Amend CSSB 1586 (committee printing) as follows:
      (1)  On page 1, between lines 44 and 45, insert new
subsections (1) and (2) to read as follows, and renumber subsequent
subsections accordingly:
            "(1)  'Class I Region' means any area within 190 miles
from the cities Dallas, Fort Worth, Houston, or San Antonio as that
distance is determined by the Texas Department of Transportation
Official Highway Map, and shall include the entirety of any county
which has at least 50 percent of its area within that distance.
            (2)  'Class II Region' means any area of the state
which is not within a Class I Region.".
      (2)  On page 3, strike lines 11 through 24, and substitute
the following:
            (1)  $2 for each new tire that has a rim diameter of 12
inches or more but less than 17.5 inches and $1 for each good used
tire that has a rim diameter of 12 inches or more but less than
17.5 inches;
            (2)  $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, including an earthmover, a
loader/dozer, a grader, or mining equipment; and
            (3)  $1.50 <$2> for a new motorcycle tire, regardless
of the rim diameter.
      (3)  On page 4, strike lines 52 through 56, and substitute
the following:
            "(1)  pay scrap <waste> tire processors, scrap tire
facilities, <waste> scrap tire energy recovery facility, or scrap
tire recyclers owners or operators<, or waste tire recyclers> that
meet the requirements for payment under Section 361.477, 361.4771,
or 361.4772<, or 361.4773> and rules adopted under those
sections;".
      (4)  On page 5, line 1, strike the word "and" and on line 3,
before the period, insert the following:
            "; and
            (6)  pay $200,000 annually to the Texas Department of
Health to be used in counties located on and within 100 miles of
the Texas Gulf Coast for mosquito control".
      (5)  On page 5, amend lines 22 and 23 to read as follows:
            "(g) <(f)> The fund may not be used to reimburse
shredding or burning of:".
      (6)  On page 5, strike all language from line 55 until the
end of the sentence on page 6, line 53 and substitute the
following:
            "Sec. 361.477.  PAYMENTS TO SCRAP <WASTE> TIRE
PROCESSORS AND SCRAP TIRE FACILITIES AND SCRAP TIRE ENERGY RECOVERY
FACILITIES.  (a)  The commission each calendar month shall pay a
scrap <waste> tire processor or facility that shreds scrap tires
and meets the requirements of this section and rules adopted under
this section an amount equal to the following:
            (A)  five cents per pound <80 cents> for each pound of
<weighed> tires generated from the Class I Region, and which scrap
tires were shredded by the processor during the preceding calendar
month; and
            (B)  five and one-half cents for each pound of tires
generated from the Class II Region, and which scrap tires were
shredded by the processor during the preceding calendar month.
      (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> The
commission may pay <80 cents or> an appropriate amount determined
by the commission for each pound <weighed tire> to scrap tire
processors, scrap tire facilities or scrap tire energy recovery
facilities <processors> with whom the commission has contracted to
remove and transport to scrap tire processors, scrap tire
facilities or scrap tire energy recovery facilities <shred> scrap
tires and scrap tire pieces from priority enforcement list sites.
<The 2,500,000 tire limit does not include those tires contained in
sites under commission enforcement or attorney general action or
that require corrective action or remedial action in response to a
release or threat of release of hazardous substances.>  In acting
under this subsection, the commission may contract with scrap tire
processors or scrap tire facilities or scrap tire energy recovery
facilities on a regional or site-specific basis.".
      (7)  On page 7, strike lines 46 through 55 and substitute the
following:
      "(c) <(f)> Until the commission has determined that a scrap
<waste> tire processor, scrap tire facility and scrap tire energy
recovery facility owner or operator <processor> is in compliance
with all applicable requirements, the commission may not authorize
the scrap tire processor, scrap tire facility or scrap tire energy
recovery facility owner or operator to process, burn or store scrap
tires or tire pieces at a site at which the scrap tire processor,
scrap tire facility or a scrap tire energy recovery facility owner
or operator <processor> processes, burns or stores or intends to
process, burn or store scrap tires or tire pieces.".
