By: Brown S.B. No. 1586
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the scrap tire recycling program; providing criminal
1-2 and civil penalties; making an appropriation.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsections (f) and (g), Section 361.112, Health
1-5 and Safety 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 or a scrap [waste] tire energy recovery facility storage
1-15 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
1-23 stores not more than 1,000 scrap tires for not more than 30 days.
2-1 (g) The commission shall require a person who transports
2-2 [used or] scrap tires for storage, [or] disposal, or end use to
2-3 maintain records and use a manifest or other appropriate system to
2-4 assure that those tires are transported to a storage site that is
2-5 registered or to a disposal facility that is permitted under this
2-6 section for that purpose, or to a registered end user.
2-7 SECTION 2. The heading to Subchapter P, Chapter 361, Health
2-8 and Safety Code, is amended to read as follows:
2-9 SUBCHAPTER P. SCRAP [WASTE] TIRE RECYCLING PROGRAM
2-10 SECTION 3. Section 361.471, Health and Safety Code, is
2-11 amended to read as follows:
2-12 Sec. 361.471. DEFINITIONS. In this subchapter:
2-13 (1) "End use" includes the use of whole scrap tires,
2-14 shredded tire pieces, or tire-derived material for a civil
2-15 engineering application or practice, reclamation, energy recovery,
2-16 or the manufacture of a product with economic value or for any
2-17 other process or product that the commission by rule determines
2-18 meets the objectives of this subchapter. The term does not include
2-19 pyrolysis, the production of crumb rubber, or the baling of tires.
2-20 (2) "Fund" means the scrap [waste] tire recycling
2-21 fund.
2-22 (3) [(2)] "Green tire" means the casing form of a tire
2-23 that has not been cured or does not have a tread or marking of any
2-24 kind.
2-25 (4) [(3)] "Good used tire" means a used tire, not
3-1 including a recapped or retreaded tire, suitable for continued use
3-2 for its original intended purpose.
3-3 (5) [(4)] "Manufacturer reject tire" means a tire
3-4 rendered defective in the manufacturing process, whether the tire
3-5 is determined to be defective before or after consumer purchase.
3-6 (6) [(5)] "Mobile tire shredder" means equipment
3-7 mounted on wheels or skid-mounted and hauled from place to place to
3-8 split, shred, or quarter [used or] scrap tires.
3-9 (7) "Reclamation" has the meaning assigned by Section
3-10 131.004, Natural Resources Code. The term does not include the use
3-11 of whole scrap tires or tire pieces larger than nine square inches.
3-12 (8) [(6)] "Scrap tire" has the meaning assigned by
3-13 Section 361.112.
3-14 (9) "Scrap tire end user" includes:
3-15 (A) a scrap tire energy recovery facility; or
3-16 (B) a scrap tire recycler.
3-17 (10) [(7)] "Scrap [Waste] tire energy recovery
3-18 facility" means a facility at which whole [used or] scrap tires,
3-19 [or] shredded tires, or tire-derived material is [are] used as a
3-20 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) another facility designated by the
4-2 commission.
4-3 (11) "Scrap tire generator" includes an entity that
4-4 accepts whole scrap tires or scrap tire pieces for temporary
4-5 storage, a fleet operator, an automotive dismantler, or a whole new
4-6 or used tire retailer, wholesaler, manufacturer, recapper, or
4-7 retreader. The term does not include a scrap tire recycler or
4-8 scrap tire energy recovery facility that stores whole tires or tire
4-9 pieces.
4-10 (12) [(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 (13) [(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 (14) "Scrap tire recycler" means a person who uses
5-1 whole scrap tires, shredded tire pieces, or tire-derived material
5-2 for a civil engineering application or practice, the manufacture of
5-3 a product with economic value, or another end use the commission by
5-4 rule approves. The term does not include a person who only
5-5 produces crumb rubber, bales tires, or produces material through a
5-6 pyrolytic or other chemical or thermal process.
5-7 (15) [(10)] "Scrap [Waste] tire storage facility"
5-8 means a facility registered by the commission under Section
5-9 361.4725 [361.477] at which whole [used or] scrap tires or shredded
5-10 tire pieces are collected and stored to facilitate the future
5-11 extraction of useful material for recycling, reuse, or recovery.
5-12 The term does not include a marine dock, rail yard, or trucking
5-13 facility used to store tires that are awaiting shipment to a person
5-14 for recycling, reuse, or energy recovery for 30 days or less.
5-15 (16) [(11)] "Scrap [Waste] tire transporter" means a
5-16 person who collects and transports [used or] scrap tires or scrap
5-17 tire pieces for storage or disposal.
5-18 (17) "Special authorization priority enforcement list
5-19 tires" means scrap tires that are generated in specially designated
5-20 counties or regions identified by the executive director as areas
5-21 not receiving adequate collection service and that pose a threat to
5-22 public health and safety or the environment.
5-23 (18) "Tire-derived material" includes crumb rubber,
5-24 baled tires, and materials produced from scrap tires or tire pieces
5-25 through a pyrolytic or other chemical or thermal process.
6-1 [(12) "Weighed tire" means a unit of weight for
6-2 shredded scrap tires that is equal to 18.7 pounds.]
6-3 SECTION 4. Section 361.472, Health and Safety Code, is
6-4 amended to read as follows:
6-5 Sec. 361.472. SCRAP [WASTE] TIRE RECYCLING FEES. (a) A
6-6 person in the business of selling new [good used] tires who sells
6-7 or offers to sell new tires not for resale [for use on a vehicle,]
6-8 or a person in the business of selling used vehicles or used
6-9 vehicle parts who sells or offers to sell new [or good used] tires
6-10 not for resale shall collect at the time and place of sale a scrap
6-11 [waste] tire recycling fee for each tire sold as follows:
6-12 (1) from September 1, 1997, through August 31, 1999,
6-13 $1.50 [$2] for each new tire that has a rim diameter of 12 inches
6-14 or more but less than 17.5 inches, and from September 1, 1999,
6-15 through December 31, 2001, $1 for each new [good used] tire
6-16 that has a rim diameter of 12 inches or more but less than 17.5
6-17 inches;
6-18 (2) $3.50 for each new tire that has a rim diameter of
6-19 17.5 inches or greater, other than an off-the-road tire intended
6-20 for use on heavy machinery, including an earthmover, a
6-21 loader/dozer, a grader, or mining equipment; and
6-22 (3) from September 1, 1997, through August 31, 1999,
6-23 $1.50 [$2] for a new motorcycle tire, regardless of the rim
6-24 diameter, and from September 1, 1999, through December 31, 2001, $1
6-25 for a new motorcycle tire, regardless of the rim diameter.
7-1 (b) The sale of a tire as original equipment in the
7-2 manufacture of a new vehicle is a sale for resale.
7-3 (c) A fee may not be assessed for:
7-4 (1) a recapped or retreaded tire; [or]
7-5 (2) a bicycle tire; or
7-6 (3) a solid industrial tire.
7-7 (d) A person required to collect a fee under this section:
7-8 (1) shall list as a separate item on an invoice a fee
7-9 due under this section; and
7-10 (2) except as provided by Subsection (e), on or before
7-11 the 20th day of the month following the end of each calendar month
7-12 and on a form and in the manner prescribed by the comptroller,
7-13 shall file a report with and shall remit to the comptroller the
7-14 amount of fees collected during the preceding calendar month.
7-15 (e) A person required to collect a fee under this section
7-16 who collects less than $50 for a calendar month or less than $150
7-17 for a calendar quarter is not required to file a monthly report but
7-18 shall file a quarterly report with and make a quarterly remittance
7-19 to the comptroller. The quarterly report and remittance shall
7-20 include fees collected during the preceding calendar quarter. The
7-21 report and remittance are due not later than the 20th day of the
7-22 month following the end of the calendar quarter.
7-23 (f) An invoice or other record required by this section or
7-24 rules of the comptroller must be maintained for at least four years
7-25 after the date on which the invoice or record is prepared and be
8-1 open for inspection by the comptroller at all reasonable times.
8-2 (g) The comptroller shall adopt rules necessary for the
8-3 administration, collection, reporting, and payment of the fees
8-4 payable or collected under this section.
