S.B. No. 776
AN ACT
1-1 relating to the waste tire recycling program; making an
1-2 appropriation.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. In addition to amounts previously appropriated
1-5 under the current General Appropriations Act (page I-219, Chapter
1-6 1051, Acts of the 73rd Legislature, 1993) or other law for the
1-7 current fiscal biennium, the sum of $9.34 million is appropriated
1-8 to the Texas Natural Resource Conservation Commission from the
1-9 waste tire recycling fund.
1-10 SECTION 2. Section 361.471, Health and Safety Code, is
1-11 amended to read as follows:
1-12 Sec. 361.471. DEFINITIONS. In this subchapter:
1-13 (1) "Fund" means the waste tire recycling fund.
1-14 (2) "Green tire" means the casing form of a tire that
1-15 has not been cured or does not have a tread or marking of any kind.
1-16 (3) "Good used tire" means a used tire, not including
1-17 a recapped or retreaded tire, suitable for continued use for its
1-18 original intended purpose.
1-19 (4) "Manufacturer reject tire" means a tire rendered
1-20 defective in the manufacturing process, whether the tire is
1-21 determined to be defective before or after consumer purchase.
1-22 (5) <(4)> "Mobile tire shredder" means equipment
1-23 mounted on wheels or skid-mounted and hauled from place to place to
2-1 split, shred, or quarter used or scrap tires.
2-2 (6) <(5)> "Scrap tire" has the meaning assigned by
2-3 Section 361.112.
2-4 (7) "Waste tire energy recovery facility" means a
2-5 facility at which whole used or scrap tires or shredded tires are
2-6 used as a fuel, including:
2-7 (A) a cement kiln;
2-8 (B) a utility boiler;
2-9 (C) a pulp and paper mill;
2-10 (D) a cogeneration facility; or
2-11 (E) another facility designated by the
2-12 commission.
2-13 (8) <(6)> "Waste tire facility" means a facility
2-14 registered by the commission under Section 361.477 at which scrap
2-15 tires are collected and shredded to facilitate the future
2-16 extraction of useful materials for recycling, reuse, or energy
2-17 recovery and are stored in a waste tire storage facility or a
2-18 facility that recycles, reuses, or recovers the energy from the
2-19 shredded tire pieces.
2-20 (9) <(7)> "Waste tire processor" means:
2-21 (A) a waste tire facility; or
2-22 (B) a mobile tire shredder that splits, shreds,
2-23 or quarters tires and deposits the split, shredded, or quartered
2-24 tires for eventual recycling, reuse, or energy recovery at:
2-25 (i) a waste tire storage facility
3-1 registered by the commission under Section 361.112; or
3-2 (ii) a waste tire facility.
3-3 (10) <(8)> "Waste tire storage facility" means a
3-4 facility registered by the commission under Section 361.477 at
3-5 which whole used or scrap tires or shredded tire pieces are
3-6 collected and stored to facilitate the future extraction of useful
3-7 material for recycling, reuse, or recovery. The term does not
3-8 include a marine dock, rail yard, or trucking facility used to
3-9 store tires that are awaiting shipment to a person for recycling,
3-10 reuse, or energy recovery for 30 days or less.
3-11 (11) <(9)> "Waste tire transporter" means a person who
3-12 collects and transports used or scrap tires or scrap tire pieces
3-13 for storage or disposal.
3-14 (12) <(10)> "Weighed tire" means a unit of weight for
3-15 shredded scrap tires that is equal to 18.7 pounds.
3-16 SECTION 3. Subsections (a), (c), (d), (h), (i), and (j),
3-17 Section 361.472, Health and Safety Code, are amended to read as
3-18 follows:
3-19 (a) A person in the business of selling good used tires for
3-20 use on a vehicle, or a person in the business of selling used
3-21 vehicles or used vehicle parts <wholesale or retail tire dealer>
3-22 who sells or offers to sell new or good used tires not for resale
3-23 shall collect at the time and place of sale a waste tire recycling
3-24 fee for each <new> tire sold as follows:
3-25 (1) $2 for each new tire that has a rim diameter of 12
4-1 inches or more but less than 17.5 inches and $1 for each good used
4-2 tire that has a rim diameter of 12 inches or more but less than
4-3 17.5 inches;
4-4 (2) $3.50 for each new tire that has a rim diameter of
4-5 17.5 inches or greater, other than an off-the-road tire intended
4-6 for use on heavy machinery, including an earthmover, a
4-7 loader/dozer, a grader, or mining equipment <but less then 25
4-8 inches>; and
4-9 (3) $2 for a new motorcycle tire, regardless of the
4-10 rim diameter.
4-11 (c) A fee may not be assessed for:
4-12 (1) a recapped or retreaded tire; or
4-13 (2) a bicycle tire.
4-14 (d) A person <dealer> required to collect a fee under this
4-15 section:
4-16 (1) shall list as a separate item on an invoice a fee
4-17 due under this section; and
4-18 (2) except as provided by Subsection (e), on or before
4-19 the 20th day of the month following the end of each calendar month
4-20 and on a form and in the manner prescribed by the comptroller,
4-21 shall file a report with and shall remit to the comptroller the
4-22 amount of fees collected during the preceding calendar month.
4-23 (h) A waste tire recycling fee is imposed on the storage,
4-24 use, or consumption in this state of a <new> tire at the same rate
4-25 as provided by Subsection (a), except when purchased for the
5-1 purpose of resale.
5-2 (i) A person storing, using, or consuming a <new> tire in
5-3 this state is liable for the waste tire recycling fee as defined in
5-4 this section and is responsible for reporting and paying the fee to
5-5 the comptroller in the same manner as a person required to collect
5-6 this fee, as provided in Subsections (d)(2) and (e).
