By Brown S.B. No. 1586
75R8164 MI-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the scrap tire recycling program; providing criminal
1-3 and civil penalties; making an appropriation.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 361.112(f) and (g), Health and Safety
1-6 Code, are amended to read as follows:
1-7 (f) A person may not store more than 500 [used or] scrap
1-8 tires or dispose of any quantity of [used or] scrap tires unless
1-9 the tires are shredded, split, or quartered as provided by
1-10 commission rule. The commission may grant an exception to this
1-11 requirement if the commission finds that circumstances warrant the
1-12 exception. The prohibition provided by this subsection regarding
1-13 storage does not apply to:
1-14 (1) a registered scrap [waste] tire energy recovery
1-15 facility or a scrap [waste] tire energy recovery facility storage
1-16 site;
1-17 (2) [. The prohibition provided by this subsection
1-18 does not apply to] a person who, for eventual recycling, reuse, or
1-19 energy recovery, temporarily stores scrap tires in a designated
1-20 recycling collection area at a landfill permitted by the commission
1-21 or licensed by a county or by a political subdivision exercising
1-22 the authority granted by Section 361.165; or
1-23 (3) a person described in Section 361.472(a) who
1-24 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, energy recovery, or the
2-16 manufacture of a product with economic value or for any other
2-17 process or product that the commission by rule determines meets
2-18 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 [(3) "Good used tire" means a used tire, not including
2-26 a recapped or retreaded tire, suitable for continued use for its
2-27 original intended purpose.]
3-1 (4) "Manufacturer reject tire" means a tire rendered
3-2 defective in the manufacturing process, whether the tire is
3-3 determined to be defective before or after consumer purchase.
3-4 (5) "Mobile tire shredder" means equipment mounted on
3-5 wheels or skid-mounted and hauled from place to place to split,
3-6 shred, or quarter [used or] scrap tires.
3-7 (6) "Scrap tire" has the meaning assigned by Section
3-8 361.112.
3-9 (7) "Scrap tire end user" includes:
3-10 (A) a scrap tire energy recovery facility; or
3-11 (B) a scrap tire recycler.
3-12 (8) [(7)] "Scrap [Waste] tire energy recovery
3-13 facility" means a facility at which whole [used or] scrap tires,
3-14 [or] shredded tires, or tire-derived material is [are] used as a
3-15 fuel, including:
3-16 (A) a cement kiln;
3-17 (B) a utility boiler;
3-18 (C) a pulp and paper mill;
3-19 (D) a cogeneration facility; [or]
3-20 (E) a foundry; or
3-21 (F) another facility designated by the
3-22 commission.
3-23 (9) "Scrap tire generator" includes an entity that
3-24 accepts whole scrap tires or scrap tire pieces for temporary
3-25 storage, a fleet operator, an automotive dismantler, or a whole new
3-26 or used tire retailer, wholesaler, manufacturer, recapper, or
3-27 retreader. The term does not include a scrap tire recycler or
4-1 scrap tire energy recovery facility that stores whole tires or tire
4-2 pieces.
4-3 (10) [(8)] "Scrap [Waste] tire facility" means a
4-4 facility [registered by the commission under Section 361.477] at
4-5 which scrap tires are collected and shredded to facilitate the
4-6 future extraction of useful materials for recycling, reuse, or
4-7 energy recovery and are stored in a scrap [waste] tire storage
4-8 facility or a facility that recycles, reuses, or recovers the
4-9 energy from the shredded tire pieces.
4-10 (11) [(9)] "Scrap [Waste] tire processor" means:
4-11 (A) a scrap [waste] tire facility; or
4-12 (B) a mobile tire shredder that splits, shreds,
4-13 or quarters tires and deposits the split, shredded, or quartered
4-14 tires for eventual recycling, reuse, or energy recovery at:
4-15 (i) a scrap [waste] tire storage facility
4-16 registered by the commission under Section 361.112; or
4-17 (ii) a scrap [waste] tire facility.
4-18 (12) "Scrap tire recycler" means a person who uses
4-19 whole scrap tires, shredded tire pieces, or tire-derived material
4-20 for a civil engineering application or practice, the manufacture of
4-21 a product with economic value, or another end use the commission by
4-22 rule approves. The term does not include a person who only
4-23 produces crumb rubber, bales tires, or produces material through a
4-24 pyrolytic or other chemical or thermal process.
4-25 (13) [(10)] "Scrap [Waste] tire storage facility"
4-26 means a facility registered by the commission under Section
4-27 361.4725 [361.477] at which whole [used or] scrap tires or
5-1 shredded tire pieces are collected and stored to facilitate the
5-2 future extraction of useful material for recycling, reuse, or
5-3 recovery. The term does not include a marine dock, rail yard, or
5-4 trucking facility used to store tires that are awaiting shipment to
5-5 a person for recycling, reuse, or energy recovery for 30 days or
5-6 less.
5-7 (14) [(11)] "Scrap [Waste] tire transporter" means a
5-8 person who collects and transports [used or] scrap tires or scrap
5-9 tire pieces for storage or disposal.
5-10 (15) "Special authorization priority enforcement list
5-11 tires" means scrap tires that are generated in specially designated
5-12 counties or regions identified by the executive director as areas
5-13 not receiving adequate collection service and that pose a threat to
5-14 public health and safety or the environment.
5-15 (16) "Tire-derived material" includes crumb rubber,
5-16 baled tires, and materials produced from scrap tires or tire pieces
5-17 through a pyrolytic or other chemical or thermal process.
5-18 [(12) "Weighed tire" means a unit of weight for
5-19 shredded scrap tires that is equal to 18.7 pounds.]
5-20 SECTION 4. Section 361.472, Health and Safety Code, is
5-21 amended to read as follows:
5-22 Sec. 361.472. SCRAP [WASTE] TIRE RECYCLING FEES. (a) A
5-23 person in the business of selling new [good used] tires who sells
5-24 or offers to sell new tires not for resale [for use on a vehicle,]
5-25 or a person in the business of selling used vehicles or used
5-26 vehicle parts who sells or offers to sell new [or good used] tires
5-27 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) a fee set by the commission not to exceed $2 for
6-3 each new tire that has a rim diameter of 12 inches or more but less
6-4 than 17.5 inches [and $1 for each good used tire that has a rim
6-5 diameter of 12 inches or more but less than 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) a fee set by the commission not to exceed $2 for a
6-11 new motorcycle tire, regardless 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.
6-26 (e) A person required to collect a fee under this section
6-27 who collects less than $50 for a calendar month or less than $150
7-1 for a calendar quarter is not required to file a monthly report but
7-2 shall file a quarterly report with and make a quarterly remittance
7-3 to the comptroller. The quarterly report and remittance shall
7-4 include fees collected during the preceding calendar quarter. The
7-5 report and remittance are due not later than the 20th day of the
7-6 month following the end of the calendar quarter.
7-7 (f) An invoice or other record required by this section or
7-8 rules of the comptroller must be maintained for at least four years
7-9 after the date on which the invoice or record is prepared and be
7-10 open for inspection by the comptroller at all reasonable times.
7-11 (g) The comptroller shall adopt rules necessary for the
7-12 administration, collection, reporting, and payment of the fees
7-13 payable or collected under this section.
