BILL ANALYSIS



C.S.H.B. 2846
By: Saunders
04-25-95
Committee Report (Substituted)


BACKGROUND

During the 72nd Legislative Session, in 1991, the legislature
adopted legislation that created the Waste Tire Recycling Fund
(WTRF) and program.  That program was designed to provide an
alternative mechanism for tire disposal from the historically
accepted method of landfilling.  The primary intent of the program
at the time of creation was to eliminate the over 750 illegal waste
tire dumps located across the state.  Three additional objectives
were identified by the Texas Natural Resource Conservation
Commission (TNRCC) shortly after program implementation.  These
included: (1) eliminating landfills as the primary disposal
mechanism for waste tires; (2) halting the creation of new illegal
waste tire dumps: and (3) promoting the recycling or end use of
waste tire shreds in the state.

The original program provided reimbursement to registered
processors (at a rate of 85 cents per 18.7 pounds of material
shredded) for the shredding of the approximately 29.6 million waste
tires generated in Texas annually.  Tracking mechanisms were
developed by the TNRCC to ensure that processors provided and
maintained a complete and accurate record of tires collected and
shredded for reimbursement.  A two phase auditing system was
developed and implemented by the TNRCC to confirm that processor
responsibility and accountability was maintained.  In addition, the
statute required that processors promote and develop recycling or
end use markets for tire shreds by July 1, 1995.

During the 73rd Legislative Session in 1993, the legislature
adopted legislation that resulted in significant program
modifications.  Major among these changes were: (1) the development
of the Useful Product Reimbursement (UPR) program; (2) the Capacity
Assessment review and report; (3) the delay of the end use deadline
by 6 months; (4) the increase of the WTRF fee assessed on truck
tires; (5) the requirement that recyclers and energy recovery
industries register with the TNRCC; (6) the specific elimination of
certain types of waste tires from program reimbursement; (7) the
ability to allocate the number of tires assigned for processors if
there was a potential for fund depletion; and (8) the reduction of
the amount appropriated to the TNRCC for program administration and
reimbursements.

Since initial program implementation, the WTRF program has
successfully cleaned up and closed over 417 of the 813 illegal
waste tire dumps known to exist in the state.  An additional 184
have been assigned for clean up.  This has resulted in the
shredding of over 79 million tires.  A majority of these shredded
tire pieces (approximately 83 percent; 17 percent have been
recycled) have been stored on registered storage facilities until
a recycling mechanism can be identified by processors.

As result of the slow development of recycling and end use
mechanisms in the state,   modifications are being proposed to the
WTRF program that will more strongly encourage and promote the
recycling of tire shreds.  


PURPOSE

CSHB 2846 amends Chapter 361, Health and Safety Code, to establish
a WTRF program that promotes tire recycling and end use market
development using a variety of new program mechanisms and
reimbursement incentives.  In addition, CSHB 2846 amends Chapter
361, Health and Safety Code, to provide the WTRF program with
fiscal and program auditing, generator and transporter training,
end use market development, and increased enforcement mechanisms. 


RULEMAKING AUTHORITY

It is the committee's opinion that this bill expressly grants
rulemaking authority to Texas Natural Resource Conservation
Commission (TNRCC) the following SECTIONS of the bill:

     SECTIONS 6 [Sec. 361.477 (i), Health and Safety Code]
     SECTIONS 7 [Sec. 361.4771, Health and Safety Code]
     SECTIONS 8 [Sec. 361.4772 (a), Health and Safety Code]

It is also the committee's opinion that this bill does not
expressly grant rulemaking authority, but modifies existing
rulemaking authority granted to the TNRCC in SECTION 6 of the bill
[Sec. 361.477 (c) and (j), Health and Safety Code].


SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 361.471, Health and Safety Code, by
adding the following definitions:
     (3) "good used tire" to mean a used tire, not including a
     recapped or retreaded tire 
     (7) "waste tire energy recovery facility" to mean a facility
     at which whole used or scrap tires or shredded tires are used
     as fuels; 
     Other definitions are renumbered accordingly.

