By Kuempel H.B. No. 3110
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the waste tire recycling fund.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 361.112(f) and (g), Health and Safety
1-5 Code, are amended to read as follows:
1-6 (f) A person may not store more than 500 [used or] scrap
1-7 tires or dispose of any quantity of [used or] scrap tires unless
1-8 the tires are shredded, split, or quartered as provided by
1-9 commission rule. The commission may grant an exception to this
1-10 requirement if the commission finds that circumstances warrant the
1-11 exception. The prohibition provided by this subsection regarding
1-12 storage does not apply to:
1-13 (1) a registered scrap [waste] tire energy recovery
1-14 facility, scrap tire recycler, scrap tire facility or a whole scrap
1-15 [waste] tire energy recovery facility storage site;
1-16 (2) [. The prohibition provided by this subsection
1-17 does not apply to] a person who, for eventual recycling, reuse, or
1-18 energy recovery, temporarily stores scrap tires in a designated
1-19 recycling collection area at a landfill permitted by the commission
1-20 or licensed by a county or by a political subdivision exercising
1-21 the authority granted by Section 361.165; or
1-22 (3) a person described in Section 361.472(a) who
2-1 stores not more than 1,000 scrap tires for more than 30 days.
2-2 (g) The commission shall require a person who transports
2-3 used or scrap tires for storage, [or] disposal, or end use to
2-4 maintain records and use a manifest or other appropriate system to
2-5 assure that those tires are transported to a storage site that is
2-6 registered or to a disposal facility that is permitted under this
2-7 section for that purpose, or to a registered end user.
2-8 SECTION 2. The heading to Subchapter P, Chapter 361, Health
2-9 and Safety Code, is amended to read as follows:
2-10 SUBCHAPTER P. SCRAP [WASTE] TIRE RECYCLING PROGRAM
2-11 SECTION 3. Section 361.471, Health and Safety Code, is
2-12 amended to read as follows:
2-13 Sec. 361.471. Definitions. In this subchapter:
2-14 (1) "Class I Region" means any area within 190 miles
2-15 from the cities Dallas, Fort Worth, Houston, or San Antonio as that
2-16 distance is determined by the Texas Department of Transportation
2-17 Official Highway Map, and shall include the entirety of any county
2-18 which has at least 50 percent of its area within that distance.
2-19 (2) "Class II Region" means any area of the state
2-20 which is not within a Class I Region.
2-21 (3) "End use" includes the use of whole scrap tires,
2-22 shredded tire pieces, or tire-derived material for a civil
2-23 engineering application or practice, energy recovery, or the
2-24 manufacture of a product with economic value or for any other
2-25 process or product that the commission by rule determines meets the
2-26 objectives of this subchapter.
2-27 (4) "Fund" means the scrap [waste] tire recycling
3-1 fund.
3-2 (5) [(2)] "Green tire" means the casing form of a tire
3-3 that has not been cured or does not have a tread or marking of any
3-4 kind.
3-5 [(3) "Good used tire" means a used tire, not including
3-6 a recapped or retreaded tire, suitable for continued use for its
3-7 original intended purpose.]
3-8 (6) [(4)] "Manufacturer reject tire" means a tire
3-9 rendered defective in the manufacturing process, whether the tire
3-10 is determined to be defective before or after consumer purchase.
3-11 (7) [(5)] "Mobile tire shredder" means equipment
3-12 mounted on wheels or skid-mounted and hauled from place to place to
3-13 split, shred, or quarter [used or] scrap tires.
3-14 (8) [(6)] "Scrap tire" has the meaning assigned by
3-15 Section 361.112.
3-16 (9) [(7)] "Scrap [Waste] tire energy recovery
3-17 facility" means a facility at which [whole used or scrap tires or]
3-18 shredded tires are used as a fuel, including:
3-19 (A) a cement kiln;
3-20 (B) a utility boiler;
3-21 (C) a pulp and paper mill;
3-22 (D) a cogeneration facility;
3-23 (E) a foundary; or
3-24 (F) [(E)] another facility designated by the
3-25 commission.
3-26 (10) "Scrap tire generator" includes an entity that
3-27 accepts scrap tire pieces for temporary storage, a fleet operator,
4-1 an automotive dismantler, or a whole new or used tire retailer,
4-2 wholesaler, manufacturer, recapper, or retreader. The term does
4-3 not include a scrap tire facility, scrap tire recycler or whole
4-4 scrap tire energy recovery facility that stores whole tires or tire
4-5 pieces.
4-6 (11) [(8)] "Scrap [Waste] tire facility" means a
4-7 facility [registered by the commission under Section 361.477] at
4-8 which scrap tires are collected and shredded to facilitate the
4-9 future extraction of useful materials for recycling, reuse, or
4-10 energy recovery and are stored in a scrap [waste] tire storage
4-11 facility or a facility that recycles, reuses, or recovers the
4-12 energy from the shredded tire pieces.
4-13 (12) [(9)] "Scrap [waste] tire processor" means:
4-14 (A) a scrap [waste] tire facility; or
4-15 (B) a mobile tire shredder that splits, shreds,
4-16 or quarters tires and deposits the split, shredded, or quartered
4-17 tires for eventual recycling, reuse, or energy recovery at:
4-18 (i) a scrap [waste] tire storage facility
4-19 registered by the commission under Section 361.112; or
4-20 (ii) a scrap [waste] tire facility.
4-21 (13) [(10)] "Scrap [waste] tire storage facility"
4-22 means a facility registered by the commission under Section
4-23 361.4725 [361.477] at which whole [used or] scrap tires or shredded
4-24 tire pieces are collected and stored to facilitate the future
4-25 extraction of useful material for recycling, reuse, or recovery.
4-26 The term does not include a marine dock, rail yard, or trucking
4-27 facility used to store tires that are awaiting shipment to a person
5-1 for recycling, reuse, or energy recovery for 30 days or less.
5-2 (14) [(11)] Scrap [waste] tire transporter" means a
5-3 person who collects and transports [used or] scrap tires or scrap
5-4 tire pieces for storage or disposal.
5-5 (15) "Tire-derived material" includes crumb rubber,
5-6 materials produced from scrap tires or tire pieces through a
5-7 pyrolytic or other chemical or thermal process.
5-8 (16) "Whole scrap tire energy recovery facility" means
5-9 a facility at which whole scrap tires are used as fuel.
5-10 [(12) "Weighed tire" means a unit of weight for
5-11 shredded scrap tires that is equal to 18.7 pounds.]
5-12 SECTION 4. Section 461.472, Health and Safety Code, is
5-13 amended to read as follows:
5-14 Sec. 361.472. SCRAP [Waste] Tire Recycling Fees. (a) A
5-15 person in the business of selling new [good used] tires who sells
5-16 or offers to sell new tires not for resale [for use on a vehicle,]
5-17 or a person in the business of selling used vehicles or used
5-18 vehicle parts who sells or offers to sell new [or good used] tires
5-19 not for resale shall collect at the time and place of sale a scrap
5-20 [waste] tire recycling fee for each tire sold as follows:
5-21 (1) $2 for each new tire that has a rim diameter of 12
5-22 inches or more but less than 17.5 inches [and $1 for each good used
5-23 tire that has a rim diameter of 12 inches or more but less than
5-24 17.5 inches];
5-25 (2) $3.50 for each new tire that has a rim diameter of
5-26 17.5 inches or greater, other than an off-the-road tire intended
5-27 for use on heavy machinery, including an earthmover, a
6-1 loader/dozer, a grader, or mining equipment; and
6-2 (3) $1.50 [$2] for a new motorcycle tire, regardless
6-3 of the rim diameter.
6-4 (b) The sale of a tire as original equipment in the
6-5 manufacture of a new vehicle is a sale for resale.
6-6 (c) A fee may not be assessed for:
6-7 (1) a recapped or retreaded tire; [or]
6-8 (2) a bicycle tire; or
6-9 (3) a solid industrial tire.
