1-1 By: Brown S.B. No. 1586
1-2 (In the Senate - Filed March 14, 1997; April 2, 1997, read
1-3 first time and referred to Committee on Natural Resources;
1-4 April 18, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 8, Nays 1; April 18, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1586 By: Brown
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the scrap tire recycling program; providing criminal
1-11 and civil penalties; making an appropriation.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Subsections (f) and (g), Section 361.112, Health
1-14 and Safety Code, are amended to read as follows:
1-15 (f) A person may not store more than 500 [used or] scrap
1-16 tires or dispose of any quantity of [used or] scrap tires unless
1-17 the tires are shredded, split, or quartered as provided by
1-18 commission rule. The commission may grant an exception to this
1-19 requirement if the commission finds that circumstances warrant the
1-20 exception. The prohibition provided by this subsection regarding
1-21 storage does not apply to:
1-22 (1) a registered scrap [waste] tire energy recovery
1-23 facility or a scrap [waste] tire energy recovery facility storage
1-24 site;
1-25 (2) [. The prohibition provided by this subsection
1-26 does not apply to] a person who, for eventual recycling, reuse, or
1-27 energy recovery, temporarily stores scrap tires in a designated
1-28 recycling collection area at a landfill permitted by the commission
1-29 or licensed by a county or by a political subdivision exercising
1-30 the authority granted by Section 361.165; or
1-31 (3) a person described in Section 361.472(a) who
1-32 stores not more than 1,000 scrap tires for not more than 30 days.
1-33 (g) The commission shall require a person who transports
1-34 [used or] scrap tires for storage, [or] disposal, or end use to
1-35 maintain records and use a manifest or other appropriate system to
1-36 assure that those tires are transported to a storage site that is
1-37 registered or to a disposal facility that is permitted under this
1-38 section for that purpose, or to a registered end user.
1-39 SECTION 2. The heading to Subchapter P, Chapter 361, Health
1-40 and Safety Code, is amended to read as follows:
1-41 SUBCHAPTER P. SCRAP [WASTE] TIRE RECYCLING PROGRAM
1-42 SECTION 3. Section 361.471, Health and Safety Code, is
1-43 amended to read as follows:
1-44 Sec. 361.471. DEFINITIONS. In this subchapter:
1-45 (1) "End use" includes the use of whole scrap tires,
1-46 shredded tire pieces, or tire-derived material for a civil
1-47 engineering application or practice, reclamation, energy recovery,
1-48 or the manufacture of a product with economic value or for any
1-49 other process or product that the commission by rule determines
1-50 meets the objectives of this subchapter. The term does not include
1-51 pyrolysis, the production of crumb rubber, or the baling of tires.
1-52 (2) "Fund" means the scrap [waste] tire recycling
1-53 fund.
1-54 (3) [(2)] "Green tire" means the casing form of a tire
1-55 that has not been cured or does not have a tread or marking of any
1-56 kind.
1-57 (4) [(3)] "Good used tire" means a used tire, not
1-58 including a recapped or retreaded tire, suitable for continued use
1-59 for its original intended purpose.
1-60 (5) [(4)] "Manufacturer reject tire" means a tire
1-61 rendered defective in the manufacturing process, whether the tire
1-62 is determined to be defective before or after consumer purchase.
1-63 (6) [(5)] "Mobile tire shredder" means equipment
1-64 mounted on wheels or skid-mounted and hauled from place to place to
2-1 split, shred, or quarter [used or] scrap tires.
2-2 (7) "Reclamation" has the meaning assigned by Section
2-3 131.004, Natural Resources Code. The term does not include the use
2-4 of whole scrap tires or tire pieces larger than nine square inches.
2-5 (8) [(6)] "Scrap tire" has the meaning assigned by
2-6 Section 361.112.
2-7 (9) "Scrap tire end user" includes:
2-8 (A) a scrap tire energy recovery facility; or
2-9 (B) a scrap tire recycler.
2-10 (10) [(7)] "Scrap [Waste] tire energy recovery
2-11 facility" means a facility at which whole [used or] scrap tires,
2-12 [or] shredded tires, or tire-derived material is [are] used as a
2-13 fuel, including:
2-14 (A) a cement kiln;
2-15 (B) a utility boiler;
2-16 (C) a pulp and paper mill;
2-17 (D) a cogeneration facility; [or]
2-18 (E) a foundry; or
2-19 (F) another facility designated by the
2-20 commission.
2-21 (11) "Scrap tire generator" includes an entity that
2-22 accepts whole scrap tires or scrap tire pieces for temporary
2-23 storage, a fleet operator, an automotive dismantler, or a whole new
2-24 or used tire retailer, wholesaler, manufacturer, recapper, or
2-25 retreader. The term does not include a scrap tire recycler or
2-26 scrap tire energy recovery facility that stores whole tires or tire
2-27 pieces.
2-28 (12) [(8)] "Scrap [Waste] tire facility" means a
2-29 facility [registered by the commission under Section 361.477] at
2-30 which scrap tires are collected and shredded to facilitate the
2-31 future extraction of useful materials for recycling, reuse, or
2-32 energy recovery and are stored in a scrap [waste] tire storage
2-33 facility or a facility that recycles, reuses, or recovers the
2-34 energy from the shredded tire pieces.
2-35 (13) [(9)] "Scrap [Waste] tire processor" means:
2-36 (A) a scrap [waste] tire facility; or
2-37 (B) a mobile tire shredder that splits, shreds,
2-38 or quarters tires and deposits the split, shredded, or quartered
2-39 tires for eventual recycling, reuse, or energy recovery at:
2-40 (i) a scrap [waste] tire storage facility
2-41 registered by the commission under Section 361.112; or
2-42 (ii) a scrap [waste] tire facility.
2-43 (14) "Scrap tire recycler" means a person who uses
2-44 whole scrap tires, shredded tire pieces, or tire-derived material
2-45 for a civil engineering application or practice, the manufacture of
2-46 a product with economic value, or another end use the commission by
2-47 rule approves. The term does not include a person who only
2-48 produces crumb rubber, bales tires, or produces material through a
2-49 pyrolytic or other chemical or thermal process.
2-50 (15) [(10)] "Scrap [Waste] tire storage facility"
2-51 means a facility registered by the commission under Section
2-52 361.4725 [361.477] at which whole [used or] scrap tires or shredded
2-53 tire pieces are collected and stored to facilitate the future
2-54 extraction of useful material for recycling, reuse, or recovery.
2-55 The term does not include a marine dock, rail yard, or trucking
2-56 facility used to store tires that are awaiting shipment to a person
2-57 for recycling, reuse, or energy recovery for 30 days or less.
2-58 (16) [(11)] "Scrap [Waste] tire transporter" means a
2-59 person who collects and transports [used or] scrap tires or scrap
2-60 tire pieces for storage or disposal.
2-61 (17) "Special authorization priority enforcement list
2-62 tires" means scrap tires that are generated in specially designated
2-63 counties or regions identified by the executive director as areas
2-64 not receiving adequate collection service and that pose a threat to
2-65 public health and safety or the environment.
2-66 (18) "Tire-derived material" includes crumb rubber,
2-67 baled tires, and materials produced from scrap tires or tire pieces
2-68 through a pyrolytic or other chemical or thermal process.
2-69 [(12) "Weighed tire" means a unit of weight for
3-1 shredded scrap tires that is equal to 18.7 pounds.]
3-2 SECTION 4. Section 361.472, Health and Safety Code, is
3-3 amended to read as follows:
3-4 Sec. 361.472. SCRAP [WASTE] TIRE RECYCLING FEES. (a) A
3-5 person in the business of selling new [good used] tires who sells
3-6 or offers to sell new tires not for resale [for use on a vehicle,]
3-7 or a person in the business of selling used vehicles or used
3-8 vehicle parts who sells or offers to sell new [or good used] tires
3-9 not for resale shall collect at the time and place of sale a scrap
3-10 [waste] tire recycling fee for each tire sold as follows:
3-11 (1) from September 1, 1997, through August 31, 1999,
3-12 $1.50 [$2] for each new tire that has a rim diameter of 12 inches
3-13 or more but less than 17.5 inches, and from September 1, 1999,
3-14 through December 31, 2001, $1 for each new [good used] tire
3-15 that has a rim diameter of 12 inches or more but less than 17.5
3-16 inches;
3-17 (2) $3.50 for each new tire that has a rim diameter of
3-18 17.5 inches or greater, other than an off-the-road tire intended
3-19 for use on heavy machinery, including an earthmover, a
3-20 loader/dozer, a grader, or mining equipment; and
3-21 (3) from September 1, 1997, through August 31, 1999,
3-22 $1.50 [$2] for a new motorcycle tire, regardless of the rim
3-23 diameter, and from September 1, 1999, through December 31, 2001, $1
3-24 for a new motorcycle tire, regardless of the rim diameter.
