charged by the retail seller related to the tire purchase shall be identified separately from the California tire fee.
(f)A person or business who knowingly, or with reckless disregard, makes a false statement or representation in a document used to comply with this section is liable for a civil penalty for each violation or, for continuing violations, for each day that the violation continues. Liability under this section may be imposed in a civil action and shall not exceed twenty-five thousand dollars ($25,000) for each violation.
(g)In addition to the civil penalty that may be imposed pursuant to subdivision (f), the department may impose an administrative penalty in an amount not to exceed five thousand dollars ($5,000) for each violation of a separate provision or, for continuing violations, for each day that the violation continues, on a person who intentionally or negligently violates a permit, rule, regulation, standard, or requirement issued or adopted pursuant to this chapter. The department shall adopt regulations that specify the amount of the administrative penalty and the procedure for imposing an administrative penalty pursuant to this subdivision.
(h)For purposes of this section, new tire means a pneumatic or solid tire intended for use with onroad or off-road motor vehicles, motorized equipment, construction equipment, or farm equipment that is sold separately from the motorized vehicle or equipment, or a new tire sold with a new or used motor vehicle, as defined in Section 42803.5, including the spare tire, or with construction equipment, or farm equipment. New tire does not include retreaded, reused, or recycled tires.
(i)The California tire fee and the California tire regulatory fee shall not be imposed on a tire sold with, or sold separately for use on, any of the following:
(1)A self-propelled wheelchair.
(2)A motorized tricycle or motorized quadricycle, as defined in Section 407 of the Vehicle Code.
(3)A vehicle that is similar to a motorized tricycle or motorized quadricycle and is designed to be operated by a person who, by reason of the persons physical disability, is otherwise unable to move about as a pedestrian.
(j)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date.
SEC. 5.Section 42889 of the Public Resources Code, as amended by Section 152 of Chapter 35 of the Statutes of 2014, is amended to read:42889.(a)Of the moneys collected pursuant to subdivision (b) of Section 42885, an amount equal to seventy-five cents ($0.75) per tire on which the fee is imposed shall be transferred by the State Board of Equalization California Department of Tax and Fee Administration to the Air Pollution Control Fund. The state board shall expend those moneys, or allocate those moneys to the districts for expenditure, to fund programs and projects that mitigate or remediate air pollution caused by tires in the state, to the extent that the state board or the applicable district determines that the program or project remediates air pollution harms created by tires upon which the fee described in subdivision (b) of Section 42885 is imposed.
(b)The remaining moneys collected pursuant to subdivision (b) of Section 42885 shall be used to fund the waste tire program and the tire recycling incentive program, pursuant to Section 42872.1, and shall be appropriated to the department in the annual Budget Act in a manner consistent with the five-year plan adopted and updated by the department. These moneys shall be expended for the payment of refunds under this chapter and for the following purposes, to the extent they are not lawfully payable from funds allocated pursuant to subdivision (c) of Section 42885:
(1)To pay the administrative overhead cost of this chapter, not to exceed 6 percent of the total revenue deposited in the fund annually, or an amount otherwise specified in the annual Budget Act.
(2)To pay the costs of administration associated with collection, making refunds, and auditing revenues in the fund, not to exceed 3 percent of the total revenue deposited in the fund, as provided in subdivision (d) of Section 42885.
(3)To pay the costs associated with operating the tire recycling program specified in Article 3 (commencing with Section 42870).
(4)To pay the costs associated with the development and enforcement of regulations relating to the storage of waste tires and used tires. The department shall consider designating a city, county, or city and county as the enforcement authority of regulations relating to the storage of waste tires and used tires, as provided in subdivision (c) of Section 42850, and regulations relating to the hauling of waste and used tires, as provided in subdivision (b) of Section 42963. If the department designates a local entity for that purpose, the department shall provide sufficient, stable, and noncompetitive funding to that entity for that purpose, based on available resources, as provided in the five-year plan adopted and updated as provided in subdivision (a) of Section 42885.5. The department may consider and create, as appropriate, financial incentives for citizens who report the illegal hauling or disposal of waste tires as a means of enhancing local and statewide waste tire and used tire enforcement programs.
(5)To pay the costs of cleanup, abatement, removal, or other remedial action related to waste tire stockpiles throughout the state, including all approved costs incurred by other public agencies involved in these activities by contract with the department.
(6)To make studies and conduct research directed at promoting and developing alternatives to the landfill disposal of waste tires.
(7)To assist in developing markets and new technologies for used tires and waste tires. The departments expenditure of funds for purposes of this subdivision shall reflect the priorities for waste management practices specified in subdivision (a) of Section 40051.
(8)To pay the costs associated with implementing and operating a waste tire and used tire hauler program and manifest system pursuant to Chapter 19 (commencing with Section 42950).
(9)To pay the costs to create and maintain an emergency reserve, which shall not exceed one million dollars ($1,000,000).
(10)To pay the costs of cleanup, abatement, or other remedial action related to the disposal of waste tires in implementing and operating the Farm and Ranch Solid Waste Cleanup and Abatement Grant Program established pursuant to Chapter 2.5 (commencing with Section 48100) of Part 7.
(11)To fund border region activities specified in paragraph (8) of subdivision (b) of Section 42885.5.
(12)For expenditure pursuant to paragraph (3) of subdivision (a) of, and paragraph (3) of subdivision (b) of, Section 17001.
(c)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date.
SEC. 6.Section 42961.5 of the Public Resources Code is amended to read:42961.5.(a)For purposes of this chapter, the following definitions shall apply:
(1)California Uniform Waste and Used Tire Manifest or manifest means a shipping document signed by a waste or used tire hauler and a generator of waste or used tires, or the operator of a waste or used tire facility or other destination that contains all of the information required by the department, including, but not limited to, an accurate measurement of the number of tires being shipped, the date the shipment originated or terminated, and the origin and final destination of the shipment.
(2)Electronic Manifest means a manifest that is submitted to the department electronically in a manner specified by the department.
(3)Waste and used tire hauler or hauler means any person required to be registered with the department pursuant to subdivision (a) of Section 42951.
(b)For purposes of this section, Passenger Tire Equivalent or PTE means either of the following:
(1)A unit of measurement, such that one PTE equals 20 pounds of waste or used tires, and one PTE equals one waste or used tire.
(2)A unit of measurement, such that 10 PTEs equals one cubic yard of waste or used tires, and one PTE equals one waste or used tire.
(c)(1)A hauler transporting waste or used tires for offsite handling, altering, storage, or disposal, or for any combination thereof, shall complete a manifest.
(2)A hauler shall have the manifest in his or her possession while transporting waste or used tires. The manifest shall be shown upon demand to any representative of the department, any officer of the Department of the California Highway Patrol, or any peace officer, as defined in Section 830.1 or 830.2 of the Penal Code.
(3)A hauler shall provide the manifest, or otherwise provide all required manifest information, to the generator of waste or used tires or to the operator of a waste or used tire facility or other destination at the time of transfer of the tires.
(4)The hauler shall submit a manifest to the department for each load of waste or used tires transported within seven days of the date of the pickup or delivery. The department may grant an extension before the seventh day upon a showing of good cause by the hauler.
(5)Notwithstanding the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code), on and after January 1, 2020, the hauler shall submit only an electronic manifest, and not a paper manifest, to the department within seven days of the date of the pickup or delivery for each load of waste or used tires transported.
(6)If approved by the department, a hauler may submit an electronic manifest prior to January 1, 2020. The electronic manifest shall include all information required to be on the manifest and any other information required by the department.
(d)The authorized representative for the person generating or acceptingwaste accepting waste or used tires shall verify that the information on the manifest is correct, including the number of tires and other information specified by the department, and shall sign the manifest. The person generating or accepting waste or used tires shall maintain a copy of the manifest and any other information required that the department deems necessary to track the flow of waste and used tires through the state.
(e)The department may require an electronic manifest submitted by a hauler to the department to include verification from a hauler, and a generator of waste or used tires, or the operator of a waste or used tire facility or other destination, that the information on the manifest is correct, including the number of tires and other information specified by the department.
(f)The department shall develop and implement a system for auditing manifests submitted to the department pursuant to this section, for the purpose of enforcing this section.
(g)If the amount of waste or used tires recorded on a manifest is by weight or volume, the department shall determine the number of waste or used tires being transported by converting the weight or volume into PTEs.
(h)The department may require a hauler to attend trainings and demonstrate understanding and proficiency with the provisions of this chapter, Chapter 16 (commencing with Section 42800), Chapter 17 (commencing with Section 42860), and any rules, regulations, or requirements issued or adopted pursuant to this chapter, Chapter 16, or Chapter 17 prior to receiving a waste and used tire hauler registration or a waste and used tire hauler registration renewal.
(a)This section shall be known, and may be cited, as the Tire Recycling Incentive Program Act.
(b)In accordance with Section 42872, the department shall establish a tire recycling incentive program that makes payments to eligible entities.
(c)Incentive payments shall be made only to eligible entities for incentive-eligible tire products manufactured from California-generated waste tire material that promote the recycling of, the reduction of the disposal of, or the prevention of illegal dumping of California-generated waste tire material.
(d)An entity is eligible to receive an incentive payment only upon demonstrating the following to the department, as applicable:
(1)The entity purchased a tire product that is processed in California from California-generated waste tire material.
(2)If the end use of the tire product is for something other than a local public works project, the entity sold an incentive-eligible tire product incorporating California-generated waste tire material to an end user.
(e)(1)If the end use of the tire product is for something other than a local public works project, eligible entity includes, but is not limited to, a manufacturer that produces an incentive-eligible tire product incorporating California-generated waste tire material for purchase by an end user. Eligible entity pursuant to this paragraph does not include the entity or person that receives the finished product.
(2)(A)If the end use of the tire product is for a local public works project, eligible entity means a city, county, city and county, or special district that puts out a bid and contracts with an outside entity to use rubberized asphalt products that incorporate California-generated waste tire material to pave projects, including, but not limited to, streets, roads, alleys and other thoroughfares specified in the bid documents.
(B)On or after January 1, ____, the department may revise the list of eligible entities pursuant to subparagraph (A), if, after holding a public workshop and seeking public input, the department makes a determination that funding other entities would result in greater use of rubberized asphalt products.
(f)For purposes of this section, end user includes, but is not limited to, the following:
(1)Cities, counties, and other local governmental agencies, including school districts.
(2)State governmental agencies, including regional park districts.
(3)Private companies and persons.
(g)(1)For purposes of this section, incentive-eligible tire product may include, but is not limited to, the following:
(A)Pavement-related products, such as rubberized asphalt, asphalt rubber, modified binders, and chip seals.
(B)Rubberized asphalt base stock to be used in applications other than pavement.
(C)Products used in disability access projects at parks and Class I bikeways, as defined in subdivision (a) of Section 890.4 of the Streets and Highways Code, relative to projects that use recycled tires.
(D)Poured in place and tile playground mats.
(E)Landscape nuggets and mulch.
(F)Walkways and pathways.
(G)Running tracks.
(H)Tire-derived aggregate engineered applications.
(I)Molded, extruded, injected, and calendered products.
(J)Products that use recycled rubber as a substitute for other materials, such as plastic.
(K)Paint and coatings.
(L)Other products, environmentally safe applications, or treatments determined to be appropriate by the department.
(2)Incentive-eligible tire product does not include any of the following:
(A)Tire-derived fuel.
(B)Alternative daily cover, intermediate cover, erosion, or other landfill uses, except tire-derived aggregates used in landfill engineered projects for landfill gas and leachate control systems and other engineering projects designated by the department.
(C)Exports of whole waste tires.
(D)Crumb rubber as an intermediate product before purchase for incorporation into a final end use.
(E)Tire-derived aggregate as an intermediate product before purchase for incorporation into a final end use or as an intermediate product that is shipped out of state.
(F)Rubberized pavement shipped out of state.
(G)Synthetic turf infill.
(H)Loose rubber nugget or mulch playgrounds.
(I)Purchases made to meet procurement requirements established pursuant to Section 42703.
(h)(1)On or before January 1, 2020, the department shall hold a public workshop to develop a plan for the tire recycling incentive payment program established pursuant to subdivision (b). The plan shall be included in the next revision of the five-year plan required pursuant to Section 42885.5.
(2)At the public workshop required pursuant to paragraph (1), the department shall do both of the following:
(A)Consistent with this chapter, determine, among other things, all of the following:
(i)What products, in addition to those listed in paragraph (1) of subdivision (g), are incentive-eligible tire products for purposes of this section.
