By: Armbrister S.B. No. 1474
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the waste tire recycling fund.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Sections 361.112 (f) and (g), Health and Safety
1-4 Code, are amended to read as follows:
1-5 (f) A person may not store more than 500 [used or] scrap
1-6 tires or dispose of any quantity of [used or] scrap tires unless
1-7 the tires are shredded, split, or quartered as provided by
1-8 commission rule. The commission may grant an exception to this
1-9 requirement if the commission finds that circumstances warrant the
1-10 exception. The prohibition provided by this subsection regarding
1-11 storage does not apply to:
1-12 (1) a registered scrap [waste] tire energy recovery
1-13 facility, scrap tire recycler, scrap tire facility or a whole scrap
1-14 [waste] tire energy recovery facility storage site;
1-15 (2) [. The prohibition provided by this subsection
1-16 does not apply to] a person who, for eventual recycling, reuse, or
1-17 energy recovery, temporarily stores scrap tires in a designated
1-18 recycling collection area at a landfill permitted by the commission
1-19 or licensed by a county or by a political subdivision exercising
1-20 the authority granted by Section 361.165; or
1-21 (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
3-1 objectives of this subchapter.
3-2 (4) "Fund" means the scrap [waste] tire recycling
3-3 fund.
3-4 (5) [(2)] "Green tire" means the casing form of a tire
3-5 that has not been cured or does not have a tread or marking of any
3-6 kind.
3-7 [(3) "Good used tire" means a used tire, not including
3-8 a recapped or retreaded tire, suitable for continued use for its
3-9 original intended purpose.]
3-10 (6) [(4)] "Manufacturer reject tire" means a tire
3-11 rendered defective in the manufacturing process, whether the tire
3-12 is determined to be defective before or after consumer purchase.
3-13 (7) [(5)] "Mobile tire shredder" means equipment
3-14 mounted on wheels or skid-mounted and hauled from place to place to
3-15 split, shred, or quarter [used or] scrap tires.
3-16 (8) [(6)] "Scrap tire" has the meaning assigned by
3-17 Section 361.112.
3-18 (9) [(7)] "Scrap [Waste] tire energy recovery
3-19 facility" means a facility at which [whole used or scrap tires or]
3-20 shredded tires are used as a fuel, including:
3-21 (A) a cement kiln;
3-22 (B) a utility boiler;
3-23 (C) a pulp and paper mill;
3-24 (D) a cogeneration facility; or
3-25 (E) a foundry; or
4-1 (F) [(E)] another facility designated by the
4-2 commission.
4-3 (10) "Scrap tire generator" includes an entity that
4-4 accepts scrap tire pieces for temporary storage, a fleet operator,
4-5 an automotive dismantler, or a whole new or used tire retailer,
4-6 wholesaler, manufacturer, recapper, or retreader. The term does
4-7 not include a scrap tire facility, scrap tire recycler or whole
4-8 scrap tire energy recovery facility that stores whole tires or tire
4-9 pieces.
4-10 (11) [8] "Scrap [Waste] tire facility" means a
4-11 facility [registered by the commission under Section 361.477] at
4-12 which scrap tires are collected and shredded to facilitate the
4-13 future extraction of useful materials for recycling, reuse, or
4-14 energy recovery and are stored in a scrap [waste] tire storage
4-15 facility or a facility that recycles, reuses, or recovers the
4-16 energy from the shredded tire pieces.
4-17 (12) [(9)] "Scrap [waste] tire processor" means:
4-18 (A) a scrap [waste] tire facility; or
4-19 (B) a mobile tire shredder that splits, shreds,
4-20 or quarters tires and deposits the split, shredded, or quartered
4-21 tires for eventual recycling, reuse, or energy recovery at:
4-22 (i) a scrap [waste] tire storage facility
4-23 registered by the commission under Section 361.112; or
4-24 (ii) a scrap [waste] tire facility.
4-25 (13) [(10)] "Scrap [Waste] tire storage facility"
5-1 means a facility registered by the commission under Section
5-2 361.4725 [361.477] at which whole [used or] scrap tires or shredded
5-3 tire pieces are collected and stored to facilitate the future
5-4 extraction of useful material for recycling, reuse, or recovery.
5-5 The term does not include a marine dock, rail yard, or trucking
5-6 facility used to store tires that are awaiting shipment to a person
5-7 for recycling, reuse, or energy recovery for 30 days or less.
5-8 (14) [(11)] "Scrap [Waste] tire transporter" means a
5-9 person who collects and transports [used or] scrap tires or scrap
5-10 tire pieces for storage or disposal.
5-11 (15) "Tire-derived material" includes crumb rubber,
5-12 materials produced from scrap tires or tire pieces through a
5-13 pyrolytic or other chemical or thermal process.
5-14 (16) "Whole scrap tire energy recovery facility" means
5-15 a facility at which whole scrap tires are used as fuel.
5-16 [(12) "Weighed tire" means a unit of weight for
5-17 shredded scrap tires that is equal to 18.7 pounds.]
5-18 SECTION 4. Section 461.472, Health and Safety Code, is
5-19 amended to read as follows:
5-20 Sec. 361.472. SCRAP [WASTE] TIRE RECYCLING FEES. (a) A
5-21 person in the business of selling new [good used] tires who sells
5-22 or offers to sell new tires not for resale [for use on a vehicle,]
5-23 or a person in the business of selling used vehicles or used
5-24 vehicle parts who sells or offers to sell new [or good used] tires
5-25 not for resale shall collect at the time and place of sale a scrap
6-1 [waste] tire recycling fee for each tire sold as follows:
6-2 (1) $2 for each new tire that has a rim diameter of 12
6-3 inches or more but less than 17.5 inches [and $1 for each good used
6-4 tire that has a rim diameter of 12 inches or more but less than
6-5 17.5 inches];
6-6 (2) $3.50 for each new tire that has a rim diameter of
6-7 17.5 inches or greater, other than an off-the-road tire intended
6-8 for use on heavy machinery, including an earthmover, a
6-9 loader/dozer, a grader, or mining equipment; and
6-10 (3) $1.50 [$2] for a new motorcycle tire, regardless
6-11 of the rim diameter.
6-12 (b) The sale of a tire as original equipment in the
6-13 manufacture of a new vehicle is a sale for resale.
6-14 (c) A fee may not be assessed for:
6-15 (1) a recapped or retreaded tire; [or]
6-16 (2) a bicycle tire; or
6-17 (3) a solid industrial tire.
6-18 (d) A person required to collect a fee under this section:
6-19 (1) shall list as a separate item on an invoice a fee
6-20 due under this section; and
6-21 (2) except as provided by Subsection (e), on or before
6-22 the 20th day of the month following the end of each calendar month
6-23 and on a form and in the manner prescribed by the comptroller,
6-24 shall file a report with and shall remit to the comptroller the
6-25 amount of fees collected during the preceding calendar month.
7-1 (e) A person required to collect a fee under this section
7-2 who collects less than $50 for a calendar month or less than $150
7-3 for a calendar quarter is not required to file a monthly report but
7-4 shall file a quarterly report with and make a quarterly remittance
7-5 to the comptroller. The quarterly report and remittance shall
7-6 include fees collected during the preceding calendar quarter. The
7-7 report and remittance are due not later than the 20th day of the
7-8 month following the end of the calendar quarter.
7-9 (f) An invoice or other record required by this section or
7-10 rules of the comptroller must be maintained for at least four years
7-11 after the date on which the invoice or record is prepared and be
7-12 open for inspection by the comptroller at all reasonable times.
7-13 (g) The comptroller shall adopt rules necessary for the
7-14 administration, collection, reporting, and payment of the fees
7-15 payable or collected under this section.
7-16 (h) A scrap [waste] tire recycling fee is imposed on the
7-17 storage, use, or consumption in this state of a tire at the same
7-18 rate as provided by Subsection (a), except when purchased for the
7-19 purpose of resale.