      (8)  On page 8, starting on line 41, strike all of section
361.4771 and substitute the following:
      "Sec. 361.4771.  PAYMENTS TO SCRAP TIRE RECYCLERS <PAYMENT
FOR ENERGY RECOVERY FROM WHOLE WASTE TIRES OR SHREDDED TIRES>.  (a)
The commission each calendar month shall pay a scrap tire recycler
that meets the requirements of this section and rules adopted under
this section an amount set forth in this subsection for shredded
scrap tires the scrap tire recycler actually puts to an end use
during the preceding calendar month.  The payment amounts are as
follows for the following categories:
            (1)  a scrap tire energy recovery facility shall
receive $30 per ton for whole or shredded scrap tire pieces used
for fuel at the facility;
            (2)  a scrap tire recycler which utilizes shredded tire
pieces for civil engineering applications or practices, which
practices include but are not limited to, landfill protective
cover, landfill liner cover, landfill leachate collection systems,
embankment construction, erosion control, road base material,
requested applications by political subdivisions, councils of
government, or any other application approved by the executive
director, shall receive $20 per ton;
            (3)  scrap tire recyclers which engage in other
recycling applications, including tire-derived material, shall
receive $30 per ton.
            (4)  scrap tire recyclers which utilize shredded tire
pieces for septic system applications shall receive $15 per ton for
shredded tire pieces actually put to end use, provided that at
least 150 tons of shreds is actually put to end use in each
calendar quarter;
            (5)  scrap tire recyclers which recycle metal wire
derived from scrap tire pieces shall receive $15.00 per ton for
scrap tire wire actually put to an end use; and
            (6)  scrap tire recyclers which utilize shredded tire
pieces through a pyrolitic conversion process shall receive $30 per
ton for shredded tire pieces actually put to end use.".
      (9)  On page 10, beginning on line 24, strike all of section
361.4772, and substitute the following:
      "Sec. 361.4772.  PROCEDURE FOR OBTAINING PAYMENT FOR SCRAP
TIRE FACILITIES, SCRAP TIRE ENERGY RECOVERY FACILITIES, AND SCRAP
TIRE RECYCLERS; RESTRICTIONS; FUND MANAGEMENT <RECYCLING FACILITY
CONSTRUCTION GRANT>.
      (a)  To receive payment under this section and Sections
361.477, 361.4771, a scrap tire facility, scrap tire energy
recovery facility, and scrap tire recycler owner or operator must:
            (1)  apply to the commission for registration in the
manner and on forms prescribed by commission rule;
            (2)  apply to the commission for payment:
                  (A)  in a manner and on forms prescribed by
commission rule; or
                  (B)  as a voluntary alternative, by use of a
removable storage medium stored in an industry  standard file
format acceptable to the commission;
            (3)  demonstrate that all tires or tire pieces for
which the scrap tire facility, scrap tire energy recovery facility
and scrap tire recycler applies for payment are whole scrap tires
or shredded tires;
            (4)  send the commission a monthly report of the number
of pounds of whole waste tires or shredded tires, or tire-derived
material put to actual end use, subtotaled by weight attributed to
each generator number or priority enforcement list number;
            (5)  demonstrate that any energy recovery activities
comply with applicable air emission control standards and rules;
            (6)  submit evidence of financial responsibility in an
amount adequate to assure proper cleanup and closure of the
facility, if the person anticipates accepting an amount of whole
scrap tires, shredded tire pieces, or tire-derived material for
storage that exceeds the facility's 30-day supply; and
            (7)  provide any other information required by
commission rule.
      (b)  A scrap tire energy recovery facility, or scrap tire
energy recovery facility, may not store in excess of a 30-day
supply of whole scrap tires, shredded tires or tire-derived
material at a site at which the owner or operator intends to burn
or store waste tires, ]Lor   shredded tire pieces, or tire-derived
material until the facility is registered by the commission as a
scrap tire energy recovery facility storage site or a scrap tire
energy recovery facility storage site.  A scrap tire recycler may
not store in excess of a 30-day supply of whole scrap tires,
shredded tire pieces, or tire-derived material at a site at which
the recycler intends to recycle or store whole scrap tires,
shredded tire pieces, or tire-derived material until the facility
is registered by the commission as a scrap tire recycler storage
site.