8-5 (h) A scrap [waste] tire recycling fee is imposed on the
8-6 storage, use, or consumption in this state of a tire at the same
8-7 rate as provided by Subsection (a), except when purchased for the
8-8 purpose of resale.
8-9 (i) A person storing, using, or consuming a tire in this
8-10 state is liable for the scrap [waste] tire recycling fee as defined
8-11 in this section and is responsible for reporting and paying the fee
8-12 to the comptroller in the same manner as a person required to
8-13 collect this fee, as provided in Subsections (d)(2) and (e).
8-14 (j) A person storing, using, or consuming a tire in this
8-15 state is not further liable for the scrap [waste] tire recycling
8-16 fee imposed by Subsection (a) if the person:
8-17 (1) pays the fee to:
8-18 (A) a person who is required to collect the fee
8-19 under Subsection (a) and who is engaged in business in this state;
8-20 or
8-21 (B) another person authorized by the comptroller
8-22 to collect the fee; and
8-23 (2) receives a purchaser's receipt from the person to
8-24 whom the fee was paid.
8-25 (k) In this section:
9-1 (1) "Engaged in business in this state" has the
9-2 meaning provided under Sections 151.107(a) and (b), Tax Code.
9-3 (2) "Purchased for resale" means acquired by means of
9-4 a sale for resale as defined in Section 151.006, Tax Code.
9-5 (3) "Storage" and "use" have the meanings assigned
9-6 those terms by Section 151.011, Tax Code.
9-7 SECTION 5. Section 361.4725, Health and Safety Code, is
9-8 amended to read as follows:
9-9 Sec. 361.4725. REGISTRATION; FEE. (a) A scrap tire end
9-10 user, scrap tire facility, scrap tire storage facility, scrap tire
9-11 transporter, scrap tire processor, scrap tire generator, or scrap
9-12 tire reclamation project shall register with the commission in
9-13 accordance with commission rules and on the forms prescribed by the
9-14 commission.
9-15 (b) A person who applies to the commission to register under
9-16 this section [a waste tire storage facility, a waste tire energy
9-17 recovery facility storage site, a waste tire recycler, or a fixed
9-18 or mobile tire processor,] or applies to renew or amend the
9-19 registration, must pay a fee set by the commission not to exceed
9-20 [of] $500.
9-21 (c) Except as provided by Subsection (d), the commission may
9-22 not issue a registration or renew or amend a registration under
9-23 this subchapter unless the applicant has submitted to the
9-24 commission evidence of financial responsibility as required by this
9-25 subchapter.
10-1 (d) Subsection (c) does not apply to a:
10-2 (1) scrap tire generator;
10-3 (2) scrap tire transporter; or
10-4 (3) scrap tire end user that does not store more than
10-5 a 30-day supply of whole scrap tires, scrap tire pieces, or
10-6 tire-derived materials.
10-7 SECTION 6. Sections 361.474 and 361.475, Health and Safety
10-8 Code, are amended to read as follows:
10-9 Sec. 361.474. DISPOSITION OF FEES AND PENALTIES. Fees and
10-10 penalties collected under this subchapter shall be deposited in the
10-11 state treasury to the credit of the scrap [waste] tire recycling
10-12 fund.
10-13 Sec. 361.475. SCRAP [WASTE] TIRE RECYCLING FUND. (a) The
10-14 scrap [waste] tire recycling fund is a special account in the
10-15 general revenue fund.
10-16 (b) The commission shall administer the fund.
10-17 (c) The fund consists of fees and penalties collected under
10-18 this subchapter, interest on money in the fund, and money from
10-19 gifts, grants, or any other source intended to be used for the
10-20 purposes of this subchapter.
10-21 (d) The fund shall be used only to:
10-22 (1) pay scrap [waste tire processors, waste] tire end
10-23 users [energy recovery facility owners or operators, or waste tire
10-24 recyclers] that meet the requirements for payment under Section
10-25 361.477[, 361.4771, 361.4772, or 361.4773] and rules adopted under
11-1 that section [those sections];
11-2 (2) pay the commission's reasonable and necessary
11-3 administrative costs of performing its duties under this subchapter
11-4 as provided by Section 361.4774 [in an amount not to exceed six
11-5 percent of the money annually accruing to the fund];
11-6 (3) pay the comptroller's reasonable and necessary
11-7 administrative costs of performing the comptroller's duties under
11-8 this subchapter as provided by Section 361.4774 [in an amount not
11-9 to exceed two percent of the money annually accruing to the fund];
11-10 (4) pay for the cleanup of priority enforcement list
11-11 sites, including special authority priority enforcement list sites
11-12 [provide grants to waste tire energy recovery facility owners or
11-13 operators to cover equipment capital investment costs and equipment
11-14 installation costs to enable a facility to use tire shreds as
11-15 fuel]; and
11-16 (5) pay up to $3 million in grants for research and
11-17 development to generate new end uses for scrap tires [provide
11-18 grants for recycling facility construction costs].
11-19 (e) The commission may hire a consultant to advise and
11-20 assist in developing and evaluating end uses. For any intellectual
11-21 property, including patents and copyrights, developed using grant
11-22 money under Subsection (d)(5), a grant must reserve to the state a
11-23 nonexclusive, transferable right to use or modify any intellectual
11-24 property developed using grant money and to authorize others to use
11-25 or modify the intellectual property.
12-1 (f) [(e)] Registration fees received under Section 361.4725
12-2 shall be allocated to the commission for its reasonable and
12-3 necessary costs associated with the [reviewing applications for]
12-4 registration of a person required to register under that section
12-5 [and with registering:]
12-6 [(1) fixed and mobile tire processing facilities and
12-7 storage sites;]
12-8 [(2) waste tire energy recovery facilities and storage
12-9 sites; and]
12-10 [(3) waste tire recyclers].
12-11 (g) [(f)] The fund may not be used to reimburse [shredding
12-12 or] burning of:
12-13 (1) innertubes;
12-14 (2) scrap rubber products;
12-15 (3) green tires;
12-16 (4) industrial solid waste, excluding scrap [waste]
12-17 tires;
12-18 (5) oversized tires, as defined by commission rule,
12-19 unless the oversized tires are collected from a priority
12-20 enforcement list site;
12-21 (6) manufacturer reject tires; or
12-22 (7) nonpneumatic tires.
12-23 (h) [(g)] The commission may classify special authorization
12-24 tires, as defined by commission rule, as priority enforcement list
12-25 tires.
13-1 [(h) The fund shall maintain a balance of not less than
13-2 $500,000.]
13-3 (i) [If the commission has reason to believe that the
13-4 balance of money appropriated from the fund will fall below
13-5 $500,000, the commission may:]
13-6 [(1) suspend the requirement to reimburse priority
13-7 enforcement list tires shredded in excess of the minimum percentage
13-8 identified in Section 361.477(c)(3)(C);]
13-9 [(2) limit the number of waste tires for which a
13-10 processor, waste tire energy recovery facility owner or operator,
13-11 or waste tire recycler will be reimbursed; or]
13-12 [(3) discontinue paid carryover.]
13-13 [(j)] The revenues obtained from the scrap [waste] tire
13-14 recycling fees shall be deposited to the credit of the scrap
13-15 [waste] tire recycling fund and may be used only to pay for those
13-16 activities and costs identified in Subsection (d) or (f) [(e)].
