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.