3-25 (b) The sale of a tire as original equipment in the
3-26 manufacture of a new vehicle is a sale for resale.
3-27 (c) A fee may not be assessed for:
3-28 (1) a recapped or retreaded tire; [or]
3-29 (2) a bicycle tire; or
3-30 (3) a solid industrial tire.
3-31 (d) A person required to collect a fee under this section:
3-32 (1) shall list as a separate item on an invoice a fee
3-33 due under this section; and
3-34 (2) except as provided by Subsection (e), on or before
3-35 the 20th day of the month following the end of each calendar month
3-36 and on a form and in the manner prescribed by the comptroller,
3-37 shall file a report with and shall remit to the comptroller the
3-38 amount of fees collected during the preceding calendar month.
3-39 (e) A person required to collect a fee under this section
3-40 who collects less than $50 for a calendar month or less than $150
3-41 for a calendar quarter is not required to file a monthly report but
3-42 shall file a quarterly report with and make a quarterly remittance
3-43 to the comptroller. The quarterly report and remittance shall
3-44 include fees collected during the preceding calendar quarter. The
3-45 report and remittance are due not later than the 20th day of the
3-46 month following the end of the calendar quarter.
3-47 (f) An invoice or other record required by this section or
3-48 rules of the comptroller must be maintained for at least four years
3-49 after the date on which the invoice or record is prepared and be
3-50 open for inspection by the comptroller at all reasonable times.
3-51 (g) The comptroller shall adopt rules necessary for the
3-52 administration, collection, reporting, and payment of the fees
3-53 payable or collected under this section.
3-54 (h) A scrap [waste] tire recycling fee is imposed on the
3-55 storage, use, or consumption in this state of a tire at the same
3-56 rate as provided by Subsection (a), except when purchased for the
3-57 purpose of resale.
3-58 (i) A person storing, using, or consuming a tire in this
3-59 state is liable for the scrap [waste] tire recycling fee as defined
3-60 in this section and is responsible for reporting and paying the fee
3-61 to the comptroller in the same manner as a person required to
3-62 collect this fee, as provided in Subsections (d)(2) and (e).
3-63 (j) A person storing, using, or consuming a tire in this
3-64 state is not further liable for the scrap [waste] tire recycling
3-65 fee imposed by Subsection (a) if the person:
3-66 (1) pays the fee to:
3-67 (A) a person who is required to collect the fee
3-68 under Subsection (a) and who is engaged in business in this state;
3-69 or
4-1 (B) another person authorized by the comptroller
4-2 to collect the fee; and
4-3 (2) receives a purchaser's receipt from the person to
4-4 whom the fee was paid.
4-5 (k) In this section:
4-6 (1) "Engaged in business in this state" has the
4-7 meaning provided under Sections 151.107(a) and (b), Tax Code.
4-8 (2) "Purchased for resale" means acquired by means of
4-9 a sale for resale as defined in Section 151.006, Tax Code.
4-10 (3) "Storage" and "use" have the meanings assigned
4-11 those terms by Section 151.011, Tax Code.
4-12 SECTION 5. Section 361.4725, Health and Safety Code, is
4-13 amended to read as follows:
4-14 Sec. 361.4725. REGISTRATION; FEE. (a) A scrap tire end
4-15 user, scrap tire facility, scrap tire storage facility, scrap tire
4-16 transporter, scrap tire processor, scrap tire generator, or scrap
4-17 tire reclamation project shall register with the commission in
4-18 accordance with commission rules and on the forms prescribed by the
4-19 commission.
4-20 (b) A person who applies to the commission to register under
4-21 this section [a waste tire storage facility, a waste tire energy
4-22 recovery facility storage site, a waste tire recycler, or a fixed
4-23 or mobile tire processor,] or applies to renew or amend the
4-24 registration, must pay a fee set by the commission not to exceed
4-25 [of] $500.
4-26 (c) Except as provided by Subsection (d), the commission may
4-27 not issue a registration or renew or amend a registration under
4-28 this subchapter unless the applicant has submitted to the
4-29 commission evidence of financial responsibility as required by this
4-30 subchapter.
4-31 (d) Subsection (c) does not apply to a:
4-32 (1) scrap tire generator;
4-33 (2) scrap tire transporter; or
4-34 (3) scrap tire end user that does not store more than
4-35 a 30-day supply of whole scrap tires, scrap tire pieces, or
4-36 tire-derived materials.
4-37 SECTION 6. Sections 361.474 and 361.475, Health and Safety
4-38 Code, are amended to read as follows:
4-39 Sec. 361.474. DISPOSITION OF FEES AND PENALTIES. Fees and
4-40 penalties collected under this subchapter shall be deposited in the
4-41 state treasury to the credit of the scrap [waste] tire recycling
4-42 fund.
4-43 Sec. 361.475. SCRAP [WASTE] TIRE RECYCLING FUND. (a) The
4-44 scrap [waste] tire recycling fund is a special account in the
4-45 general revenue fund.
4-46 (b) The commission shall administer the fund.
4-47 (c) The fund consists of fees and penalties collected under
4-48 this subchapter, interest on money in the fund, and money from
4-49 gifts, grants, or any other source intended to be used for the
4-50 purposes of this subchapter.
4-51 (d) The fund shall be used only to:
4-52 (1) pay scrap [waste tire processors, waste] tire end
4-53 users [energy recovery facility owners or operators, or waste tire
4-54 recyclers] that meet the requirements for payment under Section
4-55 361.477[, 361.4771, 361.4772, or 361.4773] and rules adopted under
4-56 that section [those sections];
4-57 (2) pay the commission's reasonable and necessary
4-58 administrative costs of performing its duties under this subchapter
4-59 as provided by Section 361.4774 [in an amount not to exceed six
4-60 percent of the money annually accruing to the fund];
4-61 (3) pay the comptroller's reasonable and necessary
4-62 administrative costs of performing the comptroller's duties under
4-63 this subchapter as provided by Section 361.4774 [in an amount not
4-64 to exceed two percent of the money annually accruing to the fund];
4-65 (4) pay for the cleanup of priority enforcement list
4-66 sites, including special authority priority enforcement list sites
4-67 [provide grants to waste tire energy recovery facility owners or
4-68 operators to cover equipment capital investment costs and equipment
4-69 installation costs to enable a facility to use tire shreds as
5-1 fuel]; and
5-2 (5) pay up to $3 million in grants for research and
5-3 development to generate new end uses for scrap tires [provide
5-4 grants for recycling facility construction costs].
5-5 (e) The commission may hire a consultant to advise and
5-6 assist in developing and evaluating end uses. For any intellectual
5-7 property, including patents and copyrights, developed using grant
5-8 money under Subsection (d)(5), a grant must reserve to the state a
5-9 nonexclusive, transferable right to use or modify any intellectual
5-10 property developed using grant money and to authorize others to use
5-11 or modify the intellectual property.
5-12 (f) [(e)] Registration fees received under Section 361.4725
5-13 shall be allocated to the commission for its reasonable and
5-14 necessary costs associated with the [reviewing applications for]
5-15 registration of a person required to register under that section
5-16 [and with registering:]
5-17 [(1) fixed and mobile tire processing facilities and
5-18 storage sites;]
5-19 [(2) waste tire energy recovery facilities and storage
5-20 sites; and]
5-21 [(3) waste tire recyclers].
5-22 (g) [(f)] The fund may not be used to reimburse [shredding
5-23 or] burning of:
5-24 (1) innertubes;
5-25 (2) scrap rubber products;
5-26 (3) green tires;
5-27 (4) industrial solid waste, excluding scrap [waste]
5-28 tires;
5-29 (5) oversized tires, as defined by commission rule,
5-30 unless the oversized tires are collected from a priority
5-31 enforcement list site;
5-32 (6) manufacturer reject tires; or
5-33 (7) nonpneumatic tires.
5-34 (h) [(g)] The commission may classify special authorization
5-35 tires, as defined by commission rule, as priority enforcement list
5-36 tires.
5-37 [(h) The fund shall maintain a balance of not less than
5-38 $500,000.]