6-10 (d) A person required to collect a fee under this section:
6-11 (1) shall list as a separate item on an invoice a fee
6-12 due under this section; and
6-13 (2) except as provided by Subsection (e), on or before
6-14 the 20th day of the month following the end of each calendar month
6-15 and on a form and in the manner prescribed by the comptroller,
6-16 shall file a report with and shall remit to the comptroller the
6-17 amount of fees collected during the preceding calendar month.
6-18 (e) A person required to collect a fee under this section
6-19 who collects less than $50 for a calendar month or less than $150
6-20 for a calendar quarter is not required to file a monthly report but
6-21 shall file a quarterly report with and make a quarterly remittance
6-22 to the comptroller. The quarterly report and remittance shall
6-23 include fees collected during the preceding calendar quarter. The
6-24 report and remittance are due not later than the 20th day of the
6-25 month following the end of the calendar quarter.
6-26 (f) An invoice or other record required by this section or
6-27 rules of the comptroller must be maintained for at least four years
7-1 after the date on which the invoice or record is prepared and be
7-2 open for inspection by the comptroller at all reasonable times.
7-3 (g) The comptroller shall adopt rules necessary for the
7-4 administration, collection, reporting, and payment of the fees
7-5 payable or collected under this section.
7-6 (h) A scrap [waste] tire recycling fee is imposed on the
7-7 storage, use, or consumption in this state of a tire at the same
7-8 rate as provided by Subsection (a), except when purchased for the
7-9 purpose of resale.
7-10 (i) A person storing, using, or consuming a tire in this
7-11 state is liable for the scrap [waste] tire recycling fee as defined
7-12 in this section and is responsible for reporting and paying the fee
7-13 to the comptroller in the same manner as a person required to
7-14 collect this fee, as provided in Subsections (d)(2) and (e).
7-15 (j) A person storing, using, or consuming a tire in this
7-16 state is not further liable for the scrap [waste] tire recycling
7-17 fee imposed by Subsection (a) if the person:
7-18 (1) pays the fee to:
7-19 (A) a person who is required to collect the fee
7-20 under Subsection (a) and who is engaged in business in this state;
7-21 or
7-22 (B) another person authorized by the comptroller
7-23 to collect the fee; and
7-24 (2) receives a purchaser's receipt from the person to
7-25 whom the fee was paid.
7-26 (k) In this section:
7-27 (1) "Engaged in business in this state" has the
8-1 meaning provided under Sections 151.107(a) and (b), Tax Code.
8-2 (2) "Purchased for resale" means acquired by means of
8-3 a sale for resale as defined in Section 151.006, Tax Code.
8-4 (3) "Storage" and "use" have the meanings assigned
8-5 those terms by Section 151.011, Tax Code.
8-6 SECTION 5. Section 361.4275, Health and Safety Code, is
8-7 amended to read as follows:
8-8 Sec. 361.4725. Registration; Fee. (a) A scrap tire
8-9 facility, scrap tire recycler, scrap tire storage facility, scrap
8-10 tire transporter, scrap tire processor, scrap tire energy recovery
8-11 facility, whole scrap tire energy recovery facility, or scrap tire
8-12 generator shall register with the commission in accordance with
8-13 commission rules and on the forms prescribed by the commission.
8-14 (b) A person who applies to the commission to register under
8-15 this section [a waste tire storage facility, a waste tire energy
8-16 recovery facility storage site, a waste tire recycler, or a fixed
8-17 or mobile tire processor,] or applies to renew or amend the
8-18 registration, must pay a fee set by the commission not to exceed
8-19 [of] $500.
8-20 SECTION 6. Sections 361.474 and 361.475, Health and Safety
8-21 Code, are amended to read as follows:
8-22 Sec. 361.474. Disposition of Fees and Penalties. Fees and
8-23 penalties collected under this subchapter shall be deposited in the
8-24 state treasury to the credit of the scrap [waste] tire recycling
8-25 fund.
8-26 Sec. 361.475. SCRAP [Waste] Tire Recycling Fund. (a) The
8-27 scrap [waste] tire recycling fund is a special account in the
9-1 general revenue fund.
9-2 (b) The commission shall administer the fund.
9-3 (c) The fund consists of fees and penalties collected under
9-4 this subchapter, interest on money in the fund, and money from
9-5 gifts, grants, or any other source intended to be used for the
9-6 purposes of this subchapter.
9-7 (d) The fund shall be used only to:
9-8 (1) pay scrap [waste] tire facilities [processors],
9-9 [waste] whole scrap tire energy recovery facility, or scrap tire
9-10 recyclers owners or operators[, or waste tire recyclers] that meet
9-11 the requirements for payment under Section 361.477, 361.4771, or
9-12 361.4772[, or 361.4773] and rules adopted under those sections;
9-13 (2) pay the commission's reasonable and necessary
9-14 administrative costs of performing its duties under this subchapter
9-15 as provided by Section 361.4774 [in an amount not to exceed six
9-16 percent of the money annually accruing to the fund]; and
9-17 (3) pay the comptroller's reasonable and necessary
9-18 administrative costs of performing the comptroller's duties under
9-19 this subchapter as provided by Section 361.4774 [in an amount not
9-20 to exceed two percent of the money annually accruing to the fund;]
9-21 [(4) provide grants to waste tire energy recovery
9-22 facility owners or operators to cover equipment capital investment
9-23 costs and equipment installation costs to enable a facility to use
9-24 tire shreds as fuel; and]
9-25 [(5) provide grants for recycling facility
9-26 construction costs].
9-27 (e) Registration fees received under Section 361.4725 shall
10-1 be allocated to the commission for its reasonable and necessary
10-2 costs associated with the [reviewing applications for] registration
10-3 of a person required to register under that section [and with
10-4 registering:]
10-5 [(1) fixed and mobile tire processing facilities and
10-6 storage sites;]
10-7 [(2) waste tire energy recovery facilities and storage
10-8 sites; and]
10-9 [(3) waste tire recyclers].
10-10 (f) The fund may not be used to reimburse shredding or
10-11 burning of:
10-12 (1) innertubes;
10-13 (2) scrap rubber products;
10-14 (3) green tires;
10-15 (4) industrial solid waste, excluding scrap [waste]
10-16 tires;
10-17 (5) oversized tires, as defined by commission rule,
10-18 unless the oversized tires are collected from a priority
10-19 enforcement list site;
10-20 (6) manufacturer reject tires; or
10-21 (7) nonpneumatic tires.
10-22 (g) The commission may classify special authorization tires,
10-23 as defined by commission rule, as priority enforcement list tires.
10-24 (h) [The fund shall maintain a balance of not less than
10-25 $500,000.]
10-26 [(i) If the commission has reason to believe that the
10-27 balance of money appropriated from the fund will fall below
11-1 $500,000, the commission may:]
11-2 [(1) suspend the requirement to reimburse priority
11-3 enforcement list tires shredded in excess of the minimum percentage
11-4 identified in Section 361.477(c)(3)(C);]
11-5 [(2) limit the number of scrap waste tires for which a
11-6 processor, waste tire energy recovery facility owner or operator,
11-7 or scrap waste tire end user recycler will be reimbursed; or]
11-8 [(3) discontinue paid carryover.]
11-9 [(j)] The revenues obtained from the scrap [waste] tire
11-10 recycling fees shall be deposited to the credit of the scrap
11-11 [waste] tire recycling fund and may be used only to pay for those
11-12 activities and costs identified in Subsection (d) or (e).
11-13 SECTION 7. Section 361.477, Health and Safety Code, is
11-14 amended to read as follows:
11-15 Sec. 361.477. Payments to SCRAP [Waste] Tire FACILITIES AND
11-16 WHOLE SCRAP TIRE ENERGY RECOVERY FACILITIES [Processors]. (a) The
11-17 commission each calendar month shall pay a scrap [waste] tire
11-18 facility [processor] that shreds scrap tires and meets the
11-19 requirements of this section and rules adopted under this section
11-20 an amount equal to the following:
11-21 (A) five cents per pound for [80 cents] for each
11-22 pound of [weighed] tires generated from the Class I Region, and
11-23 which scrap tires were shredded by the processor during the
11-24 preceding calendar month; and
11-25 (B) five and one-half cents for each pound of
11-26 tires generated from the Class II Region, and which scrap tires
11-27 were shredded by the processor during the preceding calendar month.