13-17 SECTION 7. Sections 361.477 and 361.4771, Health and Safety
13-18 Code, are amended to read as follows:
13-19 Sec. 361.477. PAYMENTS TO SCRAP [WASTE] TIRE END USERS
13-20 [PROCESSORS]. (a) The commission each calendar quarter [month]
13-21 shall pay a scrap [waste] tire end user [processor] that [shreds
13-22 scrap tires and] meets the requirements of this section and Section
13-23 361.4771 and rules adopted under those sections: (i) from
13-24 September 1, 1997, through August 31, 1999, $70 per ton for
13-25 recycling and energy recovery for each ton of whole scrap tires,
14-1 shredded tire pieces, or tire-derived material actually put to end
14-2 use by the end user during the preceding calendar quarter; from
14-3 September 1, 1999, through August 31, 2000, $50 per ton for
14-4 recycling and energy recovery for each ton of whole scrap tires,
14-5 shredded tire pieces, or tire-derived material actually put to end
14-6 use by the end user during the preceding calendar quarter; and from
14-7 September 1, 2000, through December 31, 2001, $30 per ton for
14-8 recycling and energy recovery for each ton of whole scrap tires,
14-9 shredded tire pieces, or tire-derived material actually put to end
14-10 use by the end user during the preceding calendar quarter; or
14-11 (ii) from September 1, 1997, through August 31, 1999, $30 per ton
14-12 for civil engineering uses, including road construction, landfill
14-13 applications, reclamation, and septic systems, for each ton of
14-14 whole scrap tires, shredded tire pieces, or tire-derived material
14-15 actually put to end use; from September 1, 1999, through August 31,
14-16 2000, $20 per ton for civil engineering uses, including road
14-17 construction, landfill applications, reclamation, and septic
14-18 systems, for each ton of whole scrap tires, shredded tire pieces,
14-19 or tire-derived material actually put to end use; and from
14-20 September 1, 2000, through December 31, 2001, $10 per ton for civil
14-21 engineering uses, including road construction, landfill
14-22 applications, reclamation, and septic systems, for each ton of
14-23 whole scrap tires, shredded tire pieces, or tire-derived material
14-24 actually put to end use [this section an amount equal to 80 cents
14-25 for each weighed tire shredded] by the end user [processor] during
15-1 the preceding calendar quarter [month]. This subsection applies
15-2 only to whole scrap tires that were collected from generators after
15-3 September 1, 1997, or shredded tire pieces or tire-derived material
15-4 that originated from whole scrap tires that were collected from
15-5 generators after September 1, 1997.
15-6 (b) Each calendar quarter the commission shall pay a scrap
15-7 tire end user that meets the requirements of this section and
15-8 Section 361.4771 and rules adopted under those sections an amount
15-9 set by the commission for each ton of shredded tire pieces actually
15-10 put to end use by the end user. This subsection applies only to
15-11 shredded tire pieces that originated from whole scrap tires that
15-12 were collected from generators before September 1, 1997.
15-13 (c) A scrap tire end user is not eligible for payment under
15-14 this section if the total amount of tires, tire pieces, or
15-15 tire-derived material actually put to end use by the end user
15-16 during a calendar quarter is less than 150 tons. The commission by
15-17 rule may allow an end user to carry over to the next calendar
15-18 quarter, but not for more than one calendar year, all or part of an
15-19 amount of tires, tire pieces, or tire-derived material put to end
15-20 use that does not meet the minimum amount required by this
15-21 subsection.
15-22 (d) The [If the total number of used or scrap tires or tire
15-23 pieces contained in illegal scrap tire sites that are identified on
15-24 the priority enforcement list is below 2,500,000 tires, the]
15-25 commission may pay [80 cents or] an appropriate amount determined
16-1 by the commission [for each weighed tire] to contractors
16-2 [processors] with whom the commission has contracted to remove and
16-3 transport to end use [shred] scrap tires and scrap tire pieces from
16-4 priority enforcement list sites or storage locations at which
16-5 special authorization priority enforcement list tires are stored.
16-6 [The 2,500,000 tire limit does not include those tires contained in
16-7 sites under commission enforcement or attorney general action or
16-8 that require corrective action or remedial action in response to a
16-9 release or threat of release of hazardous substances.] In acting
16-10 under this subsection, the commission may contract [with
16-11 processors] on a regional or site-specific basis. The contracts
16-12 shall be procured through a competitive bid process conducted in
16-13 accordance with the provisions of the State Purchasing and General
16-14 Services Act (Subtitle D, Title 10, Government Code [Article 601b,
16-15 Vernon's Texas Civil Statutes]) applicable to contracts for
16-16 services. [Notwithstanding Subsection (c), while the commission is
16-17 using a competitive bid process for assignment of sites listed on
16-18 the priority enforcement list, the priority enforcement list
16-19 requirements of Subsection (c)(3)(C) do not apply to an application
16-20 for payment. The commission may elect not to enter into contracts
16-21 under this subsection. The contracts may be only for the removal
16-22 and shredding of tires from priority enforcement list sites.]
16-23 [(c) A waste tire processor that desires to receive payment
16-24 under this section for tires shredded by the processor during a
16-25 calendar month must:]
17-1 [(1) apply to the commission for registration in
17-2 accordance with forms prescribed by the commission;]
17-3 [(2) apply to the commission for payment on forms
17-4 prescribed by the commission or, on a voluntary basis, apply by a
17-5 removable storage medium stored in an industry standard file format
17-6 acceptable to the commission;]
17-7 [(3) demonstrate as required by rules adopted under
17-8 this section that:]
17-9 [(A) all tires for which payment is sought have
17-10 been shredded to an industry standard two-inch minus particle size
17-11 or, if approved by the commission, shredded to an alternative
17-12 particle size set by a contract requirement related to recycling or
17-13 end use of the particles;]
17-14 [(B) not less than 50 percent of those tires
17-15 were collected from generators, unless this requirement is
17-16 suspended by the commission on consideration of service needs
17-17 contained in a contract drafted under Subsection (b); and]
17-18 [(C) if the total number of whole used or scrap
17-19 tires or shredded tire pieces contained in illegal waste tire sites
17-20 that are identified on the priority enforcement list exceeds
17-21 2,500,000 tires for more than 60 consecutive days, not less than 15
17-22 percent and not more than 30 percent of those tires were collected
17-23 from scrap tire sites listed on the priority enforcement list;]
17-24 [(4) provide any other information the commission
17-25 determines is needed to accomplish the purposes of this subchapter,
18-1 including a monthly report of scrap tires or tire pieces shredded,
18-2 subtotaled by tire count or weight, for each generator number and
18-3 priority enforcement list number;]
18-4 [(5) demonstrate that energy recovery activities in
18-5 the state are in compliance with applicable air emission control
18-6 rules and standards; and]
18-7 [(6) provide financial assurance deemed adequate by
18-8 the commission that corresponds to:]
18-9 [(A) the payment appropriate for the number of
18-10 scrap tires the processor anticipates shredding in the next
18-11 calendar month; or]
18-12 [(B) the number of scrap tires the waste tire
18-13 storage site owner or operator anticipates accepting for storage in
18-14 the next calendar month.]
18-15 [(d) A waste tire processor that in any month exceeds the
18-16 minimum requirement of Subsection (c)(3)(C) may receive credit only
18-17 for paid carryover in the amount in excess of the requirement that
18-18 may be used to meet the minimum requirement during a later month.
18-19 The commission by rule may prescribe the method of applying credits
18-20 accrued under this subsection.]
18-21 [(e) The commission by rule shall adopt application and
18-22 payment procedures and requirements to implement this section.]
18-23 (e) [(f)] Until the commission has determined that a scrap
18-24 [waste] tire energy recovery facility owner or operator or a scrap
18-25 tire recycler [processor] is in compliance with all applicable
19-1 requirements, the commission may not authorize the scrap tire
19-2 energy recovery facility owner or operator or the scrap tire
19-3 recycler [processor] to burn, recycle, [process] or store scrap
19-4 tires or tire pieces at a site at which the scrap tire energy
19-5 recovery facility owner or operator or the scrap tire recycler
19-6 burns, recycles, [processor processes] or stores, or intends to
19-7 burn, recycle, [process] or store, scrap tires or tire pieces.
19-8 [(g) Beginning January 1, 1996, the commission may reimburse
19-9 a processor for shredded scrap tires only if the processor has a
19-10 binding agreement to deliver the shredded scrap tires to a person
19-11 to recycle or reuse or to use for energy recovery within 180 days
19-12 after the date of reimbursement. The commission shall suspend
19-13 subsequent shredding reimbursements to a processor that fails to
19-14 deliver the tire shreds to an identified end-use market before the
19-15 181st day after the date of reimbursement unless the executive
19-16 director determines that the failure to deliver was caused by an
19-17 act of God or by unforeseen business events. The commission may
19-18 not resume suspended reimbursements until the processor makes all
19-19 delinquent deliveries.]