SECTION 2.  Amends Section 361.472, Health and Safety Code, as
follows:
     (a) Until September 1, 1999, a wholesale or retail tire
dealer, a person in the business of selling good used tires for use
on a vehicle, or a person in the business of selling used vehicles
or vehicle parts who sells or offers to sell new or good used tires
is required to collect a waste tire recycling fee for each tire
sold as follows:
     $2 for each new tire that has a rim diameter of 12 inches or
     more, but less than 17.5 inches;
     $1 for each good used tire that has a rim diameter of 12
     inches or more, but less than 17.5 inches;
     $3.50 for each new tire that has a rim diameter of 17.5 inches
     or greater, other than an off-the-road tire intended for use
     on heavy machinery; and
     $2 for a new motorcycle tire.
     (c) A fee may not be assessed for a recapped tire, retreaded
     tire, or bicycle tire.
     (d) A person required to collect a fee must list on the
invoice a fee due, and file a monthly report to the comptroller
with remittance of fees collected.
     (h) A waste tire recycling fee is imposed on the storage, use,
or consumption of a tire in the same rate as provided by Subsection
(a).
     (i) A person storing, using, or consuming a tire in this state
is liable for the waste tire recycling fee.
     (j) A person storing, using, or consuming a tire in this state
is not further liable for the waste tire recycling fee if the
person pays the fee to a person who is required to collect the fee
or another person authorized by the comptroller to collect the fee,
and receives a purchaser's receipt.
     (k) Is added to state that effective September 1, 1999, a
wholesale or retail tire dealer, a person in the business of
selling good used tires for use on a vehicle, or a person in the
business of selling used vehicles or used vehicle parts who sells
or offers to sell new or good used tires not for resale shall
collect a waste tire recycling fee for each tire sold as follows:
     $1 for each new tire that has a rim diameter of 12 inches or
     more, but less than 17.5 inches;
     50 cents for each good used tire that has a rim diameter of 12
     inches or more, but less than 17.5 inches;
     $2.50 for each new tire that has a rim diameter of 17.5 inches
     or greater, other than an off-the-road tire intended for use
     on heavy machinery; and
     $1 for a new motorcycle tire.

SECTION 3. Amends Section 361.4725, Health & Safety Code, to
require a fee of $500 to be paid by a person who applies to the
commission to register a waste tire storage facility, a waste tire
energy recovery facility storage site, or a fixed or mobile tire
processor, or applies to renew or amend registration.

SECTION 4. Amends Section 361.473, Health & Safety Code, by adding
Subsection (d) which requires the comptroller and commission
jointly to develop and implement an enforcement program to pursue
the collection of delinquent fees.

SECTION 5. Amends Section 361.475, Health and Safety Code, as
follows:
     (d) The fund may be used only to:
           (1) pay waste tire processors, waste tire energy
           recovery facility owners and         operators, or waste
           tire recyclers that meet the requirements;
           (2) pay the commission's reasonable and necessary
           administrative costs; and
           (3) pay the comptroller's reasonable and necessary
           administrative costs.
     (e) Registration fees received under Section 361.4725 shall be
allocated to the commission for costs associated with registering
fixed and mobile tire processing facilities and storage sites and
waste tire energy recovery facility storage sites.
     (f) In addition to exceptions currently listed in statute, the
fund may not be used to reimburse shredding or burning of
nonpneumatic tires.
     (i) If the commission has reason to believe the balance of
money appropriated from the fund will fall below $500,000, the
commission may suspend the requirement to reimburse priority
enforcement list tires shredded in excess of minimum percentage,
limit the number of waste tires for which a processor or waste tire
energy recovery facility owner or operator will be reimbursed, or
discontinue paid carryover.