12-1 (b) The commission shall pay a whole scrap tire energy
12-2 recovery facility that meet the requirements of this section and
12-3 rules adopted under this section an amount equal to two cents per
12-4 pound of whole scrap tires actually put to end use by the facility.
12-5 (c) [If the total number of used or scrap tires or tire
12-6 pieces contained in illegal scrap tire sites that are identified on
12-7 the priority enforcement list is below 2,500,000 tires, the] The
12-8 commission may pay [80 cents or] an appropriate amount determined
12-9 by the commission for each pound [weighed tire] to scrap tire
12-10 facilities or whole scrap tire energy recovery facilities
12-11 [processors] with whom the commission has contracted to remove and
12-12 transport to scrap tire facilities or whole scrap tire energy
12-13 recovery facilities [shred] scrap tires and scrap tire pieces from
12-14 priority enforcement list sites. [The 2,500,000 tire limit does
12-15 not include those tires contained in sites under commission
12-16 enforcement or attorney general action or that require corrective
12-17 action or remedial action in response to a release or threat of
12-18 release of hazardous substances.] In acting under this subsection,
12-19 the commission may contract with scrap tire facilities or whole
12-20 scrap tire energy recovery facilities [processors] on a regional or
12-21 site-specific basis. The contracts shall be procured through a
12-22 competitive bid process conducted in accordance with the provisions
12-23 of the State Purchasing and General Services Act (Subtitle D, Title
12-24 10, Government Code [Article 601b, Vernon's Texas Civil Statutes])
12-25 applicable to contracts for services. [Notwithstanding Subsection
12-26 (c), while the commission is using a competitive bid process for
12-27 assignment of sites listed on the priority enforcement list, the
13-1 priority enforcement list requirements of Subsection (c)(3)(C) do
13-2 not apply to an application for payment. The commission may elect
13-3 not to enter into contracts under this subsection. The contracts
13-4 may be only for the removal and shredding of tires from priority
13-5 enforcement list sites.]
13-6 [(c) A waste tire processor that desires to receive payment
13-7 under this section for tires shredded by the processor during a
13-8 calendar month must:]
13-9 [(1) apply to the commission for registration in
13-10 accordance with forms prescribed by the commission;]
13-11 [(2) apply to the commission for payment on forms
13-12 prescribed by the commission or, on a voluntary basis, apply by a
13-13 removable storage medium stored in an industry standard file format
13-14 acceptable to the commission;]
13-15 [(3) demonstrate as required by rules adopted under
13-16 this section that:]
13-17 [(A) all tires for which payment is sought have
13-18 been shredded to an industry standard two-inch minus particle size
13-19 or, if approved by the commission, shredded to an alternative
13-20 particle size set by a contract requirement related to recycling or
13-21 end use of the particles; and]
13-22 [(B) not less than 50 percent of those tires
13-23 were collected from generators, unless this requirement is
13-24 suspended by the commission on consideration of service needs
13-25 contained in a contract drafted under Subsection (b); and]
13-26 [(C) if the total number of whole used or scrap
13-27 tires or shredded tire pieces contained in illegal waste tire sites
14-1 that are identified on the priority enforcement list exceeds
14-2 2,500,000 tires for more than 60 consecutive days, not less than 15
14-3 percent and not more than 30 percent of those tires were collected
14-4 from scrap tire sites listed on the priority enforcement list;]
14-5 [(4) provide any other information the commission
14-6 determines is needed to accomplish the purposes of this subchapter,
14-7 including a monthly report of waste tires or tire pieces shredded,
14-8 subtotaled by tire count or weight, for each generator number and
14-9 priority enforcement list number;]
14-10 [(5) demonstrate that energy recovery activities in
14-11 the state are in compliance with applicable air emission control
14-12 rules and standards; and]
14-13 [(6) provide financial assurance deemed adequate by
14-14 the commission that corresponds to:]
14-15 [(A) the payment appropriate for the number of
14-16 scrap waste tires the processor anticipates shredding in the next
14-17 calendar month; or]
14-18 [(B) the number of scrap tires the waste tire
14-19 storage site owner or operator anticipates accepting for storage in
14-20 the next calendar month.]
14-21 [(d) A waste tire processor that in any month exceeds the
14-22 minimum requirement of Subsection (c)(3)(C) may receive credit only
14-23 for paid carryover in the amount in excess of the requirement that
14-24 may be used to meet the minimum requirement during a later month.
14-25 The commission by rule may prescribe the method of applying credits
14-26 accrued under this subsection.]
14-27 [(e) The commission by rule shall adopt application and
15-1 payment procedures and requirements to implement this section.]
15-2 [(f)] Until the commission has determined that a scrap
15-3 [waste] tire facility and whole scrap tire energy recovery facility
15-4 owner or operator [processor] is in compliance with all applicable
15-5 requirements, the commission may not authorize the scrap tire
15-6 facility or whole scrap tire energy recovery facility owner or
15-7 operator [processor] to process, burn or store scrap tires or tire
15-8 pieces at a site at which the scrap tire facility or a whole scrap
15-9 tire energy recovery facility owner or operator [processor]
15-10 processes, burns or stores or intends to process, burn or store
15-11 scrap tires or tire pieces.
15-12 [(g) Beginning January 1, 1996, the commission may reimburse
15-13 a processor for shredded scrap tires only if the processor has a
15-14 binding agreement to deliver the shredded scrap tires to a person
15-15 to recycle or reuse or to use for energy recovery within 180 days
15-16 after the date of reimbursement. The commission shall suspend
15-17 subsequent shredding reimbursements to a processor that fails to
15-18 deliver the tire shreds to an identified end-use market before the
15-19 181st day after the date of reimbursement unless the executive
15-20 director determines that the failure to deliver was caused by an
15-21 act of God or by unforeseen business events. The commission may
15-22 not resume suspended reimbursements until the processor makes all
15-23 delinquent deliveries.]
15-24 [(h) The commission may not pay a waste tire processor for
15-25 processing scrap tires if:]
15-26 [(1) the commission field office and central office
15-27 program staff have not reviewed and approved for further processing
16-1 by the commission all information submitted to the commission by
16-2 the waste tire processor as required by Subsection (c) or rules
16-3 adopted under this section; or]
16-4 [(2) the commission determines that the processor:]
16-5 [(A) has not provided adequate financial
16-6 assurance;]
16-7 [(B) does not have adequate fire protection; or]
16-8 [(C) is causing an imminent danger to public
16-9 health or welfare.]
16-10 [(i) A waste tire processor that in any month exceeds the
16-11 generator percentage of the allocated number of waste tires
16-12 assigned for reimbursement purposes may accrue credit only for paid
16-13 generator carryover in the amount in excess of the requirement that
16-14 may be used to meet the allocation maximum during a later month.
16-15 The commission by rule may prescribe the method of applying
16-16 carryover credit accrued under this section.]
16-17 [(j) The commission shall adopt rules to manage payments
16-18 from the fund to prevent depletion of the fund. Rules adopted
16-19 under this subsection shall consider appropriate payments to
16-20 processors that reflect the varying amounts of money available in
16-21 the fund. In any allocation adopted for processors under this
16-22 section, the commission shall consider the monthly average
16-23 percentage of shredded tires the processor has forwarded to an
16-24 end-use or recycling market. In addition, the commission may
16-25 consider the historical average number of tires for which the
16-26 processor has been reimbursed and such other factors as may be
16-27 determined by the commission.]