7-14 (h) A scrap [waste] tire recycling fee is imposed on the
7-15 storage, use, or consumption in this state of a tire at the same
7-16 rate as provided by Subsection (a), except when purchased for the
7-17 purpose of resale.
7-18 (i) A person storing, using, or consuming a tire in this
7-19 state is liable for the scrap [waste] tire recycling fee as defined
7-20 in this section and is responsible for reporting and paying the fee
7-21 to the comptroller in the same manner as a person required to
7-22 collect this fee, as provided in Subsections (d)(2) and (e).
7-23 (j) A person storing, using, or consuming a tire in this
7-24 state is not further liable for the scrap [waste] tire recycling
7-25 fee imposed by Subsection (a) if the person:
7-26 (1) pays the fee to:
7-27 (A) a person who is required to collect the fee
8-1 under Subsection (a) and who is engaged in business in this state;
8-2 or
8-3 (B) another person authorized by the comptroller
8-4 to collect the fee; and
8-5 (2) receives a purchaser's receipt from the person to
8-6 whom the fee was paid.
8-7 (k) In this section:
8-8 (1) "Engaged in business in this state" has the
8-9 meaning provided under Sections 151.107(a) and (b), Tax Code.
8-10 (2) "Purchased for resale" means acquired by means of
8-11 a sale for resale as defined in Section 151.006, Tax Code.
8-12 (3) "Storage" and "use" have the meanings assigned
8-13 those terms by Section 151.011, Tax Code.
8-14 SECTION 5. Section 361.4725, Health and Safety Code, is
8-15 amended to read as follows:
8-16 Sec. 361.4725. REGISTRATION; FEE. (a) A scrap tire end
8-17 user, scrap tire facility, scrap tire storage facility, scrap tire
8-18 transporter, scrap tire processor, or scrap tire generator shall
8-19 register with the commission in accordance with commission rules
8-20 and on the forms prescribed by the commission.
8-21 (b) A person who applies to the commission to register under
8-22 this section [a waste tire storage facility, a waste tire energy
8-23 recovery facility storage site, a waste tire recycler, or a fixed
8-24 or mobile tire processor,] or applies to renew or amend the
8-25 registration, must pay a fee set by the commission not to exceed
8-26 [of] $500.
8-27 (c) Except as provided by Subsection (d), the commission may
9-1 not issue a registration or renew or amend a registration under
9-2 this subchapter unless the applicant has submitted to the
9-3 commission evidence of financial responsibility as required by this
9-4 subchapter.
9-5 (d) Subsection (c) does not apply to a:
9-6 (1) scrap tire generator;
9-7 (2) scrap tire transporter; or
9-8 (3) scrap tire end user that does not store more than
9-9 a 30-day supply of whole scrap tires, scrap tire pieces, or
9-10 tire-derived materials.
9-11 SECTION 6. Sections 361.474 and 361.475, Health and Safety
9-12 Code, are amended to read as follows:
9-13 Sec. 361.474. DISPOSITION OF FEES AND PENALTIES. Fees and
9-14 penalties collected under this subchapter shall be deposited in
9-15 the state treasury to the credit of the scrap [waste] tire
9-16 recycling fund.
9-17 Sec. 361.475. SCRAP [WASTE] TIRE RECYCLING FUND. (a) The
9-18 scrap [waste] tire recycling fund is a special account in the
9-19 general revenue fund.
9-20 (b) The commission shall administer the fund.
9-21 (c) The fund consists of fees and penalties collected under
9-22 this subchapter, interest on money in the fund, and money from
9-23 gifts, grants, or any other source intended to be used for the
9-24 purposes of this subchapter.
9-25 (d) The fund shall be used only to:
9-26 (1) pay scrap [waste tire processors, waste] tire end
9-27 users [energy recovery facility owners or operators, or waste tire
10-1 recyclers] that meet the requirements for payment under Section
10-2 361.477[, 361.4771, 361.4772, or 361.4773] and rules adopted under
10-3 that section [those sections];
10-4 (2) pay the commission's reasonable and necessary
10-5 administrative costs of performing its duties under this subchapter
10-6 as provided by Section 361.4774 [in an amount not to exceed six
10-7 percent of the money annually accruing to the fund];
10-8 (3) pay the comptroller's reasonable and necessary
10-9 administrative costs of performing the comptroller's duties under
10-10 this subchapter as provided by Section 361.4774 [in an amount not
10-11 to exceed two percent of the money annually accruing to the fund];
10-12 (4) pay for the cleanup of priority enforcement list
10-13 sites, including special authority priority enforcement list sites
10-14 [provide grants to waste tire energy recovery facility owners or
10-15 operators to cover equipment capital investment costs and equipment
10-16 installation costs to enable a facility to use tire shreds as
10-17 fuel]; and
10-18 (5) pay up to $3 million in grants for research and
10-19 development to generate new end uses for scrap tires [provide
10-20 grants for recycling facility construction costs].
10-21 (e) The commission may hire a consultant to advise and
10-22 assist in developing and evaluating end uses. For any intellectual
10-23 property, including patents and copyrights, developed using grant
10-24 money under Subsection (d)(5), a grant must reserve to the state a
10-25 nonexclusive, transferable right to use or modify any intellectual
10-26 property developed using grant money and to authorize others to use
10-27 or modify the intellectual property.
11-1 (f) [(e)] Registration fees received under Section 361.4725
11-2 shall be allocated to the commission for its reasonable and
11-3 necessary costs associated with the [reviewing applications for]
11-4 registration of a person required to register under that section
11-5 [and with registering:]
11-6 [(1) fixed and mobile tire processing facilities and
11-7 storage sites;]
11-8 [(2) waste tire energy recovery facilities and storage
11-9 sites; and]
11-10 [(3) waste tire recyclers].
11-11 (g) [(f)] The fund may not be used to reimburse [shredding
11-12 or] burning of:
11-13 (1) innertubes;
11-14 (2) scrap rubber products;
11-15 (3) green tires;
11-16 (4) industrial solid waste, excluding scrap [waste]
11-17 tires;
11-18 (5) oversized tires, as defined by commission rule,
11-19 unless the oversized tires are collected from a priority
11-20 enforcement list site;
11-21 (6) manufacturer reject tires; or
11-22 (7) nonpneumatic tires.
11-23 (h) [(g)] The commission may classify special authorization
11-24 tires, as defined by commission rule, as priority enforcement list
11-25 tires.
11-26 [(h) The fund shall maintain a balance of not less than
11-27 $500,000.]
12-1 (i) [If the commission has reason to believe that the
12-2 balance of money appropriated from the fund will fall below
12-3 $500,000, the commission may:]
12-4 [(1) suspend the requirement to reimburse priority
12-5 enforcement list tires shredded in excess of the minimum percentage
12-6 identified in Section 361.477(c)(3)(C);]
12-7 [(2) limit the number of waste tires for which a
12-8 processor, waste tire energy recovery facility owner or operator,
12-9 or waste tire recycler will be reimbursed; or]
12-10 [(3) discontinue paid carryover.]
12-11 [(j)] The revenues obtained from the scrap [waste] tire
12-12 recycling fees shall be deposited to the credit of the scrap
12-13 [waste] tire recycling fund and may be used only to pay for those
12-14 activities and costs identified in Subsection (d) or (e).