5-7 (j) A person storing, using, or consuming a <new> tire in
5-8 this state is not further liable for the waste tire recycling fee
5-9 imposed by Subsection (a) if the person:
5-10 (1) pays the fee to:
5-11 (A) a person who is required to collect the fee
5-12 under Subsection (a) and who is <wholesaler or retailer> engaged in
5-13 business in this state; or
5-14 (B) another person authorized by the comptroller
5-15 to collect the fee; and
5-16 (2) receives <from the wholesaler, retailer, or other
5-17 person> a purchaser's receipt from the person to whom the fee was
5-18 paid.
5-19 SECTION 4. Section 361.4725, Health and Safety Code, is
5-20 amended to read as follows:
5-21 Sec. 361.4725. REGISTRATION; FEE. A person who applies to
5-22 the commission to register a waste tire storage facility, a waste
5-23 tire energy recovery facility storage site, a waste tire recycler,
5-24 or a fixed or mobile tire processor, or applies to renew or amend
5-25 the registration, must pay a fee of $500.
6-1 SECTION 5. Section 361.473, Health and Safety Code, is
6-2 amended by adding Subsection (d) to read as follows:
6-3 (d) The comptroller and commission jointly shall develop and
6-4 implement an enforcement program to pursue the collection of
6-5 delinquent fees assessed under Section 361.472.
6-6 SECTION 6. Subsections (d), (e), (f), and (i), Section
6-7 361.475, Health and Safety Code, are amended to read as follows:
6-8 (d) The fund shall <may> be used only to <pay>:
6-9 (1) pay waste tire processors, waste tire energy
6-10 recovery facility owners or operators, or waste tire recyclers that
6-11 meet the requirements for payment under Section 361.477, 361.4771,
6-12 361.4772, or 361.4773 and rules adopted under those sections <that
6-13 section>;
6-14 (2) pay the commission's reasonable and necessary
6-15 administrative costs of performing its duties under this subchapter
6-16 in an amount not to exceed six percent of the money annually
6-17 accruing to the fund; <and>
6-18 (3) pay the comptroller's reasonable and necessary
6-19 administrative costs of performing the comptroller's duties under
6-20 this subchapter in an amount not to exceed two percent of the money
6-21 annually accruing to the fund;
6-22 (4) provide grants to waste tire energy recovery
6-23 facility owners or operators to cover equipment capital investment
6-24 costs and equipment installation costs to enable a facility to use
6-25 tire shreds as fuel; and
7-1 (5) provide grants for recycling facility construction
7-2 costs.
7-3 (e) Registration fees received under Section 361.4725 shall
7-4 be allocated to the commission for its reasonable and necessary
7-5 costs associated with reviewing applications for registration of
7-6 and with registering:
7-7 (1) fixed and mobile tire processing facilities and
7-8 storage sites;
7-9 (2) waste tire energy recovery facilities and storage
7-10 sites; and
7-11 (3) waste tire recyclers.
7-12 (f) The fund may not be used to reimburse shredding or
7-13 burning of:
7-14 (1) innertubes;
7-15 (2) scrap rubber products;
7-16 (3) green tires;
7-17 (4) industrial solid waste, excluding waste tires;
7-18 (5) oversized tires, as defined by commission rule,
7-19 unless the oversized tires are collected from a priority
7-20 enforcement list site; <or>
7-21 (6) manufacturer reject tires; or
7-22 (7) nonpneumatic tires.
7-23 (i) If the commission has reason to believe that the <fund>
7-24 balance of money appropriated from the fund will fall below
7-25 $500,000, the commission may:
8-1 (1) suspend the requirement to reimburse priority
8-2 enforcement list tires shredded in excess of the minimum percentage
8-3 identified in Section 361.477(c)(3)(C); <or>
8-4 (2) limit the number of waste tires for which a
8-5 processor, waste tire energy recovery facility owner or operator,
8-6 or waste tire recycler will be reimbursed; or
8-7 (3) discontinue paid carryover.
8-8 SECTION 7. Subsections (a), (b), (c), (d), (g), (h), (i),
8-9 (j), and (k), Section 361.477, Health and Safety Code, are amended
8-10 to read as follows:
8-11 (a) The commission each month shall pay a waste tire
8-12 processor that shreds scrap tires and meets the requirements of
8-13 this section and rules adopted under this section an amount equal
8-14 to 80 <85> cents for each weighed tire shredded by the processor
8-15 during the preceding calendar month.
8-16 (b) If the total number of used or scrap tires or tire
8-17 pieces contained in illegal scrap tire sites that are identified on
8-18 the priority enforcement list is below 2,500,000 <500,000> tires,
8-19 the commission may pay 80 <more than 85> cents or an appropriate
8-20 amount determined by the commission for each weighed tire to
8-21 processors with whom the commission has contracted to remove and
8-22 shred scrap tires and scrap tire pieces from priority enforcement
8-23 list sites. The 2,500,000 <500,000> tire limit does not include
8-24 those tires contained in sites under commission enforcement or
8-25 attorney general action or that require corrective action or
9-1 remedial action in response to a release or threat of release of
9-2 hazardous substances. In acting under this subsection, the
9-3 commission may contract with processors on a regional or
9-4 site-specific basis. The contracts shall be procured through a
9-5 competitive bid process conducted in accordance with the provisions
9-6 of the State Purchasing and General Services Act (Article 601b,
9-7 Vernon's Texas Civil Statutes) applicable to contracts for
9-8 services. Notwithstanding Subsection (c), while the commission is
9-9 using a competitive bid process for assignment of sites listed on
9-10 the priority enforcement list, the priority enforcement list
9-11 requirements of Subsection (c)(3)(C) do not apply to an application
9-12 for payment. The commission may elect not to enter into contracts
9-13 under this subsection. The contracts may be only for the removal
9-14 and shredding of tires from priority enforcement list sites.