17-1 [(k) Notwithstanding Subsection (a), beginning September 1,
17-2 1995, the commission shall reimburse a waste tire processor an
17-3 additional five cents for each weighed tire if the commission
17-4 determines that the processor has a binding agreement to deliver
17-5 100 percent of the scrap tires shredded by the processor monthly to
17-6 a person to recycle or reuse or to use for energy recovery and the
17-7 commission verifies that the processor has delivered the tire
17-8 shreds to such identified end-use market. This section applies
17-9 only to a waste tire processor registered on January 1, 1995, and
17-10 that has a verified end market for the processor's tire shreds on
17-11 June 1, 1995.]
17-12 SECTION 8. Sections 361.4771, 361.4772 and 361.4773 are
17-13 amended to read as follows:
17-14 Sec. 361.4771. PAYMENTS TO SCRAP TIRE RECYCLERS [Payment for
17-15 Energy Recovery from Whole Waste Tires or Shredded Tires].
17-16 (a) The commission each calendar month shall pay a scrap tire
17-17 recycler that meets the requirements of this section and rules
17-18 adopted under this section an amount set forth in this subsection
17-19 for shredded scrap tires the scrap tire recycler actually puts to
17-20 an end use during the preceding calendar month. The payment
17-21 amounts are as follows for the following categories:
17-22 (1) a scrap tire energy recovery facility shall
17-23 receive $30 per ton for shredded scrap tire pieces used for fuel at
17-24 the facility;
17-25 (2) a scrap tire recycler which utilizes shredded tire
17-26 pieces for civil engineering applications or practices, which
17-27 practices include but are not limited to, landfill protective
18-1 cover, landfill liner cover, landfill leachate collection systems,
18-2 embankment construction, erosion control, road base material,
18-3 requested applications by political subdivisions, councils of
18-4 government, or any other application approved by the executive
18-5 director, shall receive $15 per ton;
18-6 (3) scrap tire recyclers which engage in other
18-7 recycling applications, including tire-derived material, shall
18-8 receive $30 per ton, so long as the scrap tire recycler producing
18-9 the tire-derived material does not exceed 20 million pounds of
18-10 inventory of tire-derived material at any one time.
18-11 (4) scrap tire recyclers which utilize shredded tire
18-12 pieces for septic system applications shall receive $10 per ton for
18-13 shredded tire pieces actually put to end use, provided that at
18-14 least 150 tons of shreds is actually put to end use in each
18-15 calendar quarter; and
18-16 (5) scrap tire recyclers which recycle metal wire
18-17 derived from scrap tire pieces shall receive $10.00 per ton for
18-18 scrap tire wire actually put to an end use.
18-19 Sec. 361.4772. PROCEDURE FOR OBTAINING PAYMENT FOR SCRAP
18-20 TIRE FACILITIES, WHOLE SCRAP TIRE ENERGY RECOVERY FACILITIES, AND
18-21 SCRAP TIRE RECYCLERS; RESTRICTIONS; FUND MANAGEMENT. [The
18-22 commission shall adopt rules governing payments to waste tire
18-23 energy recovery facilities for weighed tires used by the facility
18-24 for fuel. The rules must include rules governing registration and
18-25 application procedures. The rules must include a voluntary
18-26 alternative process for making a payment application by the use of
18-27 an industry standard file format removable storage medium.]
19-1 [(b)] (a) To receive payment under this section and Sections
19-2 361.477, 361.4771 [361.4773], a scrap [waste] tire facility, whole
19-3 scrap tire energy recovery facility, and scrap tire recycler owner
19-4 or operator must:
19-5 (1) apply to the commission for registration in the
19-6 manner and on forms prescribed by commission rule;
19-7 (2) apply to the commission for payment:
19-8 (A) in a manner and on forms prescribed by
19-9 commission rule; or
19-10 (B) as a voluntary alternative, by use of a
19-11 removable storage medium stored in an industry standard file format
19-12 acceptable to the commission;
19-13 (3) demonstrate that all tires or tire pieces for
19-14 which the scrap tire facility, whole scrap tire energy recovery
19-15 facility and scrap tire recycler [owner or operator] applies for
19-16 payment are whole scrap [waste] tires or shredded tires;
19-17 (4) send the commission a monthly report of the number
19-18 of pounds of whole waste tires or shredded tires, or tire-derived
19-19 material put to actual end use [used for energy recovery],
19-20 subtotaled by [tire count or by] weight attributed to each
19-21 generator number or priority enforcement list number;
19-22 (5) demonstrate that any [the] energy recovery
19-23 activities comply with applicable air emission control standards
19-24 and rules;
19-25 (6) submit evidence of financial responsibility in an
19-26 amount adequate to assure proper cleanup and closure of the
19-27 facility, if the person anticipates accepting an amount of whole
20-1 scrap tires, shredded tire pieces, or tire-derived material for
20-2 storage that exceeds the facility's 30-day supply; and
20-3 (7) [if the number of whole used or scrap tires or
20-4 shredded tire pieces contained in illegal waste tire sites that are
20-5 identified on the priority enforcement list exceeds 2,500,000 tires
20-6 for more than 60 consecutive days, demonstrate that not less than
20-7 15 percent and not more than 30 percent of the tires used for
20-8 energy recovery at the facility were collected from scrap tire
20-9 sites listed on the priority enforcement list; and]
20-10 [(8)] provide any other information required by
20-11 commission rule.
20-12 (b) [(c)] A scrap [waste] tire energy recovery facility, or
20-13 whole scrap tire energy recovery facility, may not store in excess
20-14 of a 30-day supply of whole scrap [waste] tires, [or] shredded tires
20-15 or tire-derived material at a site at which the owner or operator
20-16 intends to burn or store waste tires, [or] shredded tire pieces, or
20-17 tire-derived material [tires] until the facility is registered by
20-18 the commission as a scrap [waste] tire energy recovery facility
20-19 storage site or a whole scrap tire energy recovery facility storage
20-20 site. A scrap tire recycler may not store in excess of a 30-day
20-21 supply of whole scrap tires, shredded tire pieces, or tire-derived
20-22 material at a site at which the recycler intends to recycle or
20-23 store whole scrap tires, shredded tire pieces, or tire-derived
20-24 material until the facility is registered by the commission as a
20-25 scrap tire recycler storage site.
20-26 (c) [(d)] The commission may not pay a whole scrap [waste]
20-27 tire energy recovery facility owner or operator for actual end use
21-1 of whole scrap [using waste] tires, [or] shredded tire pieces, or
21-2 tire-derived material [tires] if:
21-3 (1) the commission field office and central office
21-4 program staff have not reviewed and approved for further processing
21-5 by the commission all information submitted to the commission by
21-6 the whole scrap [waste] tire energy recovery facility owner or
21-7 operator as required by Subsection (a) [(b)] or rules adopted under
21-8 this section;
21-9 (2) the commission determines that the facility:
21-10 (A) has not provided adequate financial
21-11 assurance;
21-12 (B) does not have adequate fire protection; or
21-13 (C) is causing an imminent danger to public
21-14 health or welfare;
21-15 (3) the facility does not have appropriate
21-16 authorization from the commission to:
21-17 (A) perform scrap [waste] tire energy recovery
21-18 at the energy recovery facility site if the end user is a scrap
21-19 tire energy recovery facility owner or operator; or
21-20 (B) recycle scrap tires, shredded tire pieces,
21-21 or tire-derived material at the recycling site if the end user is a
21-22 scrap tire recycler; or
21-23 (4) the facility is not physically capable of
21-24 performing:
21-25 (A) scrap [waste] tire energy recovery if the
21-26 end user is a scrap tire energy recovery facility owner or
21-27 operator; or
22-1 (B) scrap tire recycling, if the end user is a
22-2 scrap tire recycler.
22-3 (d) The commission may not pay a scrap tire facility for
22-4 shredded tire pieces or tire-derived material if:
22-5 (1) the commission field office and central office
22-6 program staff have not reviewed and approved for further processing
22-7 by the commission all information submitted to the commission by
22-8 the scrap tire facility as required by subsection (a) or rules
22-9 adopted under this section;
22-10 (2) the commission determines that the scrap tire
22-11 facility:
22-12 (A) has not provided adequate financial
22-13 assurance;
22-14 (B) does not have adequate fire protection; or
22-15 (C) is causing an imminent danger to public
22-16 health or welfare;
22-17 (3) the scrap tire facility does not have appropriate
22-18 authorization from the commission to perform processing operations
22-19 at the facility; or
22-20 (4) the scrap tire facility is not physically capable
22-21 of performing processing operations at the facility.