12-15 SECTION 7. Sections 361.477 and 361.4771, Health and Safety
12-16 Code, are amended to read as follows:
12-17 Sec. 361.477. PAYMENTS TO SCRAP [WASTE] TIRE END USERS
12-18 [PROCESSORS]. (a) The commission each calendar quarter [month]
12-19 shall pay a scrap [waste] tire end user [processor] that [shreds
12-20 scrap tires and] meets the requirements of this section and Section
12-21 361.4771 and rules adopted under those sections $70 per ton for
12-22 recycling and energy recovery or $30 per ton for engineering uses,
12-23 including road construction, landfill applications, and septic
12-24 systems, for each ton of whole scrap tires, shredded tire pieces,
12-25 or tire-derived material actually put to end use [this section an
12-26 amount equal to 80 cents for each weighed tire shredded] by the end
12-27 user [processor] during the preceding calendar quarter [month].
13-1 This subsection applies only to whole scrap tires that were
13-2 collected from generators after September 1, 1997, or shredded tire
13-3 pieces or tire-derived material that originates from whole scrap
13-4 tires that were collected from generators after September 1, 1997.
13-5 (b) Each calendar quarter the commission shall pay a scrap
13-6 tire end user that meets the requirements of this section and
13-7 Section 361.4771 and rules adopted under those sections an amount
13-8 set by the commission for each ton of whole scrap tires, shredded
13-9 tire pieces, or tire-derived material actually put to end use by
13-10 the end user. This section applies only to whole scrap tires that
13-11 were collected from generators before September 1, 1997, or
13-12 shredded tire pieces or tire-derived material that originates from
13-13 whole scrap tires that were collected from generators before
13-14 September 1, 1997. A scrap tire end user is not eligible for
13-15 payment under this section if the total amount of tires, tire
13-16 pieces, or tire-derived material actually put to end use by the end
13-17 user during a calendar quarter is less than 150 tons. The
13-18 commission by rule may allow an end user to carry over to the next
13-19 calendar quarter, but not for more than one calendar year, all or
13-20 part of an amount of tires, tire pieces, or tire-derived material
13-21 put to end use that does not meet the minimum amount required by
13-22 this subsection.
13-23 (c) The [If the total number of used or scrap tires or tire
13-24 pieces contained in illegal scrap tire sites that are identified on
13-25 the priority enforcement list is below 2,500,000 tires, the]
13-26 commission may pay [80 cents or] an appropriate amount determined
13-27 by the commission [for each weighed tire] to contractors
14-1 [processors] with whom the commission has contracted to remove and
14-2 transport to end use [shred] scrap tires and scrap tire pieces from
14-3 priority enforcement list sites or storage locations at which
14-4 special authorization priority enforcement list tires are stored.
14-5 [The 2,500,000 tire limit does not include those tires contained in
14-6 sites under commission enforcement or attorney general action or
14-7 that require corrective action or remedial action in response to a
14-8 release or threat of release of hazardous substances.] In acting
14-9 under this subsection, the commission may contract with end users
14-10 [processors] on a regional or site-specific basis. The contracts
14-11 shall be procured through a competitive bid process conducted in
14-12 accordance with the provisions of the State Purchasing and General
14-13 Services Act (Subtitle D, Title 10, Government Code [Article 601b,
14-14 Vernon's Texas Civil Statutes]) applicable to contracts for
14-15 services. [Notwithstanding Subsection (c), while the commission is
14-16 using a competitive bid process for assignment of sites listed on
14-17 the priority enforcement list, the priority enforcement list
14-18 requirements of Subsection (c)(3)(C) do not apply to an application
14-19 for payment. The commission may elect not to enter into contracts
14-20 under this subsection. The contracts may be only for the removal
14-21 and shredding of tires from priority enforcement list sites.]
14-22 [(c) A waste tire processor that desires to receive payment
14-23 under this section for tires shredded by the processor during a
14-24 calendar month must:]
14-25 [(1) apply to the commission for registration in
14-26 accordance with forms prescribed by the commission;]
14-27 [(2) apply to the commission for payment on forms
15-1 prescribed by the commission or, on a voluntary basis, apply by a
15-2 removable storage medium stored in an industry standard file format
15-3 acceptable to the commission;]
15-4 [(3) demonstrate as required by rules adopted under
15-5 this section that:]
15-6 [(A) all tires for which payment is sought have
15-7 been shredded to an industry standard two-inch minus particle size
15-8 or, if approved by the commission, shredded to an alternative
15-9 particle size set by a contract requirement related to recycling or
15-10 end use of the particles;]
15-11 [(B) not less than 50 percent of those tires
15-12 were collected from generators, unless this requirement is
15-13 suspended by the commission on consideration of service needs
15-14 contained in a contract drafted under Subsection (b); and]
15-15 [(C) if the total number of whole used or scrap
15-16 tires or shredded tire pieces contained in illegal waste tire sites
15-17 that are identified on the priority enforcement list exceeds
15-18 2,500,000 tires for more than 60 consecutive days, not less than 15
15-19 percent and not more than 30 percent of those tires were collected
15-20 from scrap tire sites listed on the priority enforcement list;]
15-21 [(4) provide any other information the commission
15-22 determines is needed to accomplish the purposes of this subchapter,
15-23 including a monthly report of scrap tires or tire pieces shredded,
15-24 subtotaled by tire count or weight, for each generator number and
15-25 priority enforcement list number;]
15-26 [(5) demonstrate that energy recovery activities in
15-27 the state are in compliance with applicable air emission control
16-1 rules and standards; and]
16-2 [(6) provide financial assurance deemed adequate by
16-3 the commission that corresponds to:]
16-4 [(A) the payment appropriate for the number of
16-5 scrap tires the processor anticipates shredding in the next
16-6 calendar month; or]
16-7 [(B) the number of scrap tires the waste tire
16-8 storage site owner or operator anticipates accepting for storage in
16-9 the next calendar month.]
16-10 [(d) A waste tire processor that in any month exceeds the
16-11 minimum requirement of Subsection (c)(3)(C) may receive credit only
16-12 for paid carryover in the amount in excess of the requirement that
16-13 may be used to meet the minimum requirement during a later month.
16-14 The commission by rule may prescribe the method of applying credits
16-15 accrued under this subsection.]
16-16 [(e) The commission by rule shall adopt application and
16-17 payment procedures and requirements to implement this section.]
16-18 (d) [(f)] Until the commission has determined that a scrap
16-19 [waste] tire energy recovery facility owner or operator or a scrap
16-20 tire recycler [processor] is in compliance with all applicable
16-21 requirements, the commission may not authorize the scrap tire
16-22 energy recovery facility owner or operator or the scrap tire
16-23 recycler [processor] to burn, recycle, [process] or store scrap
16-24 tires or tire pieces at a site at which the scrap tire energy
16-25 recovery facility owner or operator or the scrap tire recycler
16-26 burns, recycles, [processor processes] or stores, or intends to
16-27 burn, recycle, [process] or store, scrap tires or tire pieces.