5-39 (i) [If the commission has reason to believe that the
5-40 balance of money appropriated from the fund will fall below
5-41 $500,000, the commission may:]
5-42 [(1) suspend the requirement to reimburse priority
5-43 enforcement list tires shredded in excess of the minimum percentage
5-44 identified in Section 361.477(c)(3)(C);]
5-45 [(2) limit the number of waste tires for which a
5-46 processor, waste tire energy recovery facility owner or operator,
5-47 or waste tire recycler will be reimbursed; or]
5-48 [(3) discontinue paid carryover.]
5-49 [(j)] The revenues obtained from the scrap [waste] tire
5-50 recycling fees shall be deposited to the credit of the scrap
5-51 [waste] tire recycling fund and may be used only to pay for those
5-52 activities and costs identified in Subsection (d) or (f) [(e)].
5-53 SECTION 7. Sections 361.477 and 361.4771, Health and Safety
5-54 Code, are amended to read as follows:
5-55 Sec. 361.477. PAYMENTS TO SCRAP [WASTE] TIRE END USERS
5-56 [PROCESSORS]. (a) The commission each calendar quarter [month]
5-57 shall pay a scrap [waste] tire end user [processor] that [shreds
5-58 scrap tires and] meets the requirements of this section and Section
5-59 361.4771 and rules adopted under those sections: (i) from
5-60 September 1, 1997, through August 31, 1999, $70 per ton for
5-61 recycling and energy recovery for each ton of whole scrap tires,
5-62 shredded tire pieces, or tire-derived material actually put to end
5-63 use by the end user during the preceding calendar quarter; from
5-64 September 1, 1999, through August 31, 2000, $50 per ton for
5-65 recycling and energy recovery for each ton of whole scrap tires,
5-66 shredded tire pieces, or tire-derived material actually put to end
5-67 use by the end user during the preceding calendar quarter; and from
5-68 September 1, 2000, through December 31, 2001, $30 per ton for
5-69 recycling and energy recovery for each ton of whole scrap tires,
6-1 shredded tire pieces, or tire-derived material actually put to end
6-2 use by the end user during the preceding calendar quarter; or
6-3 (ii) from September 1, 1997, through August 31, 1999, $30 per ton
6-4 for civil engineering uses, including road construction, landfill
6-5 applications, reclamation, and septic systems, for each ton of
6-6 whole scrap tires, shredded tire pieces, or tire-derived material
6-7 actually put to end use; from September 1, 1999, through August 31,
6-8 2000, $20 per ton for civil engineering uses, including road
6-9 construction, landfill applications, reclamation, and septic
6-10 systems, for each ton of whole scrap tires, shredded tire pieces,
6-11 or tire-derived material actually put to end use; and from
6-12 September 1, 2000, through December 31, 2001, $10 per ton for civil
6-13 engineering uses, including road construction, landfill
6-14 applications, reclamation, and septic systems, for each ton of
6-15 whole scrap tires, shredded tire pieces, or tire-derived material
6-16 actually put to end use [this section an amount equal to 80 cents
6-17 for each weighed tire shredded] by the end user [processor] during
6-18 the preceding calendar quarter [month]. This subsection applies
6-19 only to whole scrap tires that were collected from generators after
6-20 September 1, 1997, or shredded tire pieces or tire-derived material
6-21 that originated from whole scrap tires that were collected from
6-22 generators after September 1, 1997.
6-23 (b) Each calendar quarter the commission shall pay a scrap
6-24 tire end user that meets the requirements of this section and
6-25 Section 361.4771 and rules adopted under those sections an amount
6-26 set by the commission for each ton of shredded tire pieces actually
6-27 put to end use by the end user. This subsection applies only to
6-28 shredded tire pieces that originated from whole scrap tires that
6-29 were collected from generators before September 1, 1997.
6-30 (c) A scrap tire end user is not eligible for payment under
6-31 this section if the total amount of tires, tire pieces, or
6-32 tire-derived material actually put to end use by the end user
6-33 during a calendar quarter is less than 150 tons. The commission by
6-34 rule may allow an end user to carry over to the next calendar
6-35 quarter, but not for more than one calendar year, all or part of an
6-36 amount of tires, tire pieces, or tire-derived material put to end
6-37 use that does not meet the minimum amount required by this
6-38 subsection.
6-39 (d) The [If the total number of used or scrap tires or tire
6-40 pieces contained in illegal scrap tire sites that are identified on
6-41 the priority enforcement list is below 2,500,000 tires, the]
6-42 commission may pay [80 cents or] an appropriate amount determined
6-43 by the commission [for each weighed tire] to contractors
6-44 [processors] with whom the commission has contracted to remove and
6-45 transport to end use [shred] scrap tires and scrap tire pieces from
6-46 priority enforcement list sites or storage locations at which
6-47 special authorization priority enforcement list tires are stored.
6-48 [The 2,500,000 tire limit does not include those tires contained in
6-49 sites under commission enforcement or attorney general action or
6-50 that require corrective action or remedial action in response to a
6-51 release or threat of release of hazardous substances.] In acting
6-52 under this subsection, the commission may contract [with
6-53 processors] on a regional or site-specific basis. The contracts
6-54 shall be procured through a competitive bid process conducted in
6-55 accordance with the provisions of the State Purchasing and General
6-56 Services Act (Subtitle D, Title 10, Government Code [Article 601b,
6-57 Vernon's Texas Civil Statutes]) applicable to contracts for
6-58 services. [Notwithstanding Subsection (c), while the commission is
6-59 using a competitive bid process for assignment of sites listed on
6-60 the priority enforcement list, the priority enforcement list
6-61 requirements of Subsection (c)(3)(C) do not apply to an application
6-62 for payment. The commission may elect not to enter into contracts
6-63 under this subsection. The contracts may be only for the removal
6-64 and shredding of tires from priority enforcement list sites.]
6-65 [(c) A waste tire processor that desires to receive payment
6-66 under this section for tires shredded by the processor during a
6-67 calendar month must:]
6-68 [(1) apply to the commission for registration in
6-69 accordance with forms prescribed by the commission;]
7-1 [(2) apply to the commission for payment on forms
7-2 prescribed by the commission or, on a voluntary basis, apply by a
7-3 removable storage medium stored in an industry standard file format
7-4 acceptable to the commission;]
7-5 [(3) demonstrate as required by rules adopted under
7-6 this section that:]
7-7 [(A) all tires for which payment is sought have
7-8 been shredded to an industry standard two-inch minus particle size
7-9 or, if approved by the commission, shredded to an alternative
7-10 particle size set by a contract requirement related to recycling or
7-11 end use of the particles;]
7-12 [(B) not less than 50 percent of those tires
7-13 were collected from generators, unless this requirement is
7-14 suspended by the commission on consideration of service needs
7-15 contained in a contract drafted under Subsection (b); and]
7-16 [(C) if the total number of whole used or scrap
7-17 tires or shredded tire pieces contained in illegal waste tire sites
7-18 that are identified on the priority enforcement list exceeds
7-19 2,500,000 tires for more than 60 consecutive days, not less than 15
7-20 percent and not more than 30 percent of those tires were collected
7-21 from scrap tire sites listed on the priority enforcement list;]
7-22 [(4) provide any other information the commission
7-23 determines is needed to accomplish the purposes of this subchapter,
7-24 including a monthly report of scrap tires or tire pieces shredded,
7-25 subtotaled by tire count or weight, for each generator number and
7-26 priority enforcement list number;]
7-27 [(5) demonstrate that energy recovery activities in
7-28 the state are in compliance with applicable air emission control
7-29 rules and standards; and]
7-30 [(6) provide financial assurance deemed adequate by
7-31 the commission that corresponds to:]
7-32 [(A) the payment appropriate for the number of
7-33 scrap tires the processor anticipates shredding in the next
7-34 calendar month; or]
7-35 [(B) the number of scrap tires the waste tire
7-36 storage site owner or operator anticipates accepting for storage in
7-37 the next calendar month.]
7-38 [(d) A waste tire processor that in any month exceeds the
7-39 minimum requirement of Subsection (c)(3)(C) may receive credit only
7-40 for paid carryover in the amount in excess of the requirement that
7-41 may be used to meet the minimum requirement during a later month.
7-42 The commission by rule may prescribe the method of applying credits
7-43 accrued under this subsection.]
7-44 [(e) The commission by rule shall adopt application and
7-45 payment procedures and requirements to implement this section.]