22-22 (e) The commission may not pay a scrap tire recycler for
22-23 whole scrap tires, shredded tire pieces, or tire-derived material
22-24 if the commission determines that the whole scrap tires, shredded
22-25 tire pieces, or tire-derived material:
22-26 (1) are not being utilized for legitimate end use
22-27 purposes; or
23-1 (2) delivered from out of state to be used in state.
23-2 (f) [(e)] The commission shall adopt rules to manage
23-3 payments from the fund to prevent depletion of the fund as follows:
23-4 (1) the commission shall pay scrap tire facilities and
23-5 whole scrap tire energy facilities who have established end use
23-6 markets and have not exceed their registered storage capacity under
23-7 this section before using any allocation method authorized by this
23-8 subchapter and before making other payments from the fund to other
23-9 uses authorized by this subchapter.
23-10 (2) the commission shall pay scrap tire recyclers for
23-11 whole tires, shredded tire pieces or tire derived material that is
23-12 actually put to end use provided that:
23-13 (A) the commission does not exceed $5,000,000
23-14 dollars per fiscal year; and
23-15 (B) the commission shall pay out no more than
23-16 $420,000 per calendar month;
23-17 (C) any unspent funds remaining at the end of
23-18 the calendar month shall roll forward to the following month;
23-19 (D) scrap tire recyclers which exceed the
23-20 maximum annual or calendar month payment requirement of subsection
23-21 (f)(2)(A) and (B) for whole tires, shredded tires pieces or tire
23-22 derived material put to actual end use shall receive a credit which
23-23 shall carryover to the following calendar month or fiscal year.
23-24 (3) the commission shall use the balance of the fund
23-25 for priority enforcement list site remediation, research grants to
23-26 state entities for the use of shreds in civil engineering
23-27 application, or any other use the commission deems necessary.
24-1 (g) In this section, "30-day supply" means an amount equal
24-2 to the average of the amount of tires consumed for energy recovery
24-3 or legitimately recycled in each of the six months immediately
24-4 preceding the month for which the supply is being computed.
24-5 [Before using any allocation method authorized by this subchapter
24-6 and before making other payments from the fund, the commission
24-7 shall pay reimbursements to processors under Section 361.477 who
24-8 have established end-use markets and pay reimbursements under this
24-9 section and Sections 361.4772 and 361.4773.]
24-10 Sec. 361.4773. STORED TIRES. (a) A scrap tire storage
24-11 facility shall not exceed the registered storage capacity approved
24-12 by the commission.
24-13 (b) A scrap tire storage facility that does not meet the
24-14 requirement of Subsection (a) shall immediately cease accepting
24-15 additional whole scrap tires or shredded tire pieces.
24-16 [Sec. 361.4772. ][Recycling Facility Construction Grant][.
24-17 (a) The commission by rule shall establish a program for providing
24-18 grants for the construction of waste tire recycling facilities for
24-19 the recycling of whole waste tires or shredded tires.]
24-20 [(b) The commission may not expend more than $2 million each
24-21 year for grants under this section.]
24-22 [(c) A facility constructed with a grant under this section
24-23 is not eligible for reimbursement for:]
24-24 [(1) powdered rubber;]
24-25 [(2) a tire-derived fuel;]
24-26 [(3) buffing dust;]
24-27 [(4) a retreaded or recapped tire; or]
25-1 [(5) a product that is ineligible for reimbursement
25-2 under commission rules.]
25-3 [(d) The commission shall require a grant recipient to:]
25-4 [(1) demonstrate that not less than 15 percent and not
25-5 more than 30 percent of the tires used for energy recovery at the
25-6 facility were collected from scrap tire sites listed on the
25-7 priority enforcement list if the number of whole used or scrap
25-8 tires or shredded tire pieces contained in illegal waste tire sites
25-9 that are identified on the priority enforcement list exceeds
25-10 2,500,000 tires for more than 60 consecutive days; and]
25-11 [(2) submit evidence of financial responsibility in an
25-12 amount adequate to assure proper cleanup and closure of the
25-13 facility, if the recipient anticipates accepting an amount of whole
25-14 waste tires or shredded tire pieces for storage that exceeds the
25-15 facility's 30-day supply.]
25-16 [Sec. 361.4773. ][Payment for Shredded Waste Tire Energy
25-17 Recovery Facility][. The commission each month shall pay to a waste
25-18 tire energy recovery facility owner or operator that burns shredded
25-19 tires in compliance with an energy recovery permit issued by the
25-20 commission an amount equal to 40 cents for each weighed tire the
25-21 facility used for energy recovery during the preceding month.]
25-22 [(b) To receive payment under this section, a retrofitted
25-23 waste tire energy recovery facility owner or operator must:]
25-24 [(1) apply to the commission for payment in a manner
25-25 and on forms prescribed by commission rule; and]
25-26 [(2) comply with applicable rules adopted by the
25-27 commission under this section and Section 361.4771, unless
26-1 otherwise indicated by the energy recovery permit issued by the
26-2 commission.]
26-3 SECTION 9. Section 361.4774, Health and Safety Code, is
26-4 amended to read as follows:
26-5 Sec. 361.4774. [Limited Use of Waste Tire Recycling Fund;
26-6 Grants, Reimbursement, and] Administrative Expenses. (a) For
26-7 performing duties related to the scrap [waste] tire program, each
26-8 fiscal year the comptroller may expend [up to $680,000 or] an
26-9 amount equal to not more than two percent of the monthly annually
26-10 accruing to the scrap [waste] tire [recovery] fund[, whichever is
26-11 greater].
26-12 (b) For administering the scrap [waste] tire recycling
26-13 program, each fiscal year the commission may expend [not more than
26-14 the lesser of $2.05 million or] an amount equal to not more than
26-15 six percent of the amount annually accruing to [appropriated from]
26-16 the scrap [waste] tire recycling fund for the administration and
26-17 operation of the scrap [waste] tire recycling program.
26-18 [(c) Each fiscal year, the commission may expend not more
26-19 than:]
26-20 [(1) $1.4 million for paying accrued carryover credits
26-21 as provided by Section 361.499;]
26-22 [(2) $15.2 million for tire shredding under Section
26-23 361.477;]
26-24 [(3) $3.52 million for the cleanup and closure of
26-25 priority enforcement list tire sites as provided by Sections
26-26 361.476 and 361.477;]
26-27 [(4) $2 million for providing recycling facility
27-1 construction grants under Section 361.4772;]
27-2 [(5) $600,000 for payments to energy recovery
27-3 facilities under Section 361.4773 at a rate of 40 cents per weighed
27-4 tire unit; and]
27-5 [(6) $6 million to provide grants for retrofitting
27-6 facilities to use whole or shredded tires for fuel or for paying
27-7 for facilities to use whole tires for fuel as provided by
27-8 Subsections (d) and (e).]
27-9 [(d) For fiscal year 1996, the commission may expend not
27-10 more than $4 million for:]
27-11 [(1) providing grants to waste tire energy recovery
27-12 facilities that are not using tire-derived fuel and apply for
27-13 assistance to cover retrofitting costs the commission determines
27-14 are necessary to enable the facilities to use whole tires as fuel;
27-15 and]
27-16 [(2) paying a facility eligible for a grant under
27-17 Subdivision (1), but for which the commission has not made a grant,
27-18 an amount of up to 80 cents per weighed tire unit.]
