Calif. tire dealers, recyclers oppose scrap tire bill

SACRAMENTO, Calif. — A broad coalition of California tire dealers, processors and recyclers have joined to oppose a bill before the California legislature that would replace a state program funding rubberized pavement projects with a tire recycling incentive program.

Assembly Bill 509 failed to advance in the California State Senate Appropriations Committee by the Sept. 1 deadline after passing the state Assembly, according to Terry Leveille, legislative representative for the California Tire Dealers Association.

However, it is possible that supporters of AB 509 will try to amend another bill with 509's language before the legislative session adjourns Sept. 15, Mr. Leveille said.

AB 509 would repeal the current Rubber Pavement Market Development Act, which gives grants to municipalities for rubberized asphalt road projects.

In its place would be the Tire Recycling Incentive Program Act, which would require the California Department of Resources Recycling and Recovery (CalRecycle) to establish an incentive program to make payments to entities that purchase waste tire material to use in making products for end-users.

Although the CTDA at first did not oppose AB 509, it soon joined a coalition of scrap tire recyclers and processors who objected to the fee structure of the proposed legislation.

"Not only would AB 509 divert existing funds from cities and counties, the bill allows CalRecycle to initiate a new fee to help pay for the tire recycling incentive program by increasing up to $1 the cost of a new tire," Mr. Leveille wrote in a CTDA position paper opposing the bill.

On top of the current $1.75-per-tire scrap tire fee already charged in California, this would mean an additional $11 on the purchase of a new set of tires, according to Mr. Leveille.

CalRecycle already is unable to spend the $34 million it collects every year from scrap tire fees, he said.

"If CalRecycle can show California that a new, somewhat controversial tire incentive program recycles more tires than tire grants and, more importantly, if CalRecycle can justify an additional tire fee, then it should come back to the legislature at a later date and ask for more money," Mr. Leveille said.

"But don't allow the department to saddle California tire customers with another tire fee whenever it chooses," he said.