17-1 [(g) Beginning January 1, 1996, the commission may reimburse
17-2 a processor for shredded scrap tires only if the processor has a
17-3 binding agreement to deliver the shredded scrap tires to a person
17-4 to recycle or reuse or to use for energy recovery within 180 days
17-5 after the date of reimbursement. The commission shall suspend
17-6 subsequent shredding reimbursements to a processor that fails to
17-7 deliver the tire shreds to an identified end-use market before the
17-8 181st day after the date of reimbursement unless the executive
17-9 director determines that the failure to deliver was caused by an
17-10 act of God or by unforeseen business events. The commission may
17-11 not resume suspended reimbursements until the processor makes all
17-12 delinquent deliveries.]
17-13 [(h) The commission may not pay a waste tire processor for
17-14 processing scrap tires if:]
17-15 [(1) the commission field office and central office
17-16 program staff have not reviewed and approved for further processing
17-17 by the commission all information submitted to the commission by
17-18 the waste tire processor as required by Subsection (c) or rules
17-19 adopted under this section; or]
17-20 [(2) the commission determines that the processor:]
17-21 [(A) has not provided adequate financial
17-22 assurance;]
17-23 [(B) does not have adequate fire protection; or]
17-24 [(C) is causing an imminent danger to public
17-25 health or welfare.]
17-26 [(i) A waste tire processor that in any month exceeds the
17-27 generator percentage of the allocated number of waste tires
18-1 assigned for reimbursement purposes may accrue credit only for paid
18-2 generator carryover in the amount in excess of the requirement that
18-3 may be used to meet the allocation maximum during a later month.
18-4 The commission by rule may prescribe the method of applying
18-5 carryover credit accrued under this section.]
18-6 [(j) The commission shall adopt rules to manage payments
18-7 from the fund to prevent depletion of the fund. Rules adopted
18-8 under this subsection shall consider appropriate payments to
18-9 processors that reflect the varying amounts of money available in
18-10 the fund. In any allocation adopted for processors under this
18-11 section, the commission shall consider the monthly average
18-12 percentage of shredded tires the processor has forwarded to an
18-13 end-use or recycling market. In addition, the commission may
18-14 consider the historical average number of tires for which the
18-15 processor has been reimbursed and such other factors as may be
18-16 determined by the commission.]
18-17 [(k) Notwithstanding Subsection (a), beginning September 1,
18-18 1995, the commission shall reimburse a waste tire processor an
18-19 additional five cents for each weighed tire if the commission
18-20 determines that the processor has a binding agreement to deliver
18-21 100 percent of the scrap tires shredded by the processor monthly to
18-22 a person to recycle or reuse or to use for energy recovery and the
18-23 commission verifies that the processor has delivered the tire
18-24 shreds to such identified end-use market. This section applies
18-25 only to a waste tire processor registered on January 1, 1995, and
18-26 that has a verified end market for the processor's tire shreds on
18-27 June 1, 1995.]
19-1 Sec. 361.4771. PROCEDURE FOR OBTAINING PAYMENT FOR END USE;
19-2 RESTRICTIONS; FUND MANAGEMENT [ENERGY RECOVERY FROM WHOLE WASTE
19-3 TIRES OR SHREDDED TIRES]. (a) [The commission shall adopt rules
19-4 governing payments to waste tire energy recovery facilities for
19-5 weighed tires used by the facility for fuel. The rules must
19-6 include rules governing registration and application procedures.
19-7 The rules must include a voluntary alternative process for making a
19-8 payment application by the use of an industry standard file format
19-9 removable storage medium.]
19-10 [(b)] To receive payment under [this section and] Section
19-11 361.477 [361.4773], a scrap [waste] tire end user [energy recovery
19-12 facility owner or operator] must:
19-13 (1) apply to the commission for registration in the
19-14 manner and on forms prescribed by commission rule;
19-15 (2) apply to the commission for payment:
19-16 (A) in a manner and on forms prescribed by
19-17 commission rule; or
19-18 (B) as a voluntary alternative, by use of a
19-19 removable storage medium stored in an industry standard file format
19-20 acceptable to the commission;
19-21 (3) demonstrate that all tires or tire pieces for
19-22 which the end user [owner or operator] applies for payment are
19-23 whole scrap [waste] tires or shredded tires;
19-24 (4) send the commission a quarterly [monthly] report
19-25 of the number of tons of whole scrap [waste] tires, [or] shredded
19-26 tires, or tire-derived material put to actual end use [used for
19-27 energy recovery], subtotaled by [tire count or by] weight
20-1 attributed to each generator number or priority enforcement list
20-2 number;
20-3 (5) demonstrate that any [the] energy recovery
20-4 activities comply with applicable air emission control standards
20-5 and rules;
20-6 (6) submit evidence of financial responsibility in an
20-7 amount adequate to assure proper cleanup and closure of the
20-8 facility, if the person anticipates accepting an amount of whole
20-9 scrap tires, shredded tire pieces, or tire-derived material for
20-10 storage that exceeds the facility's 30-day supply; and
20-11 (7) [if the number of whole used or scrap tires or
20-12 shredded tire pieces contained in illegal waste tire sites that are
20-13 identified on the priority enforcement list exceeds 2,500,000 tires
20-14 for more than 60 consecutive days, demonstrate that not less than
20-15 15 percent and not more than 30 percent of the tires used for
20-16 energy recovery at the facility were collected from scrap tire
20-17 sites listed on the priority enforcement list; and]
20-18 [(8)] provide any other information required by
20-19 commission rule.
20-20 (b) [(c)] A scrap [waste] tire energy recovery facility may
20-21 not store in excess of a 30-day supply of whole scrap [waste]
20-22 tires, [or] shredded tires, or tire-derived material at a site at
20-23 which the owner or operator intends to burn or store scrap [waste]
20-24 tires, [or] shredded tire pieces, or tire-derived material [tires]
20-25 until the facility is registered by the commission as a scrap
20-26 [waste] tire energy recovery facility storage site. A scrap tire
20-27 recycler may not store in excess of a 30-day supply of whole scrap
21-1 tires, shredded tire pieces, or tire-derived material at a site at
21-2 which the recycler intends to recycle or store whole scrap tires,
21-3 shredded tire pieces, or tire-derived material until the facility
21-4 is registered by the commission as a scrap tire recycler storage
21-5 site.
21-6 (c) [(d)] The commission may not pay a scrap [waste] tire
21-7 end user [energy recovery facility owner or operator] for actual
21-8 end use of whole scrap [using waste] tires, [or] shredded tire
21-9 pieces, or tire-derived material [tires] if:
21-10 (1) the commission field office and central office
21-11 program staff have not reviewed and approved for further processing
21-12 by the commission all information submitted to the commission by
21-13 the scrap [waste] tire end user [energy recovery facility owner or
21-14 operator] as required by Subsection (a) [(b)] or rules adopted
21-15 under this section;
21-16 (2) the commission determines that the end user
21-17 [facility]:
21-18 (A) has not provided adequate financial
21-19 assurance;
21-20 (B) does not have adequate fire protection; or
21-21 (C) is causing an imminent danger to public
21-22 health or welfare;
21-23 (3) the end user [facility] does not have appropriate
21-24 authorization from the commission to:
21-25 (A) perform scrap [waste] tire energy recovery
21-26 at the energy recovery facility site if the end user is a scrap
21-27 tire energy recovery facility owner or operator; or
22-1 (B) recycle scrap tires, shredded tire pieces,
22-2 or tire-derived material at the recycling site if the end user is a
22-3 scrap tire recycler; or
22-4 (4) the end user [facility] is not physically capable
22-5 of performing:
22-6 (A) scrap [waste] tire energy recovery, if the
22-7 end user is a scrap tire energy recovery facility owner or
22-8 operator; or
22-9 (B) scrap tire recycling, if the end user is a
22-10 scrap tire recycler.