27-19 [(e) A person receiving payments for weighed tires under
27-20 Subsection (d)(2) may not receive reimbursements that exceed the
27-21 total of:]
27-22 [(1) the amount of the retrofitting costs the facility
27-23 would have received if the person had applied for a grant under
27-24 Subsection (d)(1); and]
27-25 [(2) the cost, as determined by the commission, of
27-26 transporting to the facility the number of whole tires used for
27-27 fuel until the payments under Subsection (d)(2) equal the amount of
28-1 the retrofitting costs the facility would have received.]
28-2 [(f) For fiscal year 1996, the commission may expend not
28-3 more than $2 million to provide grants to waste tire energy
28-4 recovery facilities that are not using tire-derived fuel and apply
28-5 for assistance to cover retrofitting costs the commission
28-6 determines are necessary to enable the facilities to use shredded
28-7 tires as fuel.]
28-8 [(g) For the period beginning September 1, 1996, and ending
28-9 December 31, 1997, the commission may expend not more than $6
28-10 million for payments to waste tire energy recovery facilities that
28-11 burn whole tires at a rate of 80 cents per weighed tire unit used.]
28-12 [(h) After the third quarter of each year of the fiscal
28-13 biennium, funds that remain unused for the purposes specified in
28-14 Subsections (a)-(g) may be transferred for use for a purpose
28-15 specified in Subsections (c)-(g) at the discretion of the
28-16 commission to promote recycling and energy recovery].
28-17 SECTION 10. Section 361.479, Health and Safety Code, is
28-18 amended to read as follows:
28-19 Sec. 361.479. Evidence of Financial Responsibility. (a) A
28-20 person required to register under Section 361.4725 [waste tire
28-21 storage facility registered by the commission or a waste tire
28-22 facility that accepts shredded scrap tires for storage or for
28-23 processing for recycling, reuse, or energy recovery] shall submit
28-24 to the commission and shall maintain evidence of financial
28-25 responsibility in an amount adequate to assure proper cleanup and
28-26 closure of the facility.
28-27 (b) A scrap [waste] tire [recycling] facility owner or
29-1 operator who anticipates accepting for storage an amount of whole
29-2 scrap tires, shredded tire pieces, or tire-derived material [for
29-3 storage] that exceeds the facility's 30-day supply shall submit to
29-4 the commission and shall maintain evidence of financial
29-5 responsibility in an amount adequate to assure proper cleanup and
29-6 closure of the facility.
29-7 (c) A facility subject to Subsection (a) or (b) shall submit
29-8 to the commission an estimate of the total amount of whole scrap
29-9 tires, shredded tire pieces, or tire-derived material measured by
29-10 pounds [weighed tire] that the facility will store or process, the
29-11 maximum number of out-of-state tires the facility will store, and
29-12 the estimated cost, using that total amount, of cleaning up and
29-13 closing the facility.
29-14 (d) The commission shall evaluate and may amend an estimate
29-15 submitted under Subsection (c) and shall determine for each
29-16 facility the amount for which evidence of financial responsibility
29-17 is required. The commission periodically may audit a facility
29-18 subject to this section and may increase the amount for which the
29-19 facility is required to provide evidence of financial
29-20 responsibility. the commission may suspend the registration of, or
29-21 payments under Sections 361.477 and 361.4771 to, a facility that
29-22 does not provide evidence of financial responsibility for an
29-23 increased amount required under this section.
29-24 (e) Evidence of financial responsibility may be in the form
29-25 of:
29-26 (1) a performance bond or a letter of credit
29-27 acceptable to the commission that is from a financial institution,
30-1 a trust fund, or insurance for a privately owned facility; or
30-2 (2) a self-insurance test designed by the commission
30-3 for a publicly owned facility. A person who makes an initial
30-4 request for reimbursement from the scrap [waste] tire recycling
30-5 fund on or after September 1, 1993, must provide evidence of
30-6 financial responsibility for the full amount determined under
30-7 Subsection (d).
30-8 (f) A person who files an application or amended application
30-9 for registration under this subchapter on or after September 1,
30-10 1997, must provide evidence of financial responsibility:
30-11 (1) in an amount adequate to assure proper cleanup and
30-12 closure of the facility for which registration is requested; and
30-13 (2) in a form prescribed by commission rule that may
30-14 be used to pay for the proper cleanup and closure of that facility.
30-15 SECTION 11. Subchapter P, Chapter 361, Health and Safety
30-16 Code, is amended by adding Sections 361.4791 and 361.4792 to read
30-17 as follows:
30-18 Sec. 361.4791. LIEN. (a) All remediation costs incurred by
30-19 the commission for the cleanup and closure of a site for which
30-20 insufficient financial assurance has been provided constitute a
30-21 lien in favor of the state on the property on which the site is
30-22 located.
30-23 (b) The lien arises and attaches on the date a commission
30-24 affidavit is filed with the county clerk in the county in which the
30-25 site is located. The affidavit shall state the name of the owner
30-26 of the property, the amount owed, and the legal description of the
30-27 property. The county clerk shall file an affidavit relating to the
31-1 site in the real property records of the county in which the
31-2 property is located.
31-3 (c) The lien is subordinate to the rights of prior bona fide
31-4 purchasers of or lienholders on the property.
31-5 Sec. 361.4792. NOTICE OF BANKRUPTCY. (a) Not later than
31-6 the second business day after the filing of a voluntary petition in
31-7 bankruptcy by a scrap tire processor, scrap tire end user, or scrap
31-8 tire transporter or the filing of an involuntary bankruptcy
31-9 petition for relief against a scrap tire processor, scrap tire end
31-10 user, or scrap tire transporter, the scrap tire processor, scrap
31-11 tire end user, or scrap tire transporter shall deliver to the
31-12 bankruptcy program department of the commission in Austin written
31-13 notice of the bankruptcy stating the case number and the bankruptcy
31-14 court where the case is pending.
31-15 (b) Not later than the second business day after the date
31-16 the document is filed with the bankruptcy clerk's office in a
31-17 bankruptcy case described in Subsection (a), the scrap tire
31-18 processor, scrap tire end user, or scrap tire transporter shall
31-19 deliver to the bankruptcy program department of the commission a
31-20 copy of:
31-21 (1) any schedule or statement of affairs;
31-22 (2) any amended schedule or statement of affairs; or
31-23 (3) any monthly operating report.
31-24 SECTION 12. Sections 361.481 and 361.482, Health and Safety
31-25 Code, are amended to read as follows:
31-26 Sec. 361.481. Prohibition On Out-of-State Tires; Penalty.
31-27 (a) A scrap [waste] tire facility, scrap tire recycler or whole
32-1 scrap tire energy recovery facility [processor] may not claim
32-2 payment under this subchapter (Section 361.477 for shredding,
32-3 burning or recycling out-of-state tires. [A waste tire energy
32-4 recovery facility owner or operator may not claim payment under
32-5 Section 361.4771 or 361.4773 for burning out-of-state tires. A
32-6 waste tire recycler may not claim payment under Section 361.4772
32-7 for recycling out-of-state tires.]
32-8 (b) A scrap [waste] tire generator that the commission
32-9 determines has used a manifest and commission generator number to
32-10 pass out-of-state tires is subject to an [not eligible for the free
32-11 collection and transportation of waste tires generated at the
32-12 generator's place of business. In addition to any] administrative,
32-13 civil, or criminal enforcement action[, the commission shall
32-14 require the generator to pay for:]
32-15 [(1) collection and transportation of generated tires;
32-16 and]
32-17 [(2) shredding, burning, or recycling of generated
32-18 tires at the applicable rate specified in Section 361.477,
32-19 361.4771, or 361.4772].
32-20 (c) A scrap [waste] tire facility [processor], whole scrap
32-21 [waste] tire energy recovery facility owner or operator, or scrap
32-22 [waste] tire recycler who the commission determines has knowingly
32-23 accepted out-of-state tires on manifests using a commission
32-24 generator number is subject to an administrative, civil, or
32-25 criminal enforcement action.
32-26 (d) A scrap [waste] tire transporter that the commission
32-27 determines has transported out-of-state tires using a
33-1 commission-approved manifest or transporter number is subject to an
33-2 administrative, civil, or criminal enforcement action.