(ii)The incentive payment amounts to be paid to eligible entities, consistent with the requirements of subdivision (l).
(iii)Conditions to ensure that incentives are paid only for bona fide transations.
(iv)What is considered a recycled-tire product for purposes of determining the recycling rate for California-generated waste tire material. recycled-tire product shall include, among other things, some nonincentive-eligible tire-derived products, for those purposes.
(v)A timeline for implementing the tire recycling incentive program and the program commencement date, which shall be no later than July 1, 2020.
(B)(i)Develop a tiered incentive payment structure with no more than three tiers. The tiers shall be designed to ensure that the maximum amount of California-generated waste tires is recycled.
(ii)During the first two years of the program, individual payment amounts for projects in the tier with the highest incentive payments shall be no more than twice the individual payment amounts for projects in the tier with the second highest incentive payments. After the first two years of the program, the department may determine in a public workshop incentive payments for projects in the highest tier that are more than twice the individual payment amounts for those in the tier with the second highest incentive payments. This determination shall be based on market information, program performance, the potential of new products and different market segments, and the departments goal of developing a long-term, sustainable, and diversified demand for tire-derived products. Payments for projects in the tier with the highest incentive payments shall account for no more than 25 percent of the total amount of moneys made available as incentive payments by the program for purposes other than pavement-related activities.
(iii)In developing the tiers, the department shall consider factors, including, but not limited to, the following:
(I)The quantity of waste tires that will be diverted from landfills.
(II)The incentive amount necessary for incentive-eligible tire products to effectively compete with nonrecycled alternatives.
(III)The existing and potential markets for the applicable incentive-eligible tire product.
(IV)The policy goal established pursuant to Section 42872.2.
(V)The market segments for waste tires.
(VI)The pricing structures necessary to increase the use of incentive-eligible tire products by market segment, including pricing structures necessary to achieve the goal established pursuant to Section 42872.2.
(VII)The development of long-term, sustainable, and diversified market demand for California tire-derived products.
(iv)The department shall conduct a waste tire market evaluation to inform the development of the tiers and shall discuss the findings at the public workshop required pursuant to paragraph (1).
(3)The department shall consider the amount of moneys made available for incentive payments pursuant to subdivision (l) and, in the biennial update of the plan following January 1, 2018, shall reduce the amount of moneys expended for waste tire market development grants pursuant to the five-year plan described in Section 42885.5, from the amount that was authorized for such grants as of January 1, 2018, as it deems appropriate. All other tire program activities that are not related to market development grants shall continue as described in the five-year plan.
(i)The department shall collect data from recipients of incentive payments to be released annually in the California Waste Tire Market Report.
(1)Data shall be aggregated to determine the total amount of money paid for each category of incentive-eligible tire products listed in subparagraphs (A) to (L), inclusive, of paragraph (1) of subdivision (g) and how many tires, or passenger tire equivalents as defined in subdivision (b) of Section 42961.5, were recycled. The data specified in this paragraph shall be used by the department for purposes of the evaluation required pursuant to subdivision (j).
(2)The department shall include in the California Waste Tire Market Report the annual recycling rate, the number of tires, or passenger tire equivalents, as defined in subdivision (b) of Section 42961.5, that were recycled in that year and, to the extent the information is available, the number of tires or passenger tire equivalents of the nonincentive-eligible tire-derived products considered tire recycled products pursuant to clause (iv) of subparagraph (A) of paragraph (2) of subdivision (h).
(3)The report shall also include the number of tires recycled by the Department of Transportation and, to the extent the information is available, an estimate of the recycling rate of waste tire material recycled by other state and local agencies and by the private sector, as part of the overall recycling rate.
(j)As part of the biennial update of the five-year plan required pursuant to Section 42885.5, the department shall evaluate the tire recycling incentive program established pursuant to subdivision (b) in a public forum and propose changes accordingly. Consistent with this chapter, the department may make changes to the tire program, but no more frequently than annually and only after holding a public workshop.
(1)The evaluation required pursuant to this subdivision shall include, but is not limited to, the following elements:
(A)The recycling rate of California-generated waste tire material, including waste tire material recycled through funding pursuant to the tire recycling incentive program, and, to the extent the information is available, an estimate of the recycling rate of waste tire material recycled by other state and local agencies and the private sector.
(B)The amount of California-generated waste tire material entering each market segment.
(C)The amount of waste tire material recycled through expenditures authorized by this chapter.
(2)Based on the findings from the evaluation required pursuant to this subdivision, the department shall reevaluate and prioritize funding for the categories of incentive-eligible tire products that recycle the most waste tires.
(k)For purposes of this section, recipients of incentive payments shall meet specified criteria, as established by the department, that are consistent with the provisions of this article.
(l)For purposes of this section, the department, upon appropriation by the Legislature, shall annually make available an allocation for incentive payments that is not less than 75 percent of the projected California tire fee revenue for that fiscal year at the time of the enactment of the annual Budget Act. If the department finds that actual California tire fee revenue falls short of projections, the department may reduce this allocation to the extent it is unexpended before the end of the fiscal year. No less than 50 percent of the total annual value of incentive payments made pursuant to this section shall be made for pavement-related products, as described in subparagraph (A) of paragraph (1) of subdivision (g).
(m)Nothing in this section is intended to limit the use of waste tire products that are not incentive-eligible tire products.
(n)It is the intent of the Legislature that this section encourage activities and expenditures in addition to those under the tire program, other than activities associated with market development grants. Implementation of the tire recycling incentive program shall not result in reduced expenditures for other tire program activities that are not associated with market development grants.
SEC. 3.Section 42872.2 is added to the Public Resources Code, to read:42872.2.(a)The Legislature hereby declares that it is the policy goal of the state that not less than 75 percent of solid waste tires generated be source reduced, or recycled in the state, by the year 2020.
(b)If the state meets the policy goal in subdivision (a) for three consecutive years, the department shall, as part of the five-year plan required pursuant to Section 42885.5, review existing tire recycling programs and make recommendations as to which policies are necessary to maintain and increase the level of waste tire recycling.
SEC. 4.Section 42885 of the Public Resources Code, as amended by Section 31 of Chapter 401 of the Statutes of 2013, is amended to read:42885.(a)(1) For purposes of this section, California tire fee means the fee imposed pursuant to subdivision (b) of this section.
(2)For purposes of this section, a California tire regulatory fee means a fee imposed pursuant to subdivision (c) of this section.
(b)(1)A person who purchases a new tire, as defined in subdivision (g), (h), shall pay a California tire fee of one dollar and seventy-five cents ($1.75) per tire.
(2)The retail seller shall charge the retail purchaser the amount of the California tire fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the retail purchaser.
(3)The retail seller shall collect the California tire fee from the retail purchaser at the time of sale and may retain 11/2 percent of the fee as reimbursement for any costs associated with the collection of the fee. The retail seller shall remit the remainder to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund, which is hereby created in the State Treasury.
(c)(1)Upon a finding by the department that the balance of the California Tire Recycling Management Fund is projected to drop below twenty-five million dollars ($25,000,000) for the next fiscal year, the department shall establish, and a waste tire generator that is a retail seller of new tires to end user purchasers shall pay, a California tire regulatory fee. The amount of the California tire regulatory fee shall be established and adjusted by the department based on the factors specified in paragraph (3), but that amount shall not exceed one dollar ($1) per new tire sold. The department shall set this fee to collect no more than is necessary for the following fiscal year, including a prudent reserve, as specified in subparagraph (B) of paragraph (3). The department may differentiate in setting fees between waste tire generators who are retail sellers of new tires to end user purchasers depending upon the nature of the retail sellers activity generating waste tires, the number of waste tires generated, and other appropriate bases.
(2)A waste tire generator that is a retail seller of new tires to end user purchasers shall remit the fee assessed pursuant to this subdivision to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The revenue from the California tire regulatory fee shall be tracked separately by the department and shall not be used for activities other than those described in this subdivision.
(3)Prior to establishing or adjusting the California tire regulatory fee, the department shall review at a public hearing the following factors:
(A)The amount necessary to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities associated with waste tires pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950).
(B)The sufficiency of revenues in the California Tire Recycling Management Fund for the department to administer, enforce, and promote its regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), plus a prudent reserve.
(C)Whether additional revenue is necessary to preserve the departments ability to conduct regulatory activities in the following fiscal year.
(D)Whether, at the end of a fiscal year, after making payments pursuant to Sections 42872.1 and 42889, sufficient net fund balance remains in the California Tire Recycling Management Fund to reduce the California tire regulatory fee.
(4)An adjustment to the California tire regulatory fee shall become effective on January 1 of the year following its adoption.
(5)(A)The department shall adopt regulations to establish the California tire regulatory fee.
(B)The department may adopt regulations to adjust the California tire regulatory fee. These regulations shall be deemed to meet the description in subdivision (g) of Section 11340.9 of the Government Code and may be filed by the department pursuant to Section 11343.8 of the Government Code.
(6)The department shall identify the specific programs to be funded by the California tire regulatory fee.
(c)(d)The department, or its agent authorized pursuant to Section 42882, shall be reimbursed for its costs of collection, auditing, and making refunds associated with the California Tire Recycling Management Fund, but the amount of that reimbursement shall not to exceed 3 percent of the total annual revenue deposited in the fund.
(d)(e)The California tire fee imposed pursuant to subdivision (b) shall be separately stated by the retail seller on the invoice given to the customer at the time of sale. Any other disposal or transaction fee charged by the retail seller related to the tire purchase shall be identified separately from the California tire fee.
(e)(f)A person or business who knowingly, or with reckless disregard, makes a false statement or representation in a document used to comply with this section is liable for a civil penalty for each violation or, for continuing violations, for each day that the violation continues. Liability under this section may be imposed in a civil action and shall not exceed twenty-five thousand dollars ($25,000) for each violation.
(f)(g)In addition to the civil penalty that may be imposed pursuant to subdivision (e), (f), the department may impose an administrative penalty in an amount not to exceed five thousand dollars ($5,000) for each violation of a separate provision or, for continuing violations, for each day that the violation continues, on a person who intentionally or negligently violates a permit, rule, regulation, standard, or requirement issued or adopted pursuant to this chapter. The department shall adopt regulations that specify the amount of the administrative penalty and the procedure for imposing an administrative penalty pursuant to this subdivision.
(g)(h)For purposes of this section, new tire means a pneumatic or solid tire intended for use with onroad or off-road motor vehicles, motorized equipment, construction equipment, or farm equipment that is sold separately from the motorized equipment, or a new tire sold with a new or used motor vehicle, as defined in Section 42803.5, including the spare tire, construction equipment, or farm equipment. New tire does not include retreaded, reused, or recycled tires.
(h)(i)The California tire fee and the California tire regulatory fee shall not be imposed on a tire sold with, or sold separately for use on, any of the following:
(1)A self-propelled wheelchair.
(2)A motorized tricycle or motorized quadricycle, as defined in Section 407 of the Vehicle Code.
(3)A vehicle that is similar to a motorized tricycle or motorized quadricycle and is designed to be operated by a person who, by reason of the persons physical disability, is otherwise unable to move about as a pedestrian.
(i)(j)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date.
SEC. 5.Section 42889 of the Public Resources Code, as amended by Section 152 of Chapter 35 of the Statutes of 2014, is amended to read:42889.(a)Of the moneys collected pursuant to subdivision (b) of Section 42885, an amount equal to seventy-five cents ($0.75) per tire on which the fee is imposed shall be transferred by the State Board of Equalization to the Air Pollution Control Fund. The state board shall expend those moneys, or allocate those moneys to the districts for expenditure, to fund programs and projects that mitigate or remediate air pollution caused by tires in the state, to the extent that the state board or the applicable district determines that the program or project remediates air pollution harms created by tires upon which the fee described in subdivision (b) of Section 42885 is imposed.
(b)The remaining moneys collected pursuant to subdivision (b) of Section 42885 shall be used to fund the waste tire program and the tire recycling incentive program, pursuant to Section 42872.1, and shall be appropriated to the department in the annual Budget Act in a manner consistent with the five-year plan adopted and updated by the department. These moneys shall be expended for the payment of refunds under this chapter and for the following purposes: purposes, to the extent they are not lawfully payable from funds allocated pursuant to subdivision (c) of Section 42885:
(1)To pay the administrative overhead cost of this chapter, not to exceed 6 percent of the total revenue deposited in the fund annually, or an amount otherwise specified in the annual Budget Act.