SECTION 6. Amends Section 361.477 as follows:
     (b) If the total number of used or scrap tires or tire pieces
contained in illegal scrap tire sites that are identified on the
priority enforcement list is below 2,500,000 tires, the commission
may pay 85 cents or an appropriate amount determined by the
commission for each weighted tire to processors who have a contract
to remove and shred scrap tires and tire pieces from priority
enforcement list sites.  Notwithstanding Subsection (c), while the
commission is using a competitive bid process for assignment of
sites listed on the priority enforcement list, the priority
enforcement list requirements of Subsection (c)(3)(C) do not apply
to an application for payment.
     (c) Demonstration requirement for a waste tire processor that
desires to receive payment for tires shredded is changed.  All
tires must have been shredded to an industry standard two-inch
minus or , if approved by the commission, shredded to an
alternative particle size set by contract requirement related to
recycling or end use particles.  Not less than 50 percent of the
tires shredded must have been collected from generators, unless
this requirement is suspended by the commission.  
     (d) A waste tire processor that in any month exceeds the
minimum requirement of Subsection (c)(3)(C) may receive credit only
for paid carryover.
     (g) Changes "Notwithstanding" to "Except as provided".  Adds
requirement for the commission to suspend subsequent shredding
reimbursements to a processor that fails to deliver the shreds to
an identified end-use market within 181 days after the date of
reimbursement.  The commission may not resume suspended
reimbursements until the processor makes all delinquent deliveries.
     (h) Adds provision that the commission may not pay a waste
tire processor for processing scrap tires if the commission has not
reviewed and approved for further processing all information
submitted as required.
     (i) Adds language that allows a waste tire processor that in
any one month exceeds the generator percentage of the allocated
number of waste tire to accrue credit only for paid generator carry
over in the amount in excess of the requirement that may be used to
meet the allocation maximum during a later month.  Allows the
commission by rule to prescribe the method of applying carryover
credit accrued.
     (j) Allows the commission to manage payments from the fund. 
The commission shall consider appropriate payments to processors. 
Requires the commission to allocate for a processor the lower
number of tires computed after considering the monthly average
percentage of shredded tires that the processor has forwarded to an
end-use or recycling market.
     (k) A person receiving payment from the fund may receive more
than 85 cents per tire only under Subsection (b).  Adds the
provision that notwithstanding Subsection (b) a person registered
as a processor may not receive from the fund more than 85 cents per
weighed tire, a person registered as an energy recovery facility
may not receive from the fund more than 85 cents per weighed tire,
and a person registered under the useful product reimbursement
program may not receive from the fund more than 85 cents per
weighed tire.

SECTION 7.  Amends Section 361.4771, Health and Safety Code, by
deleting current language and adding a new Subsections as follows:
     (a) Requires the commission to each month pay a waste tire
energy recovery facility owner or operator who is in compliance an
amount up to 85 cents for each weighed tire the facility used for
energy recovery during the preceding month.
     (b) Requires the commission to adopt rules to implement this
section.  To receive payment under this section, a waste tire
energy recovery facility owner or operator must apply to the
commission for registration, apply to the commission for payment,
demonstrate that all tires for which the owner has applied for
payment are whole waste tires, send the commission a monthly report
of whole tires used for energy recovery, demonstrate that the
energy recovery activities comply with applicable laws, provide
financial assurance, and provide the commission any other required
information.
     (c) A waste tire energy recovery facility may not store waste
tires at a site where an owner or operator intends to burn or store
waste tires until the commission has determined compliance with
applicable requirements.
     (d) The commission may not pay a waste tire energy recovery
facility owner or operator for using waste tires if the commission
has not reviewed and approved for further processing all
information submitted, or if the commission determines that the
facility has not provided adequate financial assurance, does not
have adequate fire protection, or is causing an imminent danger to
public health or welfare.
     (e) Requires the commission to adopt rules to manage payments
from the fund.  Payments to processors having established end-use
markets have priority.  
     (f) A registered waste tire energy recovery facility is
required to comply with all the provisions relating to PEL site
cleanup and closure contained in Section 361.477.
     (g) Expiration date for this section: September 1, 1999.

SECTION 8.  Amends Section 361.4772, Health and Safety Code, by
deleting current language and adding new Subsections as follows:
     (a) Allows the commission by rule to establish a program to
reimburse a waste tire recycler in an amount not to exceed 85 cents
for each weighed tire that the waste tire recycler processes to
make a useful product.
     (b) Items not eligible for reimbursement under this section
are: crumb rubber, powdered rubber, a tire-derived fuel, buffing
dust, a retreaded or recapped tire, and an item identified in
commission rules as ineligible.

SECTION 9.  Amends Section 361.479, Health and Safety Code, as
follows:
     (a) Deletes reference to Section 361.112.
     (b) Added to state that a waste tire recycling facility owner
or operator who anticipates storing shredded tire pieces for more
than 30 days is required to submit evidence of financial
responsibility.
     (c) - (e) Makes minor, conforming changes.