7-20 (i) A person storing, using, or consuming a tire in this
7-21 state is liable for the scrap [waste] tire recycling fee as defined
7-22 in this section and is responsible for reporting and paying the fee
7-23 to the comptroller in the same manner as a person required to
7-24 collect this fee, as provided in Subsections (d)(2) and (e).
7-25 (j) A person storing, using, or consuming a tire in this
8-1 state is not further liable for the scrap [waste] tire recycling
8-2 fee imposed by Subsection (a) if the person:
8-3 (1) pays the fee to:
8-4 (A) a person who is required to collect the fee
8-5 under Subsection (a) and who is engaged in business in this state;
8-6 or
8-7 (B) another person authorized by the comptroller
8-8 to collect the fee; and
8-9 (2) receives a purchaser's receipt from the person to
8-10 whom the fee was paid.
8-11 (k) In this section:
8-12 (1) "Engaged in business in this state" has the
8-13 meaning provided under Sections 151.107(a) and (b), Tax Code.
8-14 (2) "Purchased for resale" means acquired by means of
8-15 a sale for resale as defined in Section 151.006, Tax Code.
8-16 (3) "Storage" and "use" have the meanings assigned
8-17 those terms by Section 151.011, Tax Code.
8-18 SECTION 5. Section 361.4275, Health and Safety Code, is
8-19 amended to read as follows:
8-20 Sec. 361.4725. REGISTRATION; FEE. (a) A scrap tire
8-21 facility, scrap tire recycler, scrap tire storage facility, scrap
8-22 tire transporter, scrap tire processor, scrap tire energy recovery
8-23 facility, whole scrap tire energy recovery facility, or scrap tire
8-24 generator shall register with the commission in accordance with
8-25 commission rules and on the forms prescribed by the commission.
9-1 (b) A person who applies to the commission to register under
9-2 this section [a waste tire storage facility, a waste tire energy
9-3 recovery facility storage site, a waste tire recycler, or a fixed
9-4 or mobile tire processor,] or applies to renew or amend the
9-5 registration, must pay a fee set by the commission not to exceed
9-6 [of] $500.
9-7 SECTION 6. Sections 361.474 and 361.475, Health and Safety
9-8 Code, are amended to read as follows:
9-9 Sec. 361.474. Disposition of Fees and Penalties. Fees and
9-10 penalties collected under this subchapter shall be deposited in the
9-11 state treasury to the credit of the scrap [waste] tire recycling
9-12 fund.
9-13 Sec. 361.475. SCRAP [WASTE] TIRE RECYCLING FUND. (a) The
9-14 scrap [waste] tire recycling fund is a special account in the
9-15 general revenue fund.
9-16 (b) The commission shall administer the fund.
9-17 (c) The fund consists of fees and penalties collected under
9-18 this subchapter, interest on money in the fund, and money from
9-19 gifts, grants, or any other source intended to be used for the
9-20 purposes of this subchapter.
9-21 (d) The fund shall be used only to:
9-22 (1) pay scrap [waste] tire facilities [processors],
9-23 [waste] whole scrap tire energy recovery facility, or scrap tire
9-24 recyclers owners or operators[, or waste tire recyclers] that meet
9-25 the requirements for payment under Section 361.477, 361.4771, or
10-1 361.4772[, or 361.4773] and rules adopted under those sections;
10-2 (2) pay the commission's reasonable and necessary
10-3 administrative costs of performing its duties under this subchapter
10-4 as provided by Section 361.4774 [in an amount not to exceed six
10-5 percent of the money annually accruing to the fund]; and
10-6 (3) pay the comptroller's reasonable and necessary
10-7 administrative costs of performing the comptroller's duties under
10-8 this subchapter as provided by Section 361.4774 [in an amount not
10-9 to exceed two percent of the money annually accruing to the fund;]
10-10 [(4) provide grants to waste tire energy recovery
10-11 facility owners or operators to cover equipment capital investment
10-12 costs and equipment installation costs to enable a facility to use
10-13 tire shreds as fuel; and]
10-14 [(5) provide grants for recycling facility
10-15 construction costs].
10-16 (e) Registration fees received under Section 361.4725 shall
10-17 be allocated to the commission for its reasonable and necessary
10-18 costs associated with the [reviewing applications for] registration
10-19 of a person required to register under that section [and with
10-20 registering:]
10-21 [(1) fixed and mobile tire processing facilities and
10-22 storage sites;]
10-23 [(2) waste tire energy recovery facilities and storage
10-24 sites; and]
10-25 [(3) waste tire recyclers].
11-1 (f) The fund may not be used to reimburse shredding or
11-2 burning of:
11-3 (1) innertubes;
11-4 (2) scrap rubber products;
11-5 (3) green tires;
11-6 (4) industrial solid waste, excluding scrap [waste]
11-7 tires;
11-8 (5) oversized tires, as defined by commission rule,
11-9 unless the oversized tires are collected from a priority
11-10 enforcement list site;
11-11 (6) manufacturer reject tires; or
11-12 (7) nonpneumatic tires.
11-13 (g) The commission may classify special authorization tires,
11-14 as defined by commission rule, as priority enforcement list tires.
11-15 (h) [The fund shall maintain a balance of not less than
11-16 $500,000.]
11-17 [(i) If the commission has reason to believe that the
11-18 balance of money appropriated from the fund will fall below
11-19 $500,000, the commission may:]
11-20 [(1) suspend the requirement to reimburse priority
11-21 enforcement list tires shredded in excess of the minimum percentage
11-22 identified in Section 361.477(c)(3)(C);]
11-23 [(2) limit the number of waste tires for which a
11-24 processor, waste tire energy recovery facility owner or operator,
11-25 or waste tire recycler will be reimbursed; or]
12-1 [(3) discontinue paid carryover.]
12-2 [(j)] The revenues obtained from the scrap [waste] tire
12-3 recycling fees shall be deposited to the credit of the scrap
12-4 [waste] tire recycling fund and may be used only to pay for those
12-5 activities and costs identified in Subsection (d) or (e).
12-6 SECTION 7. Section 361.477, Health and Safety Code, is
12-7 amended to read as follows:
12-8 Sec. 361.477. PAYMENTS TO SCRAP [WASTE] TIRE FACILITIES AND
12-9 WHOLE SCRAP TIRE ENERGY RECOVERY FACILITIES [processors]. (a) The
12-10 commission each calendar month shall pay a scrap [waste] tire
12-11 facility [processor] that shreds scrap tires and meets the
12-12 requirements of this section and rules adopted under this section
12-13 an amount equal to the following:
12-14 (A) five cents per pound [80 cents] for each
12-15 pound of [weighed] tires generated from the Class I Region, and
12-16 which scrap tires were shredded by the processor during the
12-17 preceding calendar month; and
12-18 (B) five and one-half cents for each pound of
12-19 tires generated from the Class II Region, and which scrap tires
12-20 were shredded by the processor during the preceding calendar month.
12-21 (b) The commission shall pay a whole scrap tire energy
12-22 recovery facility that meets the requirements of this section and
12-23 rules adopted under this section an amount equal to two cents per
12-24 pound of whole scrap tires actually put to end use by the facility.