(2)To pay the costs of administration associated with collection, making refunds, and auditing revenues in the fund, not to exceed 3 percent of the total revenue deposited in the fund, as provided in subdivision (c) (d) of Section 42885.
(3)To pay the costs associated with operating the tire recycling program specified in Article 3 (commencing with Section 42870).
(4)To pay the costs associated with the development and enforcement of regulations relating to the storage of waste tires and used tires. The department shall consider designating a city, county, or city and county as the enforcement authority of regulations relating to the storage of waste tires and used tires, as provided in subdivision (c) of Section 42850, and regulations relating to the hauling of waste and used tires, as provided in subdivision (b) of Section 42963. If the department designates a local entity for that purpose, the department shall provide sufficient, stable, and noncompetitive funding to that entity for that purpose, based on available resources, as provided in the five-year plan adopted and updated as provided in subdivision (a) of Section 42885.5. The department may consider and create, as appropriate, financial incentives for citizens who report the illegal hauling or disposal of waste tires as a means of enhancing local and statewide waste tire and used tire enforcement programs.
(5)To pay the costs of cleanup, abatement, removal, or other remedial action related to waste tire stockpiles throughout the state, including all approved costs incurred by other public agencies involved in these activities by contract with the department. Not less than six million five hundred thousand dollars ($6,500,000) shall be expended by the department during each of the following fiscal years for this purpose: 200102 to 200607, inclusive.
(6)To make studies and conduct research directed at promoting and developing alternatives to the landfill disposal of waste tires.
(7)To assist in developing markets and new technologies for used tires and waste tires. The departments expenditure of funds for purposes of this subdivision shall reflect the priorities for waste management practices specified in subdivision (a) of Section 40051.
(8)To pay the costs associated with implementing and operating a waste tire and used tire hauler program and manifest system pursuant to Chapter 19 (commencing with Section 42950).
(9)To pay the costs to create and maintain an emergency reserve, which shall not exceed one million dollars ($1,000,000).
(10)To pay the costs of cleanup, abatement, or other remedial action related to the disposal of waste tires in implementing and operating the Farm and Ranch Solid Waste Cleanup and Abatement Grant Program established pursuant to Chapter 2.5 (commencing with Section 48100) of Part 7.
(11)To fund border region activities specified in paragraph (8) of subdivision (b) of Section 42885.5.
(12)For expenditure pursuant to paragraph (3) of subdivision (a) of, and paragraph (3) of subdivision (b) of, Section 17001.
(c)This section shall remain in effect only until January 1, 2024, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2024, deletes or extends that date.
SEC. 6.Section 42961.5 of the Public Resources Code is amended to read:42961.5.(a)For purposes of this chapter, the following definitions shall apply:
(1)California Uniform Waste and Used Tire Manifest or manifest means a shipping document signed by a waste or used tire hauler and a generator of waste or used tires, a waste and used tire hauler, or the operator of a waste or used tire facility or other destination that contains all of the information required by the board, department, including, but not limited to, an accurate measurement of the number of tires being shipped, the type or types of the tires, the date the shipment originated, originated or terminated, and the origin and intended final destination of the shipment.
(2)Electronic Manifest means a manifest that is submitted to the department electronically in a manner specified by the department.
(2)(3)Waste and used tire hauler or hauler means any person required to be registered with the board department pursuant to subdivision (a) of Section 42951.
(b)For purposes of this section, Passenger Tire Equivalent or PTE means either of the following:
(1)A unit of measurement, such that one PTE equals 20 pounds of waste or used tires, and one PTE equals one waste or used tire.
(2)A unit of measurement, such that 10 PTEs equals one cubic yard of waste or used tires, and one PTE equals one waste or used tire.
(b)Any person generating(c)(1)A hauler transporting waste or used tires that are transported or submitted for transportation, for offsite handling, altering, storage, or disposal, or for any combination thereof, shall complete a California Uniform Waste and Used Tire Manifest, as required by the board. The generator shall provide the manifest to the waste and used tire hauler at the time of transfer of the tires. Each generator shall submit to the board, on a quarterly schedule, a legible copy of each manifest. The copy submitted to the board shall contain the signatures of the generator and the waste and used tire hauler.
(c)(2)(1)Any waste and used tire A hauler shall have the California Uniform Waste and Used Tire Manifest manifest in his or her possession while transporting waste or used tires. The manifest shall be shown upon demand to any representative of the board, department, any officer of the Department of the California Highway Patrol, or any peace officer, as defined in Section 830.1 or 830.2 of the Penal Code, or any local public officer designated by the board. Code.
(2)(3)Any waste and used tire A hauler hauling waste or used tires for offsite handling, altering, storage, disposal, or any combination thereof, shall complete the California Uniform Waste and Used Tire Manifest as required by the board. The waste and used tire hauler shall provide the manifest to the shall provide the manifest, or otherwise provide all required manifest information, to the generator of waste or used tires or to the operator of a waste or used tire facility operator who receives the waste or used tires for handling, altering, storage, disposal, or any combination thereof. Each waste and used tire hauler shall submit to other destination at the board, on a quarterly schedule, a legible copy time of each manifest. The copy submitted to the board shall contain the signatures transfer of the generator and the facility operator. tires.
(4)The hauler shall submit a manifest to the department for each load of waste or used tires transported within seven days of the date of the pickup or delivery. The department may grant an extension before the seventh day upon a showing of good cause by the hauler.
(5)Notwithstanding the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3 of the Civil Code), on and after January 1, 2020, the hauler shall submit only an electronic manifest, and not a paper manifest, to the department within seven days of the date of the pickup or delivery for each load of waste or used tires transported.
(6)If approved by the department, a hauler may submit an electronic manifest prior to January 1, 2020. The electronic manifest shall include all information required to be on the manifest and any other information required by the department.
(d)Each waste or used tire facility operator that receives The authorized representative for the person generating or acceptingwaste or used tires for handling, altering, storage, disposal, or any combination thereof, shall verify that was transported with a the information on the manifest pursuant to this section, shall submit copies is correct, including the number of each manifest provided tires and other information specified by the waste department, and used tire hauler to the board and the generator on a quarterly schedule. The copy submitted to the board shall contain sign the signatures of each generator, each transporter, and the facility operator. If approved by the board, in lieu of submitting manifest. The person generating or accepting waste or used tires shall maintain a copy of each the manifest used, a facility operator may submit an electronic report and any other information required that the department deems necessary to track the board meeting the requirements flow of Section 42814. waste and used tires through the state.
(e)The department may require an electronic manifest submitted by a hauler to the department to include verification from a hauler, and a generator of waste or used tires, or the operator of a waste or used tire facility or other destination, that the information on the manifest is correct, including the number of tires and other information specified by the department.
(e)(f)The board department shall develop and implement a system for auditing manifests submitted to the board department pursuant to this section, for the purpose of enforcing this section. The board or its agent shall continuously conduct random sampling and matching of manifests submitted by any person generating waste or used tires, hauling waste or used tires, or operating waste or used tire facilities, to assure compliance with this section.
(g)(1)If approved by the board, any waste and used tire generator, waste and used tire hauler, or operator amount of a waste tire facility that is subject to the or used tires recorded on a manifest requirements of this section, may submit an electronic report to is by weight or volume, the board, in lieu of submitting the copy of the manifest required. The electronic report department shall include all information required to be on determine the California Uniform Waste and Used Tire Manifest, and any other information required by the board. number of waste or used tires being transported by converting the weight or volume into PTEs.
(2)A waste(h)The department may require a hauler to attend trainings and used tire generator, demonstrate understanding and proficiency with the provisions of this chapter, Chapter 16 (commencing with Section 42800), Chapter 17 (commencing with Section 42860), and any rules, regulations, or requirements issued or adopted pursuant to this chapter, Chapter 16, or Chapter 17 prior to receiving a waste and used tire hauler, hauler registration or operator of a waste and used tire facility that is subject to paragraph (1) may submit the electronic reports to the board on a quarterly schedule. hauler registration renewal.
|
Date
|
Status
|
|---|---|
| Sep 30, 2018 | Vetoed by Governor. |
| Sep 5, 2018 | Enrolled and presented to the Governor at 3 p.m. |
| Aug 27, 2018 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Aug 23, 2018 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 25 pursuant to Assembly Rule 77. |
| Aug 23, 2018 | Read third time. Passed. Ordered to the Assembly. |
| Aug 17, 2018 | From committee: Do pass. (Ayes 5. Noes 2.) (August 16). |
| Aug 13, 2018 | In committee: Referred to APPR. suspense file. |
| Aug 6, 2018 | In committee: Hearing postponed by committee. |
| Aug 6, 2018 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on APPR. |
| Jul 2, 2018 | Read second time and amended. Re-referred to Com. on APPR. |
| Jun 28, 2018 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 1.) (June 20). |
| Jun 14, 2018 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on EQ. |
| Jun 13, 2018 | Referred to Com. on EQ. |
| May 31, 2018 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 30, 2018 | Read third time. Passed. Ordered to the Senate. |
| May 25, 2018 | Read second time. Ordered to third reading. |
| May 9, 2018 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| May 2, 2018 | In committee: Hearing postponed by committee. |
| Apr 18, 2018 | Re-referred to Com. on APPR. |
| Apr 17, 2018 | Read second time and amended. |
| Apr 16, 2018 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 3.) (April 9). |
| Mar 8, 2018 | Referred to Com. on NAT. RES. |
| Feb 17, 2018 | From printer. May be heard in committee March 19. |
| Feb 16, 2018 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 27, 2018 | AB 2908 BERMAN Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Aug 23, 2018 | Assembly 3rd Reading AB2908 Berman et al. By Allen | Senate Floor |
Passed |
|
| Aug 16, 2018 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 13, 2018 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jun 20, 2018 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Environmental Quality |
Passed |
|
| May 30, 2018 | AB 2908 BERMAN Assembly Third Reading | Assembly Floor |
Passed |
|
| May 25, 2018 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 9, 2018 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Natural Resources |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| 7th Generation Advisors | ** Support | Aug 18, 2018 |
| All American Asphalt | ** Against | Aug 18, 2018 |
| American Pavement Systems | ** Against | Apr 6, 2018 |
| American Pavement Systems, Inc. | ** Against | Aug 18, 2018 |
| Asphalt Fabric & Engineering | ** Against | Apr 6, 2018 |
| Asphalt, Fabric & Engineering, Inc. | ** Against | Aug 18, 2018 |
| Audubon California | ** Support | Aug 18, 2018 |
| Automotive Service Councils Of California | ** Against | Aug 18, 2018 |
| Bas Recycling | ** Against | Aug 18, 2018 |
| California Association Of Local Conservation Corps | ** Support | Aug 18, 2018 |
| California Autobody Association | ** Against | Aug 18, 2018 |
| California Automotive Business Coalition | ** Against | Aug 18, 2018 |
| California Automotive Wholesalers Association | ** Against | Aug 18, 2018 |
| California Business Association | * Against | Apr 9, 2018 |
| California Chapters-Institute Of Scrap Recycling Industries | * Against | Apr 9, 2018 |
| California New Car Dealer's Association | * Neutral | Apr 9, 2018 |
| California State Association Of Counties | ** Support | Aug 18, 2018 |
| California Tire Dealers Association | ** Against | Aug 18, 2018 |
| Californians Against Waste | ** Support | Aug 18, 2018 |
| clean river alliance | ** Support | Aug 18, 2018 |
| Crumb Rubber Manufacturers | * Against | Apr 9, 2018 |
| Crumb Rubber Manufacturers | ** Against | Jun 18, 2018 |
| Defenders Of Wildlife | ** Support | Aug 18, 2018 |
| Easy Turf | ** Against | Aug 18, 2018 |
| Ecore | ** Against | Aug 18, 2018 |
| Encore | ** Against | Apr 6, 2018 |
| Fieldturf | ** Against | Aug 18, 2018 |
| Howard Jarvis Taxpayers Association | ** Against | Aug 18, 2018 |
| Independent Automotive Professionals | ** Against | Aug 18, 2018 |
| Institute Of Scrap Recycling Industries, Inc. | ** Against | Aug 18, 2018 |
| Lakin Tire West, Inc. | ** Against | Aug 18, 2018 |
| Liberty Tire Recycling | ** Against | Aug 18, 2018 |
| Lincoln Tires | * Against | Apr 9, 2018 |
| Los Angeles Alliance for a New Economy | ** Support | Aug 18, 2018 |
| Mojave Desert and Mountain Recycling | ** Support | Aug 18, 2018 |
| Napa Recycling and Waste Services | ** Support | Aug 18, 2018 |
| National Blending Company | ** Against | Aug 18, 2018 |
| Northern California Recycling Association | ** Support | Aug 18, 2018 |
| Rubber Pavements Association | ** Against | Aug 18, 2018 |
| Rural County Representatives of California | ** Support | Aug 18, 2018 |
| Safepath Products | ** Support | Aug 18, 2018 |
| Sonoma County Waste Management Agency | ** Support | Aug 18, 2018 |
| Spectraturf | ** Against | Apr 6, 2018 |
| Specturaturf | ** Against | Aug 18, 2018 |
| Sprinturf | ** Against | Aug 18, 2018 |
| StopWaste | ** Support | Aug 18, 2018 |
| Synthetic Turf Council | ** Against | Aug 18, 2018 |
| The Nature Conservancy | * Support | Apr 9, 2018 |
| Tl & Associates | ** Against | Aug 18, 2018 |
| Tri-C Manufacturing Inc. | ** Against | Aug 18, 2018 |
| Tri-C Manufacturing, Inc. | ** Against | Apr 6, 2018 |
| U.S. Tires Manufacturers Association | ** Support | Aug 18, 2018 |
| Us Tire Manufactures Association | ** Support | Apr 6, 2018 |
| Valley Precision Grading, Inc. | ** Against | Aug 18, 2018 |
| Van Duerr Industries | ** Support | Aug 18, 2018 |
| Waste Recovery West, Llc | ** Against | Aug 18, 2018 |
| West Coast Rubber Recycling, Inc. | ** Against | Aug 18, 2018 |
| Zanker Recycling | ** Support | Aug 18, 2018 |
GOVERNOR'S VETO
GV Bill Id:AB 2908
Author:(Berman)
As Enrolled Ver:September 5, 2018
2/3 vote
ASSEMBLY: | 45-28 | (May 30, 2018) | SENATE: | 24-13 | (August 23, 2018) |
ASSEMBLY: | 46-30 | (August 27, 2018) |
SUMMARY: Establishes the Tire Recycling Incentive Program (TRIP) Act to provide incentives for tire recycling activities in California. Establishes a new tire regulatory fee, set by the Department of Resources Recycling and Recovery (CalRecycle), to cover its regulatory costs associated with waste and used tire management.