22-11 (d) [(e)] The commission shall adopt rules to manage
22-12 payments from the fund to prevent depletion of the fund. [Before
22-13 using any allocation method authorized by this subchapter and
22-14 before making other payments from the fund, the commission shall
22-15 pay reimbursements to processors under Section 361.477 who have
22-16 established end-use markets and pay reimbursements under this
22-17 section and Sections 361.4772 and 361.4773.]
22-18 (e) In this section, "30-day supply" means an amount equal
22-19 to the average of the amount of tires consumed for energy recovery
22-20 or legitimately recycled in each of the six months immediately
22-21 preceding the month for which the supply is being computed. A
22-22 facility in operation less than six months shall submit for
22-23 commission review, evaluation, and approval an estimate of a 30-day
22-24 supply.
22-25 SECTION 8. Sections 361.4772 and 361.4773, Health and Safety
22-26 Code, are amended to read as follows:
22-27 Sec. 361.4772. SCRAP TIRE PROCESSORS; AUTHORIZATION TO
23-1 OPERATE [RECYCLING FACILITY CONSTRUCTION GRANT]. Until the
23-2 commission has determined that a scrap tire processor is in
23-3 compliance with all applicable requirements, the commission may not
23-4 authorize the processor to process or store scrap tires at a site
23-5 at which the processor processes or stores or intends to process or
23-6 store scrap tires [(a) The commission by rule shall establish a
23-7 program for providing grants for the construction of waste tire
23-8 recycling facilities for the recycling of whole waste tires or
23-9 shredded tires.]
23-10 [(b) The commission may not expend more than $2 million each
23-11 year for grants under this section.]
23-12 [(c) A facility constructed with a grant under this section
23-13 is not eligible for reimbursement for:]
23-14 [(1) powdered rubber;]
23-15 [(2) a tire-derived fuel;]
23-16 [(3) buffing dust;]
23-17 [(4) a retreaded or recapped tire; or]
23-18 [(5) a product that is ineligible for reimbursement
23-19 under commission rules.]
23-20 [(d) The commission shall require a grant recipient to:]
23-21 [(1) demonstrate that not less than 15 percent and not
23-22 more than 30 percent of the tires used for energy recovery at the
23-23 facility were collected from scrap tire sites listed on the
23-24 priority enforcement list if the number of whole used or scrap
23-25 tires or shredded tire pieces contained in illegal waste tire sites
23-26 that are identified on the priority enforcement list exceeds
23-27 2,500,000 tires for more than 60 consecutive days; and]
24-1 [(2) submit evidence of financial responsibility in an
24-2 amount adequate to assure proper cleanup and closure of the
24-3 facility, if the recipient anticipates accepting an amount of whole
24-4 waste tires or shredded tire pieces for storage that exceeds the
24-5 facility's 30-day supply].
24-6 Sec. 361.4773. STORED TIRES: TRANSPORT TO END USER REQUIRED
24-7 [PAYMENT FOR SHREDDED WASTE TIRE ENERGY RECOVERY FACILITY]. (a) A
24-8 scrap tire storage facility shall send to an end user 100 percent
24-9 of the whole scrap tires or shredded tire pieces collected or
24-10 processed by the facility in a calendar quarter [The commission
24-11 each month shall pay to a waste tire energy recovery facility owner
24-12 or operator that burns shredded tires in compliance with an energy
24-13 recovery permit issued by the commission an amount equal to 40
24-14 cents for each weighed tire the facility used for energy recovery
24-15 during the preceding month].
24-16 (b) A scrap tire storage facility that does not meet the
24-17 requirement of Subsection (a) for any calendar quarter shall
24-18 immediately cease accepting additional whole scrap tires or
24-19 shredded tire pieces [To receive payment under this section, a
24-20 retrofitted waste tire energy recovery facility owner or operator
24-21 must:]
24-22 [(1) apply to the commission for payment in a manner
24-23 and on forms prescribed by commission rule; and]
24-24 [(2) comply with applicable rules adopted by the
24-25 commission under this section and Section 361.4771, unless
24-26 otherwise indicated by the energy recovery permit issued by the
24-27 commission].
25-1 SECTION 9. Section 361.4774, Health and Safety Code, is
25-2 amended to read as follows:
25-3 Sec. 361.4774. [LIMITED USE OF WASTE TIRE RECYCLING FUND;
25-4 GRANTS, REIMBURSMENT, AND] ADMINISTRATIVE EXPENSES. (a) For
25-5 performing duties related to the scrap [waste] tire program, each
25-6 fiscal year the comptroller may expend [up to $680,000 or] an
25-7 amount equal to not more than two percent of the money annually
25-8 accruing to the scrap [waste] tire recycling [recovery] fund[,
25-9 whichever is greater].
25-10 (b) For administering the scrap [waste] tire recycling
25-11 program, each fiscal year the commission may expend [not more than
25-12 the lesser of $2.05 million or] an amount equal to not more than
25-13 six percent of the amount annually accruing to [appropriated from]
25-14 the scrap [waste] tire recycling fund for the administration and
25-15 operation of the scrap [waste] tire recycling program.
25-16 [(c) Each fiscal year, the commission may expend not more
25-17 than:]
25-18 [(1) $1.4 million for paying accrued carryover credits
25-19 as provided by Section 361.499;]
25-20 [(2) $15.2 million for tire shredding under Section
25-21 361.477;]
25-22 [(3) $3.52 million for the cleanup and closure of
25-23 priority enforcement list tire sites as provided by Sections
25-24 361.476 and 361.477;]
25-25 [(4) $2 million for providing recycling facility
25-26 construction grants under Section 361.4772;]
25-27 [(5) $600,000 for payments to energy recovery
26-1 facilities under Section 361.4773 at a rate of 40 cents per weighed
26-2 tire unit; and]
26-3 [(6) $6 million to provide grants for retrofitting
26-4 facilities to use whole or shredded tires for fuel or for paying
26-5 for facilities to use whole tires for fuel as provided by
26-6 Subsections (d) and (e).]
26-7 [(d) For fiscal year 1996, the commission may expend not
26-8 more than $4 million for:]
26-9 [(1) providing grants to waste tire energy recovery
26-10 facilities that are not using tire-derived fuel and apply for
26-11 assistance to cover retrofitting costs the commission determines
26-12 are necessary to enable the facilities to use whole tires as fuel;
26-13 and]
26-14 [(2) paying a facility eligible for a grant under
26-15 Subdivision (1), but for which the commission has not made a grant,
26-16 an amount of up to 80 cents per weighed tire unit.]
26-17 [(e) A person receiving payments for weighed tires under
26-18 Subsection (d)(2) may not receive reimbursements that exceed the
26-19 total of:]
26-20 [(1) the amount of the retrofitting costs the facility
26-21 would have received if the person had applied for a grant under
26-22 Subsection (d)(1); and]
26-23 [(2) the cost, as determined by the commission, of
26-24 transporting to the facility the number of whole tires used for
26-25 fuel until the payments under Subsection (d)(2) equal the amount of
26-26 the retrofitting costs the facility would have received.]