9-15 (c) A waste tire processor that desires to receive payment
9-16 under this section for tires shredded by the processor during a
9-17 calendar month must:
9-18 (1) apply to the commission for registration in
9-19 accordance with forms prescribed by the commission;
9-20 (2) apply to the commission for payment on forms
9-21 prescribed by the commission or, on a voluntary basis, apply by a
9-22 removable storage medium stored in an industry standard file format
9-23 acceptable to the commission;
9-24 (3) demonstrate as required by rules adopted under
9-25 this section that:
10-1 (A) all tires for which payment is sought have
10-2 been shredded to an industry standard two-inch minus <a> particle
10-3 size or, if approved by the commission, shredded to an alternative
10-4 particle size set by a contract requirement related to recycling or
10-5 end use of the particles <not larger than nine square inches>;
10-6 (B) not less than 50 <25> percent of those tires
10-7 were collected from generators, unless this requirement is
10-8 suspended by the commission on consideration of service needs
10-9 contained in a contract drafted under Subsection (b); and
10-10 (C) if the total number of whole used or scrap
10-11 tires or shredded tire pieces contained in illegal waste tire sites
10-12 that are identified on the priority enforcement list exceeds
10-13 2,500,000 <500,000> tires for more than 60 <30> consecutive days,
10-14 not less than 15 percent and not more than 30 percent of those
10-15 tires were collected from scrap tire sites listed on the priority
10-16 enforcement list;
10-17 (4) provide any other information the commission
10-18 determines is needed to accomplish the purposes of this subchapter,
10-19 including a monthly report of scrap tires or tire pieces shredded,
10-20 subtotaled by tire count or weight, for each generator number and
10-21 priority enforcement list number;
10-22 (5) demonstrate that energy recovery activities in the
10-23 state are in compliance with applicable air emission control rules
10-24 and standards <as adopted by the Texas Air Control Board>; and
10-25 (6) provide financial assurance deemed adequate by the
11-1 commission that corresponds to:
11-2 (A) the payment appropriate for the number of
11-3 scrap tires the processor anticipates shredding in the next
11-4 calendar month; or
11-5 (B) the number of scrap tires the waste tire
11-6 storage site owner or operator anticipates accepting for storage in
11-7 the next calendar month.
11-8 (d) A waste tire processor that in any month exceeds the
11-9 minimum requirement of Subsection (c)(3)(C) may <shall> receive <a>
11-10 credit only for paid carryover in <for> the amount in excess of the
11-11 requirement that may be used to meet the minimum requirement during
11-12 a later month. The commission by rule may prescribe the method of
11-13 applying credits accrued under this subsection.
11-14 (g) Beginning January 1, 1996 <Notwithstanding Section
11-15 361.486>, the commission may reimburse a processor for shredded
11-16 scrap tires only if the processor has a binding agreement to
11-17 deliver the shredded scrap tires to a person to recycle or reuse or
11-18 to use for energy recovery within 180 days after the date of
11-19 reimbursement. The commission shall suspend subsequent shredding
11-20 reimbursements to a processor that fails to deliver the tire shreds
11-21 to an identified end-use market before the 181st day after the date
11-22 of reimbursement unless the executive director determines that the
11-23 failure to deliver was caused by an act of God or by unforeseen
11-24 business events. The commission may not resume suspended
11-25 reimbursements until the processor makes all delinquent deliveries.
12-1 (h) The commission may not pay a waste tire processor for
12-2 processing scrap tires if <the commission determines that the
12-3 processor>:
12-4 (1) the commission field office and central office
12-5 program staff have not reviewed and approved for further processing
12-6 by the commission all information submitted to the commission by
12-7 the waste tire processor as required by Subsection (c) or rules
12-8 adopted under this section; or
12-9 (2) the commission determines that the processor:
12-10 (A) has not provided adequate financial
12-11 assurance;
12-12 (B) <(2)> does not have adequate fire
12-13 protection; or
12-14 (C) <(3)> is causing an imminent danger to
12-15 public health or welfare.
12-16 (i) A waste tire processor that in any month exceeds the
12-17 generator percentage of the allocated number of waste tires
12-18 assigned for reimbursement purposes may accrue credit only for paid
12-19 generator carryover in the amount in excess of the requirement that
12-20 may be used to meet the allocation maximum during a later month.
12-21 The commission by rule may prescribe the method of applying
12-22 carryover credit accrued under this section <shall issue to an
12-23 applicant all processing and storage registrations necessary to
12-24 begin operations and obtain reimbursement from the fund if the
12-25 applicant, on or before March 10, 1993:>
13-1 <(1) had an application pending for a new processing
13-2 facility that was reviewed by the commission and found to be in
13-3 general technical compliance;>
13-4 <(2) had an application pending for a new storage
13-5 facility with a total capacity in excess of 7 million waste tire
13-6 units; and>
13-7 <(3) had expended or committed in excess of $1 million
13-8 in total project costs>.
13-9 (j) The commission shall adopt rules to manage payments from
13-10 the fund to prevent depletion of the fund. Rules adopted under
13-11 this subsection shall consider<:>
13-12 <(1)> appropriate payments to processors that reflect
13-13 the varying amounts of money available in the fund. In any
13-14 allocation adopted for processors under this section, the
13-15 commission shall consider the monthly average percentage of
13-16 shredded tires the processor has forwarded to an end-use or
13-17 recycling market. In addition, the commission may consider the
13-18 historical average number of tires for which the processor has been
13-19 reimbursed and such other factors as may be determined by the
13-20 commission<;>
13-21 <(2) a waste tire processor's monthly average number
13-22 of tires for which the processor has been reimbursed historically;>
13-23 <(3) a waste tire processor's shredding and storage
13-24 capacity; and>
13-25 <(4) the date the waste tire processor was
14-1 registered>.