7-46 (e) [(f)] Until the commission has determined that a scrap
7-47 [waste] tire energy recovery facility owner or operator or a scrap
7-48 tire recycler [processor] is in compliance with all applicable
7-49 requirements, the commission may not authorize the scrap tire
7-50 energy recovery facility owner or operator or the scrap tire
7-51 recycler [processor] to burn, recycle, [process] or store scrap
7-52 tires or tire pieces at a site at which the scrap tire energy
7-53 recovery facility owner or operator or the scrap tire recycler
7-54 burns, recycles, [processor processes] or stores, or intends to
7-55 burn, recycle, [process] or store, scrap tires or tire pieces.
7-56 [(g) Beginning January 1, 1996, the commission may reimburse
7-57 a processor for shredded scrap tires only if the processor has a
7-58 binding agreement to deliver the shredded scrap tires to a person
7-59 to recycle or reuse or to use for energy recovery within 180 days
7-60 after the date of reimbursement. The commission shall suspend
7-61 subsequent shredding reimbursements to a processor that fails to
7-62 deliver the tire shreds to an identified end-use market before the
7-63 181st day after the date of reimbursement unless the executive
7-64 director determines that the failure to deliver was caused by an
7-65 act of God or by unforeseen business events. The commission may
7-66 not resume suspended reimbursements until the processor makes all
7-67 delinquent deliveries.]
7-68 [(h) The commission may not pay a waste tire processor for
7-69 processing scrap tires if:]
8-1 [(1) the commission field office and central office
8-2 program staff have not reviewed and approved for further processing
8-3 by the commission all information submitted to the commission by
8-4 the waste tire processor as required by Subsection (c) or rules
8-5 adopted under this section; or]
8-6 [(2) the commission determines that the processor:]
8-7 [(A) has not provided adequate financial
8-8 assurance;]
8-9 [(B) does not have adequate fire protection; or]
8-10 [(C) is causing an imminent danger to public
8-11 health or welfare.]
8-12 [(i) A waste tire processor that in any month exceeds the
8-13 generator percentage of the allocated number of waste tires
8-14 assigned for reimbursement purposes may accrue credit only for paid
8-15 generator carryover in the amount in excess of the requirement that
8-16 may be used to meet the allocation maximum during a later month.
8-17 The commission by rule may prescribe the method of applying
8-18 carryover credit accrued under this section.]
8-19 [(j) The commission shall adopt rules to manage payments
8-20 from the fund to prevent depletion of the fund. Rules adopted
8-21 under this subsection shall consider appropriate payments to
8-22 processors that reflect the varying amounts of money available in
8-23 the fund. In any allocation adopted for processors under this
8-24 section, the commission shall consider the monthly average
8-25 percentage of shredded tires the processor has forwarded to an
8-26 end-use or recycling market. In addition, the commission may
8-27 consider the historical average number of tires for which the
8-28 processor has been reimbursed and such other factors as may be
8-29 determined by the commission.]
8-30 [(k) Notwithstanding Subsection (a), beginning September 1,
8-31 1995, the commission shall reimburse a waste tire processor an
8-32 additional five cents for each weighed tire if the commission
8-33 determines that the processor has a binding agreement to deliver
8-34 100 percent of the scrap tires shredded by the processor monthly to
8-35 a person to recycle or reuse or to use for energy recovery and the
8-36 commission verifies that the processor has delivered the tire
8-37 shreds to such identified end-use market. This section applies
8-38 only to a waste tire processor registered on January 1, 1995, and
8-39 that has a verified end market for the processor's tire shreds on
8-40 June 1, 1995.]
8-41 Sec. 361.4771. PROCEDURE FOR OBTAINING PAYMENT FOR END USE;
8-42 RESTRICTIONS; FUND MANAGEMENT [ENERGY RECOVERY FROM WHOLE WASTE
8-43 TIRES OR SHREDDED TIRES]. (a) [The commission shall adopt rules
8-44 governing payments to waste tire energy recovery facilities for
8-45 weighed tires used by the facility for fuel. The rules must
8-46 include rules governing registration and application procedures.
8-47 The rules must include a voluntary alternative process for making a
8-48 payment application by the use of an industry standard file format
8-49 removable storage medium.]
8-50 [(b)] To receive payment under [this section and] Section
8-51 361.477 [361.4773], a scrap [waste] tire end user [energy recovery
8-52 facility owner or operator] must:
8-53 (1) apply to the commission for registration in the
8-54 manner and on forms prescribed by commission rule;
8-55 (2) apply to the commission for payment:
8-56 (A) in a manner and on forms prescribed by
8-57 commission rule; or
8-58 (B) as a voluntary alternative, by use of a
8-59 removable storage medium stored in an industry standard file format
8-60 acceptable to the commission;
8-61 (3) demonstrate that all tires or tire pieces for
8-62 which the end user [owner or operator] applies for payment are
8-63 whole scrap [waste] tires or shredded tires;
8-64 (4) send the commission a quarterly [monthly] report
8-65 of the number of tons of whole scrap [waste] tires, [or] shredded
8-66 tires, or tire-derived material put to actual end use [used for
8-67 energy recovery], subtotaled by [tire count or by] weight
8-68 attributed to each generator number or priority enforcement list
8-69 number;
9-1 (5) demonstrate that any [the] energy recovery
9-2 activities comply with applicable air emission control standards
9-3 and rules;
9-4 (6) submit evidence of financial responsibility in an
9-5 amount adequate to assure proper cleanup and closure of the
9-6 facility, if the person anticipates accepting an amount of whole
9-7 scrap tires, shredded tire pieces, or tire-derived material for
9-8 storage that exceeds the facility's 30-day supply; and
9-9 (7) [if the number of whole used or scrap tires or
9-10 shredded tire pieces contained in illegal waste tire sites that are
9-11 identified on the priority enforcement list exceeds 2,500,000 tires
9-12 for more than 60 consecutive days, demonstrate that not less than
9-13 15 percent and not more than 30 percent of the tires used for
9-14 energy recovery at the facility were collected from scrap tire
9-15 sites listed on the priority enforcement list; and]
9-16 [(8)] provide any other information required by
9-17 commission rule.
9-18 (b) The commission may pay a scrap tire end user under
9-19 Section 361.477 for scrap tires used for reclamation only if the
9-20 scrap tires, before use in reclamation, have been shredded or cut
9-21 into pieces not larger than nine square inches. To receive payment
9-22 under Section 361.477, an end user that intends to use shredded
9-23 tire pieces for a reclamation project must:
9-24 (1) comply with Subsection (a); and
9-25 (2) submit for commission approval a project plan
9-26 that:
9-27 (A) addresses the management of shredded tire
9-28 pieces; and
9-29 (B) includes, at a minimum, design requirements
9-30 that address surface water and groundwater protection and fire
9-31 prevention.
9-32 (c) A scrap [waste] tire energy recovery facility may not
9-33 store in excess of a 30-day supply of whole scrap [waste] tires,
9-34 [or] shredded tires, or tire-derived material at a site at which
9-35 the owner or operator intends to burn or store scrap [waste] tires,
9-36 [or] shredded tire pieces, or tire-derived material [tires] until
9-37 the facility is registered by the commission as a scrap [waste]
9-38 tire energy recovery facility storage site. A scrap tire recycler
9-39 may not store in excess of a 30-day supply of whole scrap tires,
9-40 shredded tire pieces, or tire-derived material at a site at which
9-41 the recycler intends to recycle or store whole scrap tires,
9-42 shredded tire pieces, or tire-derived material until the facility
9-43 is registered by the commission as a scrap tire recycler storage
9-44 site.
9-45 (d) The commission may not pay a scrap [waste] tire end user
9-46 [energy recovery facility owner or operator] for actual end use of
9-47 whole scrap [using waste] tires, [or] shredded tire pieces, or
9-48 tire-derived material [tires] if:
9-49 (1) the commission field office and central office
9-50 program staff have not reviewed and approved for further processing
9-51 by the commission all information submitted to the commission by
9-52 the scrap [waste] tire end user [energy recovery facility owner or
9-53 operator] as required by Subsection (a) [(b)] or rules adopted
9-54 under this section;
9-55 (2) the commission determines that the end user
9-56 [facility]:
9-57 (A) has not provided adequate financial
9-58 assurance;
9-59 (B) does not have adequate fire protection; or
9-60 (C) is causing an imminent danger to public
9-61 health or welfare;
9-62 (3) the end user [facility] does not have appropriate
9-63 authorization from the commission to:
9-64 (A) perform scrap [waste] tire energy recovery
9-65 at the energy recovery facility site if the end user is a scrap
9-66 tire energy recovery facility owner or operator; or
9-67 (B) recycle scrap tires, shredded tire pieces,
9-68 or tire-derived material at the recycling site if the end user is a
9-69 scrap tire recycler; or
10-1 (4) the end user [facility] is not physically capable
10-2 of performing:
10-3 (A) scrap [waste] tire energy recovery, if the
10-4 end user is a scrap tire energy recovery facility owner or
10-5 operator; or
10-6 (B) scrap tire recycling, if the end user is a
10-7 scrap tire recycler.