19-20 [(h) The commission may not pay a waste tire processor for
19-21 processing scrap tires if:]
19-22 [(1) the commission field office and central office
19-23 program staff have not reviewed and approved for further processing
19-24 by the commission all information submitted to the commission by
19-25 the waste tire processor as required by Subsection (c) or rules
20-1 adopted under this section; or]
20-2 [(2) the commission determines that the processor:]
20-3 [(A) has not provided adequate financial
20-4 assurance;]
20-5 [(B) does not have adequate fire protection; or]
20-6 [(C) is causing an imminent danger to public
20-7 health or welfare.]
20-8 [(i) A waste tire processor that in any month exceeds the
20-9 generator percentage of the allocated number of waste tires
20-10 assigned for reimbursement purposes may accrue credit only for paid
20-11 generator carryover in the amount in excess of the requirement that
20-12 may be used to meet the allocation maximum during a later month.
20-13 The commission by rule may prescribe the method of applying
20-14 carryover credit accrued under this section.]
20-15 [(j) The commission shall adopt rules to manage payments
20-16 from the fund to prevent depletion of the fund. Rules adopted
20-17 under this subsection shall consider appropriate payments to
20-18 processors that reflect the varying amounts of money available in
20-19 the fund. In any allocation adopted for processors under this
20-20 section, the commission shall consider the monthly average
20-21 percentage of shredded tires the processor has forwarded to an
20-22 end-use or recycling market. In addition, the commission may
20-23 consider the historical average number of tires for which the
20-24 processor has been reimbursed and such other factors as may be
20-25 determined by the commission.]
21-1 [(k) Notwithstanding Subsection (a), beginning September 1,
21-2 1995, the commission shall reimburse a waste tire processor an
21-3 additional five cents for each weighed tire if the commission
21-4 determines that the processor has a binding agreement to deliver
21-5 100 percent of the scrap tires shredded by the processor monthly to
21-6 a person to recycle or reuse or to use for energy recovery and the
21-7 commission verifies that the processor has delivered the tire
21-8 shreds to such identified end-use market. This section applies
21-9 only to a waste tire processor registered on January 1, 1995, and
21-10 that has a verified end market for the processor's tire shreds on
21-11 June 1, 1995.]
21-12 Sec. 361.4771. PROCEDURE FOR OBTAINING PAYMENT FOR END USE;
21-13 RESTRICTIONS; FUND MANAGEMENT [ENERGY RECOVERY FROM WHOLE WASTE
21-14 TIRES OR SHREDDED TIRES]. (a) [The commission shall adopt rules
21-15 governing payments to waste tire energy recovery facilities for
21-16 weighed tires used by the facility for fuel. The rules must
21-17 include rules governing registration and application procedures.
21-18 The rules must include a voluntary alternative process for making a
21-19 payment application by the use of an industry standard file format
21-20 removable storage medium.]
21-21 [(b)] To receive payment under [this section and] Section
21-22 361.477 [361.4773], a scrap [waste] tire end user [energy recovery
21-23 facility owner or operator] must:
21-24 (1) apply to the commission for registration in the
21-25 manner and on forms prescribed by commission rule;
22-1 (2) apply to the commission for payment:
22-2 (A) in a manner and on forms prescribed by
22-3 commission rule; or
22-4 (B) as a voluntary alternative, by use of a
22-5 removable storage medium stored in an industry standard file format
22-6 acceptable to the commission;
22-7 (3) demonstrate that all tires or tire pieces for
22-8 which the end user [owner or operator] applies for payment are
22-9 whole scrap [waste] tires or shredded tires;
22-10 (4) send the commission a quarterly [monthly] report
22-11 of the number of tons of whole scrap [waste] tires, [or] shredded
22-12 tires, or tire-derived material put to actual end use [used for
22-13 energy recovery], subtotaled by [tire count or by] weight
22-14 attributed to each generator number or priority enforcement list
22-15 number;
22-16 (5) demonstrate that any [the] energy recovery
22-17 activities comply with applicable air emission control standards
22-18 and rules;
22-19 (6) submit evidence of financial responsibility in an
22-20 amount adequate to assure proper cleanup and closure of the
22-21 facility, if the person anticipates accepting an amount of whole
22-22 scrap tires, shredded tire pieces, or tire-derived material for
22-23 storage that exceeds the facility's 30-day supply; and
22-24 (7) [if the number of whole used or scrap tires or
22-25 shredded tire pieces contained in illegal waste tire sites that are
23-1 identified on the priority enforcement list exceeds 2,500,000 tires
23-2 for more than 60 consecutive days, demonstrate that not less than
23-3 15 percent and not more than 30 percent of the tires used for
23-4 energy recovery at the facility were collected from scrap tire
23-5 sites listed on the priority enforcement list; and]
23-6 [(8)] provide any other information required by
23-7 commission rule.
23-8 (b) The commission may pay a scrap tire end user under
23-9 Section 361.477 for scrap tires used for reclamation only if the
23-10 scrap tires, before use in reclamation, have been shredded or cut
23-11 into pieces not larger than nine square inches. To receive payment
23-12 under Section 361.477, an end user that intends to use shredded
23-13 tire pieces for a reclamation project must:
23-14 (1) comply with Subsection (a); and
23-15 (2) submit for commission approval a project plan
23-16 that:
23-17 (A) addresses the management of shredded tire
23-18 pieces; and
23-19 (B) includes, at a minimum, design requirements
23-20 that address surface water and groundwater protection and fire
23-21 prevention.
23-22 (c) A scrap [waste] tire energy recovery facility may not
23-23 store in excess of a 30-day supply of whole scrap [waste] tires,
23-24 [or] shredded tires, or tire-derived material at a site at which
23-25 the owner or operator intends to burn or store scrap [waste] tires,
24-1 [or] shredded tire pieces, or tire-derived material [tires] until
24-2 the facility is registered by the commission as a scrap [waste]
24-3 tire energy recovery facility storage site. A scrap tire recycler
24-4 may not store in excess of a 30-day supply of whole scrap tires,
24-5 shredded tire pieces, or tire-derived material at a site at which
24-6 the recycler intends to recycle or store whole scrap tires,
24-7 shredded tire pieces, or tire-derived material until the facility
24-8 is registered by the commission as a scrap tire recycler storage
24-9 site.
24-10 (d) The commission may not pay a scrap [waste] tire end user
24-11 [energy recovery facility owner or operator] for actual end use of
24-12 whole scrap [using waste] tires, [or] shredded tire pieces, or
24-13 tire-derived material [tires] if:
24-14 (1) the commission field office and central office
24-15 program staff have not reviewed and approved for further processing
24-16 by the commission all information submitted to the commission by
24-17 the scrap [waste] tire end user [energy recovery facility owner or
24-18 operator] as required by Subsection (a) [(b)] or rules adopted
24-19 under this section;
24-20 (2) the commission determines that the end user
24-21 [facility]:
24-22 (A) has not provided adequate financial
24-23 assurance;
24-24 (B) does not have adequate fire protection; or
24-25 (C) is causing an imminent danger to public
25-1 health or welfare;
25-2 (3) the end user [facility] does not have appropriate
25-3 authorization from the commission to:
25-4 (A) perform scrap [waste] tire energy recovery
25-5 at the energy recovery facility site if the end user is a scrap
25-6 tire energy recovery facility owner or operator; or
25-7 (B) recycle scrap tires, shredded tire pieces,
25-8 or tire-derived material at the recycling site if the end user is a
25-9 scrap tire recycler; or
25-10 (4) the end user [facility] is not physically capable
25-11 of performing:
25-12 (A) scrap [waste] tire energy recovery, if the
25-13 end user is a scrap tire energy recovery facility owner or
25-14 operator; or
25-15 (B) scrap tire recycling, if the end user is a
25-16 scrap tire recycler.
25-17 (e) The commission shall adopt rules to manage payments from
25-18 the fund to prevent depletion of the fund. [Before using any
25-19 allocation method authorized by this subchapter and before making
25-20 other payments from the fund, the commission shall pay
25-21 reimbursements to processors under Section 361.477 who have
25-22 established end-use markets and pay reimbursements under this
25-23 section and Sections 361.4772 and 361.4773.]