SECTION 10.  Amends Section 361.480, Health and Safety Code, to
prohibit transporters and mobile tire shredders from charging a fee
to a wholesale or retail dealer for collecting for delivery to a
waste tire facility, waste tire energy recovery facility, or waste
tire recycling facility or for collecting and shredding used or
scrap tires a dealer accepts from purchasers of tires for temporary
storage.

SECTION 11.  Amends Section 361.481, Health and Safety Code, as
follows:
     (a) Adds a stipulation that a waste tire energy recovery
facility owner or operator may not claim payment for burning out-of-state tires.
     (b) Added to stipulate that a waste tire generator who has
used a manifest and generator number to pass out-of-state tires is
not eligible for the free collection and transportation of waste
tires generated at the generator's place of business.  The
commission shall require the generator to pay for collection and
transportation of generated tires and shredding or burning of
generated tires at the applicable rate.
     (c) Added to provide that a waste tire processor or waste tie
energy recovery facility owner or operator determined to have
accepted out-of-state tires on manifests using a commission
generator number is subject to enforcement action.
     (d) A waste tire transporter that the commission determines
has transported out-of-state tires using a commission-approved
manifest or transporter number is subject to an enforcement action.

SECTION 12.  Amends Section 361.482, Health and Safety Code, to
prohibit the disposal of any WTRF program eligible tires in a
landfill including a Type VIII-S tire monofill. 

SECTION 13.  Amends Section 361.4832, Health and Safety Code, is
amended as follows:
     (a) Is amended only by designating current language as
Subsection (a).
     (b) Allows executive director to suspend a registration or
reimbursement payment on the initiation of an enforcement
proceeding and while proceeding is pending for the violation of a
rule under this subchapter.

SECTION 14.  Amends Section 361.486 as follows:
     (a) Notwithstanding Section 361.496, on or after January 1,
1996, each applicant for a new, amended, and renewal processing
registration and each existing processor must identify persons who
will accept shredded tire pieces for recycling, reuse, or energy
recovery.
     (f) Is added to state that this section does not apply to a
waste tire energy recovery facility operator.

SECTION 15.  Amends Section 361.487 as follows:
     (a) A processor or waste tire energy recovery facility owner
or operator seeking reimbursement is required to process and store
whole used or scrap tires in the state. 
     (b) Requires the commission to treat whole used or scrap tires
and shredded tire pieces generated in Texas, removed from Texas,
and subsequently reintroduced to Texas as out-of-state tires.
     (c) Is deleted, removing language prohibiting tires for which
a person has been reimbursed from being disposed of in a Type VIII
S tire monofill (this language is now found in SECTION 12, Section
361.482).

SECTION 16.  Amends Section 361.492, Health and Safety Code, as
follows:
     (a) Requires wholesale or retail tire dealers, or persons in
the business of selling new or good used tires to accept from
customers, without charge, used tires at least equal to the number
of tires the customer purchases.
     (b) Is added to stipulate that this section does not require
a person to accept a used tire from a customer who purchases a
vehicle on which the tires purchased are mounted.

SECTION 17.  Amends Section 361.493, Health and Safety Code, to
correct the citation for the prohibition against disclosure.

SECTION 18.  Amends Chapter 361.495, Health and Safety Code, to
require the commission to perform fiscal audits biennially and the
cost shall be borne by the processor, the waste recycling facility,
or the waste tire energy recovery facility owner or operator.

SECTION 19.  Amends Subchapter P, Chapter 361, Health and Safety
Code, by adding new Sections as follows:
     Section 361.496 Stipulates that new processing operations or
expanded processing operations must be capable of providing state-wide rural county collection and must have an identified an
available end use or recycling market in the application for a new
or amended registration.
     Section 361.497 Expiration date for Subchapter: December 31,
1997.

SECTION 20.  Amends Subchapter P, Chapter 361, Health and Safety
Code, by adding Section 361.498 requiring persons seeking
reimbursement from the waste tire recycling fund to perform
community service on an annual basis.

SECTION 21.  Amends Section 2, Article 9009b, Revised Statutes, by
adding Subsection (c) prohibiting the sale or transfer of a motor
vehicle to a metals recycling facility if the motor vehicle
includes, contains, or encloses a tire or scrap tire.  This
subsection does not apply to a motor vehicle from another state.