10-8 (e) The commission shall adopt rules to manage payments from
10-9 the fund to prevent depletion of the fund. [Before using any
10-10 allocation method authorized by this subchapter and before making
10-11 other payments from the fund, the commission shall pay
10-12 reimbursements to processors under Section 361.477 who have
10-13 established end-use markets and pay reimbursements under this
10-14 section and Sections 361.4772 and 361.4773.]
10-15 (f) In this section, "30-day supply" means an amount equal
10-16 to the average of the amount of tires consumed for energy recovery
10-17 or legitimately recycled in each of the six months immediately
10-18 preceding the month for which the supply is being computed. A
10-19 facility in operation less than six months shall submit for
10-20 commission review, evaluation, and approval an estimate of a 30-day
10-21 supply.
10-22 SECTION 8. Sections 361.4772 and 361.4773, Health and Safety
10-23 Code, are amended to read as follows:
10-24 Sec. 361.4772. SCRAP TIRE PROCESSORS; AUTHORIZATION TO
10-25 OPERATE [RECYCLING FACILITY CONSTRUCTION GRANT]. Until the
10-26 commission has determined that a scrap tire processor is in
10-27 compliance with all applicable requirements, the commission may not
10-28 authorize the processor to process or store scrap tires at a site
10-29 at which the processor processes or stores or intends to process or
10-30 store scrap tires [(a) The commission by rule shall establish a
10-31 program for providing grants for the construction of waste tire
10-32 recycling facilities for the recycling of whole waste tires or
10-33 shredded tires.]
10-34 [(b) The commission may not expend more than $2 million each
10-35 year for grants under this section.]
10-36 [(c) A facility constructed with a grant under this section
10-37 is not eligible for reimbursement for:]
10-38 [(1) powdered rubber;]
10-39 [(2) a tire-derived fuel;]
10-40 [(3) buffing dust;]
10-41 [(4) a retreaded or recapped tire; or]
10-42 [(5) a product that is ineligible for reimbursement
10-43 under commission rules.]
10-44 [(d) The commission shall require a grant recipient to:]
10-45 [(1) demonstrate that not less than 15 percent and not
10-46 more than 30 percent of the tires used for energy recovery at the
10-47 facility were collected from scrap tire sites listed on the
10-48 priority enforcement list if the number of whole used or scrap
10-49 tires or shredded tire pieces contained in illegal waste tire sites
10-50 that are identified on the priority enforcement list exceeds
10-51 2,500,000 tires for more than 60 consecutive days; and]
10-52 [(2) submit evidence of financial responsibility in an
10-53 amount adequate to assure proper cleanup and closure of the
10-54 facility, if the recipient anticipates accepting an amount of whole
10-55 waste tires or shredded tire pieces for storage that exceeds the
10-56 facility's 30-day supply].
10-57 Sec. 361.4773. STORED TIRES: TRANSPORT TO END USER REQUIRED
10-58 [PAYMENT FOR SHREDDED WASTE TIRE ENERGY RECOVERY FACILITY].
10-59 (a) Not later than the 30th day after the end of the calendar
10-60 quarter, a scrap tire storage facility shall send to an end user
10-61 100 percent of the whole scrap tires or shredded tire pieces
10-62 collected or processed by the facility in a calendar quarter [The
10-63 commission each month shall pay to a waste tire energy recovery
10-64 facility owner or operator that burns shredded tires in compliance
10-65 with an energy recovery permit issued by the commission an amount
10-66 equal to 40 cents for each weighed tire the facility used for
10-67 energy recovery during the preceding month].
10-68 (b) A scrap tire storage facility that does not meet the
10-69 requirement of Subsection (a) for any calendar quarter shall
11-1 immediately cease accepting additional whole scrap tires or
11-2 shredded tire pieces [To receive payment under this section, a
11-3 retrofitted waste tire energy recovery facility owner or operator
11-4 must:]
11-5 [(1) apply to the commission for payment in a manner
11-6 and on forms prescribed by commission rule; and]
11-7 [(2) comply with applicable rules adopted by the
11-8 commission under this section and Section 361.4771, unless
11-9 otherwise indicated by the energy recovery permit issued by the
11-10 commission].
11-11 (c) This section applies only to whole scrap tires that are
11-12 collected from a generator on or after September 1, 1997, or
11-13 shredded tire pieces or tire-derived material that originated from
11-14 scrap tires that were collected from a generator on or after
11-15 September 1, 1997.
11-16 SECTION 9. Section 361.4774, Health and Safety Code, is
11-17 amended to read as follows:
11-18 Sec. 361.4774. [LIMITED USE OF WASTE TIRE RECYCLING FUND;
11-19 GRANTS, REIMBURSMENT, AND] ADMINISTRATIVE EXPENSES. (a) For
11-20 performing duties related to the scrap [waste] tire program, each
11-21 fiscal year the comptroller may expend [up to $680,000 or] an
11-22 amount equal to not more than two percent of the money annually
11-23 accruing to the scrap [waste] tire recycling [recovery] fund[,
11-24 whichever is greater].
11-25 (b) For administering the scrap [waste] tire recycling
11-26 program, each fiscal year the commission may expend [not more than
11-27 the lesser of $2.05 million or] an amount equal to not more than
11-28 eight [six] percent of the amount annually accruing to
11-29 [appropriated from] the scrap [waste] tire recycling fund for the
11-30 administration and operation of the scrap [waste] tire recycling
11-31 program.
11-32 [(c) Each fiscal year, the commission may expend not more
11-33 than:]
11-34 [(1) $1.4 million for paying accrued carryover credits
11-35 as provided by Section 361.499;]
11-36 [(2) $15.2 million for tire shredding under Section
11-37 361.477;]
11-38 [(3) $3.52 million for the cleanup and closure of
11-39 priority enforcement list tire sites as provided by Sections
11-40 361.476 and 361.477;]
11-41 [(4) $2 million for providing recycling facility
11-42 construction grants under Section 361.4772;]
11-43 [(5) $600,000 for payments to energy recovery
11-44 facilities under Section 361.4773 at a rate of 40 cents per weighed
11-45 tire unit; and]
11-46 [(6) $6 million to provide grants for retrofitting
11-47 facilities to use whole or shredded tires for fuel or for paying
11-48 for facilities to use whole tires for fuel as provided by
11-49 Subsections (d) and (e).]
11-50 [(d) For fiscal year 1996, the commission may expend not
11-51 more than $4 million for:]
11-52 [(1) providing grants to waste tire energy recovery
11-53 facilities that are not using tire-derived fuel and apply for
11-54 assistance to cover retrofitting costs the commission determines
11-55 are necessary to enable the facilities to use whole tires as fuel;
11-56 and]
11-57 [(2) paying a facility eligible for a grant under
11-58 Subdivision (1), but for which the commission has not made a grant,
11-59 an amount of up to 80 cents per weighed tire unit.]
11-60 [(e) A person receiving payments for weighed tires under
11-61 Subsection (d)(2) may not receive reimbursements that exceed the
11-62 total of:]
11-63 [(1) the amount of the retrofitting costs the facility
11-64 would have received if the person had applied for a grant under
11-65 Subsection (d)(1); and]
11-66 [(2) the cost, as determined by the commission, of
11-67 transporting to the facility the number of whole tires used for
11-68 fuel until the payments under Subsection (d)(2) equal the amount of
11-69 the retrofitting costs the facility would have received.]
12-1 [(f) For fiscal year 1996, the commission may expend not
12-2 more than $2 million to provide grants to waste tire energy
12-3 recovery facilities that are not using tire-derived fuel and apply
12-4 for assistance to cover retrofitting costs the commission
12-5 determines are necessary to enable the facilities to use shredded
12-6 tires as fuel.]
12-7 [(g) For the period beginning September 1, 1996, and ending
12-8 December 31, 1997, the commission may expend not more than $6
12-9 million for payments to waste tire energy recovery facilities that
12-10 burn whole tires at a rate of 80 cents per weighed tire unit used.]