25-24 (f) In this section, "30-day supply" means an amount equal
25-25 to the average of the amount of tires consumed for energy recovery
26-1 or legitimately recycled in each of the six months immediately
26-2 preceding the month for which the supply is being computed. A
26-3 facility in operation less than six months shall submit for
26-4 commission review, evaluation, and approval an estimate of a 30-day
26-5 supply.
26-6 SECTION 8. Sections 361.4772 and 361.4773, Health and Safety
26-7 Code, are amended to read as follows:
26-8 Sec. 361.4772. SCRAP TIRE PROCESSORS; AUTHORIZATION TO
26-9 OPERATE [RECYCLING FACILITY CONSTRUCTION GRANT]. Until the
26-10 commission has determined that a scrap tire processor is in
26-11 compliance with all applicable requirements, the commission may not
26-12 authorize the processor to process or store scrap tires at a site
26-13 at which the processor processes or stores or intends to process or
26-14 store scrap tires [(a) The commission by rule shall establish a
26-15 program for providing grants for the construction of waste tire
26-16 recycling facilities for the recycling of whole waste tires or
26-17 shredded tires.]
26-18 [(b) The commission may not expend more than $2 million each
26-19 year for grants under this section.]
26-20 [(c) A facility constructed with a grant under this section
26-21 is not eligible for reimbursement for:]
26-22 [(1) powdered rubber;]
26-23 [(2) a tire-derived fuel;]
26-24 [(3) buffing dust;]
26-25 [(4) a retreaded or recapped tire; or]
27-1 [(5) a product that is ineligible for reimbursement
27-2 under commission rules.]
27-3 [(d) The commission shall require a grant recipient to:]
27-4 [(1) demonstrate that not less than 15 percent and not
27-5 more than 30 percent of the tires used for energy recovery at the
27-6 facility were collected from scrap tire sites listed on the
27-7 priority enforcement list if the number of whole used or scrap
27-8 tires or shredded tire pieces contained in illegal waste tire sites
27-9 that are identified on the priority enforcement list exceeds
27-10 2,500,000 tires for more than 60 consecutive days; and]
27-11 [(2) submit evidence of financial responsibility in an
27-12 amount adequate to assure proper cleanup and closure of the
27-13 facility, if the recipient anticipates accepting an amount of whole
27-14 waste tires or shredded tire pieces for storage that exceeds the
27-15 facility's 30-day supply].
27-16 Sec. 361.4773. STORED TIRES: TRANSPORT TO END USER REQUIRED
27-17 [PAYMENT FOR SHREDDED WASTE TIRE ENERGY RECOVERY FACILITY].
27-18 (a) Not later than the 30th day after the end of the calendar
27-19 quarter, a scrap tire storage facility shall send to an end user
27-20 100 percent of the whole scrap tires or shredded tire pieces
27-21 collected or processed by the facility in a calendar quarter [The
27-22 commission each month shall pay to a waste tire energy recovery
27-23 facility owner or operator that burns shredded tires in compliance
27-24 with an energy recovery permit issued by the commission an amount
27-25 equal to 40 cents for each weighed tire the facility used for
28-1 energy recovery during the preceding month].
28-2 (b) A scrap tire storage facility that does not meet the
28-3 requirement of Subsection (a) for any calendar quarter shall
28-4 immediately cease accepting additional whole scrap tires or
28-5 shredded tire pieces [To receive payment under this section, a
28-6 retrofitted waste tire energy recovery facility owner or operator
28-7 must:]
28-8 [(1) apply to the commission for payment in a manner
28-9 and on forms prescribed by commission rule; and]
28-10 [(2) comply with applicable rules adopted by the
28-11 commission under this section and Section 361.4771, unless
28-12 otherwise indicated by the energy recovery permit issued by the
28-13 commission].
28-14 (c) This section applies only to whole scrap tires that are
28-15 collected from a generator on or after September 1, 1997, or
28-16 shredded tire pieces or tire-derived material that originated from
28-17 scrap tires that were collected from a generator on or after
28-18 September 1, 1997.
28-19 SECTION 9. Section 361.4774, Health and Safety Code, is
28-20 amended to read as follows:
28-21 Sec. 361.4774. [LIMITED USE OF WASTE TIRE RECYCLING FUND;
28-22 GRANTS, REIMBURSMENT, AND] ADMINISTRATIVE EXPENSES. (a) For
28-23 performing duties related to the scrap [waste] tire program, each
28-24 fiscal year the comptroller may expend [up to $680,000 or] an
28-25 amount equal to not more than two percent of the money annually
29-1 accruing to the scrap [waste] tire recycling [recovery] fund[,
29-2 whichever is greater].
29-3 (b) For administering the scrap [waste] tire recycling
29-4 program, each fiscal year the commission may expend [not more than
29-5 the lesser of $2.05 million or] an amount equal to not more than
29-6 eight [six] percent of the amount annually accruing to
29-7 [appropriated from] the scrap [waste] tire recycling fund for the
29-8 administration and operation of the scrap [waste] tire recycling
29-9 program.
29-10 [(c) Each fiscal year, the commission may expend not more
29-11 than:]
29-12 [(1) $1.4 million for paying accrued carryover credits
29-13 as provided by Section 361.499;]
29-14 [(2) $15.2 million for tire shredding under Section
29-15 361.477;]
29-16 [(3) $3.52 million for the cleanup and closure of
29-17 priority enforcement list tire sites as provided by Sections
29-18 361.476 and 361.477;]
29-19 [(4) $2 million for providing recycling facility
29-20 construction grants under Section 361.4772;]
29-21 [(5) $600,000 for payments to energy recovery
29-22 facilities under Section 361.4773 at a rate of 40 cents per weighed
29-23 tire unit; and]
29-24 [(6) $6 million to provide grants for retrofitting
29-25 facilities to use whole or shredded tires for fuel or for paying
30-1 for facilities to use whole tires for fuel as provided by
30-2 Subsections (d) and (e).]
30-3 [(d) For fiscal year 1996, the commission may expend not
30-4 more than $4 million for:]
30-5 [(1) providing grants to waste tire energy recovery
30-6 facilities that are not using tire-derived fuel and apply for
30-7 assistance to cover retrofitting costs the commission determines
30-8 are necessary to enable the facilities to use whole tires as fuel;
30-9 and]
30-10 [(2) paying a facility eligible for a grant under
30-11 Subdivision (1), but for which the commission has not made a grant,
30-12 an amount of up to 80 cents per weighed tire unit.]
30-13 [(e) A person receiving payments for weighed tires under
30-14 Subsection (d)(2) may not receive reimbursements that exceed the
30-15 total of:]
30-16 [(1) the amount of the retrofitting costs the facility
30-17 would have received if the person had applied for a grant under
30-18 Subsection (d)(1); and]
30-19 [(2) the cost, as determined by the commission, of
30-20 transporting to the facility the number of whole tires used for
30-21 fuel until the payments under Subsection (d)(2) equal the amount of
30-22 the retrofitting costs the facility would have received.]
30-23 [(f) For fiscal year 1996, the commission may expend not
30-24 more than $2 million to provide grants to waste tire energy
30-25 recovery facilities that are not using tire-derived fuel and apply
31-1 for assistance to cover retrofitting costs the commission
31-2 determines are necessary to enable the facilities to use shredded
31-3 tires as fuel.]
31-4 [(g) For the period beginning September 1, 1996, and ending
31-5 December 31, 1997, the commission may expend not more than $6
31-6 million for payments to waste tire energy recovery facilities that
31-7 burn whole tires at a rate of 80 cents per weighed tire unit used.]
31-8 [(h) After the third quarter of each year of the fiscal
31-9 biennium, funds that remain unused for the purposes specified in
31-10 Subsections (a)-(g) may be transferred for use for a purpose
31-11 specified in Subsections (c)-(g) at the discretion of the
31-12 commission to promote recycling and energy recovery.]
31-13 SECTION 10. Section 361.479, Health and Safety Code, is
31-14 amended to read as follows:
31-15 Sec. 361.479. EVIDENCE OF FINANCIAL RESPONSIBILITY. (a) A
31-16 person required to register under Section 361.4725 [waste tire
31-17 storage facility registered by the commission or a waste tire
31-18 facility that accepts shredded scrap tires for storage or for
31-19 processing for recycling, reuse, or energy recovery] shall submit
31-20 to the commission and shall maintain evidence of financial
31-21 responsibility in an amount adequate to assure proper cleanup and
31-22 closure of the facility. This subsection does not apply to a
31-23 person listed under Section 361.4725(d).