FISCAL EFFECT: According to the Senate Appropriations Committee, costs of roughly $30 million to $40 million (California Tire Recycling Management Fund) to provide tire recycling incentives. These expenditures would be offset by a fee on new tire purchases, which would be capped at $1. Administrative costs of approximately $870,000 for the first three years and $633,000 ongoing (California Tire Recycling Management Fund) for the Department of Resources Recovery and Recycling (CalRecycle) to implement this program. Savings of approximately $220,000 due to transitioning from the existing paper manifest system to electronic manifesting.
COMMENTS: According to CalRecycle, approximately 40 million waste tires are generated in California every year. CalRecycle's diversion goal is 90%. According to the California Waste Tire Market Report: 2015, after reaching an all-time high of 92.9% waste tire diversion in 2012, the recycling rate dropped to 80.9% in 2015. Of the 44.2 million tires generated: 10.1 million were exported (for fuel or reuse); 7.6 million were recycled as crumb rubber; 1.2 million were used in civil engineering projects; 6.7 million were reused (either sold as used tires or retreaded); 8.6 million were used as tire-derived fuel in cement kilns or at co-generation facilities; 1.5 million were used as cover at landfills; and 8.5 million were disposed in landfills.
CalRecycle's "affiliated goals" to achieve a 90% diversion rate for tires are: 1) develop long-term, sustainable, and diversified market demand for California tire-derived products; 2) ensure the protection of public health, safety, and the environment while developing a safe and high-quality supply infrastructure to meet that demand; and, 3) foster information flow and technology and product development so that environmental protection and diversion goals are achieved with supply and demand in balance.
CalRecycle is in the process of adjusting its waste tire market development programs, in accordance with its Five-Year Plan, to more effectively focus CalRecycle resources on diversifying and expanding markets. CalRecycle has also indicated a long-term vision of increasing tire recycling, rather than just diversion. Specifically, CalRecycle has begun crafting a new incentive program that would differentiate incentive payments, with higher payments going to "preferred end-users" that recycle waste tires into new products, such as rubberized asphalt concrete; moderate payments for end uses, such as tire-derived aggregate; and lower payments for less-preferred non-disposal management, such as energy generation.
CalRecycle's analysis of past grants indicates that about 25% of the total sales of California-produced tire-derived products were supported by grants, while about 12.5% of California crumb rubber sold to paving applications was supported by CalRecycle paving grants. In order to achieve its long-term goals for tire recycling, CalRecycle is in the process of redirecting approximately half of its budget for the Tire-Derived Product Grant Program to a new Tire Incentive Program that will focus on promoting new tire-derived product development and shift established product manufacturers to use of ground rubber from other feedstock. CalRecycle is also replacing the Tire-Derived Product Business Assistance Program, which offered a wide variety of assistance to manufacturers, with a new Tire Outreach and Market Analysis (TOMA) program. TOMA will focus exclusively on outreach and education to promote tire-derived products. This bill is consistent with the direction and recommendations of CalRecycle's 2015 Five-Year Plan.
The Waste Tire Manifest System is a tracking mechanism used by CalRecycle to monitor the generation, transportation, and ultimate disposal of used/waste tires in California. The goal of the system is to help eliminate the illegal storage or disposal of used/waste tires by allowing CalRecycle to focus enforcement efforts on worst offenders. The waste tire manifest system program applies to all persons, businesses, nonprofits, and government agencies that generate, transport, or receive waste or used tires. CalRecycle and tire enforcement agency staff members inspect and investigate waste and used tire generators, end-use facilities, and haulers to ensure that manifests are properly completed, handled, and submitted to CalRecycle. The law also allows, but does not require, that data to be submitted electronically to CalRecycle. This bill updates the tire manifest system to require electronic reporting.
This bill would authorize the Department of Resources Recycling and Recovery to establish an incentive program to encourage manufacturing of new products made from waste tires.
Since 1990, the Department has used grants to increase tire recycling. The Department has recently decided that incentive payments are a more effective way to promote such recycling. While this bill creates an incentive payment program, it also requires fifty percent of the payments to go to local governments for paving projects. This limits the Department's ability to respond to innovation in this area.
Because I do believe there is merit to this policy and I am directing the Department of Resources Recycling and Recovery to recommend an incentive program in this area as part of the budget.
Analysis Prepared by: Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0005349
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 2908
Author:(Berman)
As Amended Ver:August 6, 2018
Majority vote
ASSEMBLY: | 45-28 | (May 30, 2018) | SENATE: | 24-13 | (August 23, 2018) |
Original Committee Reference: NAT. RES.
SUMMARY: Establishes the Tire Recycling Incentive Program (TRIP) Act to provide incentives for tire recycling activities in California. Establishes a new tire regulatory fee, set by the Department of Resources Recycling and Recovery (CalRecycle), to cover its regulatory costs associated with waste and used tire management.
The Senate amendments:
- Reinstate the Rubberized Pavement Market Act.
- Specify that local public works pavement projects are eligible for tire recycling incentive funding.
- Specify that the tire regulatory fee may be separately identified on the invoice.
FISCAL EFFECT: According to the Senate Appropriations Committee,
COMMENTS: According to CalRecycle, approximately 40 million waste tires are generated in California every year. CalRecycle's diversion goal is 90%. According to the California Waste Tire Market Report: 2015, after reaching an all-time high of 92.9% waste tire diversion in 2012, the recycling rate dropped to 80.9% in 2015. Of the 44.2 million tires generated: 10.1 million were exported (for fuel or reuse); 7.6 million were recycled as crumb rubber; 1.2 million were used in civil engineering projects; 6.7 million were reused (either sold as used tires or retreaded); 8.6 million were used as tire-derived fuel in cement kilns or at co-generation facilities; 1.5 million were used as cover at landfills; and 8.5 million were disposed in landfills.
CalRecycle's "affiliated goals" to achieve a 90% diversion rate for tires are: 1) develop long-term, sustainable, and diversified market demand for California tire-derived products; 2) ensure the protection of public health, safety, and the environment while developing a safe and high-quality supply infrastructure to meet that demand; and, 3) foster information flow and technology and product development so that environmental protection and diversion goals are achieved with supply and demand in balance.
CalRecycle is in the process of adjusting its waste tire market development programs, in accordance with its Five-Year Plan, to more effectively focus CalRecycle resources on diversifying and expanding markets. CalRecycle has also indicated a long-term vision of increasing tire recycling, rather than just diversion. Specifically, CalRecycle has begun crafting a new incentive program that would differentiate incentive payments, with higher payments going to "preferred end-users" that recycle waste tires into new products, such as rubberized asphalt concrete; moderate payments for end uses, such as tire-derived aggregate; and lower payments for less-preferred non-disposal management, such as energy generation.
CalRecycle's analysis of past grants indicates that about 25% of the total sales of California-produced tire-derived products were supported by grants, while about 12.5% of California crumb rubber sold to paving applications was supported by CalRecycle paving grants. In order to achieve its long-term goals for tire recycling, CalRecycle is in the process of redirecting approximately half of its budget for the Tire-Derived Product Grant Program to a new Tire Incentive Program that will focus on promoting new tire-derived product development and shift established product manufacturers to use of ground rubber from other feedstock. CalRecycle is also replacing the Tire-Derived Product Business Assistance Program, which offered a wide variety of assistance to manufacturers, with a new Tire Outreach and Market Analysis (TOMA) program. TOMA will focus exclusively on outreach and education to promote tire-derived products. This bill is consistent with the direction and recommendations of CalRecycle's 2015 Five-Year Plan.
The Waste Tire Manifest System is a tracking mechanism used by CalRecycle to monitor the generation, transportation, and ultimate disposal of used/waste tires in California. The goal of the system is to help eliminate the illegal storage or disposal of used/waste tires by allowing CalRecycle to focus enforcement efforts on worst offenders. The waste tire manifest system program applies to all persons, businesses, nonprofits, and government agencies that generate, transport, or receive waste or used tires. CalRecycle and tire enforcement agency staff members inspect and investigate waste and used tire generators, end-use facilities, and haulers to ensure that manifests are properly completed, handled, and submitted to CalRecycle. The law also allows, but does not require, that data to be submitted electronically to CalRecycle. This bill updates the tire manifest system to require electronic reporting.
Analysis Prepared by: Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0004423
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 2908
:
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-1, 6/20/18
AYES: Wieckowski, Hill, Lara, Skinner, Stern
NOES: Gaines
NO VOTE RECORDED: Stone
SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/16/18
AYES: Portantino, Beall, Bradford, Hill, Wiener
NOES: Bates, Nielsen
ASSEMBLY FLOOR: 45-28, 5/30/18 - See last page for vote
SOURCE: Californians Against Waste
DIGEST:
This bill establishes the Tire Recycling Incentive Program (TRIP) Act to provide incentives for tire recycling activities in California and establishes a new tire regulatory fee.
- Establishes the California Tire Recycling Act, which:
- Until January 1, 2024, 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.
- Reduces the fee on January 1, 2024, to $0.75 per tire, to be deposited into the Tire Recycling Fund.
- Authorizes the Department of Resources Recycling and Recovery (CalRecycle) to award grants, loans, subsidies, and rebates and pay incentives for various purposes related to reducing landfill disposal of waste tires.
- 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.
- Defines “waste tire generator” as any person whose act or process produces any amount of waste or used tires, or causes a waste or used tire hauler to transport those waste or used tires, or otherwise causes waste or used tires to become subject to regulation.
- Until January 1, 2024, 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.
- Establishes the Rubberized Pavement Market Development Act (RPMDA), which, until June 30, 2019, awards grants for specified types of projects using crumb rubber.
- Requires a person generating waste tires or used tires that are transported for offsite handling, altering, storage, disposal to complete a California Uniform Waste and Used Tire Manifest.
This bill:
- Extends the operation of RPMDA until January 1, 2020.
- Establishes the Tire Recycling Incentive Program (TRIP) Act to provide incentives for tire recycling activities in California.