12-11 [(h) After the third quarter of each year of the fiscal
12-12 biennium, funds that remain unused for the purposes specified in
12-13 Subsections (a)-(g) may be transferred for use for a purpose
12-14 specified in Subsections (c)-(g) at the discretion of the
12-15 commission to promote recycling and energy recovery.]
12-16 SECTION 10. Section 361.479, Health and Safety Code, is
12-17 amended to read as follows:
12-18 Sec. 361.479. EVIDENCE OF FINANCIAL RESPONSIBILITY. (a) A
12-19 person required to register under Section 361.4725 [waste tire
12-20 storage facility registered by the commission or a waste tire
12-21 facility that accepts shredded scrap tires for storage or for
12-22 processing for recycling, reuse, or energy recovery] shall submit
12-23 to the commission and shall maintain evidence of financial
12-24 responsibility in an amount adequate to assure proper cleanup and
12-25 closure of the facility. This subsection does not apply to a
12-26 person listed under Section 361.4725(d).
12-27 (b) A scrap [waste] tire recycling facility owner or
12-28 operator or scrap tire energy recovery facility owner or operator
12-29 who anticipates accepting for storage an amount of whole scrap
12-30 tires, shredded tire pieces, or tire-derived material [for storage]
12-31 that exceeds the facility's 30-day supply shall submit to the
12-32 commission and shall maintain evidence of financial responsibility
12-33 in an amount adequate to assure proper cleanup and closure of the
12-34 facility.
12-35 (c) A facility subject to Subsection (a) or (b) shall submit
12-36 to the commission an estimate of the total amount of whole scrap
12-37 tires, shredded tire pieces, or tire-derived material measured by
12-38 weight [weighed tire] that the facility will store, [or] process,
12-39 or put to end use, the maximum number of out-of-state tires the
12-40 facility will store, and the estimated cost, using that total
12-41 amount, of cleaning up and closing the facility.
12-42 (d) The commission shall evaluate and may amend an estimate
12-43 submitted under Subsection (c) and shall determine for each
12-44 facility the amount for which evidence of financial responsibility
12-45 is required. The commission periodically may audit a facility
12-46 subject to this section and may increase the amount for which the
12-47 facility is required to provide evidence of financial
12-48 responsibility. The commission may suspend the registration of, or
12-49 payments under Section 361.477 to, a facility that does not provide
12-50 evidence of financial responsibility for an increased amount
12-51 required under this section.
12-52 (e) Evidence of financial responsibility may be in the form
12-53 of:
12-54 (1) a performance bond, surety bond, or [a] letter of
12-55 credit acceptable to the commission that is from a financial
12-56 institution, a trust fund, or insurance for a privately owned
12-57 facility; or
12-58 (2) a self-insurance test designed by the commission
12-59 for a publicly owned facility. A person who makes an initial
12-60 request for reimbursement from the scrap [waste] tire recycling
12-61 fund on or after September 1, 1993, must provide evidence of
12-62 financial responsibility for the full amount determined under
12-63 Subsection (d).
12-64 (f) A person who files an application or amended application
12-65 for registration under this subchapter on or after September 1,
12-66 1997, must provide evidence of financial responsibility:
12-67 (1) in an amount adequate to:
12-68 (A) assure proper cleanup and closure of the
12-69 facility for which registration is requested; and
13-1 (B) pay for reasonable emergency response costs
13-2 that might be incurred in the event of a catastrophic occurrence;
13-3 and
13-4 (2) in a form prescribed by commission rule that may
13-5 be used to:
13-6 (A) pay for the proper cleanup and closure of,
13-7 or for reasonable emergency response costs incurred as a result of
13-8 a catastrophic occurrence at, that facility; or
13-9 (B) contribute, in a manner prescribed by
13-10 commission rule and after a hearing, to payment of cleanup and
13-11 closure costs or reasonable response costs incurred as a result of
13-12 a catastrophic occurrence incurred by the commission at another
13-13 facility owned or controlled by the same person or by the person's
13-14 subsidiary or affiliate, for which the financial assurance provided
13-15 was insufficient to pay for proper cleanup and closure of or
13-16 reasonable response costs at the facility.
13-17 SECTION 11. Subchapter P, Chapter 361, Health and Safety
13-18 Code, is amended by adding Sections 361.4791 and 361.4792 to read
13-19 as follows:
13-20 Sec. 361.4791. LIEN. (a) All remediation costs incurred by
13-21 the commission for the cleanup and closure of a site for which
13-22 insufficient financial assurance has been provided constitute a
13-23 lien in favor of the state on the property on which the site is
13-24 located and any other real or personal property of the owner or
13-25 operator in the state.
13-26 (b) The lien arises and attaches on the date a commission
13-27 affidavit is filed with the county clerk in the county in which the
13-28 real property is located or, for personal property, in the county
13-29 in which the principal place of business is located. The affidavit
13-30 shall state the name of the owner of the property, the amount owed,
13-31 and the legal description of the property. The county clerk shall
13-32 file an affidavit relating to real property in the real property
13-33 records of the county in which the property is located.
13-34 (c) The lien is subordinate to the rights of prior bona fide
13-35 purchasers of or lienholders on the property.
13-36 Sec. 361.4792. NOTICE OF BANKRUPTCY. (a) Not later than
13-37 the second business day after the filing of a voluntary or
13-38 involuntary petition in bankruptcy by a scrap tire processor, scrap
13-39 tire end user, or scrap tire transporter or the filing of an
13-40 involuntary bankruptcy petition for relief against a scrap tire
13-41 processor, scrap tire end user, or scrap tire transporter, the
13-42 scrap tire processor, scrap tire end user, or scrap tire
13-43 transporter shall deliver to the bankruptcy program department of
13-44 the commission in Austin written notice of the bankruptcy stating
13-45 the case number and the bankruptcy court where the case is pending.
13-46 (b) Not later than the second business day after the date
13-47 the document is filed with the bankruptcy clerk's office in a
13-48 bankruptcy case described in Subsection (a), the scrap tire
13-49 processor, scrap tire end user, or scrap tire transporter shall
13-50 deliver to the bankruptcy program department of the commission a
13-51 copy of:
13-52 (1) any schedule or statement of affairs;
13-53 (2) any amended schedule or statement of affairs; or
13-54 (3) any monthly operating report.
13-55 SECTION 12. Sections 361.481 and 361.482, Health and Safety
13-56 Code, are amended to read as follows:
13-57 Sec. 361.481. PROHIBITION ON OUT-OF-STATE TIRES; PENALTY.
13-58 (a) [A waste tire processor may not claim payment under Section
13-59 361.477 for shredding out-of-state tires.] A scrap [waste] tire
13-60 energy recovery facility owner or operator may not claim payment
13-61 under Section 361.477 [361.4771 or 361.4773] for burning
13-62 out-of-state tires. A scrap [waste] tire recycler may not claim
13-63 payment under Section 361.477 [361.4772] for recycling out-of-state
13-64 tires.
13-65 (b) A scrap [waste] tire generator that the commission
13-66 determines has used a manifest and commission generator number to
13-67 pass out-of-state tires is subject to an [not eligible for the free
13-68 collection and transportation of waste tires generated at the
13-69 generator's place of business. In addition to any] administrative,
14-1 civil, or criminal enforcement action[, the commission shall
14-2 require the generator to pay for:]
14-3 [(1) collection and transportation of generated tires;
14-4 and]
14-5 [(2) shredding, burning, or recycling of generated
14-6 tires at the applicable rate specified in Section 361.477,
14-7 361.4771, or 361.4772].
14-8 (c) A scrap [waste] tire processor, scrap [waste] tire
14-9 energy recovery facility owner or operator, or scrap [waste] tire
14-10 recycler who the commission determines has knowingly accepted
14-11 out-of-state tires on manifests using a commission generator number
14-12 is subject to an administrative, civil, or criminal enforcement
14-13 action.
14-14 (d) A scrap [waste] tire transporter that the commission
14-15 determines has transported out-of-state tires using a
14-16 commission-approved manifest or transporter number is subject to an
14-17 administrative, civil, or criminal enforcement action.
14-18 (e) The commission shall treat whole scrap tires and
14-19 shredded tire pieces generated in Texas, removed from Texas, and
14-20 subsequently reintroduced into Texas as out-of-state scrap tires
14-21 for the purposes of this subchapter.