33-3 (e) The commission shall treat whole scrap tires and
33-4 shredded scrap tire pieces generated in Texas, removed from Texas,
33-5 and subsequently reintroduced in Texas as out-of-state scrap tires
33-6 for the purposes of this subchapter.
33-7 Sec. 361.482. Prohibition on Disposal of [Shredded] Tires in
33-8 Landfill. (a) Except as provided by Subsection (b), a [A] person
33-9 may not dispose of in-state or out-of-state whole used tires, [or]
33-10 scrap tires, [that are eligible for reimbursement under this
33-11 chapter] or shredded tire pieces [for which reimbursement has been
33-12 paid under this subchapter] in a landfill, including a Type VIII-S
33-13 tire monofill.
33-14 (b) In an emergency, the commission may by rule authorize
33-15 the landfill disposal of scrap tires that have been quartered or
33-16 shredded tire pieces until the commission determines that there are
33-17 sufficient uses for scrap tires being generated in this state.
33-18 SECTION 13. Subchapter P, Chapter 361, Health and Safety
33-19 Code, is amended by adding Section 361.4825 to read as follows:
33-20 Sec. 361.4825. INTENTIONAL BURNING PROHIBITED; DUMPING
33-21 PROHIBITED; CRIMINAL PENALTY. (a) A person commits an offense if
33-22 the person starts a fire with the intent to destroy or damage whole
33-23 scrap tires, tire pieces, or tire-derived products stored at a:
33-24 (1) scrap tire generator;
33-25 (2) scrap tire facility;
33-26 (3) whole scrap tire energy recovery facility;
33-27 (4) scrap tire recycling facility; or
34-1 (5) priority enforcement list site.
34-2 (b) It is an exception to the application of Subsection
34-3 (a)(3) that the fire was started at a registered scrap tire energy
34-4 recovery facility in the course of an energy recovery procedure
34-5 authorized under this subchapter.
34-6 (c) A person commits an offense if the person disposes of
34-7 more than 100 whole tires or an equivalent amount of scrap tire
34-8 pieces at a site that is not authorized by the commission to accept
34-9 whole tires or scrap tire pieces.
34-10 (d) An offense under this section is a felony of the second
34-11 degree.
34-12 (e) In addition to the criminal penalty provided by this
34-13 section, a person who commits an offense under this section is
34-14 subject to a civil penalty under Section 361.483.
34-15 SECTION 14. Sections 361.483(a) and (c), Health and Safety
34-16 Code are amended to read as follows:
34-17 (a) A person who violates this subchapter or a rule adopted
34-18 or order issued under this subchapter is liable for a civil penalty
34-19 of not less than $100 or more than $25,000; [up to $10,000] for
34-20 each violation and for each day of a continuing violation.
34-21 (c) A penalty collected under this section shall be
34-22 deposited to the credit of the scrap [waste] tire recycling fund.
34-23 SECTION 15. Section 361.4832, Health and Safety Code, is
34-24 amended to read as follows:
34-25 Sec. 361.4832. Administrative Penalty; Order for Corrective
34-26 Action; Suspension of Registration. (a) If a person violates this
34-27 subchapter or a rule adopted or order issued under this subchapter
35-1 the commission may:
35-2 (1) assess against the person an administrative
35-3 penalty under Section 361.252 in an amount not to exceed $10,000
35-4 for each act of violation and for each day of violation; or
35-5 (2) order the person to take a corrective action.
35-6 (b) The commission may suspend a registration issued under
35-7 this subchapter and may suspend payment under Sections 361.477 or
35-8 361.4771 to a scrap [of or reimbursement payment to a waste tire
35-9 processor, waste tire transporter, waste tire generator, waste]
35-10 tire [recycling] facility, or whole scrap [waste] tire energy
35-11 recovery facility, or scrap tire recycler on the initiation of an
35-12 enforcement proceeding and while the proceeding is pending for the
35-13 violation of this subchapter or a rule adopted or order issued
35-14 under this subchapter.
35-15 SECTION 16. Section 361.485(b), Health and Safety Code, is
35-16 amended to read as follows:
35-17 (b) The commission shall include in the report the
35-18 commission's (recommendation, based on the commission's evaluation)
35-19 adjustment to compensate for the rate of inflation made pursuant to
35-20 Section 361.4851 during the preceding two years[, as to whether an
35-21 adjustment] to the fee assessed on the sale of tires or to the rate
35-22 of reimbursement paid to a scrap [waste] tire facility [processor],
35-23 or whole scrap [waste] tire energy recovery facility, or scrap tire
35-24 recycler owner or operator [is warranted].
35-25 SECTION 17. Subchapter P, Chapter 361, Health and Safety
35-26 Code, is amended by adding a new Section 361.4851 to read as
35-27 follows:
36-1 Sec. 361.4851. ADJUSTMENTS DUE TO INFLATION. The commission
36-2 shall biannually adjust the reimbursements paid under this
36-3 subchapter to a scrap tire facility, whole scrap tire energy
36-4 recovery facility, or a scrap tire recycler in an equivalent amount
36-5 to reflect changes in inflation occurring as measured by the U.S.
36-6 Consumer Products Index (CPI). The base for the adjustment shall
36-7 be the CPI as it exists on September 1, 1997.
36-8 SECTION 18. Section 361.486, Health and Safety Code, is
36-9 amended to read as follows:
36-10 Sec. 361.486. Recycling Efforts. (a) Notwithstanding
36-11 Section 361.496, on and after January 1, 1996, each applicant for a
36-12 new, amended, and renewal processing registration and each existing
36-13 processor must identify those persons who will accept the
36-14 processor's shredded tire pieces for recycling or reuse or to use
36-15 the shredded scrap tires for energy recovery. The commission may
36-16 not require that the processor provide a copy of the contract, or
36-17 provide any of the contract terms, between the processor and the
36-18 end user. The commission shall reimburse a processor for only
36-19 those shredded tires that the executive director [commission]
36-20 determines are committed to a legitimate end user. When a scrap
36-21 tire facility or scrap tire recycler submits an application for end
36-22 use approval, the executive director shall act upon the request for
36-23 approval within 90 days from the date of filing, and in writing
36-24 notify the application stating the executive director's reasons for
36-25 or against approval.
36-26 (b) The commission may disapprove of the use a person
36-27 identified by the processor has for the tire pieces unless the
37-1 person identified is authorized by the state to use tire-derived
37-2 fuel for energy recovery or is a scrap tire recycler.
37-3 (c) The commission by rule shall define recycling for
37-4 purposes of this subchapter.
37-5 (d) On or before January 1, 1994, and on a semiannual basis
37-6 thereafter, registered scrap tire facilities, scrap tire recyclers,
37-7 and whole scrap tire energy recovery facility [processors and
37-8 storage site] owners and operators shall report their recycling,
37-9 reuse, and energy recovery activities to the commission. The
37-10 commission by rule shall prescribe the form and other requirements
37-11 of the report.
37-12 (e) A person who, in this state, recycles or recovers the
37-13 energy from shredded tire pieces shall register with the commission
37-14 in accordance with the rules and on the forms prescribed by the
37-15 commission.
37-16 SECTION 19. Section 361.487, Health and Safety Code, is
37-17 amended to read as follows:
37-18 Sec. 361.487. PAYMENTS TO OUT-OF-STATE END USERS
37-19 [Reimbursement Restrictions]. (a) The commission by rule may
37-20 provide for payments under Sections 361.477 and 361.4771 to an end
37-21 user outside the state boundaries of Texas. [A processor seeking
37-22 reimbursement under Section 361.477 shall process and store the
37-23 whole used or scrap tires or shredded tire pieces in the state. A
37-24 waste tire energy recovery facility owner or operator seeking
37-25 reimbursement under Section 361.4771 or 361.4773 shall store and
37-26 burn the whole used or scrap tires or shredded tire pieces in the
37-27 state.]