12-25 (c) [If the total number of used or scrap tires or tire
13-1 pieces contained in illegal scrap tire sites that are identified on
13-2 the priority enforcement list is below 2,500,000 tires, the] The
13-3 commission may pay [80 cents or] an appropriate amount determined
13-4 by the commission for each pound [weighed tire] to scrap tire
13-5 facilities or whole scrap tire energy recovery facilities
13-6 [processors] with whom the commission has contracted to remove and
13-7 transport to scrap tire facilities or whole scrap tire energy
13-8 recovery facilities [shred] scrap tires and scrap tire pieces from
13-9 priority enforcement list sites. [The 2,500,000 tire limit does
13-10 not include those tires contained in sites under commission
13-11 enforcement or attorney general action or that require corrective
13-12 action or remedial action in response to a release or threat of
13-13 release of hazardous substances.] In acting under this subsection,
13-14 the commission may contract with scrap tire facilities or whole
13-15 scrap tire energy recovery facilities [processors] on a regional or
13-16 site-specific basis. The contracts shall be procured through a
13-17 competitive bid process conducted in accordance with the provisions
13-18 of the State Purchasing and General Services Act (Subtitle D, Title
13-19 10, Government Code [Article 601b, Vernon's Texas Civil Statutes])
13-20 applicable to contracts for services. [Notwithstanding Subsection
13-21 (c), while the commission is using a competitive bid process for
13-22 assignment of sites listed on the priority enforcement list, the
13-23 priority enforcement list requirements of Subsection (c)(3)(C) do
13-24 not apply to an application for payment. The commission may elect
13-25 not to enter into contracts under this subsection. The contracts
14-1 may be only for the removal and shredding of tires from priority
14-2 enforcement list sites.]
14-3 [(c) A waste tire processor that desires to receive payment
14-4 under this section for tires shredded by the processor during a
14-5 calendar month must:]
14-6 [(1) apply to the commission for registration in
14-7 accordance with forms prescribed by the commission;]
14-8 [(2) apply to the commission for payment on forms
14-9 prescribed by the commission or, on a voluntary basis, apply by a
14-10 removable storage medium stored in an industry standard file format
14-11 acceptable to the commission;]
14-12 [(3) demonstrate as required by rules adopted under
14-13 this section that:]
14-14 [(A) all tires for which payment is sought have
14-15 been shredded to an industry standard two-inch minus particle size
14-16 or, if approved by the commission, shredded to an alternative
14-17 particle size set by a contract requirement related to recycling or
14-18 end use of the particles;]
14-19 [(B) not less than 50 percent of those tires
14-20 were collected from generators, unless this requirement is
14-21 suspended by the commission on consideration of service needs
14-22 contained in a contract drafted under Subsection (b); and]
14-23 [(C) if the total number of whole used or scrap
14-24 tires or shredded tire pieces contained in illegal waste tire sites
14-25 that are identified on the priority enforcement list exceeds
15-1 2,500,000 tires for more than 60 consecutive days, not less than 15
15-2 percent and not more than 30 percent of those tires were collected
15-3 from scrap tire sites listed on the priority enforcement list;]
15-4 [(4) provide any other information the commission
15-5 determines is needed to accomplish the purposes of this subchapter,
15-6 including a monthly report of scrap tires or tire pieces shredded,
15-7 subtotaled by tire count or weight, for each generator number and
15-8 priority enforcement list number;]
15-9 [(5) demonstrate that energy recovery activities in
15-10 the state are in compliance with applicable air emission control
15-11 rules and standards; and]
15-12 [(6) provide financial assurance deemed adequate by
15-13 the commission that corresponds to:]
15-14 [(A) the payment appropriate for the number of
15-15 scrap tires the processor anticipates shredding in the next
15-16 calendar month; or]
15-17 [(B) the number of scrap tires the waste tire
15-18 storage site owner or operator anticipates accepting for storage in
15-19 the next calendar month.]
15-20 [(d) A waste tire processor that in any month exceeds the
15-21 minimum requirement of Subsection (c)(3)(C) may receive credit only
15-22 for paid carryover in the amount in excess of the requirement that
15-23 may be used to meet the minimum requirement during a later month.
15-24 The commission by rule may prescribe the method of applying credits
15-25 accrued under this subsection.]
16-1 [(e) The commission by rule shall adopt application and
16-2 payment procedures and requirements to implement this section.]
16-3 [(f)] Until the commission has determined that a scrap
16-4 [waste] tire facility and whole scrap tire energy recovery facility
16-5 owner or operator [processor] is in compliance with all applicable
16-6 requirements, the commission may not authorize the scrap tire
16-7 facility or whole scrap tire energy recovery facility owner or
16-8 operator [processor] to process, burn or store scrap tires or tire
16-9 pieces at a site at which the scrap tire facility or a whole scrap
16-10 tire energy recovery facility owner or operator [processor]
16-11 processes, burns or stores or intends to process, burn or store
16-12 scrap tires or tire pieces.
16-13 [(g) Beginning January 1, 1996, the commission may reimburse
16-14 a processor for shredded scrap tires only if the processor has a
16-15 binding agreement to deliver the shredded scrap tires to a person
16-16 to recycle or reuse or to use for energy recovery within 180 days
16-17 after the date of reimbursement. The commission shall suspend
16-18 subsequent shredding reimbursements to a processor that fails to
16-19 deliver the tire shreds to an identified end-use market before the
16-20 181st day after the date of reimbursement unless the executive
16-21 director determines that the failure to deliver was caused by an
16-22 act of God or by unforeseen business events. The commission may
16-23 not resume suspended reimbursements until the processor makes all
16-24 delinquent deliveries.]
16-25 [(h) The commission may not pay a waste tire processor for
17-1 processing scrap tires if:]
17-2 [(1) the commission field office and central office
17-3 program staff have not reviewed and approved for further processing
17-4 by the commission all information submitted to the commission by
17-5 the waste tire processor as required by Subsection (c) or rules
17-6 adopted under this section; or]
17-7 [(2) the commission determines that the processor:]
17-8 [(A) has not provided adequate financial
17-9 assurance;]
17-10 [(B) does not have adequate fire protection; or]
17-11 [(C) is causing an imminent danger to public
17-12 health or welfare.]
17-13 [(i) A waste tire processor that in any month exceeds the
17-14 generator percentage of the allocated number of waste tires
17-15 assigned for reimbursement purposes may accrue credit only for paid
17-16 generator carryover in the amount in excess of the requirement that
17-17 may be used to meet the allocation maximum during a later month.
17-18 The commission by rule may prescribe the method of applying
17-19 carryover credit accrued under this section.]
17-20 [(j) The commission shall adopt rules to manage payments
17-21 from the fund to prevent depletion of the fund. Rules adopted
17-22 under this subsection shall consider appropriate payments to
17-23 processors that reflect the varying amounts of money available in
17-24 the fund. In any allocation adopted for processors under this
17-25 section, the commission shall consider the monthly average
18-1 percentage of shredded tires the processor has forwarded to an
18-2 end-use or recycling market. In addition, the commission may
18-3 consider the historical average number of tires for which the
18-4 processor has been reimbursed and such other factors as may be
18-5 determined by the commission.]
18-6 [(k) Notwithstanding Subsection (a), beginning September 1,
18-7 1995, the commission shall reimburse a waste tire processor an
18-8 additional five cents for each weighed tire if the commission
18-9 determines that the processor has a binding agreement to deliver
18-10 100 percent of the scrap tires shredded by the processor monthly to
18-11 a person to recycle or reuse or to use for energy recovery and the
18-12 commission verifies that the processor has delivered the tire
18-13 shreds to such identified end-use market. This section applies
18-14 only to a waste tire processor registered on January 1, 1995, and
18-15 that has a verified end market for the processor's tire shreds on
18-16 June 1, 1995.]
18-17 SECTION 8. Sections 361.4771, 361.4772 and 361.4773 are
18-18 amended to read as follows:
18-19 Sec. 361.4771. PAYMENTS TO SCRAP TIRE RECYCLERS [PAYMENT FOR
18-20 ENERGY RECOVERY FROM WHOLE WASTE TIRES OR SHREDDED TIRES].