14-2 (k) Notwithstanding Subsection (a), beginning September 1,
14-3 1995, the commission shall reimburse a waste tire processor an
14-4 additional five cents for each weighed tire if the commission
14-5 determines that the processor has a binding agreement to deliver
14-6 100 percent of the scrap tires shredded by the processor monthly to
14-7 a person to recycle or reuse or to use for energy recovery and the
14-8 commission verifies that the processor has delivered the tire
14-9 shreds to such identified end-use market. This section applies
14-10 only to a waste tire processor registered on January 1, 1995, and
14-11 that has a verified end market for the processor's tire shreds on
14-12 June 1, 1995. <If a waste tire processor does not fully use its
14-13 monthly allocation for reimbursement, the commission may assign the
14-14 unused portion of the allocation to another waste tire processor
14-15 who can demonstrate having underutilized shredding and storage
14-16 capacity available for service to rural counties in this state.>
14-17 SECTION 8. Section 361.4771, Health and Safety Code, is
14-18 amended to read as follows:
14-19 Sec. 361.4771. PAYMENT FOR ENERGY RECOVERY FROM WHOLE WASTE
14-20 TIRES OR SHREDDED TIRES. (a) The commission shall adopt rules
14-21 governing payments to waste tire energy recovery facilities for
14-22 weighed tires used by the facility for fuel. The rules must
14-23 include rules governing registration and application procedures.
14-24 The rules must include a voluntary alternative process for making a
14-25 payment application by the use of an industry standard file format
15-1 removable storage medium.
15-2 (b) To receive payment under this section and Section
15-3 361.4773, a waste tire energy recovery facility owner or operator
15-4 must:
15-5 (1) apply to the commission for registration in the
15-6 manner and on forms prescribed by commission rule;
15-7 (2) apply to the commission for payment in a manner
15-8 and on forms prescribed by commission rule;
15-9 (3) demonstrate that all tires for which the owner or
15-10 operator applies for payment are whole waste tires or shredded
15-11 tires;
15-12 (4) send the commission a monthly report of the number
15-13 of whole waste tires or shredded tires used for energy recovery,
15-14 subtotaled by tire count or by weight attributed to each generator
15-15 number;
15-16 (5) demonstrate that the energy recovery activities
15-17 comply with applicable air emission control standards and rules;
15-18 (6) submit evidence of financial responsibility in an
15-19 amount adequate to assure proper cleanup and closure of the
15-20 facility, if the person anticipates accepting an amount of shredded
15-21 tire pieces for storage that exceeds the facility's 30-day supply;
15-22 (7) if the number of whole used or scrap tires or
15-23 shredded tire pieces contained in illegal waste tire sites that are
15-24 identified on the priority enforcement list exceeds 2,500,000 tires
15-25 for more than 60 consecutive days, demonstrate that not less than
16-1 15 percent and not more than 30 percent of the tires used for
16-2 energy recovery at the facility were collected from scrap tire
16-3 sites listed on the priority enforcement list; and
16-4 (8) provide any other information required by
16-5 commission rule.
16-6 (c) A waste tire energy recovery facility may not store in
16-7 excess of a 30-day supply of waste tires or shredded tires at a
16-8 site at which the owner or operator intends to burn or store waste
16-9 tires or shredded tires until the facility is registered by the
16-10 commission as a waste tire energy recovery facility storage site.
16-11 (d) The commission may not pay a waste tire energy recovery
16-12 facility owner or operator for using waste tires or shredded tires
16-13 if:
16-14 (1) the commission field office and central office
16-15 program staff have not reviewed and approved for further processing
16-16 by the commission all information submitted to the commission by
16-17 the waste tire energy recovery facility owner or operator as
16-18 required by Subsection (b) or rules adopted under this section;
16-19 (2) the commission determines that the facility:
16-20 (A) has not provided adequate financial
16-21 assurance;
16-22 (B) does not have adequate fire protection; or
16-23 (C) is causing an imminent danger to public
16-24 health or welfare;
16-25 (3) the facility does not have appropriate
17-1 authorization from the commission to perform waste tire energy
17-2 recovery at the facility; or
17-3 (4) the facility is not physically capable of
17-4 performing waste tire energy recovery.
17-5 (e) The commission shall adopt rules to manage payments from
17-6 the fund to prevent depletion of the fund. Before using any
17-7 allocation method authorized by this subchapter and before making
17-8 other payments from the fund, the commission shall pay
17-9 reimbursements to processors under Section 361.477 who have
17-10 established end-use markets and pay reimbursements under this
17-11 section and Sections 361.4772 and 361.4773 <FOR SHREDDING OUTSIDE
17-12 OF STATE. Effective September 1, 1994, the commission may
17-13 reimburse a registered waste tire processor for shredding tires
17-14 generated in this state and shredded outside this state if the
17-15 processor:>
17-16 <(1) meets all requirements that apply to a waste tire
17-17 processor who shreds tires within this state;>
17-18 <(2) monthly reimburses the state for reasonable and
17-19 necessary costs incurred by an agency of the state for such related
17-20 to the out-of-state facility regulatory activities as are deemed
17-21 necessary by such agency;>
17-22 <(3) voluntarily submits to the commission's
17-23 enforcement authority as necessary to ensure compliance with this
17-24 subchapter; and>
17-25 <(4) agrees to maintain evidence of financial
18-1 responsibility under Section 361.479 in an amount equal to twice
18-2 the amount that would be required of an in-state waste tire
18-3 processor>.
18-4 SECTION 9. Sections 361.4772 and 361.4773, Health and Safety
18-5 Code, are amended to read as follows:
18-6 Sec. 361.4772. RECYCLING FACILITY CONSTRUCTION GRANT.
