CalRecycle reaches settlement with tire recycler (Update)

BALLICO, Calif. (Oct. 16, 2014) — California's Department of Resources Recycling and Recovery (CalRecycle) has settled a case with Golden By-Products Inc. that forgives most of the $965,000 fine the agency had proposed against the tire recycling company.

CalRecycle approved the settlement document Oct. 13, two days before the agency was supposed to begin a three-day hearing at its Sacramento headquarters over the proposed fine.

Under the order, Ballico-based Golden By-Products must reduce the amount of whole waste tires on its property to no more than 2,000 tons, or face an automatic partial default penalty of $25,000.

By Dec. 2, Golden By-Products must reduce the whole waste tires on its property to no more than 1,000 tons, or face an automatic penalty of $50,000. At the time of both deadlines, the amount of altered — chipped or crumbed — waste tires must not exceed 6,500 tons, CalRecycle said.

The agreement states that Golden By-Products has agreed to send CalRecycle weekly updates on incoming and outgoing scrap tires, and also to notify the agency within 24 hours of any major accident, fire or event causing substantial downtime at the site.

Golden By-Products will not be allowed to accept any more scrap tires until CalRecycle inspectors ascertain that the company is meeting specified storage limits and regulations, according to the settlement. The company will also make periodic payments to CalRecycle totaling $200,000, and will pay an automatic partial default penalty of $10,000 if it misses a payment, the document said.

In November 2013 and March 2014, CalRecycle and Merced County inspectors found waste tires on Golden By-Products property amounting to several times the 150,000 passenger tire equivalents allowed under the permit CalRecycle granted the company.

Besides the $965,000 fine, CalRecycle had also sought additional penalties against Golden By-Products “as the (CalRecycle) director or an administrative law judge…deems right and proper,” and reimbursement for the costs of multiple inspections.

According to its website, Golden By-Products is a fully permitted scrap tire hauler and recycler that supplies rubber mulch for playgrounds, tire-derived fuel and crumb rubber for rubberized asphalt, athletic fields and dog parks.

The company claims it handles more than 4 million tires annually — over one-third of the Northern California market share.