- Requires CalRecycle to develop a plan for a tire recycling incentive payment program, with a commencement date of no later than July 1, 2020.
- Establishes the California tire regulatory fee, set by CalRecycle, as follows:
- Upon a finding by CalRecycle that the balance of the California Tire Recycling Management Fund is projected to drop below $25 million for the next fiscal year, requires CalRecycle to establish and adjust the California tire regulatory fee in an amount not to exceed $1 per new tire sold based on specified factors.
- Requires a waste tire generator that is a retail seller of new tires to end user purchasers to pay the tire regulatory fee. In setting the fee, authorizes CalRecyle to differentiate between waste tire generators who are retail sellers of new tires to end user purchasers depending on the nature of the retail seller’s activity, as specified.
- Requires CalRecycle to adopt regulations to implement the initial California tire regulatory fee and authorizes CalRecycle to adopt regulations to adjust the fee, as specified.
- Requires CalRecycle to identify the specific programs to be funded by the fee.
- Requires incentive payments be made only to eligible entities for incentive-eligible tire products manufactured from California-generated waste tire material that promote the recycling of, the reduction of the disposal of, or the prevention of illegal dumping of California-generated waste tire material.
- Provides examples of an “incentive-eligible tire product,” such as pavement-related products (e.g. rubberized asphalt), walkways and pathways, and landscape nuggets and mulch.
- Excludes specified products from being considered an “incentive-eligible tire product,” such as tire-derived fuel, synthetic turf infill, and loose rubber nugget or mulch playgrounds.
- “Eligible entity” includes both of the following:
- A manufacturer that produces an incentive-eligible tire product incorporating California-generated waste tire material for purchase by an end user.
- A city, county, city and county, or special district that puts out a bid and contracts with an outside entity to use rubberized asphalt products that incorporate California-generated waste tire material for a local public works pavement project.
- Requires no less than 50% of the total annual value of incentive payments be available for cities, counties, special districts, or a city and county described above.
- Requires, upon appropriation by the Legislature, CalRecycle to annually make available an allocation for incentive payments that is not less than 75% of the projected California tire fee revenue for that fiscal year and reduce the amount of moneys expended for waste tire market development grants from the amount that was authorized for those grants as of January 1, 2019.
- Requires, on and after January 1, 2020, a waste and used tire hauler to submit an electronic manifest, instead of a paper manifest, to CalRecycle within seven days of the date of the pickup or delivery for each load of waste or used tires transported.
Background
- Diversion of waste tires in California. According to CalRecycle, approximately 40 million waste tires are generated in California every year. CalRecycle’s diversion goal is 90%; according to the California Waste Tire Market Report: 2013, California has achieved an overall diversion rate of 87.3%. Of the 40.8 million tires generated: 12.3 million were exported (for fuel or reuse); 7.9 million were recycled as ground rubber; 0.5 million were used in civil engineering projects; 6.6 million were reused (either sold as used tires or retreaded); 8.2 million were used as tire-derived fuel in cement kilns or at co-generation facilities; 1.2 million were used as cover at landfills; and, 5.3 million were disposed in landfills.
CalRecycle’s “affiliated goals” to achieve its 90% diversion rate for tires are:
a) develop long-term, sustainable, and diversified market demand for California tire-derived products; b) ensure the protection of public health, safety, and the environment while developing a safe and high-quality supply infrastructure to meet that demand; and, c) foster information flow and technology and product development so that environmental protection and diversion goals are achieved with supply and demand in balance. - Waste tire management. CalRecycle’s tire management program is divided into two functional areas: a) permitting and enforcement activities; and, b) tire recycling and marketing development activities. The tire permitting and enforcement activities ensure that reusable and waste tires are stored and transported safely. CalRecycle coordinates with local and regional agencies to mitigate unsafe situations at existing abandoned tire pile sites and provide technical assistance. Tire recycling activities include offering financial assistance, engaging in recycling and marketing research, and technical assistance.
Waste tire management activities that CalRecycle has developed and funded to stimulate diversion of reusable and waste tires from landfill disposal include: business development assistance to California enterprises; research to expand the use and recyclability of tires, assistance to local governments to manage waste tires; regulation of waste tire facilities and waste tire haulers, to help ensure the protection of public health, safety, and the environment; and, public education.
- Tire incentive program. According to CalRecycle’s report, “Evaluation of Tire Incentive and Extended Producer Responsibility Policies” (June 2, 2012), incentives offer a range of potential benefits, including increased diversion, strengthened in-state infrastructure, and some relief against export-induced disruptions. CalRecycle is in the process of adjusting its waste tire market development programs to more effectively focus resources on diversifying and expanding markets. CalRecycle has also indicated a long-term vision of increasing tire recycling, rather than just diversion. Specifically, CalRecycle has begun crafting a new incentive program that would differentiate incentive payments, with higher payments going to “preferred end users” that recycle waste tires into new products such as rubberized asphalt concrete, moderate payments for end uses such as tire-derived aggregate, and lower payments for less-preferred non-disposal management such as energy generation.
- Waste/used tire manifest program. Under existing law, a person generating waste tires or used tires that are transported for offsite handling, altering, storage, disposal is required to complete a California Uniform Waste and Used Tire Manifest.” The intent of the manifest is to “close the loop” on accountability by requiring copies of each manifest or comprehensive trip log to be submitted to CalRecycle for monitoring tire movement within the state.
The goal of the system is to help eliminate the illegal storage or disposal of used/waste tires by allowing CalRecycle to focus enforcement efforts on worst offenders.
Comments
- Purpose of bill. According to the author, “Illegally dumped tires pose a significant cost to local governments and the state, large abandoned tire piles have resulted in weeks-long fires that threaten the health of our residents, and the overall recycling rate of used tires has gone down the last four years. In order to substantially increase tire recycling, AB 2908 would create the Tire Recycling Incentive Program, employing a proven model of performance-based incentive funding to support the use of rubberized pavement and other consumer products made from used tires. The bill would also use surplus dollars in the California Tire Recycling Management Fund, which is underutilized money that should be used for this type of program. In the end, this bill would help expand the state’s tire recycling infrastructure to reduce greenhouse gases, create jobs and economic opportunity, and cut the statewide and local costs associated with tire pile cleanup and illegally dumped tires.”
- On the road to recycling more tires. CalRecycle’s analysis of past grants indicates that about 25% of the total sales of California produced tire-derived products were supported by grants, while about 12.5% of California crumb rubber sold to paving applications was supported by CalRecycle’s paving grants. In order to achieve its long-term goals for tire recycling, CalRecycle is in the process of redirecting approximately half of its budget for the Tire-Derived Product Grant Program to a new Tire Incentive Program that will focus on promoting new tire-derived product development and shift established product manufacturers to use of ground rubber from other feedstock.
- An under-used grant program. Since 2003, grantees under RPMDA have utilized between 55% and 66% of the awarded amount. This percentage of utilization is higher than the utilization of grants for tire-derived products, which have averaged about 63% since the 2005-06 fiscal year.
Of the 97 grants awarded under RPMDA in the 2014-2015 and 2015-2016 fiscal years, 15 grantees withdrew their grant awards. Reason for withdrawing include changes to public works priorities, delays in construction scheduling, failure to match funds, or the price of rubberized asphalt concrete (RAC).
To address the concern that RPMDA was undersubscribed for the 2014-2015 and 2015-2016 fiscal years, CalRecycle performed a county-by-county analysis which indicated that due to material availability and competition, the cost of rubberized payment varied greatly by geographic region. In the 2016-2017 fiscal year, CalRecycle increased the reimbursement amounts for some higher cost geographic areas and allowed applicants with fewer than two previous grants to require reimbursement based on the cost difference between RAC and conventional asphalt. This resulted in an increase in requests, causing the RPMDA to be oversubscribed for one year. However, the program was again undersubscribed in the 2017-2018 fiscal year.
Despite CalRecycle’s attempts to stimulate more grant applicants, a significant amount of funding is ultimately not used or is disencumbered by local governments.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Senate Appropriations Committee, its costs roughly $30 million to $40 million from the California Tire Recycling Management Fund (fund) to provide tire recycling incentives. These expenditures would be offset by a fee on new tire purchases, which would be capped at $1. Additionally, administrative costs are estimated at $870,000 for the first three years and $633,000 ongoing, from the fund for CalRecycle to fund the program. There is an identified savings of approximately $220,000 due to transitioning from the existing paper manifest system to electronic manifesting.
Californians Against Waste (source)
7th Generation Advisors
Audubon California
California Association of Local Conservation Corps
California State Association of Counties
Clean River Alliance
Defenders of Wildlife
Los Angeles Alliance for a New Economy
Marin County Hazardous and Solid Waste Management Joint Powers Authority
Mojave Desert and Mountain Recycling
Napa Recycling and Waste Services
Northern California Recycling Association
Rural County Representatives of California
SafePath Products
Sonoma County Waste Management Agency
StopWaste
U.S. Tires Manufacturers Association
Van Duerr Industries
Zanker Recycling
OPPOSITION: (Verified 8/16/18)
All American Asphalt
American Pavement Systems, Inc.
Asphalt, Fabric & Engineering, Inc.
Automotive Service Councils of California
BAS Recycling
California Autobody Association
California Automotive Business Coalition
California Automotive Wholesalers Association
California Tire Dealers Association
Easy Turf
Ecore
FieldTurf
Howard Jarvis Taxpayers Association
Independent Automotive Professionals
Institute of Scrap Recycling Industries, Inc.
Lakin Tire West, Inc.
Liberty Tire Recycling
National Blending Company
Rubber Pavements Association
SpecturaTurf
SPRINTURF
Synthetic Turf Council
TL & Associates
Tri-C Manufacturing Inc.
Valley Precision Grading, Inc.
Waste Recovery West, LLC
West Coast Rubber Recycling, Inc.
ASSEMBLY FLOOR: 45-28, 5/30/18
AYES: Berman, Bloom, Bonta, Burke, Calderon, Carrillo, Chau, Chiu, Chu, Cooley, Cooper, Daly, Eggman, Frazier, Friedman, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Levine, Limón, Low, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Quirk, Reyes, Rodriguez, Santiago, Mark Stone, Thurmond, Ting, Weber, Wood, Rendon
NOES: Acosta, Travis Allen, Baker, Bigelow, Brough, Caballero, Cervantes, Chen, Choi, Cunningham, Dahle, Flora, Fong, Gallagher, Harper, Kiley, Lackey, Maienschein, Mathis, Mayes, Melendez, Obernolte, Patterson, Quirk-Silva, Salas, Steinorth, Voepel, Waldron
NO VOTE RECORDED: Aguiar-Curry, Arambula, Chávez, Gray, Rubio
8/18/18 13:41:58
**** END ****
SENATE COMMITTEE ON
Senator Anthony Portantino, Chair
2017 - 2018 Regular Session
AB 2908 (Berman) - Tire recycling: California tire regulatory fee and waste tire program
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
This bill would establish the Tire Recycling Incentive Program to provide incentives for tire recycling activities in California and establishes a tire regulatory fee.
Fiscal Impact:
- Cost of roughly $30 million to $40 million (California Tire Recycling Management Fund) to provide tire recycling incentives. These expenditures would be offset by a fee on new tire purchases, which would be capped at $1.
- Administrative costs of approximately $870,000 for the first three years and $633,000 ongoing (California Tire Recycling Management Fund ) for the Department of Resources Recovery and Recycling (CalRecycle) to implement this program.
- Savings of approximately $220,000 due to transitioning from the existing paper manifest system to electronic manifesting.
Background: Currently, a $1.75 fee per tire is imposed on approximately 35 million tires sold in the state annually. Of that amount, $0.75 (about $26 million) is transferred into the Air Pollution Control Fund to fund projects that address air quality impacts caused by tires. The remaining $1 funds the Waste Tire Enforcement Program, which manages and mitigates the impacts of tires by ensuring that tire businesses comply with tire permitting, storage, and movement laws, regulations, and state minimum standards.
Existing law allows CalRecycle to award grants for various waste and used tire related purposes, including:
- Projects that result in reduced landfill disposal of used whole tires, illegal disposal, or stockpiling.
- Research and technology projects.
- Evaluations and plans designed to implement or improve alternative used tire recycling programs.
- Programs that shred tires for recycling.
- For local governments for public works projects that use rubberized asphalt concrete and state and local agencies to fund disability access projects at parks and class I bikeways that utilized rubberized asphalt concrete.