38-1 (b) The rules must require an end user outside the state
38-2 boundaries of Texas to demonstrate that whole scrap tires, shredded
38-3 tire pieces, or tire-derived material for which payment is
38-4 requested were:
38-5 (1) generated and collected in this state;
38-6 (2) transported out of this state and delivered to the
38-7 end user outside the state boundaries of Texas; and
38-8 (3) actually put to end use by the end user outside
38-9 the state boundaries of Texas [commission shall treat whole used or
38-10 scrap tires and shredded tire pieces generated in Texas, removed
38-11 from Texas, and subsequently reintroduced to Texas as out-of-state
38-12 scrap tires for the purposes of this subchapter].
38-13 SECTION 20. Section 361.489(a) and (e), Health and Safety
38-14 Code, are amended to read as follows:
38-15 (a) The commission may, with the funds available to the
38-16 commission from the scrap [waste] tire recycling fund, undertake
38-17 immediate remediation of a site if, after investigation, the
38-18 commission finds:
38-19 (1) that there exists a situation caused by the
38-20 [illegal dumping of] scrap tires that is causing or may cause
38-21 imminent and substantial endangerment to the public health and
38-22 safety or the environment; and
38-23 (2) the immediacy of the situation makes it
38-24 prejudicial to the public interest to delay action until an
38-25 administrative order can be issued to potentially responsible
38-26 parties or until a judgment can be entered in an appeal of an
38-27 administrative order.
39-1 (e) Money collected in a suit to recover costs shall be
39-2 deposited to the credit of the scrap [waste] tire recycling fund.
39-3 SECTION 21. Section 361.490, Health and Safety Code, is
39-4 amended to read as follows:
39-5 Sec. 361.490. Access to Priority Enforcement List Site.
39-6 [(a)] Members of the commission or [,] employees or agents of the
39-7 commission[, and authorized processors or their subcontractors] are
39-8 entitled to enter any public or private property at any reasonable
39-9 time for the purpose of inspecting, investigating, or remediating
39-10 any condition related to illegal dumping of scrap tires. [An
39-11 authorized processor or subcontractor is entitled to enter property
39-12 only if the commission directs the processor or subcontractor to
39-13 enter the property.] The executive director shall give notice of
39-14 intent to enter private property for those purposes by certified
39-15 mail to the last known address indicated in the current county
39-16 property records at least 10 days before a commission member,
39-17 commission employee or agent [, or authorized processor or
39-18 subcontractor] enters the property. A commission member,
39-19 commission employee or agent[, or authorized processor or
39-20 subcontractor] who, acting under this subsection, enters private
39-21 property shall:
39-22 (1) observe the establishment's rules concerning
39-23 safety, internal security, and fire protection; and
39-24 (2) if the property has management in residence, make
39-25 a reasonable attempt to notify the management or person in charge
39-26 of the entry and exhibit credentials.
39-27 [(b) Authorized processors and their subcontractors may not
40-1 be considered agents of the state and are solely responsible for
40-2 their actions.]
40-3 SECTION 22. Sections 361.494-361.496, Health and Safety Code
40-4 are amended to read as follows:
40-5 Sec. 361.494. Appeal. The commission shall establish a
40-6 process by which a registered scrap tire facility or the owner or
40-7 operator of a registered whole scrap [waste] tire energy recovery
40-8 facility, or a registered scrap tire recycler [processor] who is
40-9 adversely affected by an agency decision affecting reimbursement
40-10 may appeal that decision to the executive director or the
40-11 commission.
40-12 Sec. 361.495. Fiscal Audits. The commission biennially
40-13 shall perform a fiscal audit of each person receiving
40-14 reimbursements under Sections 361.477 and 361.4771 [waste tire
40-15 processor, waste tire recycling facility, and waste tire energy
40-16 recovery facility owner or operator] to ensure fiscal
40-17 responsibility and accountability regarding reimbursements made
40-18 under Sections 361.477, and 361.4771[, and 361.4773. The person
40-19 audited shall bear the costs of the audits].
40-20 Sec. 361.496. New or Expanded Processing Operation. A scrap
40-21 tire facility [new processor], whole scrap [waste] tire energy
40-22 recovery facility, or scrap [waste] tire recycler or a registered
40-23 scrap tire facility, whole scrap [processor, waste] tire energy
40-24 recovery facility, or scrap [waste] tire recycler that seeks to
40-25 establish a new processing facility or expand a processing
40-26 operation in the state must:
40-27 (1) certify that such scrap tire facility, whole
41-1 [processor, waste] tire energy recovery facility, or scrap [waste]
41-2 tire recycler is willing to provide collection and transportation
41-3 of scrap [waste] tires from registered generators in rural counties
41-4 of the state at the request of the commission during emergency
41-5 periods as defined by the commission when such generators are not
41-6 being otherwise served by registered processors or transporters;
41-7 and
41-8 (2) identify and have available a certified end use in
41-9 the application for a new or amended registration.
41-10 SECTION 23. Section 361.498 is amended to read as follows:
41-11 Sec. 361.498. Community Service. Persons seeking
41-12 reimbursement from the scrap [waste] tire recycling fund shall
41-13 perform community service on an annual basis. Community service
41-14 includes cooperation with local civic groups to clean up abandoned
41-15 tire sites that are not classified as priority enforcement list
41-16 sites. The tires collected under this section are eligible for
41-17 reimbursement.
41-18 SECTION 24. Sections 361.478, 361.486, 361.4865, and
41-19 361.499, Health and Safety Code, are repealed.
41-20 SECTION 25. (a) As soon as practicable after September 1,
41-21 1997, the Texas Natural Resource Conservation Commission shall
41-22 inventory the amount and location of:
41-23 (1) shredded tire pieces in this state; and
41-24 (2) whole scrap tires in priority enforcement list
41-25 sites in the state.
41-26 (b) Not later than December 1, 1997, the Texas Natural
41-27 Resource Conservation Commission shall adopt the rules necessary to
42-1 implement Subchapter P, Chapter 361, Health and Safety Code, as
42-2 amended by this Act.
42-3 SECTION 26. (a) Any unappropriated, unexpended, and
42-4 unencumbered money available in the scrap tire recycling fund on
42-5 September 1, 1997, is appropriated to the Texas Natural Resource
42-6 Conservation Commission to be used only for payments under Sections
42-7 361.477 and 361.4771, Health and Safety Code, as amended by this
42-8 Act, for:
42-9 (1) shredded tire pieces identified in the inventory
42-10 conducted under Section 22(a) of this Act; or
42-11 (2) whole scrap tires from a priority enforcement list
42-12 site identified in the inventory conducted under Section 22(a) of
42-13 this Act.
42-14 (b) The payments authorized under subsection (a) of this
42-15 section apply only to whole scrap tires or shredded tire pieces
42-16 actually put to end use on or after January 1, 1998.
42-17 SECTION 27. (a) Except as otherwise provided by this Act,
42-18 this Act takes effect September 1, 1997.
42-19 (b) Section 361.4725(c), Health and Safety Code, as added by
42-20 this Act, applies to an application for a new registration or an
42-21 application to renew or amend an existing registration that is
42-22 pending before the Texas Natural Resource Conservation Commission
42-23 on or after that date.
42-24 (c) The payments authorized by Sections 361.477 and
42-25 361.4771, Health and Safety Code, as amended by this Act, apply
42-26 only to whole scrap tires shredded tire pieces, or tire-derived
42-27 materials actually put to end use on or after September 1, 1997.
43-1 (d) Section 361.4825, Health and Safety Code, as added by
43-2 this Act, applies only to an offense committed on or after
43-3 September 1, 1997, if any element of the offense occurs on or after
43-4 that date.
43-5 SECTION 28. The importance of this legislation and the
43-6 crowded condition of the calendars in both houses create an
43-7 emergency and an imperative public necessity that the
43-8 constitutional rule requiring bills to be read on three several
43-9 days in each house be suspended, and this rule is hereby suspended,
43-10 and that this Act take effect and be in force from and after its
43-11 passage, and it is so enacted.