18-7 (a) The commission by rule shall establish a program for providing
18-8 grants for the construction of waste tire recycling facilities for
18-9 the recycling of whole waste tires or shredded tires.
18-10 (b) The commission may not expend more than $2 million each
18-11 year for grants under this section.
18-12 (c) A facility constructed with a grant under this section
18-13 is not eligible for reimbursement for:
18-14 (1) powdered rubber;
18-15 (2) a tire-derived fuel;
18-16 (3) buffing dust;
18-17 (4) a retreaded or recapped tire; or
18-18 (5) a product that is ineligible for reimbursement
18-19 under commission rules.
18-20 (d) The commission shall require a grant recipient to:
18-21 (1) demonstrate that not less than 15 percent and not
18-22 more than 30 percent of the tires used for energy recovery at the
18-23 facility were collected from scrap tire sites listed on the
18-24 priority enforcement list if the number of whole used or scrap
18-25 tires or shredded tire pieces contained in illegal waste tire sites
19-1 that are identified on the priority enforcement list exceeds
19-2 2,500,000 tires for more than 60 consecutive days; and
19-3 (2) submit evidence of financial responsibility in an
19-4 amount adequate to assure proper cleanup and closure of the
19-5 facility, if the recipient anticipates accepting an amount of whole
19-6 waste tires or shredded tire pieces for storage that exceeds the
19-7 facility's 30-day supply <PAYMENT FOR BALING TIRES. Effective
19-8 March 1, 1994, a registered waste tire processor who bales whole
19-9 tires for energy recovery purposes is eligible for reimbursement at
19-10 a rate of 25 cents for each tire if the processor meets the
19-11 requirements of this subchapter that apply to a waste tire
19-12 processor including provisions for financial assurance for such
19-13 baled tires. The commission shall adopt rules to determine the
19-14 amount of financial assurance required under this section to apply
19-15 to baled tires or whole tires stored for baling. A processor
19-16 seeking reimbursement under this section for baling tires may not,
19-17 directly or indirectly, receive additional reimbursement from the
19-18 fund for the shredding of such baled tires>.
19-19 Sec. 361.4773. PAYMENT FOR SHREDDED WASTE TIRE ENERGY
19-20 RECOVERY FACILITY <RECYCLING TIRES INTO PRODUCT>. (a) The
19-21 commission each month shall pay to <by rule may establish a program
19-22 to reimburse from the fund> a waste tire energy recovery facility
19-23 owner or operator that burns shredded tires in compliance with an
19-24 energy recovery permit issued by the commission an amount equal to
19-25 40 <recycler no more than 25> cents for each weighed tire the
20-1 facility used for energy recovery during the preceding month.
20-2 (b) To receive payment under this section, a retrofitted
20-3 waste tire energy recovery facility owner or operator must:
20-4 (1) apply to the commission for payment in a manner
20-5 and on forms prescribed by commission rule; and
20-6 (2) comply with applicable rules adopted by the
20-7 commission under this section and Section 361.4771, unless
20-8 otherwise indicated by the energy recovery permit issued by the
20-9 commission <waste tire recycler processes to make useful products>.
20-10 SECTION 10. Subchapter P, Chapter 361, Health and Safety
20-11 Code, is amended by adding Section 361.4774 to read as follows:
20-12 Sec. 361.4774. LIMITED USE OF WASTE TIRE RECYCLING FUND;
20-13 GRANTS, REIMBURSEMENT, AND ADMINISTRATIVE EXPENSES. (a) For
20-14 performing duties related to the waste tire program, each fiscal
20-15 year the comptroller may expend up to $680,000 or an amount equal
20-16 to two percent of the waste tire recovery fund, whichever is
20-17 greater.
20-18 (b) For administering the waste tire recycling program, each
20-19 fiscal year the commission may expend not more than the lesser of
20-20 $2.05 million or an amount equal to six percent of the amount
20-21 appropriated from the waste tire recycling fund for the
20-22 administration and operation of the waste tire recycling program.
20-23 (c) Each fiscal year, the commission may expend not more
20-24 than:
20-25 (1) $1.4 million for paying accrued carryover credits
21-1 as provided by Section 361.499;
21-2 (2) $15.2 million for tire shredding under Section
21-3 361.477;
21-4 (3) $3.52 million for the cleanup and closure of
21-5 priority enforcement list tire sites as provided by Sections
21-6 361.476 and 361.477;
21-7 (4) $2 million for providing recycling facility
21-8 construction grants under Section 361.4772;
21-9 (5) $600,000 for payments to energy recovery
21-10 facilities under Section 361.4773 at a rate of 40 cents per weighed
21-11 tire unit; and
21-12 (6) $6 million to provide grants for retrofitting
21-13 facilities to use whole or shredded tires for fuel or for paying
21-14 for facilities to use whole tires for fuel as provided by
21-15 Subsections (d) and (e).
21-16 (d) For fiscal year 1996, the commission may expend not more
21-17 than $4 million for:
21-18 (1) providing grants to waste tire energy recovery
21-19 facilities that are not using tire-derived fuel and apply for
21-20 assistance to cover retrofitting costs the commission determines
21-21 are necessary to enable the facilities to use whole tires as fuel;
21-22 and
21-23 (2) paying a facility eligible for a grant under
21-24 Subdivision (1), but for which the commission has not made a grant,
21-25 an amount of up to 80 cents per weighed tire unit.
22-1 (e) A person receiving payments for weighed tires under
22-2 Subsection (d)(2) may not receive reimbursements that exceed the
22-3 total of:
22-4 (1) the amount of the retrofitting costs the facility
22-5 would have received if the person had applied for a grant under
22-6 Subsection (d)(1); and
22-7 (2) the cost, as determined by the commission, of
22-8 transporting to the facility the number of whole tires used for
22-9 fuel until the payments under Subsection (d)(2) equal the amount of
22-10 the retrofitting costs the facility would have received.