- Development and implementation of an information and education program.
- Award of grants or loans to tire shredding programs at landfills, transfer stations, or tire shredding facilities, including the direct purchase of shredders or financing of shredder contracts.
- Development and implementation of a waste tire incentive payment program to promote increased demand for waste tires recycled in the state.
Proposed Law:
This bill would establish the Tire Recycling Incentive Program to provide incentives for tire recycling activities in California and establishes a tire regulatory fee. Specifically, this bill would:
- Establish a new tire regulatory fee on retail sellers of new tires, up to $1.00 per tire.
- Provide that fee shall be used to fund audits, inspections, administrative costs, adjudications, manifesting, registration, and other regulatory activities and shall not exceed the state’s reasonable costs.
- Provide that this fee shall be imposed only when CalRecycle determines that the California Tire Recycling Fund balance is projected to drop below $25 million.
Staff Comments:
The California Tire Recycling Management Fund is projected to have a fund balance of more than $70 million at the end of 2018-19. As such, it is unlikely that this new administrative fee would be needed in the short or medium term. It isn't clear why we must enact this provision this year with such a significant surplus.
-- END --
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Wieckowski, Chair
2017 - 2018 Regular
Bill No: AB 2908
Author: | Berman | ||
Version: | 6/14/2018 | Hearing Date: | 6/20/2018 |
Urgency: | No | Fiscal: | Yes |
Consultant: | Genevieve Wong | ||
SUBJECT: Tire recycling: California tire regulatory fee and waste tire program
ANALYSIS:
Existing law:
- Pursuant to the California Integrated Waste Management Act of 1989, establishes a state policy goal that 75% of solid waste generated be diverted from landfill disposal by 2020 (Public Resources Code (PRC) §40000 et seq.).
- Establishes the California Tire Recycling Act (Act) (PRC §42860 et seq.), which:
- Until January 1, 2024, 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.
- Reduces the fee on January 1, 2024 to $0.75 per tire, to be deposited into the Tire Recycling Fund.
- Authorizes CalRecycle to award grants, loans, subsidies, and rebates and pay incentives for various purposes related to reducing landfill disposal of waste tires.
- 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.
- Defines “waste tire generator” as any person whose act or process produces any amount of waste or used tires, or causes a waste or used tire hauler to transport those waste or used tires, or otherwise causes waste or used tires to become subject to regulation.
- Until January 1, 2024, 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.
- Establishes the Rubberized Pavement Market Development Act, which awarded grants for specified types of projects using crumb rubber.
- Requires a person generating waste tires or used tires that are transported for offsite handling, altering, storage, disposal to complete a California Uniform Waste and Used Tire Manifest.
This bill:
- Repeals the Rubberized Pavement Market Development Act.
- Establishes the Tire Recycling Incentive Program (TRIP) Act to provide incentives for tire recycling activities in California.
- Requires the Department of Resources Recycling and Recovery (CalRecycle) to develop a plan for a tire recycling incentive payment program, with a commencement date of no later than July 1, 2020.
- Establishes the California tire regulatory fee, set by CalRecycle, as follows:
- Upon a finding by CalRecycle that the balance of the California Tire Recycling Management Fund is projected to drop below $25 million for the next fiscal year, requires CalRecycle to establish and adjust the California tire regulatory fee in an amount not to exceed $1 per new tire sold based on specified factors.
- Requires a waste tire generator that is a retail seller of new tires to end user purchasers to pay the tire regulatory fee. In setting the fee, authorizes CalRecyle to differentiate between waste tire generators who are retail sellers of new tires to end user purchasers depending on the nature of the retail seller’s activity, as specified.
- Requires CalRecycle to adopt regulations to implement the initial California tire regulatory fee and authorizes CalRecycle to adopt regulations to adjust the fee, as specified.
- Requires CalRecycle to identify the specific programs to be funded by the fee.
- Requires incentive payments be made only to eligible entities for incentive-eligible tire products manufactured from California-generated waste tire material that promote the recycling of, the reduction of the disposal of, or the prevention of illegal dumping of California-generated waste tire material.
- Provides examples of an “incentive-eligible tire product,” such as pavement-related products (e.g. rubberized asphalt), walkways and pathways, poured-in place and tile playground mats, and landscape nuggets and mulch.
- Excludes specified products from being considered an “incentive-eligible tire product,” such as tire-derived fuel, synthetic turf infill, and loose rubber nugget or mulch playgrounds.
- “Eligible entity” includes, but is not limited to both of the following:
- A manufacturer that produces an incentive-eligible tire product incorporating California-generated waste tire material for purchase by an end user. Specifies that an eligible entity, except as provided below, does not include the entity or person that receives the finished product.
- A city, county, city and county, or special district that puts out a bid and contracts with an outside entity to use rubberized asphalt products that incorporate California-generated waste tire material for a local public works pavement project.
- Upon appropriation by the Legislature, requires CalRecycle to annually make available an allocation for incentive payments that is not less than 75% of the projected California tire fee revenue for that fiscal year and reduce the amount of moneys expended for waste tire market development grants from the amount that was authorized for those grants as of January 1, 2019. Requires that no less than 50% of the total annual value of incentive payments made be for pavement-related products.
- On and after January 1, 2020, requires a waste and used tire hauler to submit an electronic manifest, instead of a paper manifest, to CalRecycle within seven days of the date of the pickup or delivery for each load of waste or used tires transported.
- Declares the policy goal of the state that not less than 75% of solid waste tires generated be source reduced or recycled in the state.
Background
- Diversion of waste tires in California. According to CalRecycle, approximately 40 million waste tires are generated in California every year. CalRecycle’s diversion goal is 90%; according to the California Waste Tire Market Report: 2013, California has achieved an overall diversion rate of 87.3%. Of the 40.8 million tires generated: 12.3 million were exported (for fuel or reuse); 7.9 million were recycled as ground rubber; 0.5 million were used in civil engineering projects; 6.6 million were reused (either sold as used tires or retreaded); 8.2 million were used as tire-derived fuel in cement kilns or at co-generation facilities; 1.2 million were used as cover at landfills; and, 5.3 million were disposed in landfills.
CalRecycle’s “affiliated goals” to achieve its 90% diversion rate for tires are:
1) develop long-term, sustainable, and diversified market demand for California tire-derived products; 2) ensure the protection of public health, safety, and the environment while developing a safe and high-quality supply infrastructure to meet that demand; and, 3) foster information flow and technology and product development so that environmental protection and diversion goals are achieved with supply and demand in balance. - Waste tire management. CalRecycle’s tire management program is divided into two functional areas: 1) permitting and enforcement activities; and, 2) tire recycling and marketing development activities. The tire permitting and enforcement activities ensure that reusable and waste tires are stored and transported safely. CalRecycle coordinates with local and regional agencies to mitigate unsafe situations at existing abandoned tire pile sites and provide technical assistance. Tire recycling activities include offering financial assistance, engaging in recycling and marketing research, and technical assistance.
Waste tire management activities that CalRecycle has developed and funded to stimulate diversion of reusable and waste tires from landfill disposal include:
- Business development assistance to California enterprises;
- Research to expand the use and recyclability of tires;
- Assistance to local governments to manage waste tires;
- Regulation of waste tire facilities and waste tire haulers, to help ensure the protection of public health, safety, and the environment; and,
- Public education.
CalRecycle provides the proper waste tire management framework by enforcing waste tire facility and waste tire hauler regulations.
- Tire incentive program. According to CalRecycle’s report, “Evaluation of Tire Incentive and Extended Producer Responsibility Policies” (June 2, 2012), incentives offer a range of potential benefits, including increased diversion, strengthened in-state infrastructure and some relief against export-induced disruptions. CalRecycle is in the process of adjusting its waste tire market development programs, in accordance with its Five-Year Plan, to more effectively focus CalRecycle resources on diversifying and expanding markets. CalRecycle has also indicated a long-term vision of increasing tire recycling, rather than just diversion. Specifically, CalRecycle has begun crafting a new incentive program that would differentiate incentive payments, with higher payments going to “preferred end users” that recycle waste tires into new products such as rubberized asphalt concrete, moderate payments for end uses such as tire-derived aggregate, and lower payments for less-preferred non-disposal management such as energy generation.
- Waste/used tire manifest program. According to CalRecycle, PRC §42961.5 requires CalRecycle to develop a “California Uniform Waste and Used Tire Manifest.” The intent is to “close the loop” on accountability by requiring copies of each manifest or comprehensive trip log to be submitted to CalRecycle for monitoring tire movement within the state. The law also allows for data to be submitted electronically to CalRecycle.
The Waste Tire Manifest System is a tracking mechanism used by CalRecycle to monitor the generation, transportation, and ultimate disposal of used/waste tires in California. The goal of the system is to help eliminate the illegal storage or disposal of used/waste tires by allowing CalRecycle to focus enforcement efforts on worst offenders. The waste tire manifest system program applies to all persons, businesses, nonprofits, and government agencies that generate, transport, or receive waste or used tires. CalRecycle and tire enforcement agency staff members inspect and investigate waste and used tire generators, end-use facilities, and haulers to ensure that manifests are properly completed, handled, and submitted to CalRecycle.
Comments
- Purpose of Bill. According to the author,
“Illegally dumped tires pose a significant cost to local governments and the state, large abandoned tire piles have resulted in weeks-long fires that threaten the health of our residents, and the overall recycling rate of used tires has gone down the last four years. In order to substantially increase tire recycling, AB 2908 would create the Tire Recycling Incentive Program, employing a proven model of performance-based incentive funding to support the use of rubberized pavement and other consumer products made from used tires. The bill would also use surplus dollars in the California Tire Recycling Management Fund, which is underutilized money that should be used for this type of program. In the end, this bill would help expand the state’s tire recycling infrastructure to reduce greenhouse gases, create jobs and economic opportunity, and cut the statewide and local costs associated with tire pile cleanup and illegally dumped tires.”
- On the road to recycling more tires. CalRecycle’s analysis of past grants indicates that about 25% of the total sales of California produced tire-derived products were supported by grants, while about 12.5% of California crumb rubber sold to paving applications was supported by CalRecycle’s paving grants. In order to achieve its long-term goals for tire recycling, CalRecycle is in the process of redirecting approximately half of its budget for the Tire-Derived Product Grant Program to a new Tire Incentive Program that will focus on promoting new tire-derived product development and shift established product manufacturers to use of ground rubber from other feedstock.
CalRecycle is also replacing the Tire-Derived Product Business Assistance Program, which offered a wide variety of assistance to manufacturers, with a new Tire Outreach and Market Analysis (TOMA) program. TOMA will focus exclusively on outreach and education to promote tire-derived products. - An under-used grant program. Since 2003, grantees under the Rubberized Pavement Market Development Act (RPMDA) have utilized between 55% and 66% of the awarded amount. This percentage of utilization is higher than the utilization of grants for tire-derived products, which have averaged about 63% since the 2005-06 fiscal year.
Of the 97 grants awarded under the RPMDA in the 2014-2015 and 2015-2016 fiscal years, 15 grantees withdrew their grant awards. Reason for withdrawing include changes to public works priorities, delays in construction scheduling, failure to match funds, or the price of rubberized asphalt concrete (RAC).
To address the concern that the RPMDA was undersubscribed for the 2014-2015 and 2015-2016 fiscal years, CalRecycle performed a county-by-county analysis which indicated that due to material availability and competition, the cost of rubberized payment varied greatly by geographic region. In the 2016-2017 fiscal year, CalRecycle increased the reimbursement amounts for some higher cost geographic areas and allowed applicants with fewer than two previous grants to require reimbursement based on the cost difference between RAC and conventional asphalt. This resulted in an increase in requests, causing the RPMDA to be oversubscribed for one year. However, the program was again undersubscribed in the 2017-2018 fiscal year.
In response, CalRecycle increased the number of grants an applicant can receive to eight and decreased the minimum RAC tonnage requirement to encourage smaller jurisdictions to use rubberized pavement.
Despite CalRecycle’s attempts to stimulate more grant applicants, a significant amount of funding is ultimately not used or is disencumbered by local governments.
- Policy goals. AB 2908 declares the policy goal of the state that not less than 75% of solid waste tires generated be source reduced or recycled in the state.
An amendment is needed to clarify that the 75% policy goal is on an annual basis.
Related/Prior Legislation
AB 509 (Frazier, 2017) is substantively similar to AB 2908. It was held in Senate Appropriations Committee.