SECTION 22.  Repeals Section 361.4773, Health and Safety Code.

SECTION 23.  (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 1995.
     (b) The amendment to Section 361.477(g), Health and Safety
Code, made by this Act takes effect July 1, 1996.

Section 24.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substantial differences between HB 2846 and the Committee
Substitute for HB 2846 are as follows:


Original HB 2846
(All cites are from the Health
& Safety Code)
Substitute for HB 2846
(All cites are from the Health
& Safety Code)


§361.471 (7) Definition of
"Waste tire energy recovery
facility" means a facility at
which whole used or scrap
tires are used as fuel;
inclusive list does not list a
cogeneration facility.
§361.471 (7) Definition of
"Waste tire energy recovery
facility" means a facility at
which whole used or scrap
tires or shredded tires are
used as fuel; includes a
cogeneration facility.


§361.472 is amended to provide
fees to be collected for the
sale of tires as follows:

     $2 for each new tire that
     has a rim diameter of 12
     inches or more, but less
     than 17.5 inches;
     $1 for each good used
     tire that has a rim
     diameter of 12 inches or
     more, but less than 17.5
     inches;
     $3.50 for each new tire
     that has a rim diameter
     of 17.5 inches or more
     but less than 25 inches;
     

     $2 for a new motorcycle
     tire; and
     $3.50 for a new
     agricultural equipment
     tire with a load range of
     C through F or a ply
     between 2 and 12,
     regardless of the rim
     diameter.
§361.472 is amended to provide
that until September 1, 1999,
fees to be collected for the
sale of tires as follows:
     $2 for each new tire that
     has a rim diameter of 12
     inches or more, but less
     than 17.5 inches;
     $1 for each good used
     tire that has a rim
     diameter of 12 inches or
     more, but less than 17.5
     inches;
     $3.50 for each new tire
     that has a rim diameter
     of 17.5 inches or
     greater, other than an
     off-the-road tire
     intended for use on heavy
     machinery; and
     $2 for a new motorcycle
     tire.


§361.472 (b) Includes new
language to stipulate that the
sale of a new or good used
tire with a used vehicle is a
sale of the tire not for
resale.
§361.472 (b) is not included
in the substitute.


§361.472 does not have a
Subsection (k), nor similar
language.
§361.472 (k)is added to state
that effective September 1,
1999, a wholesale or retail
tire dealer, a person in the
business of selling good used
tires for use on a vehicle, or
a person in the business of
selling used vehicles or used
vehicle parts who sells or
offers to sell new or good
used tires not for resale
shall collect a waste tire
recycling fee for each tire
sold as follows:
     $1 for each new tire that
     has a rim diameter of 12
     inches or more, but less
     than 17.5 inches;
     $50 cents for each good
     used tire that has a rim
     diameter of 12 inches or
     more, but less than 17.5
     inches;
     $2.50 for each new tire
     that has a rim diameter
     of 17.5 inches or
     greater, other than an
     off-the-road tire
     intended for use on heavy
     machinery; and
         $1 for a new
motorcycle tire.


No similar provision in the
original.
Section 361.4725, Health &
Safety Code, to require a fee
of $500 to be paid by a person
who applies to the commission
to register a waste tire
storage facility, a waste tire
energy recovery facility
storage site, or a fixed or
mobile tire processor, or
applies to renew or amend
registration.


SECTION 3 corresponds to
SECTION 4 of the substitute.
SECTION 4 corresponds to
SECTION 3 of the original.


SECTION 4 corresponds to
SECTION 5 of the substitute.

§361.475(d)(1) Waste tire fund
may be used to pay waste tire
processors or waste tire
energy facility owners or
operators that meet
requirements under §361.477 or
361.4771.


§361.475(d)(4) Stipulates that
the fund may be used to pay
grants for research and
development of grants for new
recycling company start-up
costs.

§361.475(d)(5) Stipulates that
the fund may be used to pay a
person who meets requirements
for payment under §361.4772.

§361.475(i) Stipulates that if
the fund balance will fall
below $500,000, the commission
may take specified action. 
Specified action does not
include discontinuing paid
carryover. 
SECTION 5 corresponds to
SECTION 4 of the original.

