Today's Law As Amended


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AB-509 Tire recycling: California tire regulatory fee and waste tire program.(2017-2018)



As Amends the Law Today


SECTION 1.

 Section 42872.1 of the Public Resources Code is repealed.

SEC. 2.

 Section 42872.1 is added to the Public Resources Code, to read:

42872.1.
 (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 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 eligible entity is eligible to receive an incentive payment only upon demonstrating to the department that the entity purchased an incentive-eligible tire product that is processed in California from California-generated waste tire material and sold an incentive-eligible tire product incorporating that material to an end user.
(e) For purposes of this section, “eligible entity” includes, but is not limited to, a manufacturer that produces a 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.
(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 and local 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 applications, including lightweight fill and vibration mitigation.
(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.
(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.
(F) Synthetic turf infill.
(G) Loose rubber nugget or mulch playgrounds.
(H) Purchases made to meet procurement requirements established pursuant to Section 42703.
(h) (1) On or before January 1, 2019, 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) 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) What entities, in addition to those listed in subdivision (e), are “eligible entities” for the additional incentive-eligible tire products identified pursuant to clause (i) for purposes of this section.
(iii) The incentive payment amounts to be paid to eligible entities for the additional incentive-eligible tire products identified pursuant to clause (i).
(iv) What is considered a “tire recycled product” for purposes of determining the recycling rate for California-generated waste tire material. “Tire recycled 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 commencement date, which shall be no later than January 1, 2019, of the program.
(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. Payments for the tier with the highest incentive payment shall account for no more than 25 percent of the total amount of moneys awarded as incentive payments by the program.
(ii) 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.
(iii) 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 that may be appropriated 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.
(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 paragraphs (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.
(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 expend at least thirty million dollars ($30,000,000) for the tire recycling incentive program. 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.

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) Every 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 ($0.75) ($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 3 1 1/2 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) The (1)   California Department of Tax and Fee Administration shall collect  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 fee pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001)) of Division 2 of the Revenue and Taxation Code. For purposes of this section, the reference in the Fee Collection Procedures Law to “feepayer” shall include a person required to pay the fee imposed by this section, which includes the retail seller.  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 seller’s 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 department’s 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.
(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)  Any A  person or business who knowingly, or with reckless disregard, makes any a  false statement or representation in any 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 any a  person who intentionally or negligently violates any 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 may  and the California tire regulatory fee shall  not be imposed on any a  tire sold with, or sold separately for use on, any of the following:
(1) Any A  self-propelled wheelchair.
(2) Any A  motorized tricycle or motorized quadricycle, as defined in Section 407 of the Vehicle Code.
(3) Any 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 person’s physical disability, is otherwise unable to move about as a pedestrian.
(i) (j)  This section shall become operative on January 1, 2034. 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) All revenues, interest, and penalties derived from the California Tire Fee, less refunds and reimbursement to the California Department of Tax and Fee Administration for expenses incurred in the administration and collection of the fee imposed by this article, shall be deposited as follows:
(1) (a)  An  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 deposited in the  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.
(2) (b)  The remaining moneys collected pursuant to subdivision (b) of  Section 42885 shall be deposited in the California Tire Recycling Management Fund to fund the waste tire program,  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: 
(A) (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.
(B) (3)  To pay the costs associated with operating the tire recycling program specified in Article 3 (commencing with Section 42870).
(C) (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.
(D) (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: 2001–02 to 2006–07, inclusive. 
(E) (6)  To make studies and conduct research directed at promoting and developing alternatives to the landfill disposal of waste tires.
(F) (7)  To assist in developing markets and new technologies for used tires and waste tires. The department’s expenditure of funds for purposes of this subdivision shall reflect the priorities for waste management practices specified in subdivision (a) of Section 40051.
(G) (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).
(H) (9)  To pay the costs to create and maintain an emergency reserve, which shall not exceed one million dollars ($1,000,000).
(I) (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.
(J) (11)  To fund border region activities specified in paragraph (8) of subdivision (b) of Section 42885.5.
(K) (12)  For expenditure pursuant to paragraph (3) of subdivision (a) of, and paragraph (3) of subdivision (b) of, Section 17001.
(b) (c)  This section shall remain in effect only until January 1, 2034, 2024,  and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2034, 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 record  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 type or types of the tires, the  date the shipment originated or reached its destination,  terminated,  and the origin and intended  final destination of the shipment, in a format approved or required by the department. 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 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) (c)  Any (1)   waste and used tire  A  hauler transporting waste or used tires for offsite handling, altering, storage, or disposal, or for any combination thereof, shall complete a California Uniform Waste and Used Tire Manifest, in a manner approved or required by the department. manifest. 
(c) (2)  (1) A  Any waste and used tire    hauler shall have the California Uniform Waste and Used Tire Manifest readily accessible in the transporting vehicle during transportation by paper copy or electronic means. 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, or any local public officer designated by the department. Code. 
(2) (3)  For each load of waste and used tires transferred, a waste and used tire  A  hauler shall provide the completed manifest or the completed manifest information in a format approved by the department  manifest, or otherwise provide all required manifest information, to the generator of waste or used tires or  to the operator of the a  waste or used tire facility from which the waste and used tire hauler is receiving or transferring waste or used tires, or to which the waste and used tire hauler is transferring waste or used tires,  or other destination  at the time of transfer. 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.
(3) (5)  Each waste and used tire hauler shall maintain a copy of each completed manifest or the completed manifest information in a manner approved or required by the department for a period of time required by the department, and shall submit to the department a legible copy of each manifest or the manifest information, in a format required by the department, including, but not limited to, an electronic format, within a set time period required by the department. The manifest or manifest information submitted  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, 2019, the hauler shall submit only an electronic manifest, and not a paper manifest,  to the department shall contain the signed acknowledgment of the waste tire facility from or to which within seven days of the date of the pickup or delivery for each load of  waste or used tires were transferred. transported.  
(6) If approved by the department, a hauler may submit an electronic manifest prior to January 1, 2019. The electronic manifest shall include all information required to be on the manifest and any other information required by the department.
(d) (1) The  Each waste or used tire facility that transfers   authorized representative for the person generating or accepting  waste or used tires to a waste and used tire hauler or that receives waste or used tires from a waste or used tire hauler that was transported with a manifest pursuant to this section shall maintain copies  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 or manifest information in a format authorized or required by the department,  and any other information required that  the department deems necessary to track the flow of waste and used tires through the state, for each load of waste or used tires transferred or received, and make the manifest copies or manifest information available for review at the department’s request. The copy submitted to the department shall contain the approval of each transporter and the facility operator. state. 
(2) (e)  Each waste or used tire facility that transfers waste or used tires to a waste and used tire hauler or that receives  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 from  tires, or the operator of  a waste or used tire hauler that was transported with a manifest pursuant to this section shall check that  facility or other destination, that  the information on the manifest or in the manifest information recorded by the waste and used tire hauler is correct at the time of transfer in a manner required is correct, including the number of tires and other information specified  by the department.  
(e) (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. The department 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) 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.
(f) (h)  (1)  The department may require any waste and used tire generator, waste and used tire hauler, or operator of a waste tire facility that is subject to the manifest requirements of this section to record, maintain, and submit the required manifest information in an electronic format, in lieu of maintaining and submitting a paper copy of the manifest. The electronic record shall include all information required to be on the California Uniform Waste and Used Tire Manifest, and any other information required by the department. 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.  
(2) A waste and used tire generator, waste and used tire hauler, or operator of a waste tire facility that is subject to paragraph (1) may submit the electronic reports to the board on a schedule determined by the department.