AB 1239 (Gordon, Atkins, 2016) is substantially similar to AB 509 and would have established the Tire Recycling Incentive Program (TRIP) Act to provide incentives for tire recycling activities in California. AB 1239 would have established a new tire regulatory fee, set by the Department of Resources Recycling and Recovery (CalRecycle), to cover regulatory costs associated with waste and used tire management. AB 1239 failed on the Assembly Floor.
SB 47 (Hill, 2015), as heard in Senate Environmental Quality Committee, would have required the Office of Environmental Health Hazard Assessment to conduct a study by July 1, 2017, analyzing potential adverse health impacts from synthetic turf made from waste tires and would have prohibited the awarding of grants or other funding assistance for the manufacturing or installation of synthetic turf made from waste tires. SB 47 was returned to Secretary of Senate pursuant to Joint Rule 62(a).
AB 513 (Frazier, Chapter 499, Statutes of 2013), established the Rubberized Asphalt Concrete (RAC) Market Development Act, which codified the CalRecycle RAC grant program for local public works projects.
AB 2658 (Bocanegra, 2014), would have clarified that “parklets” and “greenways” were eligible for grants for public works projects that use tire-derived products and would have required CalRecycle, when awarding grants for parklets and greenways, to give priority to projects located in disadvantaged communities. Senate Transportation & Housing Committee (failed 4-3).
.
SOURCE:
Californians Against Waste
SUPPORT:
7th Generation Advisors
Audubon California
Californians Against Waste
California Association of Local Conservation Corps
California State Association of Counties
Clean River Alliance
Defenders of Wildlife
Los Angeles Alliance for a New Economy
Marin County Hazardous and Solid Waste Management Joint Powers Authority
Mojave Desert and Mountain Recycling
Napa Recycling and Waste Services
Northern California Recycling Association
Rural County Representatives of California
StopWaste
U.S. Tires Manufacturers Association
Van Duerr Industries
Zanker Recycling
OPPOSITION:
All American Asphalt
American Pavement Systems, Inc.
Asphalt, Fabric & Engineering, Inc.
Automotive Service Councils of California
BAS Recycling
California Autobody Association
California Automotive Business Coalition
California Tire Dealers Association
California Automotive Business Coalition
California Automotive Wholesalers Association
Crumb Rubber Manufacturers
Easy Turf
Ecore
FieldTurf
Howard Jarvis Taxpayers Association
Independent Automotive Professionals
Institute of Scrap Recycling Industries, Inc.
Lakin Tire West, Inc.
Liberty Tire Recycling
National Blending Company
Rubber Pavements Association
SpecturaTurf
SPRINTURF
Synthetic Turf Council
Tri-C Manufacturing Inc.
Valley Precision Grading, Inc.
Waste Recovery West, LLC
West Coast Rubber Recycling, Inc.
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 2908
Author:(Berman)
As Amended Ver:April 17, 2018
Majority vote
Committee | Votes | Ayes | Noes |
Natural Resources | 7-3 | Muratsuchi, Chau, Eggman, Limón, McCarty, Mark Stone, Bloom | Acosta, Flora, Melendez |
Appropriations | 12-4 | Gonzalez Fletcher, Bloom, Bonta, Calderon, Carrillo, Chau, Eggman, Friedman, Eduardo Garcia, Nazarian, Quirk, Reyes | Bigelow, Fong, Gallagher, Obernolte |
SUMMARY: Establishes the Tire Recycling Incentive Program (TRIP) Act to provide incentives for tire recycling activities in California. Establishes a new tire regulatory fee, set by the Department of Resources Recycling and Recovery (CalRecycle), to cover its regulatory costs associated with waste and used tire management. Specifically, this bill:
- Requires CalRecycle to establish the TRIP to make payments to eligible entities for tire products manufactured from California-generated waste tire material for activities promoting recycling, reducing disposal, or preventing illegal dumping of California-generated waste tire material.
- Establishes the California tire regulatory fee:
- Upon a finding by CalRecycle that the Fund will not have sufficient revenue to fund the reasonable regulatory costs incurred by CalRecycle to conduct audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities regarding waste tires, requires CalRecycle to establish the fee in an amount, not to exceed $1 per new tire sold, that is sufficient to generate revenue equivalent to the reasonable costs incurred by CalRecycle for regulatory activities relating to waste tires;
- Requires CalRecycle to adopt regulations to implement the initial fee and authorizes CalRecycle to adjust the fee based on specified factors; and,
- Requires a waste tire generator to pay a California tire regulatory fee and remit the fee to the state for deposit in the Fund.
- Makes an entity eligible to receive an incentive payment upon demonstrating to CalRecycle that the entity purchased California-generated waste tire material processed in the state and sold an incentive-eligible tire product incorporating that material to an end user.
- Specifies that an "eligible entity" is an entity eligible to receive incentive payments includes, but is not limited to, a manufacturer that produces a product using California-generated waste tires for purchase by an end user. States that "eligible entity" does not include the entity or person that receives the finished product.
- Includes examples of "incentive-eligible tire products," such as pavement-related products (e.g., rubberized asphalt), walkways and pathways, poured-in-place and tile playground mats, and landscape nuggets and mulch.
- Excludes specified products from "incentive-eligible tire products," including tire-derived fuel, alternative daily cover, and loose rubber, nugget, or mulch playgrounds.
- Requires that no less than 50% of the total value of incentive payments made pursuant to the bill be made for pavement-related products.
- By January 1, 2020, requires CalRecycle to hold a public workshop to develop a plan for the TRIP program to be included in the Five-Year Plan. Requires CalRecycle to take specified actions at the workshop, including determining what products to include in the list of incentive-eligible products, setting incentive amounts, and developing a tiered payment structure with no more than three tiers.
- Requires CalRecycle to include in its Five-Year Plan update an evaluation of TRIP, propose changes according to this evaluation, and reevaluate and prioritize funding for the categories of incentive-eligible tire products that recycle the most waste tires.
- Requires a waste and used tire hauler, on and after January 1, 2020, to submit an electronic manifest, instead of a paper manifest, to CalRecycle within seven days of the date of the pickup or delivery for each load of waste or used tires transported.
- Sunsets the provisions of this bill on January 1, 2024.
EXISTING LAW:
- Establishes the California Tire Recycling Act (Act), which:
- 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 the tire fee 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.
- Reduces the fee on January 1, 2024 to $0.75 per tire, to be deposited into the Tire Recycling Management Fund (Fund).
- Authorizes CalRecycle to award grants, loans, subsidies, and rebates and pay incentives for various purposes related to reducing landfill disposal of waste tires.
- 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.
- Defines "waste tire generator" as any person whose act or process produces any amount of waste or used tires, or causes a waste or used tire hauler to transport those waste or used tires, or otherwise causes waste or used tires to become subject to regulation.
FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill has the following costs:
- Increased revenues resulting from the tire fee of up to $19.5 million for the second half of FY 2018-19 and up to $40 million annual revenues beginning in FY 2019-20.
- Additional BOE costs if Cal Recycle chooses to contract with BOE for collection.
- Increased CalRecycle Adminstrative first-year costs of $759,000, second-year costs of $749,000, and ongoing costs of $529,000 (Tire Recycling Management Fund).
COMMENTS: According to CalRecycle, approximately 40 million waste tires are generated in California every year. CalRecycle's diversion goal is 90%. According to the California Waste Tire Market Report: 2015, after reaching an all-time high of 92.9% waste tire diversion in 2012, the recycling rate dropped to 80.9% in 2015. Of the 44.2 million tires generated: 10.1 million were exported (for fuel or reuse); 7.6 million were recycled as crumb rubber; 1.2 million were used in civil engineering projects; 6.7 million were reused (either sold as used tires or retreaded); 8.6 million were used as tire-derived fuel in cement kilns or at co-generation facilities; 1.5 million were used as cover at landfills; and 8.5 million were disposed in landfills.
CalRecycle's "affiliated goals" to achieve a 90% diversion rate for tires are: 1) develop long-term, sustainable, and diversified market demand for California tire-derived products; 2) ensure the protection of public health, safety, and the environment while developing a safe and high-quality supply infrastructure to meet that demand; and, 3) foster information flow and technology and product development so that environmental protection and diversion goals are achieved with supply and demand in balance.
CalRecycle is in the process of adjusting its waste tire market development programs, in accordance with its Five-Year Plan, to more effectively focus CalRecycle resources on diversifying and expanding markets. CalRecycle has also indicated a long-term vision of increasing tire recycling, rather than just diversion. Specifically, CalRecycle has begun crafting a new incentive program that would differentiate incentive payments, with higher payments going to "preferred end-users" that recycle waste tires into new products, such as rubberized asphalt concrete; moderate payments for end uses, such as tire-derived aggregate; and lower payments for less-preferred non-disposal management, such as energy generation.
CalRecycle's analysis of past grants indicates that about 25% of the total sales of California-produced tire-derived products were supported by grants, while about 12.5% of California crumb rubber sold to paving applications was supported by CalRecycle paving grants. In order to achieve its long-term goals for tire recycling, CalRecycle is in the process of redirecting approximately half of its budget for the Tire-Derived Product Grant Program to a new Tire Incentive Program that will focus on promoting new tire-derived product development and shift established product manufacturers to use of ground rubber from other feedstock. CalRecycle is also replacing the Tire-Derived Product Business Assistance Program, which offered a wide variety of assistance to manufacturers, with a new Tire Outreach and Market Analysis (TOMA) program. TOMA will focus exclusively on outreach and education to promote tire-derived products. This bill is consistent with the direction and recommendations of CalRecycle's 2015 Five-Year Plan.
The Waste Tire Manifest System is a tracking mechanism used by CalRecycle to monitor the generation, transportation, and ultimate disposal of used/waste tires in California. The goal of the system is to help eliminate the illegal storage or disposal of used/waste tires by allowing CalRecycle to focus enforcement efforts on worst offenders. The waste tire manifest system program applies to all persons, businesses, nonprofits, and government agencies that generate, transport, or receive waste or used tires. CalRecycle and tire enforcement agency staff members inspect and investigate waste and used tire generators, end-use facilities, and haulers to ensure that manifests are properly completed, handled, and submitted to CalRecycle. The law also allows, but does not require, that data to be submitted electronically to CalRecycle. This bill updates the tire manifest system to require electronic reporting.
Analysis Prepared by: Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0003048
Date of Hearing: May 9, 2018
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
ABPCA Bill Id:AB 2908
Author:(Berman) – As Amended Ver:April 17, 2018
Policy Committee: | Natural Resources | Vote: | 7 - 3 |
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| ||
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill establishes the Tire Recycling Incentive Program (TRIP) Act to provide incentives for tire recycling activities in California. This bill establishes a new tire regulatory fee, set by the Department of Resources Recycling and Recovery (CalRecycle), to cover its regulatory costs associated with waste and used tire management. Specifically, this bill:
- Requires CalRecycle to establish TRIP to make payments to eligible entities for tire products manufactured from California-generated waste tire material that promote the recycling, the reduction of the disposal, or the prevention of illegal dumping, of California-generated waste tire material.
- Establishes the California tire regulatory fee of up to $1 per new tire sold, an amount sufficient to generate revenue equivalent to the reasonable costs incurred by CalRecycle for regulatory activities relating to waste tires.
- Requires that no less than 50% of the total value of incentive payments made pursuant to the bill is for pavement-related products.
- Requires CalRecycle to include and update evaluation of TRIP in its five-year plan, propose changes according to this evaluation, and reevaluate and prioritize funding for the categories of incentive-eligible tire products that recycle the most waste tires.
- Requires a waste and used tire hauler, on and after January 1, 2020, to submit an electronic rather than paper manifest to CalRecycle, within seven days of the date of the pickup or delivery for each load of waste or used tires transported.
- Sunsets the provisions of this bill on January 1, 2024.
FISCAL EFFECT:
- Increased revenues resulting from the tire fee of up to $19.5 million for the second half of FY 2018-19 and up to $40 million annual revenues beginning in FY 2019-20.
The Board of Equalization staff based this revenue estimate on industry forecasts of tire sales of 39 million in FY 2017-18 and 40 million in FY 2018-19. For the purposes of providing this estimate, staff used the proposed maximum regulatory fee of $1 per tire.
- Additional BOE costs if Cal Recycle chooses to contract with BOE for collection.