§361.475(d)(1) Waste tire fund
may be used to pay waste tire
processors, waste tire energy
recovery facility owners or
operators, or waste tire
recyclers that meet
requirements under §361.477 or
361.4771, or 361.4772.

The substitute does not have
this provision.




Included in §361.475(d)(1) of
the substitute.


§361.475(i) Stipulates that if
the balance of money
appropriated from the fund
will fall below $500,000, the
commission may take specified
action, which includes
discontinuing paid carryover
under Sections 361.477(d) and
(i) and Section 361.4771(f).



SECTION 5 corresponds to
SECTION 6 of the substitute.

§361.477(b) Includes a
stipulation that if the
commission implements a
competitive bid process for
assignment of sites on the
PEL, the PEL requirements do
not apply to a processor that
is not involved in the
competitive bid process.

§361.477(c)(3)(A) Tires must
be shredded to an industry
standard particle size of two
inches by two inches.

§361.477(k) Current Subsection
is deleted and new language
added to require the
commission to pay a processor
that shreds scrap tires
collected from a rural county
an amount equal to 95 cents
for each tire from that
source.

§361.477(l) Contains two
references to (k).


§361.477 (l)(2) Person
registered as an energy
recovery facility may not
receive more that 45 cents per
tire.

§361.477 (l)(3) Person
registered under the useful
product reimbursement program
may not receive more than 50
cents per tire.
Corresponds to SECTION 6 of
the substitute.

§361.477(b) Includes a
stipulation that
notwithstanding Subsection
(c), while the commission is
using a competitive bid
process for assignment of
sites on the PEL, the PEL
requirements do not apply to
an application for payment.

§361.477(c)(3)(A) Tires must
be shredded to an industry
standard two-inch minus.


Deletes current Subsection (k)
and renumbers following
Subsection accordingly.  The
language in the new (k)
corresponds to the original
bill's Subsection (l).


Corresponds to §361.477(k);
contains no references to (k).

§361.477 (k)(2) Person
registered as an energy
recovery facility may not
receive more that 85 cents per
tire.

§361.477 (k)(3) Person
registered under the useful
product reimbursement program
may not receive more than 85
cents per tire.


SECTION 6 corresponds to
SECTION 7 of the substitute.

§361.4771 (a) Payment to waste
tire energy recovery facility
owner or operator is 45 cents.

§361.4771 (b) Commission is
required to adopt rules,
including rules governing the
registration and application
procedures.


§361.4771 (d) The commission
may not pay a waste tire
energy recovery facility owner
for using waste tires until
the commission finds the
facility has provided adequate
financial assurance, has
adequate fire protection, or
does not present an imminent
danger to public health or
welfare.  












§361.4771 (e) Requires the
commission to adopt rules to
manage payments from the fund. 
The commission is required to
consider appropriate payments
to waste tire energy recovery
facility owners and a
percentage of the monthly
average number of tires used
by the facility owner for
energy recovery.

§361.4771 (f) A facility owner
exceeding the generator
percentage of the allotted
number of waste tires assigned
may receive only paid
generator carryover in the
amount in excess of the
requirement used to meet the
allocation maximum later.

§361.4771(g) Requires
commission to pay a facility
owner that burns tires
collected from rural counties
an amount equal to 55 cents
for each tire.
SECTION 7 corresponds to
SECTION 6 of the original.

§361.4771 (a) Payment to waste
tire energy recovery facility
owner or operator is 85 cents.

§361.4771 (b) Commission is
required to adopt rules; does
not include stipulation to
include rules governing the
registration and application
procedures.

§361.4771(d)(2) The commission
may not pay a waste tire
energy recovery facility owner
for using waste tires if the
commission determines that the
facility has not provided
adequate financial assurance,
does not have adequate fire
protection, or is causing an
imminent danger to public
health or welfare.
New language is added as (1)
prohibiting the commission
from paying a waste tire
energy recovery facility owner
or operator for using waste
tires if the commission has
not reviewed and approved for
further processing all
information submitted, or if
the commission determines that
the facility has not provided
adequate financial assurance,
does not have adequate fire
protection, or is causing an
imminent danger to public
health or welfare.