22-11 (f) For fiscal year 1996, the commission may expend not more
22-12 than $2 million to provide grants to waste tire energy recovery
22-13 facilities that are not using tire-derived fuel and apply for
22-14 assistance to cover retrofitting costs the commission determines
22-15 are necessary to enable the facilities to use shredded tires as
22-16 fuel.
22-17 (g) For the period beginning September 1, 1996, and ending
22-18 December 31, 1997, the commission may expend not more than $6
22-19 million for payments to waste tire energy recovery facilities that
22-20 burn whole tires at a rate of 80 cents per weighed tire unit used.
22-21 (h) After the third quarter of each year of the fiscal
22-22 biennium, funds that remain unused for the purposes specified in
22-23 Subsections (a)-(g) may be transferred for use for a purpose
22-24 specified in Subsections (c)-(g) at the discretion of the
22-25 commission to promote recycling and energy recovery.
23-1 SECTION 11. Section 361.479, Health and Safety Code, is
23-2 amended to read as follows:
23-3 Sec. 361.479. EVIDENCE OF FINANCIAL RESPONSIBILITY. (a) A
23-4 waste tire storage facility registered by the commission <under
23-5 Section 361.112> or a waste tire facility that accepts shredded
23-6 scrap tires for storage or for processing for recycling, reuse, or
23-7 energy recovery shall submit to the commission evidence of
23-8 financial responsibility in an amount adequate to assure proper
23-9 cleanup and closure of the facility.
23-10 (b) A waste tire recycling facility owner or operator who
23-11 anticipates accepting an amount of shredded tire pieces for storage
23-12 that exceeds the facility's 30-day supply shall submit to the
23-13 commission evidence of financial responsibility in an amount
23-14 adequate to assure proper cleanup and closure of the facility.
23-15 (c) A facility subject to Subsection (a) or (b) shall submit
23-16 to the commission an estimate of the total amount of shredded
23-17 <scrap tires and> tire pieces measured by weighed tire that the
23-18 facility will store or process, the maximum number of out-of-state
23-19 tires the facility will store, and the estimated cost, using that
23-20 total amount, of cleaning up and closing the facility.
23-21 (d) <(c)> The commission shall evaluate and may amend an
23-22 estimate submitted under Subsection (c) <(b)> and shall determine
23-23 for each facility the amount for which evidence of financial
23-24 responsibility is required.
23-25 (e) <(d)> Evidence of financial responsibility may be in the
24-1 form of:
24-2 (1) a performance bond or a letter of credit
24-3 acceptable to the commission that is from a financial institution,
24-4 a trust fund, or insurance for a privately owned facility; or
24-5 (2) a self-insurance test designed by the commission
24-6 for a publicly owned facility. A person who makes an initial
24-7 request for reimbursement from the waste tire recycling fund on or
24-8 after September 1, 1993, must provide evidence of financial
24-9 responsibility for the full amount determined under Subsection (d)
24-10 <(c)>.
24-11 SECTION 12. Section 361.480, Health and Safety Code, is
24-12 amended to read as follows:
24-13 Sec. 361.480. TIRE COLLECTION FEE PROHIBITED. A waste tire
24-14 transporter or mobile tire shredder may not charge a fee to a
24-15 wholesale or retail dealer for collecting for delivery to a waste
24-16 tire facility, waste tire energy recovery facility, or waste tire
24-17 recycling facility or for collecting and shredding used or scrap
24-18 tires a tire dealer accepts from purchasers of tires <accepted> for
24-19 temporary storage <by the dealer from purchasers of new tires>.
24-20 SECTION 13. Section 361.481, Health and Safety Code, is
24-21 amended to read as follows:
24-22 Sec. 361.481. PROHIBITION ON OUT-OF-STATE TIRES; PENALTY.
24-23 (a) A waste tire processor may not claim payment under Section
24-24 361.477 for shredding out-of-state tires. A waste tire energy
24-25 recovery facility owner or operator may not claim payment under
25-1 Section 361.4771 or 361.4773 for burning out-of-state tires. A
25-2 waste tire recycler may not claim payment under Section 361.4772
25-3 for recycling out-of-state tires.
25-4 (b) A waste tire generator that the commission determines
25-5 has used a manifest and commission generator number to pass
25-6 out-of-state tires is not eligible for the free collection and
25-7 transportation of waste tires generated at the generator's place of
25-8 business. In addition to any administrative, civil, or criminal
25-9 enforcement action, the commission shall require the generator to
25-10 pay for:
25-11 (1) collection and transportation of generated tires;
25-12 and
25-13 (2) shredding, burning, or recycling of generated
25-14 tires at the applicable rate specified in Section 361.477,
25-15 361.4771, or 361.4772.
25-16 (c) A waste tire processor, waste tire energy recovery
25-17 facility owner or operator, or waste tire recycler who the
25-18 commission determines has knowingly accepted out-of-state tires on
25-19 manifests using a commission generator number is subject to an
25-20 administrative, civil, or criminal enforcement action.
25-21 (d) A waste tire transporter that the commission determines
25-22 has transported out-of-state tires using a commission-approved
25-23 manifest or transporter number is subject to an administrative,
25-24 civil, or criminal enforcement action.
25-25 SECTION 14. Section 361.482, Health and Safety Code, is
26-1 amended to read as follows:
26-2 Sec. 361.482. PROHIBITION ON DISPOSAL OF SHREDDED TIRES IN
26-3 LANDFILL. A person <waste tire processor> may not dispose of whole
26-4 used or scrap tires that are eligible for reimbursement under this
26-5 chapter or shredded tire pieces for which reimbursement has been
26-6 paid under this subchapter <scrap tires> in a landfill, including a
26-7 Type VIII-S tire monofill <if the processor has received payment
26-8 under Section 361.477 for shredding the tires>.