- Increased CalRecycle Adminstrative first-year costs of $759,000, second-year costs of $749,000, and ongoing costs of $529,000 (Tire Recycling Management Fund).
CalRecycle is concerned with the current language in AB 509 establishing a trigger for initiating the regulatory fee when the tire fund is projected to drop below $10 million. CalRecycle’s operational costs for the tire program are more in the range of $23 to $25 million annually. To ensure costs are fully covered in the transition year, $25 million would be a more appropriate threshold for initiating the regulatory fee.
COMMENTS:
- Purpose. According to the author:
AB 2908 would create the TRIP to ensure that more waste tires in California are recycled, processed, and re-manufactured, thereby creating new jobs and economic opportunity, diverting waste from landfills, lessening illegal dumping of tires, and reducing greenhouse gas emissions. It would do so by repealing the Rubberized Asphalt Concrete Market Development Act and replacing it with a proven model of performance-based incentive funding to support the use or rubberized pavement and other end markets for recycled tires. Under TRIP, eligible entities and local governments would be eligible to receive an incentive payment for tire-derived product manufactured from California-generated waste tire material
- Background. Current law imposes $1.75 per tire on every person who purchases a new tire, as defined. Beginning January 1, 2024, the tire fee decreases to $0.75 per tire. The retail seller charges and collects the California tire fee from the retail purchaser at the time of sale. After deducting 1.5% of the total fees as reimbursement for costs associated with the fee collection, a retailer must remit the fees to the BOE for deposit in the California Tire Recycling Management Fund (Tire Fund).
Beginning January 1, 2024, the reimbursement percentage for costs associated with the fee collection increases to 3%. Existing law requires the BOE to transfer an amount equal to $0.75 per tire on which the fee is imposed to the Air Pollution Control Fund, administered by the Air Resources Board. The annual budget vct appropriates the remaining Tire Fund balance to CalRecycle. As of January 1, 2024, all Tire Fund moneys will be appropriated to CalRecycle.
CalRecycle is authorized to contract with an existing state agency, including the BOE, to carry out the California Tire Recycling Act. The section further provides that if CalRecycle contracts with the BOE to collect the California tire fee, the BOE may collect that fee pursuant to the Fee Collection Procedures Law.
- Prior Legislation. AB 509 (Frazier),of this legislative session, is substantially similar to this bill. It was held in the Senate Appropriations Committee.
Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081
Date of Hearing: April 9, 2018
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Al Muratsuchi, Acting Chair
ABPCA Bill Id:AB 2908 (
Author:Berman) – As Introduced Ver:February 16, 2018
SUBJECT: Tire recycling: California tire regulatory fee and waste tire program
SUMMARY: Establishes the Tire Recycling Incentive Program (TRIP) Act to provide incentives for tire recycling activities in California. Establishes a new tire regulatory fee, set by the Department of Resources Recycling and Recovery (CalRecycle), to cover its regulatory costs associated with waste and used tire management.
EXISTING LAW:
- Pursuant to the California Integrated Waste Management Act of 1989, establishes a state policy goal that 75% of solid waste generated be diverted from landfill disposal by 2020.
- Establishes the California Tire Recycling Act (Act), which:
- 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 the tire fee 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.
- Reduces the fee on January 1, 2024 to $0.75 per tire, to be deposited into the Tire Recycling Management Fund (Fund).
- Authorizes CalRecycle to award grants, loans, subsidies, and rebates and pay incentives for various purposes related to reducing landfill disposal of waste tires.
- 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.
- Defines "waste tire generator" as any person whose act or process produces any amount of waste or used tires, or causes a waste or used tire hauler to transport those waste or used tires, or otherwise causes waste or used tires to become subject to regulation.
- 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 the tire fee 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.
THIS BILL:
- Requires CalRecycle to establish the TRIP to make payments to eligible entities for tire products manufactured from California-generated waste tire material for activities promoting recycling, reducing disposal, or preventing illegal dumping of California-generated waste tire material.
- Establishes the California tire regulatory fee:
- Upon a finding by CalRecycle that the Fund will not have sufficient revenue to fund the reasonable regulatory costs incurred by CalRecycle to conduct audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities regarding waste tires, requires CalRecycle to establish the fee in an amount, not to exceed $1 per new tire sold, that is sufficient to generate revenue equivalent to the reasonable costs incurred by CalRecycle for regulatory activities relating to waste tires;
- Requires CalRecycle to adopt regulations to implement the initial fee and authorizes CalRecycle to adjust the fee based on specified factors; and,
- Requires a waste tire generator to pay a California tire regulatory fee and remit the fee to the state for deposit in the Fund.
- Upon a finding by CalRecycle that the Fund will not have sufficient revenue to fund the reasonable regulatory costs incurred by CalRecycle to conduct audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities regarding waste tires, requires CalRecycle to establish the fee in an amount, not to exceed $1 per new tire sold, that is sufficient to generate revenue equivalent to the reasonable costs incurred by CalRecycle for regulatory activities relating to waste tires;
- Makes an entity eligible to receive an incentive payment upon demonstrating to CalRecycle that the entity purchased California-generated waste tire material processed in the state and sold an incentive-eligible tire product incorporating that material to an end user.
- Specifies that an “eligible entity” is an entity eligible to receive incentive payments includes, but is not limited to, a manufacturer that produces a product using California-generated waste tires for purchase by an end user. States that "eligible entity" does not include the entity or person that receives the finished product.
- Includes examples of “incentive-eligible tire products,” such as pavement-related products (e.g., rubberized asphalt), walkways and pathways, poured-in-place and tile playground mats, and landscape nuggets and mulch.
- Excludes specified products from “incentive-eligible tire products,” including tire-derived fuel, alternative daily cover, and loose rubber, nugget, or mulch playgrounds.
- Requires that no less than 50% of the total value of incentive payments made pursuant to the bill be made for pavement-related products.
- By January 1, 2020, requires CalRecycle to hold a public workshop to develop a plan for the TRIP program to be included in the Five-Year Plan. Requires CalRecycle to take specified actions at the workshop, including determining what products to include in the list of incentive-eligible products, setting incentive amounts, and developing a tiered payment structure with no more than three tiers.
- Requires CalRecycle to include in its Five-Year Plan update an evaluation of TRIP, propose changes according to this evaluation, and reevaluate and prioritize funding for the categories of incentive-eligible tire products that recycle the most waste tires.
- Requires a waste and used tire hauler, on and after January 1, 2020, to submit an electronic manifest, instead of a paper manifest, to CalRecycle within seven days of the date of the pickup or delivery for each load of waste or used tires transported.
- Sunsets the provisions of this bill on January 1, 2024.
FISCAL EFFECT: AB 509 (Frazier) of 2017 was substantially similar to this bill. According to the Senate Appropriations Committee, that bill had the following costs:
- Approximately $759,000 annually (in years 1 and 2) and ongoing costs of $530,000 annually thereafter (California Tire Recycling Management Fund) to CalRecycle for staffing costs.
- Increased annual revenues resulting from the tire fee of up to $38 million.
- Costs saving equal to approximately $220,000 annually resulting from automation of the existing paper manifest system.
- Unknown, potentially significant costs to the California Department of Tax and Fee Administration to administer assessment program.
COMMENTS:
- Author's statement:
AB 2908 would create the TRIP to ensure that more waste tires in California are recycled, processed, and re-manufactured, thereby creating new jobs and economic opportunity, diverting waste from landfills, lessening illegal dumping of tires, and reducing greenhouse gas emissions. It would do so by repealing the Rubberized Asphalt Concrete Market Development Act and replacing it with a proven model of performance-based incentive funding to support the use or rubberized pavement and other end markets for recycled tires. Under TRIP, eligible entities and local governments would be eligible to receive an incentive payment for tire-derived product manufactured from California-generated waste tire material.
- Waste tire management. According to CalRecycle, approximately 40 million waste tires are generated in California every year. CalRecycle's diversion goal is 90%. According to the California Waste Tire Market Report: 2015, after reaching an all-time high of 92.9% waste tire diversion in 2012, the recycling rate dropped to 80.9% in 2015. Of the 44.2 million tires generated: 10.1 million were exported (for fuel or reuse); 7.6 million were recycled as crumb rubber; 1.2 million were used in civil engineering projects; 6.7 million were reused (either sold as used tires or retreaded); 8.6 million were used as tire-derived fuel in cement kilns or at co-generation facilities; 1.5 million were used as cover at landfills; and 8.5 million were disposed in landfills.
CalRecycle's "affiliated goals" to achieve a 90% diversion rate for tires are: 1) develop long-term, sustainable, and diversified market demand for California tire-derived products; 2) ensure the protection of public health, safety, and the environment while developing a safe and high-quality supply infrastructure to meet that demand; and, 3) foster information flow and technology and product development so that environmental protection and diversion goals are achieved with supply and demand in balance.
CalRecycle is in the process of adjusting its waste tire market development programs, in accordance with its Five-Year Plan, to more effectively focus CalRecycle resources on diversifying and expanding markets. CalRecycle has also indicated a long-term vision of increasing tire recycling, rather than just diversion. Specifically, CalRecycle has begun crafting a new incentive program that would differentiate incentive payments, with higher payments going to "preferred end-users" that recycle waste tires into new products, such as rubberized asphalt concrete; moderate payments for end uses, such as tire-derived aggregate; and lower payments for less-preferred non-disposal management, such as energy generation.
CalRecycle's analysis of past grants indicates that about 25% of the total sales of California-produced tire-derived products were supported by grants, while about 12.5% of California crumb rubber sold to paving applications was supported by CalRecycle paving grants. In order to achieve its long-term goals for tire recycling, CalRecycle is in the process of redirecting approximately half of its budget for the Tire-Derived Product Grant Program to a new Tire Incentive Program that will focus on promoting new tire-derived product development and shift established product manufacturers to use of ground rubber from other feedstock. CalRecycle is also replacing the Tire-Derived Product Business Assistance Program, which offered a wide variety of assistance to manufacturers, with a new Tire Outreach and Market Analysis (TOMA) program. TOMA will focus exclusively on outreach and education to promote tire-derived products. This bill is consistent with the direction and recommendations of CalRecycle's 2015 Five-Year Plan.
- Tracking tires. The Waste Tire Manifest System is a tracking mechanism used by CalRecycle to monitor the generation, transportation, and ultimate disposal of used/waste tires in California. The goal of the system is to help eliminate the illegal storage or disposal of used/waste tires by allowing CalRecycle to focus enforcement efforts on worst offenders. The waste tire manifest system program applies to all persons, businesses, nonprofits, and government agencies that generate, transport, or receive waste or used tires. CalRecycle and tire enforcement agency staff members inspect and investigate waste and used tire generators, end-use facilities, and haulers to ensure that manifests are properly completed, handled, and submitted to CalRecycle. The law also allows, but does not require, that data to be submitted electronically to CalRecycle. This bill updates the tire manifest system to require electronic reporting.
- Previous legislation:
AB 509 (Frazier, 2017) was substantially similar to this bill. It was held in the Senate Appropriations Committee.
AB 1239 (Gordon and Atkins, 2016) was substantially similar to this bill. It was held on the Assembly Concurrence File.
- Suggested amendments. The committee may wish to amend the bill to correct drafting errors.
REGISTERED SUPPORT / OPPOSITION:
Support
Audubon California
California Association of Local Conservation Corps
California State Association of Counties
Californians Against Waste
Clean River Alliance
Defenders of Wildlife
Los Angeles Alliance for a New Economy
Marin County Hazardous and Solid Waste Management Joint Powers Authority
Rural County Representatives of California
SafePath Products
Sonoma County Waste Management Agency
US Tire Manufactures Association
Zanker Recycling
Opposition
All American Asphalt
American Pavement Systems
Asphalt Fabric & Engineering
Automotive Service Councils of California
BAS Recycling, Inc.
California Autobody Association
California Automotive Business Coalition
California Automotive Wholesalers Association
California Tire Dealers Association
CRM
Easy Turf
Encore
FieldTurf
Independent Automotive Professionals
Institute of Scrap Recycling Industries, Inc.
Lakin Tire West, Inc.
Liberty Tire Recycling
National Blending Company
Rubber Pavements Association
SpectraTurf
SprinTurf
Synthetic Turf Council
Tri-C Manufacturing, Inc.
Valley Precision Grading, Inc.
Analysis Prepared by: Elizabeth MacMillan / NAT. RES. /
Bill Author