§361.4771(e) Requires the
commission to adopt rules to
manage payments from the fund. 
Payments to processors having
established end-use markets
have priority.  





§361.4771(f) A registered
waste tire energy recovery
facility is required to comply
with all the provisions
relating to PEL site cleanup
and closure contained in
Section 361.477.


§361.4771(g) Expiration date
for this section: September 1,
1999.


SECTION 7 corresponds to
SECTION 8 of the substitute.

§361.4772 (a)  Allows
commission to by rule
establish a program to
reimburse the from the fund a
waste tire recycler in an
amount not to exceed 50 cents
for each tire processed to
make a useful product.
§361.4772 (b) Requires
commission to adopt rules to
manage payments from the
useful product reimbursement
account of the fund. 
SECTION 8 corresponds to
SECTION 7 of the original.

§361.4772 (a) Allows
commission to by rule
establish a program to
reimburse the from the fund a
waste tire recycler in an
amount not to exceed 85 cents
for each tire processed to
make a useful product.
§361.4772 (b) Does not specify
requirement to adopt rules to
manage the useful product
reimbursement account of the
fund.


SECTION 8. 

§361.478 (a) is amended to
change, from 1996 to 1997, the
date the commission is to
begin to evaluate the
recycling and energy recovery
activities of each waste tire
processor.
The substitution does not have
corresponding language.


SECTION 9.

§361.479 (b) Refers to a
number or amount of whole used
or scrap tires or shredded
tire pieces.
§361.479 (c) Refers to whole
used tires, whole scrap tires,
and shredded tire pieces.
SECTION 9.

§361.479 (b) Refers to an
amount of shredded tire pieces
(whole used or scrap tires are
not included).
§361.479 (c) Refers shredded
tire pieces (whole used or
scrap tires are not included).


SECTION 10.

§361.480 Stipulates that a fee
may not be charged to a
wholesale or retail dealer for
collection and delivery.
SECTION 10.

§361.480 Stipulates that a fee
may not be charged (deleting
reference to wholesale or
retail dealer) for collection
and delivery.


SECTION 14.  §361.485 is
amended by redesignating
current language as Subsection
(a) and adding a Subsection
(b) requiring the commission
to include in the biennial
tire report on the waste tire
recycling program a
recommendation of adjustments
to fees or rate
reimbursements.
The substitute does not have
corresponding language.


SECTION 15 corresponds to
SECTION 14 of the substitute.  

§361.486 as follows:
(a) Notwithstanding Section
361.496, on or after January
1, 1997, each applicant for a
new, amended, and renewal
processing registration and
each existing processor must
identify persons who will
accept shredded tire pieces
for recycling, reuse, or
energy recovery.
(f) Is added to require the
commission by rule to
implement a graduated scale
that provides for reduction in
the reimbursement rate based
on the percentage of shredded
tires being sent to end-use or
recycling markets.
(g) Is added to state that
this section does not apply to
a waste tire energy recovery
facility operator.

SECTION 14 corresponds to
SECTION 15 of the original.
  
§361.486 is amended as
follows:
(a) Notwithstanding Section
361.496, on or after January
1, 1996, each applicant for a
new, amended, and renewal
processing registration and
each existing processor must
identify persons who will
accept shredded tire pieces
for recycling, reuse, or
energy recovery.
No corresponding provision.





Corresponds to (f) in the
substitute.  Is added to state
that this section does not
apply to a waste tire energy
recovery facility operator.


SECTION 16 corresponds to
SECTION 15 of the substitute. 

§361.487 (a) Refers to whole
used or scrap tires or
shredded tire pieces.
SECTION 15 corresponds to
SECTION 14 of the original.  

§361.487 (a) Refers to whole
used or scrap tires or tire
pieces.


SECTION 17 corresponds to
SECTION 16 of the substitute.
SECTION 16 corresponds to
SECTION 17 of the original.


SECTION 18 corresponds to
SECTION 17 of the substitute.
SECTION 17 corresponds to
SECTION 18 of the original.


SECTION 19 corresponds to
SECTION 18 of the substitute.

§361.495 refers to §361.497
SECTION 18 corresponds to
SECTION 19 of the original.

§361.495 deletes reference to
§361.497


SECTION 20 corresponds to
SECTION 19 of the substitute. 