26-9 SECTION 15. Section 361.4832, Health and Safety Code, is
26-10 amended to read as follows:
26-11 Sec. 361.4832. ADMINISTRATIVE PENALTY; <AND> ORDER FOR
26-12 CORRECTIVE ACTION; SUSPENSION OF REGISTRATION. (a) If a person
26-13 violates this subchapter or a rule adopted or order issued under
26-14 this subchapter the commission may:
26-15 (1) assess against the person an administrative
26-16 penalty under Section 361.252; or
26-17 (2) order the person to take a corrective action.
26-18 (b) The commission may suspend a registration of or
26-19 reimbursement payment to a waste tire processor, waste tire
26-20 transporter, waste tire generator, waste tire recycling facility,
26-21 or waste tire energy recovery facility on the initiation of an
26-22 enforcement proceeding and while the proceeding is pending for the
26-23 violation of this subchapter or a rule adopted or order issued
26-24 under this subchapter.
26-25 SECTION 16. Section 361.485, Health and Safety Code, is
27-1 amended to read as follows:
27-2 Sec. 361.485. REPORT. (a) Not later than February 1 of
27-3 each odd-numbered year, the commission shall report to the governor
27-4 and the legislature on the administration of the program
27-5 established under this subchapter and its effectiveness in cleaning
27-6 up existing scrap tire sites and in preventing new scrap tire
27-7 sites.
27-8 (b) The commission shall include in the report the
27-9 commission's recommendation, based on the commission's evaluation
27-10 of the rate of inflation during the preceding two years, as to
27-11 whether an adjustment to the fee assessed on the sale of tires or
27-12 to the rate of reimbursement paid to a waste tire processor or
27-13 waste tire energy recovery facility owner or operator is warranted.
27-14 SECTION 17. Subsection (a), Section 361.486, Health and
27-15 Safety Code, is amended to read as follows:
27-16 (a) Notwithstanding Section 361.496, on <On> and after
27-17 January 1, 1996, each applicant for a <for all> new, amended, and
27-18 renewal processing registration and each existing <applications,
27-19 the> processor must identify those persons who will accept the
27-20 processor's shredded <scrap> tire pieces for recycling or reuse or
27-21 to use the shredded scrap tires for energy recovery. The
27-22 commission shall reimburse a processor for only those shredded
27-23 tires that the commission determines are committed to a legitimate
27-24 end user.
27-25 SECTION 18. Subchapter P, Chapter 361, Health and Safety
28-1 Code, is amended by adding Section 361.4865 to read as follows:
28-2 Sec. 361.4865. GRANT PROGRAM FOR ENERGY RECOVERY FACILITY
28-3 RETROFITTING. (a) The commission by rule shall adopt a program to
28-4 provide grants to registered waste tire energy recovery facility
28-5 owners or operators to enable a facility to use tire shreds as
28-6 fuel.
28-7 (b) The rules must identify eligible retrofitting costs and
28-8 provide a process for determining eligible retrofitting costs. The
28-9 rules may include capital investment costs and installation costs
28-10 as eligible costs of retrofitting.
28-11 (c) The commission may require as a condition of a grant
28-12 that a person who receives a grant under the program must use a
28-13 specified percentage of tires from this state for the facility's
28-14 tire-derived fuel.
28-15 (d) A person who receives a grant for a facility may not
28-16 receive a reimbursement for weighed tires used at the facility.
28-17 SECTION 19. Section 361.487, Health and Safety Code, is
28-18 amended to read as follows:
28-19 Sec. 361.487. REIMBURSEMENT RESTRICTIONS. (a) A processor
28-20 seeking reimbursement under Section 361.477 shall process and store
28-21 the whole used or scrap tires or shredded <scrap> tire pieces in
28-22 the state. A waste tire energy recovery facility owner or operator
28-23 seeking reimbursement under Section 361.4771 or 361.4773 shall
28-24 store and burn the whole used or scrap tires or shredded tire
28-25 pieces in the state.
29-1 (b) The commission shall treat whole used or scrap tires and
29-2 shredded <scrap> tire pieces generated in Texas, removed from
29-3 Texas, and subsequently reintroduced to Texas as out-of-state scrap
29-4 tires for the purposes of this subchapter.
29-5 <(c) Scrap tires and scrap tire pieces that are shredded and
29-6 for which a person is reimbursed may not be disposed of in a Type
29-7 VIII-S tire monofill.>
29-8 SECTION 20. Section 361.492, Health and Safety Code, is
29-9 amended to read as follows:
29-10 Sec. 361.492. ACCEPTANCE OF USED TIRES ON SALE OF TIRES <NEW
29-11 TIRE WHOLESALERS AND RETAILERS>. (a) A wholesale or retail tire
29-12 dealer or a person in the business of selling new or good used
29-13 tires for use on a vehicle or selling used vehicle parts <person
29-14 selling new tires> as described in Section 361.472(a) shall accept
29-15 from customers, without charge, used tires of the type and in a
29-16 quantity at least equal to the number of <new> tires the customer
29-17 purchases.
29-18 (b) This section does not require a person to accept a used
29-19 tire from a customer who purchases a new or used vehicle on which
29-20 the tires purchased are mounted.
29-21 SECTION 21. Section 361.493, Health and Safety Code, is
29-22 amended to read as follows:
29-23 Sec. 361.493. CONFIDENTIALITY. Information submitted to the
29-24 commission in accordance with Section 361.477(g) or Section
29-25 361.486(a) or (d), and any report generated by the commission based
30-1 on the information, is confidential and is not subject to
30-2 disclosure under Chapter 552, Government Code <424, Acts of the
30-3 63rd Legislature, Regular Session, 1973 (Article 6252-17a, Vernon's
30-4 Texas Civil Statutes)>, and the commission shall protect the
30-5 information accordingly.