18-21 (a) The commission each calendar month shall pay a scrap tire
18-22 recycler that meets the requirements of this section and rules
18-23 adopted under this section an amount set forth in this subsection
18-24 for shredded scrap tires the scrap tire recycler actually puts to
18-25 an end use during the preceding calendar month. The payment
19-1 amounts are as follows for the following categories:
19-2 (1) a scrap tire energy recovery facility shall
19-3 receive $30 per ton for shredded scrap tire pieces used for fuel at
19-4 the facility:
19-5 (2) a scrap tire recycler which utilizes shredded tire
19-6 pieces for civil engineering applications or practices, which
19-7 practices include but are not limited to, landfill protective
19-8 cover, landfill liner cover, landfill leachate collection systems,
19-9 embankment construction, erosion control, road base material,
19-10 requested applications by political subdivisions, councils of
19-11 government, or any other application approved by the executive
19-12 director, shall receive $15 per ton;
19-13 (3) scrap tire recyclers which engage in other
19-14 recycling applications, including tire-derived material, shall
19-15 receive $30 per ton, so long as the scrap tire recycler producing
19-16 the tire-derived material does not exceed 20 million pounds of
19-17 inventory of tire-derived material at any one time;
19-18 (4) scrap tire recyclers which utilize shredded tire
19-19 pieces for septic system applications shall receive $10 per ton for
19-20 shredded tire pieces actually put to end use, provided that at
19-21 least 150 tons of shreds is actually put to end use in each
19-22 calendar quarter; and
19-23 (5) scrap tire recyclers which recycle metal wire
19-24 derived from scrap tire pieces shall receive $10.00 per ton for
19-25 scrap tire wire actually put to an end use.
20-1 Sec. 361.4772. PROCEDURE FOR OBTAINING PAYMENT FOR SCRAP
20-2 TIRE FACILITIES, WHOLE SCRAP TIRE ENERGY RECOVERY FACILITIES, AND
20-3 SCRAP TIRE RECYCLERS; RESTRICTIONS; FUND MANAGEMENT. [The
20-4 commission shall adopt rules governing payments to waste tire
20-5 energy recovery facilities for weighed tires used by the facility
20-6 for fuel. The rules must include rules governing registration and
20-7 application procedures. The rules must include a voluntary
20-8 alternative process for making a payment application by the use of
20-9 an industry standard file format removable storage medium.]
20-10 [(b)] (a) To receive payment under this section and Sections
20-11 361.477, 361.4771 [361.4773], a scrap [waste] tire facility, whole
20-12 scrap tire energy recovery facility, and scrap tire recycler owner
20-13 or operator must:
20-14 (1) apply to the commission for registration in the
20-15 manner and on forms prescribed by commission rule;
20-16 (2) apply to the commission for payment:
20-17 (A) in a manner and on forms prescribed by
20-18 commission rule; or
20-19 (B) as a voluntary alternative, by use of a
20-20 removable storage medium stored in an industry standard file format
20-21 acceptable to the commission;
20-22 (3) demonstrate that all tires or tire pieces for
20-23 which the scrap tire facility, whole scrap tire energy recovery
20-24 facility and scrap tire recycler [owner or operator] applies for
20-25 payment are whole scrap [waste] tires or shredded tires;
21-1 (4) send the commission a monthly report of the number
21-2 of pounds of whole waste tires or shredded tires, or tire-derived
21-3 material put to actual end use [used for energy recovery],
21-4 subtotaled by [tire count or by] weight attributed to each
21-5 generator number or priority enforcement list number;
21-6 (5) demonstrate that any [the] energy recovery
21-7 activities comply with applicable air emission control standards
21-8 and rules;
21-9 (6) submit evidence of financial responsibility in an
21-10 amount adequate to assure proper cleanup and closure of the
21-11 facility, if the person anticipates accepting an amount of whole
21-12 scrap tires, shredded tire pieces, or tire-derived material for
21-13 storage that exceeds the facility's 30-day supply; and
21-14 (7) [if the number of whole used or scrap tires or
21-15 shredded tire pieces contained in illegal waste tire sites that are
21-16 identified on the priority enforcement list exceeds 2,500,000 tires
21-17 for more than 60 consecutive days, demonstrate that not less than
21-18 15 percent and not more than 30 percent of the tires used for
21-19 energy recovery at the facility were collected from scrap tire
21-20 sites listed on the priority enforcement list; and]
21-21 [(8)] provide any other information required by
21-22 commission rule.
21-23 (b) [(c)] A scrap [waste] tire energy recovery facility, or
21-24 whole scrap tire energy recovery facility, may not store in excess
21-25 of a 30-day supply of whole scrap [waste] tires, [or] shredded
22-1 tires or tire-derived material at a site at which the owner or
22-2 operator intends to burn or store waste tires, [or] shredded tire
22-3 pieces, or tire-derived material [tires] until the facility is
22-4 registered by the commission as a scrap [waste] tire energy
22-5 recovery facility storage site or a whole scrap tire energy
22-6 recovery facility storage site. A scrap tire recycler may not
22-7 store in excess of a 30-day supply of whole scrap tires, shredded
22-8 tire pieces, or tire-derived material at a site at which the
22-9 recycler intends to recycle or store whole scrap tires, shredded
22-10 tire pieces, or tire-derived material until the facility is
22-11 registered by the commission as a scrap tire recycler storage site.
22-12 (c) [(d)] The commission may not pay a whole scrap [waste]
22-13 tire energy recovery facility owner or operator for actual end use
22-14 of whole scrap [using waste] tires, [or] shredded tire pieces, or
22-15 tire-derived material [tires] if:
22-16 (1) the commission field office and central office
22-17 program staff have not reviewed and approved for further processing
22-18 by the commission all information submitted to the commission by
22-19 the whole scrap [waste] tire energy recovery facility owner or
22-20 operator as required by Subsection (a) [(b)] or rules adopted under
22-21 this section;
22-22 (2) the commission determines that the facility:
22-23 (A) has not provided adequate financial
22-24 assurance;
22-25 (B) does not have adequate fire protection; or
23-1 (C) is causing an imminent danger to public
23-2 health or welfare;
23-3 (3) the facility does not have appropriate
23-4 authorization from the commission to:
23-5 (A) perform scrap [waste] tire energy recovery
23-6 at the energy recovery facility site if the end user is a scrap
23-7 tire energy recovery facility owner or operator; or
23-8 (B) recycle scrap tires, shredded tire pieces,
23-9 or tire-derived material at the recycling site if the end user is a
23-10 scrap tire recycler; or
23-11 (4) the facility is not physically capable of
23-12 performing:
23-13 (A) scrap [waste] tire energy recovery if the
23-14 end user is a scrap tire energy recovery facility owner or
23-15 operator; or
23-16 (B) scrap tire recycling, if the end user is a
23-17 scrap tire recycler.
23-18 (d) The commission may not pay a scrap tire facility for
23-19 shredded tire pieces or tire-derived material if:
23-20 (1) the commission field office and central office
23-21 program staff have not reviewed and approved for further processing
23-22 by the commission all information submitted to the commission by
23-23 the scrap tire facility as required by Subsection (a) or rules
23-24 adopted under this section;
23-25 (2) the commission determines that the scrap tire
24-1 facility:
24-2 (A) has not provided adequate financial
24-3 assurance;
24-4 (B) does not have adequate fire protection; or
24-5 (C) is causing an imminent danger to public
24-6 health or welfare;
24-7 (3) the scrap tire facility does not have appropriate
24-8 authorization from the commission to perform processing operations
24-9 at the facility; or
24-10 (4) the scrap tire facility is not physically capable
24-11 of performing processing operations at the facility.
24-12 (e) The commission may not pay a scrap tire recycler for
24-13 whole scrap tires, shredded tire pieces, or tire-derived material
24-14 if the commission determines that the whole scrap tires, shredded
24-15 tire pieces, or tire-derived material:
24-16 (1) are not being utilized for legitimate end use
24-17 purposes; or
24-18 (2) delivered from out of state to be used in state.