14-22 Sec. 361.482. PROHIBITION ON DISPOSAL OF [SHREDDED] TIRES IN
14-23 LANDFILL. (a) Except as provided by Subsection (b), a [A] person
14-24 may not dispose of in-state or out-of-state whole used tires, [or]
14-25 scrap tires, [that are eligible for reimbursement under this
14-26 chapter] or shredded tire pieces [for which reimbursement has been
14-27 paid under this subchapter] in a landfill, including a Type VIII-S
14-28 tire monofill.
14-29 (b) If a scrap tire generator cannot locate an end user for
14-30 its scrap tires the commission by emergency order may permit
14-31 landfill disposal of the generator's scrap tires at the generator's
14-32 expense. The order may apply to one or more generators in a
14-33 geographic area.
14-34 SECTION 13. Subchapter P, Chapter 361, Health and Safety
14-35 Code, is amended by adding Section 361.4825 to read as follows:
14-36 Sec. 361.4825. INTENTIONAL BURNING PROHIBITED; DUMPING
14-37 PROHIBITED; CRIMINAL PENALTY. (a) A person commits an offense if
14-38 the person starts a fire with the intent to destroy or damage whole
14-39 scrap tires, tire pieces, or tire-derived products.
14-40 (b) It is an exception to the application of Subsection (a)
14-41 that the fire was started at a registered scrap tire energy
14-42 recovery facility in the course of an energy recovery procedure
14-43 authorized under this subchapter.
14-44 (c) A person commits an offense if the person disposes of
14-45 more than 100 whole tires or an equivalent amount of scrap tire
14-46 pieces at a site that is not authorized by the commission to accept
14-47 whole tires or scrap tire pieces.
14-48 (d) An offense under this section is a state jail felony.
14-49 (e) In addition to the criminal penalty provided by this
14-50 section, a person who commits an offense under this section is
14-51 subject to a civil penalty under Section 361.483.
14-52 SECTION 14. Subsections (a) and (c), Section 361.483, Health
14-53 and Safety Code, are amended to read as follows:
14-54 (a) A person who violates this subchapter or a rule adopted
14-55 or order issued under this subchapter is liable for a civil penalty
14-56 of not less than $100 or more than $25,000 [up to $10,000] for each
14-57 violation and for each day of a continuing violation.
14-58 (c) A penalty collected under this section shall be
14-59 deposited to the credit of the scrap [waste] tire recycling fund.
14-60 SECTION 15. Section 361.4832, Health and Safety Code, is
14-61 amended to read as follows:
14-62 Sec. 361.4832. ADMINISTRATIVE PENALTY; ORDER FOR CORRECTIVE
14-63 ACTION; SUSPENSION OF REGISTRATION. (a) If a person violates this
14-64 subchapter or a rule adopted or order issued under this subchapter
14-65 the commission may:
14-66 (1) assess against the person an administrative
14-67 penalty under Section 361.252 in an amount not to exceed $10,000
14-68 for each act of violation and for each day of violation; or
14-69 (2) order the person to take a corrective action.
15-1 (b) The commission may suspend a registration issued under
15-2 this subchapter and may suspend payment under Section 361.477 to a
15-3 scrap [of or reimbursement payment to a waste tire processor, waste
15-4 tire transporter, waste tire generator, waste] tire recycling
15-5 facility[,] or scrap [waste] tire energy recovery facility on the
15-6 initiation of an enforcement proceeding and while the proceeding is
15-7 pending for the violation of this subchapter or a rule adopted or
15-8 order issued under this subchapter.
15-9 SECTION 16. Subsection (b), Section 361.485, Health and
15-10 Safety Code, is amended to read as follows:
15-11 (b) The commission shall include in the report the
15-12 commission's recommendation, based on the commission's evaluation
15-13 of the rate of inflation during the preceding two years, as to
15-14 whether an adjustment to the fee assessed on the sale of tires or
15-15 to the rate of reimbursement paid to a scrap [waste] tire recycler
15-16 [processor] or scrap [waste] tire energy recovery facility owner or
15-17 operator is warranted.
15-18 SECTION 17. Section 361.487, Health and Safety Code, is
15-19 amended to read as follows:
15-20 Sec. 361.487. PAYMENTS TO OUT-OF-STATE TIRE RECYCLERS
15-21 [REIMBURSEMENT RESTRICTIONS]. (a) The commission by rule shall
15-22 provide for payments under Section 361.477 to a tire recycler in
15-23 another state. [A processor seeking reimbursement under Section
15-24 361.477 shall process and store the whole used or scrap tires or
15-25 shredded tire pieces in the state. A waste tire energy recovery
15-26 facility owner or operator seeking reimbursement under Section
15-27 361.4771 or 361.4773 shall store and burn the whole used or scrap
15-28 tires or shredded tire pieces in the state.]
15-29 (b) The rules must require an out-of-state tire recycler to
15-30 demonstrate that whole scrap tires, shredded tire pieces, or
15-31 tire-derived material for which payment is requested were:
15-32 (1) generated and collected in this state;
15-33 (2) transported out of this state; and
15-34 (3) actually put to end use by an out-of-state end
15-35 user [commission shall treat whole used or scrap tires and shredded
15-36 tire pieces generated in Texas, removed from Texas, and
15-37 subsequently reintroduced to Texas as out-of-state scrap tires for
15-38 the purposes of this subchapter].
15-39 (c) In this section, "tire recycler" means a collector or
15-40 end user of whole scrap tires, shredded tire pieces, or
15-41 tire-derived material.
15-42 SECTION 18. Subsections (a) and (e), Section 361.489, Health
15-43 and Safety Code, are amended to read as follows:
15-44 (a) The commission may, with the funds available to the
15-45 commission from the scrap [waste] tire recycling fund, undertake
15-46 immediate remediation of a site if, after investigation, the
15-47 commission finds:
15-48 (1) that there exists a situation caused by [the
15-49 illegal dumping of] scrap tires that is causing or may cause
15-50 imminent and substantial endangerment to the public health and
15-51 safety or the environment; and
15-52 (2) the immediacy of the situation makes it
15-53 prejudicial to the public interest to delay action until an
15-54 administrative order can be issued to potentially responsible
15-55 parties or until a judgment can be entered in an appeal of an
15-56 administrative order.
15-57 (e) Money collected in a suit to recover costs shall be
15-58 deposited to the credit of the scrap [waste] tire recycling fund.
15-59 SECTION 19. Section 361.490, Health and Safety Code, is
15-60 amended to read as follows:
15-61 Sec. 361.490. ACCESS TO PRIORITY ENFORCEMENT LIST SITE.
15-62 [(a)] Members of the commission or[,] employees or agents of the
15-63 commission[, and authorized processors or their subcontractors] are
15-64 entitled to enter any public or private property at any reasonable
15-65 time for the purpose of inspecting, investigating, or remediating
15-66 any condition related to illegal dumping of scrap tires. [An
15-67 authorized processor or subcontractor is entitled to enter property
15-68 only if the commission directs the processor or subcontractor to
15-69 enter the property.] The executive director shall give notice of
16-1 intent to enter private property for those purposes by certified
16-2 mail to the last known address indicated in the current county
16-3 property records at least 10 days before a commission member or[,]
16-4 commission employee or agent[, or authorized processor or
16-5 subcontractor] enters the property. A commission member or[,]
16-6 commission employee or agent[, or authorized processor or
16-7 subcontractor] who, acting under this subsection, enters private
16-8 property shall:
16-9 (1) observe the establishment's rules concerning
16-10 safety, internal security, and fire protection; and
16-11 (2) if the property has management in residence, make
16-12 a reasonable attempt to notify the management or person in charge
16-13 of the entry and exhibit credentials.
16-14 [(b) Authorized processors and their subcontractors may not
16-15 be considered agents of the state and are solely responsible for
16-16 their actions.]
16-17 SECTION 20. Subsection (a), Section 361.492, Health and
16-18 Safety Code, is amended to read as follows:
16-19 (a) A wholesale or retail tire dealer or a person in the
16-20 business of selling new or good used tires for use on a vehicle or
16-21 selling used vehicle parts [as described in Section 361.472(a)]
16-22 shall accept from customers, without charge, used tires of the type
16-23 and in a quantity at least equal to the number of tires the
16-24 customer purchases.
16-25 SECTION 21. Sections 361.494 through 361.498, Health and
16-26 Safety Code, are amended to read as follows:
16-27 Sec. 361.494. APPEAL. The commission shall establish a
16-28 process by which a registered scrap tire recycler or the owner or
16-29 operator of a registered scrap [waste] tire energy recovery
16-30 facility [processor] who is adversely affected by an agency
16-31 decision affecting reimbursement may appeal that decision to the
16-32 executive director or the commission.