30-6 SECTION 22. Section 361.495, Health and Safety Code, is
30-7 amended to read as follows:
30-8 Sec. 361.495. FISCAL AUDITS. The <ENSURING CAPACITY. Not
30-9 later than October 1 of each odd-numbered year, the> commission
30-10 biennially shall perform a fiscal audit of each waste tire
30-11 processor, waste tire recycling facility, and waste tire energy
30-12 recovery facility owner or operator to ensure fiscal responsibility
30-13 and accountability regarding reimbursements made under Sections
30-14 361.477, 361.4771, and 361.4773. The person audited shall bear the
30-15 costs of the audits <determine the total shredding capacity of all
30-16 registered waste tire processors. If the commission determines
30-17 that the shredding capacity is less than the previous year's
30-18 reimbursed waste tire units, the commission may issue registrations
30-19 to waste tire processors until the anticipated shredding capacity
30-20 equals the previous year's reimbursed waste tire units. If the
30-21 commission determines that the shredding capacity exceeds the
30-22 previous year's reimbursed waste tire units, the commission may not
30-23 issue a registration to a new waste tire processor until the next
30-24 capacity assessment is completed>.
30-25 SECTION 23. Subchapter P, Chapter 361, Health and Safety
31-1 Code, is amended by adding Sections 361.496 and 361.497 to read as
31-2 follows:
31-3 Sec. 361.496. NEW OR EXPANDED PROCESSING OPERATION. A new
31-4 processor, waste tire energy recovery facility, or waste tire
31-5 recycler or a registered processor, waste tire energy recovery
31-6 facility, or waste tire recycler that seeks to establish a new
31-7 processing facility or expand a processing operation in the state
31-8 must:
31-9 (1) certify that such processor, waste tire energy
31-10 recovery facility, or waste tire recycler is willing to provide
31-11 collection and transportation of waste tires from registered
31-12 generators in rural counties of the state at the request of the
31-13 commission during emergency periods as defined by the commission
31-14 when such generators are not being otherwise served by registered
31-15 processors or transporters; and
31-16 (2) identify and have available a certified end use in
31-17 the application for a new or amended registration.
31-18 Sec. 361.497. EXPIRATION. This subchapter expires December
31-19 31, 1997.
31-20 SECTION 24. Section 2, Article 9009b, Revised Statutes, is
31-21 amended by adding Subsection (c) to read as follows:
31-22 (c) A person may not sell, convey, or otherwise transfer to
31-23 a metals recycling activity a motor vehicle or a motor vehicle that
31-24 has been junked, flattened, dismantled, or changed so that it has
31-25 lost its character as a motor vehicle if the motor vehicle
32-1 includes, contains, or encloses a tire or scrap tire. This
32-2 subsection does not apply to the sale, conveyance, or transfer of a
32-3 motor vehicle or a junked, flattened, dismantled, or changed motor
32-4 vehicle from another state.
32-5 SECTION 25. Subchapter P, Chapter 361, Health and Safety
32-6 Code, is amended by adding Section 361.498 to read as follows:
32-7 Sec. 361.498. COMMUNITY SERVICE. Persons seeking
32-8 reimbursement from the waste tire recycling fund shall perform
32-9 community service on an annual basis. Community service includes
32-10 cooperation with local civic groups to clean up abandoned tire
32-11 sites that are not classified as priority enforcement list sites.
32-12 The tires collected under this section are eligible for
32-13 reimbursement.
32-14 SECTION 26. Subsection (f), Section 361.112, Health and
32-15 Safety Code, is amended to read as follows:
32-16 (f) A person may not store more than 500 used or scrap tires
32-17 or dispose of any quantity of used or scrap tires unless the tires
32-18 are shredded, split, or quartered as provided by board of health
32-19 rule. The department may grant an exception to this requirement if
32-20 the department finds that circumstances warrant the exception. The
32-21 prohibition provided by this subsection regarding storage does not
32-22 apply to a registered waste tire energy recovery facility or a
32-23 waste tire energy recovery facility storage site. The prohibition
32-24 provided by this subsection does not apply to a person who, for
32-25 eventual recycling, reuse, or energy recovery, temporarily stores
33-1 scrap tires in a designated recycling collection area at a landfill
33-2 permitted by the commission or the department or licensed by a
33-3 county or by a political subdivision exercising the authority
33-4 granted by Section 361.165.
33-5 SECTION 27. Subchapter P, Chapter 361, Health and Safety
33-6 Code, is amended by adding Section 361.499 to read as follows:
33-7 Sec. 361.499. PRIORITY FOR CARRYOVER CREDIT PAYMENTS.
33-8 Notwithstanding any other provision of this subchapter, any amounts
33-9 paid from the waste tire recycling fund shall be used first to
33-10 compensate waste tire processors for carryover credits that accrued
33-11 before September 1, 1995, for waste tires shredded in excess of
33-12 allocations. The carryover credits shall be paid as soon as
33-13 practicable up to the amount appropriated for that purpose.
33-14 SECTION 28. Subsection (l), Section 361.477, Health and
33-15 Safety Code, is repealed.
33-16 SECTION 29. (a) Except as provided by Subsection (b) of
33-17 this section, this Act takes effect September 1, 1995.
33-18 (b) Section 1 of this Act takes effect immediately.
33-19 SECTION 30. The importance of this legislation and the
33-20 crowded condition of the calendars in both houses create an
33-21 emergency and an imperative public necessity that the
33-22 constitutional rule requiring bills to be read on three several
33-23 days in each house be suspended, and this rule is hereby suspended,
33-24 and that this Act take effect and be in force from and after its
33-25 passage, and it is so enacted.