26-27 [(f) For fiscal year 1996, the commission may expend not
27-1 more than $2 million to provide grants to waste tire energy
27-2 recovery facilities that are not using tire-derived fuel and apply
27-3 for assistance to cover retrofitting costs the commission
27-4 determines are necessary to enable the facilities to use shredded
27-5 tires as fuel.]
27-6 [(g) For the period beginning September 1, 1996, and ending
27-7 December 31, 1997, the commission may expend not more than $6
27-8 million for payments to waste tire energy recovery facilities that
27-9 burn whole tires at a rate of 80 cents per weighed tire unit used.]
27-10 [(h) After the third quarter of each year of the fiscal
27-11 biennium, funds that remain unused for the purposes specified in
27-12 Subsections (a)-(g) may be transferred for use for a purpose
27-13 specified in Subsections (c)-(g) at the discretion of the
27-14 commission to promote recycling and energy recovery.]
27-15 SECTION 10. Section 361.479, Health and Safety Code, is
27-16 amended to read as follows:
27-17 Sec. 361.479. EVIDENCE OF FINANCIAL RESPONSIBILITY. (a) A
27-18 person required to register under Section 361.4725 [waste tire
27-19 storage facility registered by the commission or a waste tire
27-20 facility that accepts shredded scrap tires for storage or for
27-21 processing for recycling, reuse, or energy recovery] shall submit
27-22 to the commission and shall maintain evidence of financial
27-23 responsibility in an amount adequate to assure proper cleanup and
27-24 closure of the facility. This subsection does not apply to a
27-25 person listed under Section 361.4725(d).
27-26 (b) A scrap [waste] tire recycling facility owner or
27-27 operator or scrap tire energy recovery facility owner or operator
28-1 who anticipates accepting for storage an amount of whole scrap
28-2 tires, shredded tire pieces, or tire-derived material [for storage]
28-3 that exceeds the facility's 30-day supply shall submit to the
28-4 commission and shall maintain evidence of financial responsibility
28-5 in an amount adequate to assure proper cleanup and closure of the
28-6 facility.
28-7 (c) A facility subject to Subsection (a) or (b) shall submit
28-8 to the commission an estimate of the total amount of whole scrap
28-9 tires, shredded tire pieces, or tire-derived material measured by
28-10 weight [weighed tire] that the facility will store, [or] process,
28-11 or put to end use, the maximum number of out-of-state tires the
28-12 facility will store, and the estimated cost, using that total
28-13 amount, of cleaning up and closing the facility.
28-14 (d) The commission shall evaluate and may amend an estimate
28-15 submitted under Subsection (c) and shall determine for each
28-16 facility the amount for which evidence of financial responsibility
28-17 is required. The commission periodically may audit a facility
28-18 subject to this section and may increase the amount for which the
28-19 facility is required to provide evidence of financial
28-20 responsibility. The commission may suspend the registration of, or
28-21 payments under Section 361.477 to, a facility that does not provide
28-22 evidence of financial responsibility for an increased amount
28-23 required under this section.
28-24 (e) Evidence of financial responsibility may be in the form
28-25 of:
28-26 (1) a performance bond, surety bond, or [a] letter of
28-27 credit acceptable to the commission that is from a financial
29-1 institution, a trust fund, or insurance for a privately owned
29-2 facility; or
29-3 (2) a self-insurance test designed by the commission
29-4 for a publicly owned facility. A person who makes an initial
29-5 request for reimbursement from the scrap [waste] tire recycling
29-6 fund on or after September 1, 1993, must provide evidence of
29-7 financial responsibility for the full amount determined under
29-8 Subsection (d).
29-9 (f) A person who files an application or amended application
29-10 for registration under this subchapter on or after September 1,
29-11 1997, must provide evidence of financial responsibility:
29-12 (1) in an amount adequate to assure proper cleanup and
29-13 closure of the facility for which registration is requested; and
29-14 (2) in a form prescribed by commission rule that may
29-15 be used to:
29-16 (A) pay for the proper cleanup and closure of
29-17 that facility; or
29-18 (B) contribute, in a manner prescribed by
29-19 commission rule and after a hearing, to payment of cleanup and
29-20 closure costs incurred by the commission at another facility owned
29-21 or controlled by the same person or by the person's subsidiary or
29-22 affiliate, for which the financial assurance provided was
29-23 insufficient to pay for proper cleanup and closure of the facility.
29-24 SECTION 11. Subchapter P, Chapter 361, Health and Safety
29-25 Code, is amended by adding Sections 361.4791 and 361.4792 to read
29-26 as follows:
29-27 Sec. 361.4791. LIEN. (a) All remediation costs incurred by
30-1 the commission for the cleanup and closure of a site for which
30-2 insufficient financial assurance has been provided constitute a
30-3 lien in favor of the state on the property on which the site is
30-4 located and any other real or personal property of the owner or
30-5 operator in the state.
30-6 (b) The lien arises and attaches on the date a commission
30-7 affidavit is filed with the county clerk in the county in which the
30-8 real property is located or, for personal property, in the county
30-9 in which the principal place of business is located. The affidavit
30-10 shall state the name of the owner of the property, the amount owed,
30-11 and the legal description of the property. The county clerk shall
30-12 file an affidavit relating to real property in the real property
30-13 records of the county in which the property is located.
30-14 (c) The lien is subordinate to the rights of prior bona fide
30-15 purchasers of or lienholders on the property.
30-16 Sec. 361.4792. NOTICE OF BANKRUPTCY. (a) Not later than
30-17 the second business day after the filing of a voluntary or
30-18 involuntary petition in bankruptcy by a scrap tire processor, scrap
30-19 tire end user, or scrap tire transporter or the filing of an
30-20 involuntary bankruptcy petition for relief against a scrap tire
30-21 processor, scrap tire end user, or scrap tire transporter, the
30-22 scrap tire processor, scrap tire end user, or scrap tire
30-23 transporter shall deliver to the bankruptcy program department of
30-24 the commission in Austin written notice of the bankruptcy stating
30-25 the case number and the bankruptcy court where the case is pending.
30-26 (b) Not later than the second business day after the date
30-27 the document is filed with the bankruptcy clerk's office in a
31-1 bankruptcy case described in Subsection (a), the scrap tire
31-2 processor, scrap tire end user, or scrap tire transporter shall
31-3 deliver to the bankruptcy program department of the commission a
31-4 copy of:
31-5 (1) any schedule or statement of affairs;
31-6 (2) any amended schedule or statement of affairs; or
31-7 (3) any monthly operating report.
31-8 SECTION 12. Sections 361.481 and 361.482, Health and Safety
31-9 Code, are amended to read as follows:
31-10 Sec. 361.481. PROHIBITION ON OUT-OF-STATE TIRES; PENALTY.
31-11 (a) [A waste tire processor may not claim payment under Section
31-12 361.477 for shredding out-of-state tires.] A scrap [waste] tire
31-13 energy recovery facility owner or operator may not claim payment
31-14 under Section 361.477 [361.4771 or 361.4773] for burning
31-15 out-of-state tires. A scrap [waste] tire recycler may not claim
31-16 payment under Section 361.477 [361.4772] for recycling out-of-state
31-17 tires.