24-19 (f) [(e)] The commission shall adopt rules to manage
24-20 payments from the fund to prevent depletion of the fund as follows:
24-21 (1) the commission shall pay scrap tire facilities and
24-22 whole scrap tire energy facilities who have established end use
24-23 markets and have not exceed their registered storage capacity under
24-24 this section before using any allocation method authorized by this
24-25 subchapter and before making other payments from the fund to other
25-1 uses authorized by this subchapter.
25-2 (2) the commission shall pay scrap tire recyclers for
25-3 whole tires, shredded tire pieces or tire-derived material that is
25-4 actually put to end use provided that:
25-5 (A) the commission does not exceed $5,000,000
25-6 dollars per fiscal year; and
25-7 (B) the commission shall pay out no more than
25-8 $420,000 per calendar month;
25-9 (C) any unspent funds remaining at the end of
25-10 the calendar month shall roll forward to the following month;
25-11 (D) scrap tire recyclers which exceed the
25-12 maximum annual or calendar month payment requirement of Subsection
25-13 (f)(2)(A) and (B) for whole tires, shredded tires pieces or
25-14 tire-derived material put to actual end use shall receive a credit
25-15 which shall carryover to the following calendar month or fiscal
25-16 year.
25-17 (3) the commission shall use the balance of the fund
25-18 for priority enforcement list site remediation, research grants to
25-19 state entities for the use of shreds in civil engineering
25-20 application, or any other use the commission deems necessary.
25-21 (g) In this section, "30-day supply" means an amount equal
25-22 to the average of the amount of tires consumed for energy recovery
25-23 or legitimately recycled in each of the six months immediately
25-24 preceding the month for which the supply is being computed.
25-25 [Before using any allocation method authorized by this subchapter
26-1 and before making other payments from the fund, the commission
26-2 shall pay reimbursements to processors under Section 361.477 who
26-3 have established end-use markets and pay reimbursements under this
26-4 section and Sections 361.4772 and 361.4773.]
26-5 Sec. 361.4773. STORED TIRES. (a) A scrap tire storage
26-6 facility shall not exceed the registered storage capacity approved
26-7 by the commission.
26-8 (b) A scrap tire storage facility that does not meet the
26-9 requirement of Subsection (a) shall immediately cease accepting
26-10 additional whole scrap tires or shredded tire pieces.
26-11 [Sec. 361.4772. RECYCLING FACILITY CONSTRUCTION GRANT.
26-12 (a) The commission by rule shall establish a program for providing
26-13 grants for the construction of waste tire recycling facilities for
26-14 the recycling of whole waste tires or shredded tires.]
26-15 [(b) The commission may not expend more than $2 million each
26-16 year for grants under this section.]
26-17 [(c) A facility constructed with a grant under this section
26-18 is not eligible for reimbursement for:]
26-19 [(1) powdered rubber;]
26-20 [(2) a tire-derived fuel;]
26-21 [(3) buffing dust;]
26-22 [(4) a retreaded or recapped tire; or]
26-23 [(5) a product that is ineligible for reimbursement
26-24 under commission rules.]
26-25 [(d) The commission shall require a grant recipient to:]
27-1 [(1) demonstrate that not less than 15 percent and not
27-2 more than 30 percent of the tires used for energy recovery at the
27-3 facility were collected from scrap tire sites listed on the
27-4 priority enforcement list if the number of whole used or scrap
27-5 tires or shredded tire pieces contained in illegal waste tire sites
27-6 that are identified on the priority enforcement list exceeds
27-7 2,500,000 tires for more than 60 consecutive days; and]
27-8 [(2) submit evidence of financial responsibility in an
27-9 amount adequate to assure proper cleanup and closure of the
27-10 facility, if the recipient anticipates accepting an amount of whole
27-11 waste tires or shredded tire pieces for storage that exceeds the
27-12 facility's 30-day supply.]
27-13 [Sec. 361.4773. PAYMENT FOR SHREDDED WASTE TIRE ENERGY
27-14 RECOVERY FACILITY. (a) The commission each month shall pay to a
27-15 waste tire energy recovery facility owner or operator that burns
27-16 shredded tires in compliance with an energy recovery permit issued
27-17 by the commission an amount equal to 40 cents for each weighed tire
27-18 the facility used for energy recovery during the preceding month.]
27-19 [(b) To receive payment under this section, a retrofitted
27-20 waste tire energy recovery facility owner or operator must:]
27-21 [(1) apply to the commission for payment in a manner
27-22 and on forms prescribed by commission rule; and]
27-23 [(2) comply with applicable rules adopted by the
27-24 commission under this section and Section 361.4771, unless
27-25 otherwise indicated by the energy recovery permit issued by the
28-1 commission.]
28-2 SECTION 9. Section 361.4774, Health and Safety Code, is
28-3 amended to read as follows:
28-4 Sec. 361.4774. [LIMITED USE OF WASTE TIRE RECYCLING FUND;
28-5 GRANTS, REIMBURSEMENT, AND] ADMINISTRATIVE EXPENSES. (a) For
28-6 performing duties related to the scrap [waste] tire program, each
28-7 fiscal year the comptroller may expend [up to $680,000 or] an
28-8 amount equal to not more than two percent of the monthly annually
28-9 accruing to the scrap [waste] tire [recovery] fund[, whichever is
28-10 greater].
28-11 (b) For administering the scrap [waste] tire recycling
28-12 program, each fiscal year the commission may expend [not more than
28-13 the lesser of $2.05 million or] an amount equal to not more than
28-14 six percent of the amount annually accruing to [appropriated from]
28-15 the scrap [waste] tire recycling fund for the administration and
28-16 operation of the scrap [waste] tire recycling program.
28-17 [(c) Each fiscal year, the commission may expend not more
28-18 than:]
28-19 [(1) $1.4 million for paying accrued carryover credits
28-20 as provided by Section 361.499;]
28-21 [(2) $15.2 million for tire shredding under Section
28-22 361.477;]
28-23 [(3) $3.52 million for the cleanup and closure of
28-24 priority enforcement list tire sites as provided by Sections
28-25 361.476 and 361.477;]
29-1 [(4) $2 million for providing recycling facility
29-2 construction grants under Section 361.4772;]
29-3 [(5) $600,000 for payments to energy recovery
29-4 facilities under Section 361.4773 at a rate of 40 cents per weighed
29-5 tire unit; and]
29-6 [(6) $6 million to provide grants for retrofitting
29-7 facilities to use whole or shredded tires for fuel or for paying
29-8 for facilities to use whole tires for fuel as provided by
29-9 Subsections (d) and (e).]
29-10 [(d) For fiscal year 1996, the commission may expend not
29-11 more than $4 million for:]
29-12 [(1) providing grants to waste tire energy recovery
29-13 facilities that are not using tire-derived fuel and apply for
29-14 assistance to cover retrofitting costs the commission determines
29-15 are necessary to enable the facilities to use whole tires as fuel;
29-16 and]
29-17 [(2) paying a facility eligible for a grant under
29-18 Subdivision (1), but for which the commission has not made a grant,
29-19 an amount of up to 80 cents per weighed tire unit.]
29-20 [(e) A person receiving payments for weighed tires under
29-21 Subsection (d)(2) may not receive reimbursements that exceed the
29-22 total of:]
29-23 [(1) the amount of the retrofitting costs the facility
29-24 would have received if the person had applied for a grant under
29-25 Subsection (d)(1); and]
30-1 [(2) the cost, as determined by the commission, of
30-2 transporting to the facility the number of whole tires used for
30-3 fuel until the payments under Subsection (d)(2) equal the amount of
30-4 the retrofitting costs the facility would have received.]
30-5 [(f) For fiscal year 1996, the commission may expend not
30-6 more than $2 million to provide grants to waste tire energy
30-7 recovery facilities that are not using tire-derived fuel and apply
30-8 for assistance to cover retrofitting costs the commission
30-9 determines are necessary to enable the facilities to use shredded
30-10 tires as fuel.]