31-24 (b) A scrap [waste] tire recycling facility owner or
31-25 operator or scrap tire energy recovery facility owner or operator
32-1 who anticipates accepting for storage an amount of whole scrap
32-2 tires, shredded tire pieces, or tire-derived material [for storage]
32-3 that exceeds the facility's 30-day supply shall submit to the
32-4 commission and shall maintain evidence of financial responsibility
32-5 in an amount adequate to assure proper cleanup and closure of the
32-6 facility.
32-7 (c) A facility subject to Subsection (a) or (b) shall submit
32-8 to the commission an estimate of the total amount of whole scrap
32-9 tires, shredded tire pieces, or tire-derived material measured by
32-10 weight [weighed tire] that the facility will store, [or] process,
32-11 or put to end use, the maximum number of out-of-state tires the
32-12 facility will store, and the estimated cost, using that total
32-13 amount, of cleaning up and closing the facility.
32-14 (d) The commission shall evaluate and may amend an estimate
32-15 submitted under Subsection (c) and shall determine for each
32-16 facility the amount for which evidence of financial responsibility
32-17 is required. The commission periodically may audit a facility
32-18 subject to this section and may increase the amount for which the
32-19 facility is required to provide evidence of financial
32-20 responsibility. The commission may suspend the registration of, or
32-21 payments under Section 361.477 to, a facility that does not provide
32-22 evidence of financial responsibility for an increased amount
32-23 required under this section.
32-24 (e) Evidence of financial responsibility may be in the form
32-25 of:
33-1 (1) a performance bond, surety bond, or [a] letter of
33-2 credit acceptable to the commission that is from a financial
33-3 institution, a trust fund, or insurance for a privately owned
33-4 facility; or
33-5 (2) a self-insurance test designed by the commission
33-6 for a publicly owned facility. A person who makes an initial
33-7 request for reimbursement from the scrap [waste] tire recycling
33-8 fund on or after September 1, 1993, must provide evidence of
33-9 financial responsibility for the full amount determined under
33-10 Subsection (d).
33-11 (f) A person who files an application or amended application
33-12 for registration under this subchapter on or after September 1,
33-13 1997, must provide evidence of financial responsibility:
33-14 (1) in an amount adequate to:
33-15 (A) assure proper cleanup and closure of the
33-16 facility for which registration is requested; and
33-17 (B) pay for reasonable emergency response costs
33-18 that might be incurred in the event of a catastrophic occurrence;
33-19 and
33-20 (2) in a form prescribed by commission rule that may
33-21 be used to:
33-22 (A) pay for the proper cleanup and closure of,
33-23 or for reasonable emergency response costs incurred as a result of
33-24 a catastrophic occurrence at, that facility; or
33-25 (B) contribute, in a manner prescribed by
34-1 commission rule and after a hearing, to payment of cleanup and
34-2 closure costs or reasonable response costs incurred as a result of
34-3 a catastrophic occurrence incurred by the commission at another
34-4 facility owned or controlled by the same person or by the person's
34-5 subsidiary or affiliate, for which the financial assurance provided
34-6 was insufficient to pay for proper cleanup and closure of or
34-7 reasonable response costs at the facility.
34-8 SECTION 11. Subchapter P, Chapter 361, Health and Safety
34-9 Code, is amended by adding Sections 361.4791 and 361.4792 to read
34-10 as follows:
34-11 Sec. 361.4791. LIEN. (a) All remediation costs incurred by
34-12 the commission for the cleanup and closure of a site for which
34-13 insufficient financial assurance has been provided constitute a
34-14 lien in favor of the state on the property on which the site is
34-15 located.
34-16 (b) The lien arises and attaches on the date a commission
34-17 affidavit is filed with the county clerk in the county in which the
34-18 real property is located in the county in which the principal place
34-19 of business is located. The affidavit shall state the name of the
34-20 owner of the property, the amount owed, and the legal description
34-21 of the property. The county clerk shall file an affidavit relating
34-22 to real property in the real property records of the county in
34-23 which the property is located.
34-24 (c) The lien is subordinate to the rights of prior bona fide
34-25 purchasers of or lienholders on the property.
35-1 Sec. 361.4792. NOTICE OF BANKRUPTCY. (a) Not later than
35-2 the second business day after the filing of a voluntary or
35-3 involuntary petition in bankruptcy by a scrap tire processor, scrap
35-4 tire end user, or scrap tire transporter or the filing of an
35-5 involuntary bankruptcy petition for relief against a scrap tire
35-6 processor, scrap tire end user, or scrap tire transporter, the
35-7 scrap tire processor, scrap tire end user, or scrap tire
35-8 transporter shall deliver to the bankruptcy program department of
35-9 the commission in Austin written notice of the bankruptcy stating
35-10 the case number and the bankruptcy court where the case is pending.
35-11 (b) Not later than the second business day after the date
35-12 the document is filed with the bankruptcy clerk's office in a
35-13 bankruptcy case described in Subsection (a), the scrap tire
35-14 processor, scrap tire end user, or scrap tire transporter shall
35-15 deliver to the bankruptcy program department of the commission a
35-16 copy of:
35-17 (1) any schedule or statement of affairs;
35-18 (2) any amended schedule or statement of affairs; or
35-19 (3) any monthly operating report.
35-20 SECTION 12. Sections 361.481 and 361.482, Health and Safety
35-21 Code, are amended to read as follows:
35-22 Sec. 361.481. PROHIBITION ON OUT-OF-STATE TIRES; PENALTY.
35-23 (a) [A waste tire processor may not claim payment under Section
35-24 361.477 for shredding out-of-state tires.] A scrap [waste] tire
35-25 energy recovery facility owner or operator may not claim payment
36-1 under Section 361.477 [361.4771 or 361.4773] for burning
36-2 out-of-state tires. A scrap [waste] tire recycler may not claim
36-3 payment under Section 361.477 [361.4772] for recycling out-of-state
36-4 tires.
36-5 (b) A scrap [waste] tire generator that the commission
36-6 determines has used a manifest and commission generator number to
36-7 pass out-of-state tires is subject to an [not eligible for the free
36-8 collection and transportation of waste tires generated at the
36-9 generator's place of business. In addition to any] administrative,
36-10 civil, or criminal enforcement action[, the commission shall
36-11 require the generator to pay for:]
36-12 [(1) collection and transportation of generated tires;
36-13 and]
36-14 [(2) shredding, burning, or recycling of generated
36-15 tires at the applicable rate specified in Section 361.477,
36-16 361.4771, or 361.4772].
36-17 (c) A scrap [waste] tire processor, scrap [waste] tire
36-18 energy recovery facility owner or operator, or scrap [waste] tire
36-19 recycler who the commission determines has knowingly accepted
36-20 out-of-state tires on manifests using a commission generator number
36-21 is subject to an administrative, civil, or criminal enforcement
36-22 action.
36-23 (d) A scrap [waste] tire transporter that the commission
36-24 determines has transported out-of-state tires using a
36-25 commission-approved manifest or transporter number is subject to an
37-1 administrative, civil, or criminal enforcement action.
37-2 (e) The commission shall treat whole scrap tires and
37-3 shredded tire pieces generated in Texas, removed from Texas, and
37-4 subsequently reintroduced into Texas as out-of-state scrap tires
37-5 for the purposes of this subchapter.
37-6 Sec. 361.482. PROHIBITION ON DISPOSAL OF [SHREDDED] TIRES IN
37-7 LANDFILL. A person may not dispose of in-state whole used tires,
37-8 [or] scrap tires, [that are eligible for reimbursement under this
37-9 chapter] or shredded tire pieces [for which reimbursement has been
37-10 paid under this subchapter] in a landfill, including a Type VIII-S
37-11 tire monofill, unless the person resides in a geographic area
37-12 determined by the commission to have an inadequate end-use market
37-13 for scrap tires. The disposal of used or scrap tires under this
37-14 section is subject to Section 361.112 and rules adopted under that
37-15 section.