Subchapter P, Chapter 361, is
amended by adding 361.496.
SECTION 19 corresponds to
SECTION 20 of the original.

Subchapter P, Chapter 361, is
amended by adding 361.496 and
361.497.


No similar provision.
§361.497 Subchapter expires
December 31, 1997.


No similar provision in the
original bill.
SECTION 20

Subchapter P, Chapter 361, is
amended by adding §361.498
which requires persons seeking
reimbursement from the fund to
perform community service on
an annual basis.


No similar provision in the
original bill.
SECTION 21

Section 2, Article 9009b,
Revised, is amended by adding
Subsection (c) to prohibit a
person from selling,
conveying, or otherwise
transferring to a metals
recycling activity a motor
vehicle that includes,
contains, or encloses a tire
or scrap tire.  This
subsection does not apply to a
motor vehicle from another
state.


SECTION 21 corresponds to
SECTION 22 of the substitute.
SECTION 22 corresponds to
SECTION 23 of the original.


SECTION 22 corresponds to
SECTION 23 of the substitute.
SECTION 23 corresponds to
SECTION 22 of the original.


SECTION 23 corresponds to
SECTION 24 of the substitute.
SECTION 24 corresponds to
SECTION 23 of the original.


SUMMARY OF COMMITTEE ACTION

HB 2846 was considered by the House Committee on Environmental
Regulation in a public hearing on April 11, 1995.  The chair
recognized Rep. Saunders to explain the bill.  The committee
considered a complete substitute for HB 2846.  The following
persons testified in favor of the bill:
     Allen Shivers, with Waste Recovery, Inc., representing
     himself.
     H.C. Bud Gibson, representing Gibson Recycling.
     Frank T. Ryan, representing Texas Goodyear Tire and Rubber
Company.
     Charles Knight, representing Southdown, Inc.
     Ronnie Beall, President of North Texas Cement Company,
     representing himself and North Texas Cement Company.
     Vernon Walker, with Max Recycling, Inc., representing himself
     and Texas Association of Scrap Tire Processors.
     Kathryn Keller, representing Texas Farm Bureau.
     Bill Gann, with a tire processing facility, representing
     himself.
     M. David (Hoby) Strand, representing Texas Crumb Industries.
     John Fisher, in the tire business, representing himself and
     Texas Tire Dealers.
     Kay L. Knapp, with a trade association, representing herself.
     Dawn Kloster, with the Texas Association of Scrap Tire
     Recyclers, representing herself.
     Charles A. Pitts, representing the Texas Independent Auto
     Dealers Association.
     Daniel J. Swanson, representing Gibson Recycling, Inc.
     
The following persons testified against the bill:
     Weldon Kiser, involved in developing recycled roofing products
     made from old tires, representing himself and Environmental
     L.L.C.

The following testified neutrally on the bill:
     John Seromgard, representing Scrap Tire Management Council.
     Dan Pearson, Executive Director of the Texas Natural Resource
     Conservation Commission, representing himself.
     Jennifer Sidnell, Manager of Automotive Waste Management
     Section, Texas Natural Resource Conservation Commission,
     representing herself.
     J.D. Porter, representing the Texas Department of Commerce.

The substitute was withdrawn without objection.  Without objection
HB 2846 was left pending.

HB 2846 was considered by the House Committee on Environmental
Regulation in a public hearing on April 25, 1995.  The chair
recognized Rep. Saunders to explain the bill.  The committee
considered a complete substitute for HB 2846.

Four amendments were offered to the substitute.  The first
amendment was adopted by a record vote of five (5) ayes, two (2)
nays, no (0) present not voting, and two (2) absent.  The remaining
amendments were adopted without objection.  The remaining
amendments were adopted without objection.

The committee reconsidered the vote by which the first amendment to
the committee substitute was adopted.  The first amendment to the
committee substitute was amended without objection.  The first
amendment as amended to the committee substitute was adopted
without objection.  The substitute as amended was adopted without
objection. 

The Chair directed the committee clerk to incorporate the
amendments into the substitute.

HB 2846 was reported favorably as substituted, with the
recommendation that it do pass and be printed, by a record vote of
seven (7) ayes, no (0) nays, no (0) pnv, and two (2) absent.