31-18 (b) A scrap [waste] tire generator that the commission
31-19 determines has used a manifest and commission generator number to
31-20 pass out-of-state tires is subject to an [not eligible for the free
31-21 collection and transportation of waste tires generated at the
31-22 generator's place of business. In addition to any] administrative,
31-23 civil, or criminal enforcement action[, the commission shall
31-24 require the generator to pay for:]
31-25 [(1) collection and transportation of generated tires;
31-26 and]
31-27 [(2) shredding, burning, or recycling of generated
32-1 tires at the applicable rate specified in Section 361.477,
32-2 361.4771, or 361.4772].
32-3 (c) A scrap [waste] tire processor, scrap [waste] tire
32-4 energy recovery facility owner or operator, or scrap [waste] tire
32-5 recycler who the commission determines has knowingly accepted
32-6 out-of-state tires on manifests using a commission generator number
32-7 is subject to an administrative, civil, or criminal enforcement
32-8 action.
32-9 (d) A scrap [waste] tire transporter that the commission
32-10 determines has transported out-of-state tires using a
32-11 commission-approved manifest or transporter number is subject to an
32-12 administrative, civil, or criminal enforcement action.
32-13 (e) The commission shall treat whole scrap tires and
32-14 shredded tire pieces generated in Texas, removed from Texas, and
32-15 subsequently reintroduced into Texas as out-of-state scrap tires
32-16 for the purposes of this subchapter.
32-17 Sec. 361.482. PROHIBITION ON DISPOSAL OF [SHREDDED] TIRES IN
32-18 LANDFILL. (a) Except as provided by Subsection (b), a [A] person
32-19 may not dispose of in-state or out-of-state whole used tires, [or]
32-20 scrap tires, [that are eligible for reimbursement under this
32-21 chapter] or shredded tire pieces [for which reimbursement has been
32-22 paid under this subchapter] in a landfill, including a Type VIII-S
32-23 tire monofill.
32-24 (b) If a scrap tire generator cannot locate an end user for
32-25 its scrap tires the commission by emergency order may permit
32-26 landfill disposal of the generator's scrap tires at one generator's
32-27 expense. The order may apply to one or more generators in a
33-1 geographic area.
33-2 SECTION 13. Subchapter P, Chapter 361, Health and Safety
33-3 Code, is amended by adding Section 361.4825 to read as follows:
33-4 Sec. 361.4825. INTENTIONAL BURNING PROHIBITED; DUMPING
33-5 PROHIBITED; CRIMINAL PENALTY. (a) A person commits an offense if
33-6 the person starts a fire with the intent to destroy or damage whole
33-7 scrap tires, tire pieces, or tire-derived products.
33-8 (b) It is an exception to the application of Subsection
33-9 (a)(3) that the fire was started at a registered scrap tire energy
33-10 recovery facility in the course of an energy recovery procedure
33-11 authorized under this subchapter.
33-12 (c) A person commits an offense if the person disposes of
33-13 more than 100 whole tires or an equivalent amount of scrap tire
33-14 pieces at a site that is not authorized by the commission to accept
33-15 whole tires or scrap tire pieces.
33-16 (d) An offense under this section is a felony of the second
33-17 degree.
33-18 (e) In addition to the criminal penalty provided by this
33-19 section, a person who commits an offense under this section is
33-20 subject to a civil penalty under Section 361.483.
33-21 SECTION 14. Sections 361.483(a) and (c), Health and Safety
33-22 Code, are amended to read as follows:
33-23 (a) A person who violates this subchapter or a rule adopted
33-24 or order issued under this subchapter is liable for a civil penalty
33-25 of not less than $100 or more than $25,000 [up to $10,000] for each
33-26 violation and for each day of a continuing violation.
33-27 (c) A penalty collected under this section shall be
34-1 deposited to the credit of the scrap [waste] tire recycling fund.
34-2 SECTION 15. Section 361.4832, Health and Safety Code, is
34-3 amended to read as follows:
34-4 Sec. 361.4832. ADMINISTRATIVE PENALTY; ORDER FOR CORRECTIVE
34-5 ACTION; SUSPENSION OF REGISTRATION. (a) If a person violates this
34-6 subchapter or a rule adopted or order issued under this subchapter
34-7 the commission may:
34-8 (1) assess against the person an administrative
34-9 penalty under Section 361.252 in an amount not to exceed $10,000
34-10 for each act of violation and for each day of violation; or
34-11 (2) order the person to take a corrective action.
34-12 (b) The commission may suspend a registration issued under
34-13 this subchapter and may suspend payment under Section 361.477 to a
34-14 scrap [of or reimbursement payment to a waste tire processor, waste
34-15 tire transporter, waste tire generator, waste] tire recycling
34-16 facility[,] or scrap [waste] tire energy recovery facility on the
34-17 initiation of an enforcement proceeding and while the proceeding is
34-18 pending for the violation of this subchapter or a rule adopted or
34-19 order issued under this subchapter.
34-20 SECTION 16. Section 361.485(b), Health and Safety Code, is
34-21 amended to read as follows:
34-22 (b) The commission shall include in the report the
34-23 commission's recommendation, based on the commission's evaluation
34-24 of the rate of inflation during the preceding two years, as to
34-25 whether an adjustment to the fee assessed on the sale of tires or
34-26 to the rate of reimbursement paid to a scrap [waste] tire recycler
34-27 [processor] or scrap [waste] tire energy recovery facility owner or
35-1 operator is warranted.
35-2 SECTION 17. Section 361.487, Health and Safety Code, is
35-3 amended to read as follows:
35-4 Sec. 361.487. PAYMENTS TO OUT-OF-STATE END USERS
35-5 [REIMBURSEMENT RESTRICTIONS]. (a) The commission by rule shall
35-6 provide for payments under Section 361.477 to an end user in
35-7 another state. [A processor seeking reimbursement under Section
35-8 361.477 shall process and store the whole used or scrap tires or
35-9 shredded tire pieces in the state. A waste tire energy recovery
35-10 facility owner or operator seeking reimbursement under Section
35-11 361.4771 or 361.4773 shall store and burn the whole used or scrap
35-12 tires or shredded tire pieces in the state.]
35-13 (b) The rules must require an out-of-state end user to
35-14 demonstrate that whole scrap tires, shredded tire pieces, or
35-15 tire-derived products for which payment is requested were:
35-16 (1) generated and collected in this state;
35-17 (2) transported out of this state; and
35-18 (3) actually put to end use by the out-of-state end
35-19 user [commission shall treat whole used or scrap tires and shredded
35-20 tire pieces generated in Texas, removed from Texas, and
35-21 subsequently reintroduced to Texas as out-of-state scrap tires for
35-22 the purposes of this subchapter].