37-16 SECTION 13. Subchapter P, Chapter 361, Health and Safety
37-17 Code, is amended by adding Section 361.4825 to read as follows:
37-18 Sec. 361.4825. INTENTIONAL BURNING PROHIBITED; DUMPING
37-19 PROHIBITED; CRIMINAL PENALTY. (a) A person commits an offense if
37-20 the person starts a fire with the intent to destroy or damage whole
37-21 scrap tires, tire pieces, or tire-derived products.
37-22 (b) It is an exception to the application of Subsection (a)
37-23 that the fire was started at a registered scrap tire energy
37-24 recovery facility in the course of an energy recovery procedure
37-25 authorized under this subchapter.
38-1 (c) A person commits an offense if the person disposes of
38-2 more than 100 whole tires or an equivalent amount of scrap tire
38-3 pieces at a site that is not authorized by the commission to accept
38-4 whole tires or scrap tire pieces.
38-5 (d) An offense under this section is a state jail felony.
38-6 (e) In addition to the criminal penalty provided by this
38-7 section, a person who commits an offense under this section is
38-8 subject to a civil penalty under Section 361.483.
38-9 SECTION 14. Subsections (a) and (c), Section 361.483, Health
38-10 and Safety Code, are amended to read as follows:
38-11 (a) A person who violates this subchapter or a rule adopted
38-12 or order issued under this subchapter is liable for a civil penalty
38-13 of not less than $100 or more than $25,000 [up to $10,000] for each
38-14 violation and for each day of a continuing violation.
38-15 (c) A penalty collected under this section shall be
38-16 deposited to the credit of the scrap [waste] tire recycling fund.
38-17 SECTION 15. Section 361.4832, Health and Safety Code, is
38-18 amended to read as follows:
38-19 Sec. 361.4832. ADMINISTRATIVE PENALTY; ORDER FOR CORRECTIVE
38-20 ACTION; SUSPENSION OF REGISTRATION. (a) If a person violates this
38-21 subchapter or a rule adopted or order issued under this subchapter
38-22 the commission may:
38-23 (1) assess against the person an administrative
38-24 penalty under Section 361.252 in an amount not to exceed $10,000
38-25 for each act of violation and for each day of violation; or
39-1 (2) order the person to take a corrective action.
39-2 (b) The commission may suspend a registration issued under
39-3 this subchapter and may suspend payment under Section 361.477 to a
39-4 scrap [of or reimbursement payment to a waste tire processor, waste
39-5 tire transporter, waste tire generator, waste] tire recycling
39-6 facility[,] or scrap [waste] tire energy recovery facility on the
39-7 initiation of an enforcement proceeding and while the proceeding is
39-8 pending for the violation of this subchapter or a rule adopted or
39-9 order issued under this subchapter.
39-10 SECTION 16. Subsection (b), Section 361.485, Health and
39-11 Safety Code, is amended to read as follows:
39-12 (b) The commission shall include in the report the
39-13 commission's recommendation, based on the commission's evaluation
39-14 of the rate of inflation during the preceding two years, as to
39-15 whether an adjustment to the fee assessed on the sale of tires or
39-16 to the rate of reimbursement paid to a scrap [waste] tire recycler
39-17 [processor] or scrap [waste] tire energy recovery facility owner or
39-18 operator is warranted.
39-19 SECTION 17. Section 361.487, Health and Safety Code, is
39-20 amended to read as follows:
39-21 Sec. 361.487. PAYMENTS TO OUT-OF-STATE TIRE RECYCLERS
39-22 [REIMBURSEMENT RESTRICTIONS]. (a) The commission by rule shall
39-23 provide for payments under Section 361.477 to a tire recycler in
39-24 another state. [A processor seeking reimbursement under Section
39-25 361.477 shall process and store the whole used or scrap tires or
40-1 shredded tire pieces in the state. A waste tire energy recovery
40-2 facility owner or operator seeking reimbursement under Section
40-3 361.4771 or 361.4773 shall store and burn the whole used or scrap
40-4 tires or shredded tire pieces in the state.]
40-5 (b) The rules must require an out-of-state tire recycler to
40-6 demonstrate that whole scrap tires, shredded tire pieces, or
40-7 tire-derived material for which payment is requested were:
40-8 (1) generated and collected in this state;
40-9 (2) transported out of this state; and
40-10 (3) actually put to end use by an out-of-state end
40-11 user [commission shall treat whole used or scrap tires and shredded
40-12 tire pieces generated in Texas, removed from Texas, and
40-13 subsequently reintroduced to Texas as out-of-state scrap tires for
40-14 the purposes of this subchapter].
40-15 (c) In this section, "tire recycler" means a collector or
40-16 end user of whole scrap tires, shredded tire pieces, or
40-17 tire-derived material.
40-18 SECTION 18. Subsections (a) and (e), Section 361.489, Health
40-19 and Safety Code, are amended to read as follows:
40-20 (a) The commission may, with the funds available to the
40-21 commission from the scrap [waste] tire recycling fund, undertake
40-22 immediate remediation of a site if, after investigation, the
40-23 commission finds:
40-24 (1) that there exists a situation caused by [the
40-25 illegal dumping of] scrap tires that is causing or may cause
41-1 imminent and substantial endangerment to the public health and
41-2 safety or the environment; and
41-3 (2) the immediacy of the situation makes it
41-4 prejudicial to the public interest to delay action until an
41-5 administrative order can be issued to potentially responsible
41-6 parties or until a judgment can be entered in an appeal of an
41-7 administrative order.
41-8 (e) Money collected in a suit to recover costs shall be
41-9 deposited to the credit of the scrap [waste] tire recycling fund.
41-10 SECTION 19. Section 361.490, Health and Safety Code, is
41-11 amended to read as follows:
41-12 Sec. 361.490. ACCESS TO PRIORITY ENFORCEMENT LIST SITE.
41-13 [(a)] Members of the commission or[,] employees or agents of the
41-14 commission[, and authorized processors or their subcontractors] are
41-15 entitled to enter any public or private property at any reasonable
41-16 time for the purpose of inspecting, investigating, or remediating
41-17 any condition related to illegal dumping of scrap tires. [An
41-18 authorized processor or subcontractor is entitled to enter property
41-19 only if the commission directs the processor or subcontractor to
41-20 enter the property.] The executive director shall give notice of
41-21 intent to enter private property for those purposes by certified
41-22 mail to the last known address indicated in the current county
41-23 property records at least 10 days before a commission member or[,]
41-24 commission employee or agent[, or authorized processor or
41-25 subcontractor] enters the property. A commission member or[,]
42-1 commission employee or agent[, or authorized processor or
42-2 subcontractor] who, acting under this subsection, enters private
42-3 property shall:
42-4 (1) observe the establishment's rules concerning
42-5 safety, internal security, and fire protection; and
42-6 (2) if the property has management in residence, make
42-7 a reasonable attempt to notify the management or person in charge
42-8 of the entry and exhibit credentials.
42-9 [(b) Authorized processors and their subcontractors may not
42-10 be considered agents of the state and are solely responsible for
42-11 their actions.]
42-12 SECTION 20. Subsection (a), Section 361.492, Health and
42-13 Safety Code, is amended to read as follows:
42-14 (a) A wholesale or retail tire dealer or a person in the
42-15 business of selling new or good used tires for use on a vehicle or
42-16 selling used vehicle parts [as described in Section 361.472(a)]
42-17 shall accept from customers, without charge, used tires of the type
42-18 and in a quantity at least equal to the number of tires the
42-19 customer purchases.
42-20 SECTION 21. Sections 361.494 through 361.498, Health and
42-21 Safety Code, are amended to read as follows:
42-22 Sec. 361.494. APPEAL. The commission shall establish a
42-23 process by which a registered scrap tire recycler or the owner or
42-24 operator of a registered scrap [waste] tire energy recovery
42-25 facility [processor] who is adversely affected by an agency
43-1 decision affecting reimbursement may appeal that decision to the
43-2 executive director or the commission.