30-11 [(g) For the period beginning September 1, 1996, and ending
30-12 December 31, 1997, the commission may expend not more than $6
30-13 million for payments to waste tire energy recovery facilities that
30-14 burn whole tires at a rate of 80 cents per weighed tire unit used.]
30-15 [(h) After the third quarter of each year of the fiscal
30-16 biennium, funds that remain unused for the purposes specified in
30-17 Subsections (a)-(g) may be transferred for use for a purpose
30-18 specified in Subsections (c)-(g) at the discretion of the
30-19 commission to promote recycling and energy recovery.]
30-20 SECTION 10. Section 361.479, Health and Safety Code, is
30-21 amended to read as follows:
30-22 Sec. 361.479. EVIDENCE OF FINANCIAL RESPONSIBILITY. (a) A
30-23 person required to register under Section 361.4725 [waste tire
30-24 storage facility registered by the commission or a waste tire
30-25 facility that accepts shredded scrap tires for storage or for
31-1 processing for recycling, reuse, or energy recovery] shall submit
31-2 to the commission and shall maintain evidence of financial
31-3 responsibility in an amount adequate to assure proper cleanup and
31-4 closure of the facility.
31-5 (b) A scrap [waste] tire [recycling] facility owner or
31-6 operator who anticipates accepting for storage an amount of whole
31-7 scrap tires, shredded tire pieces, or tire-derived material [for
31-8 storage] that exceeds the facility's 30-day supply shall submit to
31-9 the commission and shall maintain evidence of financial
31-10 responsibility in an amount adequate to assure proper cleanup and
31-11 closure of the facility.
31-12 (c) A facility subject to Subsection (a) or (b) shall submit
31-13 to the commission an estimate of the total amount of whole scrap
31-14 tires, shredded tire pieces, or tire-derived material measured by
31-15 pounds [weighed tire] that the facility will store or process, the
31-16 maximum number of out-of-state tires the facility will store, and
31-17 the estimated cost, using that total amount, of cleaning up and
31-18 closing the facility.
31-19 (d) The commission shall evaluate and may amend an estimate
31-20 submitted under Subsection (c) and shall determine for each
31-21 facility the amount for which evidence of financial responsibility
31-22 is required. The commission periodically may audit a facility
31-23 subject to this section and may increase the amount for which the
31-24 facility is required to provide evidence of financial
31-25 responsibility. The commission may suspend the registration of, or
32-1 payments under Sections 361.477 and 361.4771 to, a facility that
32-2 does not provide evidence of financial responsibility for an
32-3 increased amount required under this section.
32-4 (e) Evidence of financial responsibility may be in the form
32-5 of:
32-6 (1) a performance bond or a letter of credit
32-7 acceptable to the commission that is from a financial institution,
32-8 a trust fund, or insurance for a privately owned facility; or
32-9 (2) a self-insurance test designed by the commission
32-10 for a publicly owned facility. A person who makes an initial
32-11 request for reimbursement from the scrap [waste] tire recycling
32-12 fund on or after September 1, 1993, must provide evidence of
32-13 financial responsibility for the full amount determined under
32-14 Subsection (d).
32-15 (f) A person who files an application or amended application
32-16 for registration under this subchapter on or after September 1,
32-17 1997, must provide evidence of financial responsibility:
32-18 (1) in an amount adequate to assure proper cleanup and
32-19 closure of the facility for which registration is requested; and
32-20 (2) in a form prescribed by commission rule that may
32-21 be used to pay for the proper cleanup and closure of that facility.
32-22 SECTION 11. Subchapter P, Chapter 361, Health and Safety
32-23 Code, is amended by adding Sections 361.4791 and 361.4792 to read
32-24 as follows:
32-25 Sec. 361.4791. LIEN. (a) All remediation costs incurred by
33-1 the commission for the cleanup and closure of a site for which
33-2 insufficient financial assurance has been provided constitute a
33-3 lien in favor of the state on the property on which the site is
33-4 located.
33-5 (b) The lien arises and attaches on the date a commission
33-6 affidavit is filed with the county clerk in the county in which the
33-7 site is located. The affidavit shall state the name of the owner
33-8 of the property, the amount owed, and the legal description of the
33-9 property. The county clerk shall file an affidavit relating to the
33-10 site in the real property records of the county in which the
33-11 property is located.
33-12 (c) The lien is subordinate to the rights of prior bona fide
33-13 purchasers of or lienholders on the property.
33-14 Sec. 361.4792. NOTICE OF BANKRUPTCY. (a) Not later than
33-15 the second business day after the filing of a voluntary petition in
33-16 bankruptcy by a scrap tire processor, scrap tire end user, or scrap
33-17 tire transporter or the filing of an involuntary bankruptcy
33-18 petition for relief against a scrap tire processor, scrap tire end
33-19 user, or scrap tire transporter, the scrap tire processor, scrap
33-20 tire end user, or scrap tire transporter shall deliver to the
33-21 bankruptcy program department of the commission in Austin written
33-22 notice of the bankruptcy stating the case number and the bankruptcy
33-23 court where the case is pending.
33-24 (b) Not later than the second business day after the date
33-25 the document is filed with the bankruptcy clerk's office in a
34-1 bankruptcy case described in Subsection (a), the scrap tire
34-2 processor, scrap tire end user, or scrap tire transporter shall
34-3 deliver to the bankruptcy program department of the commission a
34-4 copy of:
34-5 (1) any schedule or statement of affairs;
34-6 (2) any amended schedule or statement of affairs; or
34-7 (3) any monthly operating report.
34-8 SECTION 12. Sections 361.481 and 361.482, Health and Safety
34-9 Code, are amended to read as follows:
34-10 Sec. 361.481. PROHIBITION ON OUT-OF-STATE TIRES; PENALTY.
34-11 (a) A scrap [waste] tire facility, scrap tire recycler or whole
34-12 scrap tire energy recovery facility [processor] may not claim
34-13 payment under this subchapter [Section 361.477] for shredding,
34-14 burning or recycling out-of-state tires. [A waste tire energy
34-15 recovery facility owner or operator may not claim payment under
34-16 Section 361.4771 or 361.4773 for burning out-of-state tires. A
34-17 waste tire recycler may not claim payment under Section 361.4772
34-18 for recycling out-of-state tires.]
34-19 (b) A scrap [waste] tire generator that the commission
34-20 determines has used a manifest and commission generator number to
34-21 pass out-of-state tires is subject to an [not eligible for the free
34-22 collection and transportation of waste tires generated at the
34-23 generator's place of business. In addition to any] administrative,
34-24 civil, or criminal enforcement action[, the commission shall
34-25 require the generator to pay for:]
35-1 [(1) collection and transportation of generated tires;
35-2 and]
35-3 [(2) shredding, burning, or recycling of generated
35-4 tires at the applicable rate specified in Section 361.477,
35-5 361.4771, or 361.4772].
35-6 (c) A scrap [waste] tire facility [processor], whole scrap
35-7 [waste] tire energy recovery facility owner or operator, or scrap
35-8 [waste] tire recycler who the commission determines has knowingly
35-9 accepted out-of-state tires on manifests using a commission
35-10 generator number is subject to an administrative, civil, or
35-11 criminal enforcement action.
35-12 (d) A scrap [waste] tire transporter that the commission
35-13 determines has transported out-of-state tires using a
35-14 commission-approved manifest or transporter number is subject to an
35-15 administrative, civil, or criminal enforcement action.
35-16 (e) The commission shall treat whole scrap tires and
35-17 shredded scrap tire pieces generated in Texas, removed from Texas,
35-18 and subsequently reintroduced in Texas as out-of-state scrap tires
35-19 for the purposes of this subchapter.