      (c)  The commission may not pay a scrap tire energy recovery
facility owner or operator for actual end use of scrap tires,
shredded tire pieces, or tire-derived material if:
            (1)  the commission field office and central office
program staff have not reviewed and approved for further processing
by the commission all information submitted to the commission by
the scrap ]Lwaste   tire energy recovery  facility owner or operator
as required by Subsection (a) or rules adopted under this section;
            (2)  the commission determines that the facility:
                  (A)  has not provided adequate financial
assurance;
                  (B)  does not have adequate fire protection; or
                  (C)  is causing an imminent danger to public
health or welfare;
            (3)  the facility does not have appropriate
authorization from the commission to:
                  (A)  perform scrap tire energy recovery at the
energy recovery facility site if the end user is a scrap tire
energy recovery facility owner or operator; or
                  (B)  recycle scrap tires, shredded tire pieces,
or tire-derived material at the recycling site if the end user is a
scrap tire recycler; or
            (4)  the facility is not physically capable of
performing:
                  (A)  scrap tire energy recovery if the end user
is a scrap tire energy recovery facility owner or operator; or
                  (B)  scrap tire recycling, if the end user is a
scrap tire recycler.
      (d)  The commission may not pay a scrap tire facility for
shredded tire pieces or tire-derived material if:
            (1)  the commission field office and central office
program staff have not reviewed and approved for further processing
by the commission all information submitted to the commission by
the scrap tire facility as required by subsection (a) or rules
adopted under this section;
            (2)  the commission determines that the scrap tire
facility:
                  (A)  has not provided adequate financial
assurance;
                  (B)  does not have adequate fire protection; or
                  (C)  is causing an imminent danger to public
health or welfare;
            (3)  the scrap tire facility does not have appropriate
authorization from the commission to perform processing operations
at the facility; or
            (4)  the scrap tire facility is not physically capable
of performing processing operations at the facility.
      (e)  The commission may not pay a scrap tire recycler for
whole scrap tires, shredded tire pieces, or tire-derived material
if the commission determines that the whole scrap tires, shredded
tire pieces, or tire-derived material:
            (1)  are not being utilized for legitimate end use
purposes; or
            (2)  delivered from out of state to be used in state.
      (f)  The commission shall adopt rules to manage payments from
the fund to prevent depletion of the fund as follows:
            (1)  the commission shall pay scrap tire facilities and
scrap tire energy facilities who have established end use markets
and have not exceed their registered storage capacity under this
section before using any allocation method authorized by this
subchapter and before making other payments from the fund to other
uses authorized by this subchapter.
            (2)  the commission shall pay scrap tire recyclers for
whole tires, shredded tire pieces or tire derived material that is
actually put to end use provided that:
                  (A)  the commission does not exceed $7,500,000
dollars per fiscal year; and
                  (B)  the commission shall pay out no more than
$625,000 per calendar month;
                  (C)  any unspent funds remaining at the end of
the calendar month shall roll forward to the following month;
                  (D)  scrap tire recyclers which exceed the
maximum annual or calendar month payment requirement of subsection
(f)(2)(A) and (B) for whole tires, shredded tires pieces or tire
derived material put to actual end use shall receive a credit which
shall carryover to the following calendar month or fiscal year.
            (3)  the commission shall use the balance of the fund
for priority enforcement list site remediation, research grants to
state entities for the use of shreds in civil engineering
application, or any other use the commission deems necessary.
      (g)  In this section, "30-day supply" means an amount equal
to the average of the amount of tires consumed for energy recovery
or legitimately recycled in each of the six months immediately
preceding the month for which the supply is being computed.
      (10)  On page 10, line 57, after the words "END USER", insert
the following:  ", SCRAP TIRE PROCESSOR, SCRAP TIRE FACILITY, OR
SCRAP TIRE ENERGY RECOVERY FACILITY".
      (11)  On page 10, line 60, after the words "end user", insert
the following:  ", scrap tire processor, scrap tire facility, or
scrap tire energy recovery facility".
      (12)  On page 14, line 29, after the word "user", insert the
following:  ", scrap tire processor, scrap tire facility, or scrap
tire energy recovery facility".
      (13)  On page 16, line 29, insert the following the word
"tire":  "facility, scrap tire processor, or".
      (14)  On page 16, delete lines 61 and 62
      (15)  On page 17, Amend section 23 of the bill to read as
follows:
      "SECTION 23.  Sections 361.478, 361.486, 361.4865, 361.497,
and 361.499, Health and Safety Code, are repealed.".
MADLA
LUCIO