43-3 Sec. 361.495. COMPLIANCE [FISCAL] AUDITS. (a) The
43-4 commission biennially may [shall] perform a compliance [fiscal]
43-5 audit of each person receiving reimbursements under Section 361.477
43-6 [waste tire processor, waste tire recycling facility, and waste
43-7 tire energy recovery facility owner or operator] to ensure fiscal
43-8 responsibility and accountability regarding reimbursements made
43-9 under Section [Sections] 361.477[, 361.4771, and 361.4773]. [The
43-10 person audited shall bear the costs of the audits.]
43-11 (b) If the commission determines, as the result of an audit,
43-12 that the commission is due a refund of some of the money paid to a
43-13 scrap tire processor or scrap tire end user out of the scrap tire
43-14 fund, the commission may offset the amount owed against any future
43-15 reimbursements to be paid to the processor or end user.
43-16 Sec. 361.496. NEW OR EXPANDED PROCESSING OPERATION. A scrap
43-17 tire [new] processor, scrap [waste] tire energy recovery facility,
43-18 or scrap [waste] tire recycler or a registered processor, scrap
43-19 [waste] tire energy recovery facility, or scrap [waste] tire
43-20 recycler that seeks to establish a new processing facility or
43-21 expand a processing operation in the state must:
43-22 (1) certify that such processor, scrap [waste] tire
43-23 energy recovery facility, or scrap [waste] tire recycler is willing
43-24 to provide collection and transportation of scrap [waste] tires
43-25 from registered generators in rural counties of the state at the
44-1 request of the commission during emergency periods as defined by
44-2 the commission when such generators are not being otherwise served
44-3 by registered processors or transporters; and
44-4 (2) identify and have available a certified end use in
44-5 the application for a new or amended registration.
44-6 Sec. 361.497. EXPIRATION. This subchapter expires December
44-7 31, 2001 [1997].
44-8 Sec. 361.498. COMMUNITY SERVICE. Persons seeking
44-9 reimbursement from the scrap [waste] tire recycling fund shall
44-10 perform community service on an annual basis. Community service
44-11 includes cooperation with local civic groups to clean up abandoned
44-12 tire sites that are not classified as priority enforcement list
44-13 sites. The tires collected under this section are eligible for
44-14 reimbursement.
44-15 SECTION 22. Subsection (c), Section 2, Article 9009b,
44-16 Revised Statutes, is amended to read as follows:
44-17 (c) A person may not sell, convey, or otherwise transfer to
44-18 a metals recycling activity a motor vehicle or a motor vehicle that
44-19 has been junked, flattened, dismantled, or changed so that it has
44-20 lost its character as a motor vehicle if the motor vehicle
44-21 includes, contains, or encloses a tire or scrap tire. This
44-22 subsection does not apply to the sale, conveyance, or transfer of a
44-23 motor vehicle or a junked, flattened, dismantled, or changed motor
44-24 vehicle:
44-25 (1) from another state; or
45-1 (2) to a metals recycling activity determined by the
45-2 executive director of the Texas Natural Resource Conservation
45-3 Commission to be a business at which:
45-4 (A) such motor vehicles and the tires or scrap
45-5 tires they include contain or enclose are shredded together; and
45-6 (B) the tire or scrap tire shreds and other
45-7 rubber or plastic materials are recovered, and useful materials are
45-8 extracted and used for recycling, reuse, or energy recovery.
45-9 SECTION 23. Sections 361.478, 361.480, 361.486, 361.4865,
45-10 361.488, and 361.499, Health and Safety Code, are repealed.
45-11 SECTION 24. (a) As soon as possible after September 1,
45-12 1997, the Texas Natural Resource Conservation Commission shall
45-13 inventory the amount and location of:
45-14 (1) shredded tire pieces in the state; and
45-15 (2) whole scrap tires in priority enforcement list
45-16 sites in the state.
45-17 (b) Not later than December 1, 1997, the Texas Natural
45-18 Resource Conservation Commission shall adopt the rules necessary to
45-19 implement Subchapter P, Chapter 361, Health and Safety Code, as
45-20 amended by this Act.
45-21 SECTION 25. (a) Any unappropriated, unexpended, and
45-22 unencumbered money available in the scrap tire recycling fund on
45-23 September 1, 1997, is appropriated to the Texas Natural Resource
45-24 Conservation Commission to be used only for payments under Section
45-25 361.477, Health and Safety Code, as amended by this Act, for actual
46-1 end use of:
46-2 (1) shredded tire pieces identified in the inventory
46-3 conducted under Subsection (a) of Section 24 of this Act; or
46-4 (2) whole scrap tires from a priority enforcement list
46-5 site identified in the inventory conducted under Subsection (a) of
46-6 Section 24 of this Act.
46-7 (b) Notwithstanding Subdivision (1), Subsection (a), Section
46-8 361.472, Health and Safety Code, as amended by this Act, effective
46-9 January 1, 1998, the amount of the fee imposed under Subdivision
46-10 (1), Subsection (a), Section 361.472, Health and Safety Code, is $2
46-11 if on September 1, 1997, the amount of unappropriated, unexpended,
46-12 and unencumbered money available to be used for the purposes of
46-13 Subsection (b), Section 361.477, Health and Safety Code, in the
46-14 scrap tire recycling fund is less than $15 million.
46-15 (c) If the fee under Subsection (b) of this section takes
46-16 effect, the amount of a fee collected under Subdivision (1),
46-17 Subsection (a), Section 361.472, Health and Safety Code, that
46-18 exceeds $1.50 is appropriated to the Texas Natural Resource
46-19 Conservation Commission to be used only for payments under Section
46-20 361.477, Health and Safety Code, as amended by this Act, for actual
46-21 end use of:
46-22 (1) shredded scrap tire pieces identified in the
46-23 inventory conducted under Subsection (a) of Section 24 of this Act;
46-24 or
46-25 (2) whole scrap tires from a priority enforcement list
47-1 site identified in the inventory conducted under Subsection (a) of
47-2 Section 24 of this Act.
47-3 (d) The payments authorized by Subsections (a) and (c) of
47-4 this section apply only to whole scrap tires or shredded tire
47-5 pieces actually put to end use on or after September 1, 1997.
47-6 (e) If the fee under Subsection (b) of this section takes
47-7 effect, effective September 1, 1999, the amount of the fee imposed
47-8 under Subdivisions (1) and (3), Subsection (a), Section 361.472,
47-9 Health and Safety Code, is $1.50.
47-10 (f) If the fee under Subsection (b) of this section does not
47-11 take effect, Subsections (c) and (e) of this section have no
47-12 effect.
47-13 SECTION 26. (a) Except as otherwise provided by this Act,
47-14 this Act takes effect September 1, 1997.
47-15 (b) Subsection (c), Section 361.4725, Health and Safety
47-16 Code, as added by this Act, applies to an application for a new
47-17 registration or an application to renew or amend an existing
47-18 registration that is pending before the Texas Natural Resource
47-19 Conservation Commission on September 1, 1997, or that is submitted
47-20 to the commission on or after that date.
47-21 (c) The payments authorized by Sections 361.477 and
47-22 361.4771, Health and Safety Code, as amended by this Act, apply
47-23 only to whole scrap tires, shredded tire pieces, or tire-derived
47-24 materials actually put to end use on or after September 1, 1997.
47-25 (d) Section 361.4825, Health and Safety Code, as added by
48-1 this Act, applies only to an offense committed on or after
48-2 September 1, 1997. For purposes of this subsection, an offense is
48-3 committed on or after September 1, 1997, if any element of the
48-4 offense occurs on or after that date.
48-5 SECTION 27. A person who on August 31, 1997, is required
48-6 under Subchapter P, Chapter 361, Health and Safety Code, or rules
48-7 adopted under that subchapter to be registered by the Texas Natural
48-8 Resource Conservation Commission or to provide evidence of
48-9 financial responsibility in a certain amount or maintain financial
48-10 assurance in a certain amount shall maintain the registration and
48-11 the financial assurance after that date and until the facility for
48-12 which the registration or financial assurance is required has been
48-13 properly cleaned and closed or until the commission determines that
48-14 the registration or financial assurance is no longer necessary.
48-15 SECTION 28. The importance of this legislation and the
48-16 crowded condition of the calendars in both houses create an
48-17 emergency and an imperative public necessity that the
48-18 constitutional rule requiring bills to be read on three several
48-19 days in each house be suspended, and this rule is hereby suspended.