35-20 Sec. 361.482. PROHIBITION ON DISPOSAL OF [SHREDDED] TIRES IN
35-21 LANDFILL. (a) Except as provided by Subsection (b), a [A] person
35-22 may not dispose of in-state or out-of-state whole used tires, [or]
35-23 scrap tires, [that are eligible for reimbursement under this
35-24 chapter] or shredded tire pieces [for which reimbursement has been
35-25 paid under this subchapter] in a landfill, including a Type VIII-S
36-1 tire monofill.
36-2 (b) In an emergency, the commission may by rule authorize
36-3 the landfill disposal of scrap tires that have been quartered or
36-4 shredded tire pieces until the commission determines that there are
36-5 sufficient uses for scrap tires being generated in this state.
36-6 SECTION 13. Subchapter P, Chapter 361, Health and Safety
36-7 Code, is amended by adding Section 361.4825 to read as follows:
36-8 Sec. 361.4825. INTENTIONAL BURNING PROHIBITED; DUMPING
36-9 PROHIBITED; CRIMINAL PENALTY. (a) A person commits an offense if
36-10 the person starts a fire with the intent to destroy or damage whole
36-11 scrap tires, tire pieces, or tire-derived products stored at a:
36-12 (1) scrap tire generator;
36-13 (2) scrap tire facility;
36-14 (3) whole scrap tire energy recovery facility;
36-15 (4) scrap tire recycling facility; or
36-16 (5) priority enforcement list site.
36-17 (b) It is an exception to the application of Subsection
36-18 (a)(3) that the fire was started at a registered scrap tire energy
36-19 recovery facility in the course of an energy recovery procedure
36-20 authorized under this subchapter.
36-21 (c) A person commits an offense if the person disposes of
36-22 more than 100 whole tires or an equivalent amount of scrap tire
36-23 pieces at a site that is not authorized by the commission to accept
36-24 whole tires or scrap tire pieces.
36-25 (d) An offense under this section is a felony of the second
37-1 degree.
37-2 (e) In addition to the criminal penalty provided by this
37-3 section, a person who commits an offense under this section is
37-4 subject to a civil penalty under Section 361.483.
37-5 SECTION 14. Sections 361.483(a) and (c), Health and Safety
37-6 Code are amended to read as follows:
37-7 (a) A person who violates this subchapter or a rule adopted or
37-8 order issued under this subchapter is liable for a civil penalty of
37-9 not less than $100 or more than $25,000; [up to $10,000] for each
37-10 violation and for each day of a continuing violation.
37-11 (c) A penalty collected under this section shall be
37-12 deposited to the credit of the scrap [waste] tire recycling fund.
37-13 SECTION 15. Section 361.4832, Health and Safety Code, is
37-14 amended to read as follows:
37-15 Sec. 361.4832. ADMINISTRATIVE PENALTY; ORDER FOR CORRECTIVE
37-16 ACTION; SUSPENSION OF REGISTRATION. (a) If a person violates this
37-17 subchapter or a rule adopted or order issued under this subchapter
37-18 the commission may:
37-19 (1) assess against the person an administrative
37-20 penalty under Section 361.252 in an amount not to exceed $10,000
37-21 for each act of violation and for each day of violation; or
37-22 (2) order the person to take a corrective action.
37-23 (b) The commission may suspend a registration issued under
37-24 this subchapter and may suspend payment under Section 361.477 or
37-25 361.4771 to a scrap [of or reimbursement payment to a waste tire
38-1 processor, waste tire transporter, waste tire generator, waste]
38-2 tire [recycling] facility, or whole scrap [waste] tire energy
38-3 recovery facility, or scrap tire recycler on the initiation of an
38-4 enforcement proceeding and while the proceeding is pending for the
38-5 violation of this subchapter or a rule adopted or order issued
38-6 under this subchapter.
38-7 SECTION 16. Section 361.485(b), Health and Safety Code, is
38-8 amended to read as follows:
38-9 (b) The commission shall include in the report the
38-10 commission's (recommendation, based on the commission's evaluation)
38-11 adjustment to compensate for the rate of inflation made pursuant to
38-12 Section 361.4851 during the preceding two years[, as to whether an
38-13 adjustment] to the fee assessed on the sale of tires or to the rate
38-14 of reimbursement paid to a scrap [waste] tire facility [processor],
38-15 or whole scrap [waste] tire energy recovery facility, or scrap tire
38-16 recycler owner or operator [is warranted].
38-17 SECTION 17. Subchapter P. Chapter 361, Health and Safety
38-18 Code, is amended by adding a new Section 361.4851 to read as
38-19 follows:
38-20 Sec. 361.4851. ADJUSTMENTS DUE TO INFLATION. The commission
38-21 shall biannually adjust the reimbursements paid under this
38-22 subchapter to a scrap tire facility, whole scrap tire energy
38-23 recovery facility, or a scrap tire recycler in an equivalent amount
38-24 to reflect changes in inflation occurring as measured by the U.S.
38-25 Consumer Products Index (CPI). The base for the adjustment shall
39-1 be the CPI as it exists on September 1, 1997.
39-2 SECTION 18. Section 361.486, Health and Safety Code, is
39-3 amended to read as follows:
39-4 Sec. 361.486. RECYCLING EFFORTS. (a) Notwithstanding
39-5 Section 361.496, on and after January 1, 1996, each applicant for a
39-6 new, amended, and renewal processing registration and each existing
39-7 processor must identify those persons who will accept the
39-8 processor's shredded tire pieces for recycling or reuse or to use
39-9 the shredded scrap tires for energy recovery. The commission may
39-10 not require that the processor provide a copy of the contract, or
39-11 provide any of the contract terms, between the processor and the
39-12 end user. The commission shall reimburse a processor for only
39-13 those shredded tires that the executive director [commission]
39-14 determines are committed to a legitimate end user. When a scrap
39-15 tire facility or scrap tire recycler submits an application for end
39-16 use approval, the executive director shall act upon the request for
39-17 approval within 90 days from the date of filing, and in writing
39-18 notify the application stating the executive director's reasons for
39-19 or against approval.
39-20 (b) The commission may disapprove of the use a person
39-21 identified by the processor has for the tire pieces unless the
39-22 person identified is authorized by the state to use tire-derived
39-23 fuel for energy recovery or is a scrap tire recycler.
39-24 (c) The commission by rule shall define recycling for
39-25 purposes of this subchapter.
40-1 (d) On or before January 1, 1994, and on a semiannual basis
40-2 thereafter, registered scrap tire facilities, scrap tire recyclers,
40-3 and whole scrap tire energy recovery facility [processors and
40-4 storage site] owners and operators shall report their recycling,
40-5 reuse, and energy recovery activities to the commission. The
40-6 commission by rule shall prescribe the form and other requirements
40-7 of the report.
40-8 (e) A person who, in this state, recycles or recovers the
40-9 energy from shredded tire pieces shall register with the commission
40-10 in accordance with the rules and on the forms prescribed by the
40-11 commission.
40-12 SECTION 19. Section 361.487, Health and Safety Code, is
40-13 amended to read as follows:
40-14 Sec. 361.487. PAYMENTS TO OUT-OF-STATE END USERS
40-15 [REIMBURSEMENT RESTRICTIONS]. (a) The commission by rule may
40-16 provide for payments under Sections 361.477 and 361.4771 to an end
40-17 user outside the state boundaries of Texas. [A processor seeking
40-18 reimbursement under Section 361.477 shall process and store the
40-19 whole used or scrap tires or shredded tire pieces in the state. A
40-20 waste tire energy recovery facility owner or operator seeking
40-21 reimbursement under Section 361.4771 or 361.4773 shall store and
40-22 burn the whole used or scrap tires or shredded tire pieces in the
40-23 state.]