35-23 SECTION 18. Sections 361.489(a) and (e), Health and Safety
35-24 Code, are amended to read as follows:
35-25 (a) The commission may, with the funds available to the
35-26 commission from the scrap [waste] tire recycling fund, undertake
35-27 immediate remediation of a site if, after investigation, the
36-1 commission finds:
36-2 (1) that there exists a situation caused by [the
36-3 illegal dumping of] scrap tires that is causing or may cause
36-4 imminent and substantial endangerment to the public health and
36-5 safety or the environment; and
36-6 (2) the immediacy of the situation makes it
36-7 prejudicial to the public interest to delay action until an
36-8 administrative order can be issued to potentially responsible
36-9 parties or until a judgment can be entered in an appeal of an
36-10 administrative order.
36-11 (e) Money collected in a suit to recover costs shall be
36-12 deposited to the credit of the scrap [waste] tire recycling fund.
36-13 SECTION 19. Section 361.490, Health and Safety Code, is
36-14 amended to read as follows:
36-15 Sec. 361.490. ACCESS TO PRIORITY ENFORCEMENT LIST SITE.
36-16 [(a)] Members of the commission or[,] employees or agents of the
36-17 commission[, and authorized processors or their subcontractors] are
36-18 entitled to enter any public or private property at any reasonable
36-19 time for the purpose of inspecting, investigating, or remediating
36-20 any condition related to illegal dumping of scrap tires. [An
36-21 authorized processor or subcontractor is entitled to enter property
36-22 only if the commission directs the processor or subcontractor to
36-23 enter the property.] The executive director shall give notice of
36-24 intent to enter private property for those purposes by certified
36-25 mail to the last known address indicated in the current county
36-26 property records at least 10 days before a commission member or[,]
36-27 commission employee or agent[, or authorized processor or
37-1 subcontractor] enters the property. A commission member or[,]
37-2 commission employee or agent[, or authorized processor or
37-3 subcontractor] who, acting under this subsection, enters private
37-4 property shall:
37-5 (1) observe the establishment's rules concerning
37-6 safety, internal security, and fire protection; and
37-7 (2) if the property has management in residence, make
37-8 a reasonable attempt to notify the management or person in charge
37-9 of the entry and exhibit credentials.
37-10 [(b) Authorized processors and their subcontractors may not
37-11 be considered agents of the state and are solely responsible for
37-12 their actions.]
37-13 SECTION 20. Sections 361.494-361.498, Health and Safety
37-14 Code, are amended to read as follows:
37-15 Sec. 361.494. APPEAL. The commission shall establish a
37-16 process by which a registered scrap tire recycler or the owner or
37-17 operator of a registered scrap [waste] tire energy recovery
37-18 facility [processor] who is adversely affected by an agency
37-19 decision affecting reimbursement may appeal that decision to the
37-20 executive director or the commission.
37-21 Sec. 361.495. COMPLIANCE [FISCAL] AUDITS. (a) The
37-22 commission biennially may [shall] perform a compliance [fiscal]
37-23 audit of each person receiving reimbursements under Section 361.477
37-24 [waste tire processor, waste tire recycling facility, and waste
37-25 tire energy recovery facility owner or operator] to ensure fiscal
37-26 responsibility and accountability regarding reimbursements made
37-27 under Section [Sections] 361.477[, 361.4771, and 361.4773]. The
38-1 person audited shall bear the costs of the audits.
38-2 (b) If the commission determines, as the result of an audit,
38-3 that the commission is due a refund of some of the money paid to a
38-4 scrap tire processor or scrap tire end user out of the scrap tire
38-5 fund, the commission may offset the amount owed against any future
38-6 reimbursements to be paid to the processor or end user.
38-7 Sec. 361.496. NEW OR EXPANDED PROCESSING OPERATION. A scrap
38-8 tire [new] processor, scrap [waste] tire energy recovery facility,
38-9 or scrap [waste] tire recycler or a registered processor, scrap
38-10 [waste] tire energy recovery facility, or scrap [waste] tire
38-11 recycler that seeks to establish a new processing facility or
38-12 expand a processing operation in the state must:
38-13 (1) certify that such processor, scrap [waste] tire
38-14 energy recovery facility, or scrap [waste] tire recycler is willing
38-15 to provide collection and transportation of scrap [waste] tires
38-16 from registered generators in rural counties of the state at the
38-17 request of the commission during emergency periods as defined by
38-18 the commission when such generators are not being otherwise served
38-19 by registered processors or transporters; and
38-20 (2) identify and have available a certified end use in
38-21 the application for a new or amended registration.
38-22 Sec. 361.497. EXPIRATION. This subchapter expires December
38-23 31, 2001 [1997].
38-24 Sec. 361.498. COMMUNITY SERVICE. Persons seeking
38-25 reimbursement from the scrap [waste] tire recycling fund shall
38-26 perform community service on an annual basis. Community service
38-27 includes cooperation with local civic groups to clean up abandoned
39-1 tire sites that are not classified as priority enforcement list
39-2 sites. The tires collected under this section are eligible for
39-3 reimbursement.
39-4 SECTION 21. Sections 361.478, 361.480, 361.486, 361.4865,
39-5 361.488, and 361.499, Health and Safety Code, are repealed.
39-6 SECTION 22. (a) As soon as possible after September 1,
39-7 1997, the Texas Natural Resource Conservation Commission shall
39-8 inventory the amount and location of:
39-9 (1) shredded tire pieces in the state; and
39-10 (2) whole scrap tires in priority enforcement list
39-11 sites in the state.
39-12 (b) Not later than December 1, 1997, the Texas Natural
39-13 Resource Conservation Commission shall adopt the rules necessary to
39-14 implement Subchapter P, Chapter 361, Health and Safety Code, as
39-15 amended by this Act.
39-16 SECTION 23. (a) Except as otherwise provided by this Act,
39-17 this Act takes effect September 1, 1997.
39-18 (b) Section 361.4725(c), Health and Safety Code, as added by
39-19 this Act, applies to an application for a new registration or an
39-20 application to renew or amend an existing registration that is
39-21 pending before the Texas Natural Resource Conservation Commission
39-22 on September 1, 1997, or that is submitted to the commission on or
39-23 after that date.
39-24 (c) The payments authorized by Sections 361.477 and
39-25 361.4771, Health and Safety Code, as amended by this Act, apply
39-26 only to whole scrap tires, shredded tire pieces, or tire-derived
39-27 materials actually put to end use on or after January 1, 1998.
40-1 (d) Section 361.4825, Health and Safety Code, as added by
40-2 this Act, applies only to an offense committed on or after
40-3 September 1, 1997. For purposes of this subsection, an offense is
40-4 committed on or after September 1, 1997, if any element of the
40-5 offense occurs on or after that date.
40-6 SECTION 24. A person who on August 31, 1997, is required
40-7 under Subchapter P, Chapter 361, Health and Safety Code, or rules
40-8 adopted under that subchapter to be registered by the Texas Natural
40-9 Resource Conservation Commission or to provide evidence of
40-10 financial responsibility in a certain amount or maintain financial
40-11 assurance in a certain amount shall maintain the registration and
40-12 the financial assurance after that date and until the facility for
40-13 which the registration or financial assurance is required has been
40-14 properly cleaned and closed or until the commission determines that
40-15 the registration or financial assurance is no longer necessary.
40-16 SECTION 25. The importance of this legislation and the
40-17 crowded condition of the calendars in both houses create an
40-18 emergency and an imperative public necessity that the
40-19 constitutional rule requiring bills to be read on three several
40-20 days in each house be suspended, and this rule is hereby suspended.