16-33 Sec. 361.495. COMPLIANCE [FISCAL] AUDITS. (a) The
16-34 commission biennially may [shall] perform a compliance [fiscal]
16-35 audit of each person receiving reimbursements under Section 361.477
16-36 [waste tire processor, waste tire recycling facility, and waste
16-37 tire energy recovery facility owner or operator] to ensure fiscal
16-38 responsibility and accountability regarding reimbursements made
16-39 under Section [Sections] 361.477[, 361.4771, and 361.4773]. The
16-40 person audited shall bear the costs of the audits.
16-41 (b) If the commission determines, as the result of an audit,
16-42 that the commission is due a refund of some of the money paid to a
16-43 scrap tire processor or scrap tire end user out of the scrap tire
16-44 fund, the commission may offset the amount owed against any future
16-45 reimbursements to be paid to the processor or end user.
16-46 Sec. 361.496. NEW OR EXPANDED PROCESSING OPERATION. A scrap
16-47 tire [new] processor, scrap [waste] tire energy recovery facility,
16-48 or scrap [waste] tire recycler or a registered processor, scrap
16-49 [waste] tire energy recovery facility, or scrap [waste] tire
16-50 recycler that seeks to establish a new processing facility or
16-51 expand a processing operation in the state must:
16-52 (1) certify that such processor, scrap [waste] tire
16-53 energy recovery facility, or scrap [waste] tire recycler is willing
16-54 to provide collection and transportation of scrap [waste] tires
16-55 from registered generators in rural counties of the state at the
16-56 request of the commission during emergency periods as defined by
16-57 the commission when such generators are not being otherwise served
16-58 by registered processors or transporters; and
16-59 (2) identify and have available a certified end use in
16-60 the application for a new or amended registration.
16-61 Sec. 361.497. EXPIRATION. This subchapter expires December
16-62 31, 2001 [1997].
16-63 Sec. 361.498. COMMUNITY SERVICE. Persons seeking
16-64 reimbursement from the scrap [waste] tire recycling fund shall
16-65 perform community service on an annual basis. Community service
16-66 includes cooperation with local civic groups to clean up abandoned
16-67 tire sites that are not classified as priority enforcement list
16-68 sites. The tires collected under this section are eligible for
16-69 reimbursement.
17-1 SECTION 22. Subsection (c), Section 2, Article 9009b,
17-2 Revised Statutes, is amended to read as follows:
17-3 (c) A person may not sell, convey, or otherwise transfer to
17-4 a metals recycling activity a motor vehicle or a motor vehicle that
17-5 has been junked, flattened, dismantled, or changed so that it has
17-6 lost its character as a motor vehicle if the motor vehicle
17-7 includes, contains, or encloses a tire or scrap tire. This
17-8 subsection does not apply to the sale, conveyance, or transfer of a
17-9 motor vehicle or a junked, flattened, dismantled, or changed motor
17-10 vehicle:
17-11 (1) from another state; or
17-12 (2) to a metals recycling activity determined by the
17-13 executive director of the Texas Natural Resource Conservation
17-14 Commission to be a business at which:
17-15 (A) such motor vehicles and the tires or scrap
17-16 tires they include contain or enclose are shredded together; and
17-17 (B) the tire or scrap tire shreds and other
17-18 rubber or plastic materials are recovered, and useful materials are
17-19 extracted and used for recycling, reuse, or energy recovery.
17-20 SECTION 23. Sections 361.478, 361.480, 361.486, 361.4865,
17-21 361.488, and 361.499, Health and Safety Code, are repealed.
17-22 SECTION 24. (a) As soon as possible after September 1,
17-23 1997, the Texas Natural Resource Conservation Commission shall
17-24 inventory the amount and location of:
17-25 (1) shredded tire pieces in the state; and
17-26 (2) whole scrap tires in priority enforcement list
17-27 sites in the state.
17-28 (b) Not later than December 1, 1997, the Texas Natural
17-29 Resource Conservation Commission shall adopt the rules necessary to
17-30 implement Subchapter P, Chapter 361, Health and Safety Code, as
17-31 amended by this Act.
17-32 SECTION 25. (a) Any unappropriated, unexpended, and
17-33 unencumbered money available in the scrap tire recycling fund on
17-34 September 1, 1997, is appropriated to the Texas Natural Resource
17-35 Conservation Commission to be used only for payments under Section
17-36 361.477, Health and Safety Code, as amended by this Act, for actual
17-37 end use of:
17-38 (1) shredded tire pieces identified in the inventory
17-39 conducted under Subsection (a) of Section 24 of this Act; or
17-40 (2) whole scrap tires from a priority enforcement list
17-41 site identified in the inventory conducted under Subsection (a) of
17-42 Section 24 of this Act.
17-43 (b) Notwithstanding Subdivision (1), Subsection (a), Section
17-44 361.472, Health and Safety Code, as amended by this Act, effective
17-45 January 1, 1998, the amount of the fee imposed under Subdivision
17-46 (1), Subsection (a), Section 361.472, Health and Safety Code, is $2
17-47 if on September 1, 1997, the amount of unappropriated, unexpended,
17-48 and unencumbered money available to be used for the purposes of
17-49 Subsection (b), Section 361.477, Health and Safety Code, in the
17-50 scrap tire recycling fund is less than $15 million.
17-51 (c) If the fee under Subsection (b) of this section takes
17-52 effect, the amount of a fee collected under Subdivision (1),
17-53 Subsection (a), Section 361.472, Health and Safety Code, that
17-54 exceeds $1.50 is appropriated to the Texas Natural Resource
17-55 Conservation Commission to be used only for payments under Section
17-56 361.477, Health and Safety Code, as amended by this Act, for actual
17-57 end use of:
17-58 (1) shredded scrap tire pieces identified in the
17-59 inventory conducted under Subsection (a) of Section 24 of this Act;
17-60 or
17-61 (2) whole scrap tires from a priority enforcement list
17-62 site identified in the inventory conducted under Subsection (a) of
17-63 Section 24 of this Act.
17-64 (d) The payments authorized by Subsections (a) and (c) of
17-65 this section apply only to whole scrap tires or shredded tire
17-66 pieces actually put to end use on or after September 1, 1997.
17-67 (e) If the fee under Subsection (b) of this section takes
17-68 effect, effective September 1, 1999, the amount of the fee imposed
17-69 under Subdivisions (1) and (3), Subsection (a), Section 361.472,
18-1 Health and Safety Code, is $1.50.
18-2 (f) If the fee under Subsection (b) of this section does not
18-3 take effect, Subsections (c) and (e) of this section have no
18-4 effect.
18-5 SECTION 26. (a) Except as otherwise provided by this Act,
18-6 this Act takes effect September 1, 1997.
18-7 (b) Subsection (c), Section 361.4725, Health and Safety
18-8 Code, as added by this Act, applies to an application for a new
18-9 registration or an application to renew or amend an existing
18-10 registration that is pending before the Texas Natural Resource
18-11 Conservation Commission on September 1, 1997, or that is submitted
18-12 to the commission on or after that date.
18-13 (c) The payments authorized by Sections 361.477 and
18-14 361.4771, Health and Safety Code, as amended by this Act, apply
18-15 only to whole scrap tires, shredded tire pieces, or tire-derived
18-16 materials actually put to end use on or after September 1, 1997.
18-17 (d) Section 361.4825, Health and Safety Code, as added by
18-18 this Act, applies only to an offense committed on or after
18-19 September 1, 1997. For purposes of this subsection, an offense is
18-20 committed on or after September 1, 1997, if any element of the
18-21 offense occurs on or after that date.
18-22 SECTION 27. A person who on August 31, 1997, is required
18-23 under Subchapter P, Chapter 361, Health and Safety Code, or rules
18-24 adopted under that subchapter to be registered by the Texas Natural
18-25 Resource Conservation Commission or to provide evidence of
18-26 financial responsibility in a certain amount or maintain financial
18-27 assurance in a certain amount shall maintain the registration and
18-28 the financial assurance after that date and until the facility for
18-29 which the registration or financial assurance is required has been
18-30 properly cleaned and closed or until the commission determines that
18-31 the registration or financial assurance is no longer necessary.
18-32 SECTION 28. The importance of this legislation and the
18-33 crowded condition of the calendars in both houses create an
18-34 emergency and an imperative public necessity that the
18-35 constitutional rule requiring bills to be read on three several
18-36 days in each house be suspended, and this rule is hereby suspended.
18-37 * * * * *