40-24 (b) The rules must require an end user outside the state
40-25 boundaries of Texas to demonstrate that whole scrap tires, shredded
41-1 tire pieces, or tire-derived material for which payment is
41-2 requested were:
41-3 (1) generated and collected in this state;
41-4 (2) transported out of this state and delivered to the
41-5 end user outside the state boundaries of Texas; and
41-6 (3) actually put to end use by the end user outside
41-7 the state boundaries of Texas [commission shall treat whole used or
41-8 scrap tires and shredded tire pieces generated in Texas, removed
41-9 from Texas, and subsequently reintroduced to Texas as out-of-state
41-10 scrap tires for the purposes of this subchapter].
41-11 SECTION 20. Section 361.489(a) and (e), Health and Safety
41-12 Code, are amended to read as follows:
41-13 (a) The commission may, with the funds available to the
41-14 commission from the scrap [waste] tire recycling fund, undertake
41-15 immediate remediation of a site if, after investigation, the
41-16 commission finds:
41-17 (1) that there exists a situation caused by the
41-18 [illegal dumping of] scrap tires that is causing or may cause
41-19 imminent and substantial endangerment to the public health and
41-20 safety or the environment; and
41-21 (2) the immediacy of the situation makes it
41-22 prejudicial to the public interest to delay action until an
41-23 administrative order can be issued to potentially responsible
41-24 parties or until a judgment can be entered in an appeal of an
41-25 administrative order.
42-1 (e) Money collected in a suit to recover costs shall be
42-2 deposited to the credit of the scrap [waste] tire recycling fund.
42-3 SECTION 21. Section 361.490, Health and Safety Code, is
42-4 amended to read as follows:
42-5 Sec. 361.490. ACCESS TO PRIORITY ENFORCEMENT LIST SITE.
42-6 [(a)] Members of the commission or (,) employees or agents of the
42-7 commission[, and authorized processors or their subcontractors] are
42-8 entitled to enter any public or private property at any reasonable
42-9 time for the purpose of inspecting, investigating, or remediating
42-10 any condition related to illegal dumping of scrap tires. [An
42-11 authorized processor or subcontractor is entitled to enter property
42-12 only if the commission directs the processor or subcontractor to
42-13 enter the property.] The executive director shall give notice of
42-14 intent to enter private property for those purposes by certified
42-15 mail to the last known address indicated in the current county
42-16 property records at least 10 days before a commission member,
42-17 commission employee or agent[, or authorized processor or
42-18 subcontractor] enters the property. A commission member,
42-19 commission employee or agent[, or authorized processor or
42-20 subcontractor] who, acting under this subsection, enters private
42-21 property shall:
42-22 (1) observe the establishment's rules concerning safety, internal
42-23 security, and fire protection; and
42-24 (2) if the property has management in residence, make a reasonable
42-25 attempt to notify the management or person in charge of the entry
43-1 and exhibit credentials.
43-2 [(b) Authorized processors and their subcontractors may not
43-3 be considered agents of the state and are solely responsible for
43-4 their actions.]
43-5 SECTION 22. Sections 361.494-361.496, Health and Safety Code
43-6 are amended to read as follows:
43-7 Sec. 361.494. Appeal. The commission shall establish a
43-8 process by which a registered scrap tire facility or the owner or
43-9 operator of a registered whole scrap [waste] tire energy recovery
43-10 facility, or a registered scrap tire recycler [processor] who is
43-11 adversely affected by an agency decision affecting reimbursement
43-12 may appeal that decision to the executive director or the
43-13 commission.
43-14 Sec. 361.495. Fiscal Audits. The commission biennially
43-15 shall perform a fiscal audit of each person receiving
43-16 reimbursements under Sections 361.477 and 361.4771 [waste tire
43-17 processor, waste tire recycling facility, and waste tire energy
43-18 recovery facility owner or operator] to ensure fiscal
43-19 responsibility and accountability regarding reimbursements made
43-20 under Sections 361.477, and 361.4771[, and 361.4773. The person
43-21 audited shall bear the costs of the audits].
43-22 Sec. 361.496. New or Expanded Processing Operation. A scrap
43-23 tire facility [new processor], whole scrap [waste] tire energy
43-24 recovery facility, or scrap [waste] tire recycler or a registered
43-25 scrap tire facility, whole scrap [processor, waste] tire energy
44-1 recovery facility, or scrap [waste] tire recycler that seeks to
44-2 establish a new processing facility or expand a processing
44-3 operation in the state must:
44-4 (1) certify that such scrap tire facility, whole
44-5 [processor, waste] tire energy recovery facility, or scrap [waste]
44-6 tire recycler is willing to provide collection and transportation
44-7 of scrap [waste] tires from registered generators in rural counties
44-8 of the state at the request of the commission during emergency
44-9 periods as defined by the commission when such generators are not
44-10 being otherwise served by registered processors or transporters;
44-11 and
44-12 (2) identify and have available a certified end use in
44-13 the application for a new or amended registration.
44-14 SECTION 23. Section 361.498 is amended to read as follows:
44-15 Sec. 361.498. Community Service. Persons seeking
44-16 reimbursement from the scrap [waste] tire recycling fund shall
44-17 perform community service on an annual basis. Community service
44-18 includes cooperation with local civic groups to clean up abandoned
44-19 tire sites that are not classified as priority enforcement list
44-20 sites. The tires collected under this section are eligible for
44-21 reimbursement.
44-22 SECTION 24. Sections 361.478, 361.486, 361.4865, and
44-23 361.499, Health and Safety Code, are repealed.
44-24 SECTION 25. (a) As soon as practicable after September 1,
44-25 1997, the Texas Natural Resource Conservation Commission shall
45-1 inventory the amount and location of:
45-2 (1) shredded tire pieces in this state; and
45-3 (2) whole scrap tires in priority enforcement list
45-4 sites in the state.
45-5 (b) Not later than December 1, 1997, the Texas Natural
45-6 Resource Conservation Commission shall adopt the rules necessary to
45-7 implement Subchapter P, Chapter 361, Health and Safety Code, as
45-8 amended by this Act.
45-9 SECTION 26. (a) Any unappropriated, unexpended, and
45-10 unencumbered money available in the scrap tire recycling fund on
45-11 September 1, 1997, is appropriated to the Texas Natural Resource
45-12 Conservation Commission to be used only for payments under Sections
45-13 361.477 and 361.4771, Health and Safety Code, as amended by this
45-14 Act, for:
45-15 (1) shredded tire pieces identified in the inventory
45-16 conducted under Section 22(a) of this Act; or
45-17 (2) whole scrap tires from a priority enforcement list
45-18 site identified in the inventory conducted under Section 22(a) of
45-19 this Act.
45-20 (b) The payments authorized under subsection (a) of this
45-21 section apply only to whole scrap tires or shredded tire pieces
45-22 actually put to end use on or after January 1, 1998.
45-23 SECTION 27. (a) Except as otherwise provided by this Act,
45-24 this Act takes effect September 1, 1997.
45-25 (b) Section 361.4725(c), Health and Safety Code, as added by
46-1 this Act, applies to an application for a new registration or an
46-2 application to renew or amend an existing registration that is
46-3 pending before the Texas Natural Resource Conservation Commission
46-4 on or after that date.
46-5 (c) The payments authorized by Sections 361.477 and
46-6 361.4771, Health and Safety Code, as amended by this Act, apply
46-7 only to whole scrap tires shredded tire pieces, or tire-derived
46-8 materials actually put to end use on or after September 1, 1997.
46-9 (d) Section 361.4825, Health and Safety Code, as added by
46-10 this Act, applies only to an offense committed on or after
46-11 September 1, 1997, if any element of the offense occurs on or after
46-12 that date.
46-13 SECTION 28. The importance of this legislation and the
46-14 crowded condition of the calendars in both houses create an
46-15 emergency and an imperative public necessity that the
46-16 constitutional rule requiring bills to be read on three several
46-17 days in each house be suspended, and this rule is hereby suspended,
46-18 and that this Act take effect and be in force from and after its
46-19 passage, and it is so enacted.