Waste Tire Recycling Amendments

Enrolled Copy H.B. 236 1 WASTE TIRE RECYCLING AMENDMENTS 2 2021 GENERAL SESSION 3 STATE OF UTAH 4 Chief Sponsor: Stephen G. Handy 5 Senate Sponsor: Todd D. Weiler 6 7 LONG TITLE 8 General Description: 9 This bill modifies provisions related to waste tire recycling. 10 Highlighted Provisions: 11 This bill: 12 < modifies definition provisions; 13 < changes the process and limitations on the funding for management of certain 14 landfill or abandoned waste tire piles; 15 < addresses criminal penalties; and 16 < makes technical changes. 17 Money Appropriated in this Bill: 18 None 19 Other Special Clauses: 20 None 21 Utah Code Sections Affected: 22 AMENDS: 23 19-6-803, as last amended by Laws of Utah 2020, Chapter 27 24 19-6-811, as last amended by Laws of Utah 2019, Chapter 70 25 19-6-822, as repealed and reenacted by Laws of Utah 2012, Chapter 263 26 27 Be it enacted by the Legislature of the state of Utah: 28 Section 1. Section 19-6-803 is amended to read: 29 19-6-803. Definitions. H.B. 236 Enrolled Copy - 2 - 30 As used in this part: 31 (1) "Abandoned waste tire pile" means a waste tire pile regarding which the local 32 department of health has not been able to: 33 (a) locate the persons responsible for the tire pile; or 34 (b) cause the persons responsible for the tire pile to remove the tire pile. 35 (2) (a) "Beneficial use" means the use of chipped tires in a manner that is not recycling, 36 storage, or disposal, but that serves as a replacement for another product or material for specific 37 purposes. 38 (b) "Beneficial use" includes the use of chipped tires: 39 (i) as daily landfill cover; 40 (ii) for civil engineering purposes; 41 (iii) as low-density, light-weight aggregate fill; or 42 (iv) for septic or drain field construction. 43 (c) "Beneficial use" does not include the use of waste tires or material derived from 44 waste tires: 45 (i) in the construction of fences; or 46 (ii) as fill, other than low-density, light-weight aggregate fill. 47 (3) "Board" means the Waste Management and Radiation Control Board created under 48 Section 19-1-106. 49 (4) "Chip" or "chipped tire" means a two inch square or smaller piece of a waste tire. 50 (5) "Commission" means the Utah State Tax Commission. 51 (6) (a) "Consumer" means a person who purchases a new tire to satisfy a direct need, 52 rather than for resale. 53 (b) "Consumer" includes a person who purchases a new tire for a motor vehicle to be 54 rented or leased. 55 (7) "Crumb rubber" means waste tires that have been ground, shredded, or otherwise 56 reduced in size such that the particles are less than or equal to 3/4 inch in diameter and are 98% 57 wire free by weight. Enrolled Copy H.B. 236 - 3 - 58 (8) "Director" means the director of the Division of Waste Management and Radiation 59 Control. 60 (9) "Disposal" means the deposit, dumping, or permanent placement of waste tire in or 61 on land or in water in the state. 62 (10) "Dispose of" means to deposit, dump, or permanently place waste tire in or on 63 land or in water in the state. 64 (11) "Division" means the Division of Waste Management and Radiation Control 65 created in Section 19-1-105. 66 (12) "Fund" means the Waste Tire Recycling Fund created in Section 19-6-807. 67 (13) "Landfill waste tire pile" means a waste tire pile: 68 (a) located within the permitted boundary of a landfill or transfer station operated by a 69 governmental entity; and 70 (b) consisting solely of waste tires brought to a landfill or transfer station for disposal 71 and diverted from the landfill or transfer station waste stream to the waste tire pile. 72 (14) "Local health department" means the local health department, as defined in 73 Section 26A-1-102, with jurisdiction over the recycler. 74 (15) "Materials derived from waste tires" means tire sections, tire chips, tire 75 shreddings, rubber, steel, fabric, or other similar materials derived from waste tires. 76 (16) "Mobile facility" means a mobile facility capable of cutting waste tires on site so 77 the waste tires may be effectively disposed of by burial, such as in a landfill. 78 (17) "New motor vehicle" means a motor vehicle that has never been titled or 79 registered. 80 (18) "Passenger tire equivalent" means a measure of mixed sizes of tires where each 25 81 pounds of whole tires or material derived from waste tires is equal to one waste tire. 82 (19) "Proceeds of the fee" means the money collected by the commission from 83 payment of the recycling fee including interest and penalties on delinquent payments. 84 (20) "Recycler" means a person who: 85 (a) annually uses, or can reasonably be expected within the next year to use, a H.B. 236 Enrolled Copy - 4 - 86 minimum of 100,000 waste tires generated in the state or 1,000 tons of waste tires generated in 87 the state to recover energy or produce energy, crumb rubber, chipped tires, or an ultimate 88 product; and 89 (b) is registered as a recycler in accordance with Section 19-6-806. 90 (21) "Recycling fee" means the fee provided for in Section 19-6-805. 91 (22) "Shredded waste tires" means waste tires or material derived from waste tires that 92 has been reduced to a six inch square or smaller. 93 (23) (a) "Storage" means the placement of waste tires in a manner that does not 94 constitute disposal of the waste tires. 95 (b) "Storage" does not include: 96 (i) the use of waste tires as ballast to maintain covers on agricultural materials or to 97 maintain covers at a construction site; 98 (ii) the storage for five or fewer days of waste tires or material derived from waste tires 99 that are to be recycled or applied to a beneficial use; or 100 (iii) the storage of a waste tire before the tire is: 101 (A) resold wholesale or retail; or 102 (B) recapped. 103 (24) (a) "Store" means to place waste tires in a manner that does not constitute disposal 104 of the waste tires. 105 (b) "Store" does not include: 106 (i) to use waste tires as ballast to maintain covers on agricultural materials or to 107 maintain covers at a construction site; or 108 (ii) to store for five or fewer days waste tires or material derived from waste tires that 109 are to be recycled or applied to a beneficial use. 110 (25) "Tire" means a pneumatic rubber covering designed to encircle the wheel of a 111 vehicle in which a person or property is or may be transported or drawn upon a highway. 112 (26) "Tire retailer" means a person engaged in the business of selling new tires either 113 as replacement tires or as part of a new vehicle sale. Enrolled Copy H.B. 236 - 5 - 114 (27) "Transfer station" is defined by rule made by the board in accordance with Title 115 63G, Chapter 3, Utah Administrative Rulemaking Act. 116 [(27)] (28) (a) "Ultimate product" means a product that has as a component materials 117 derived from waste tires and that the director finds has a demonstrated market. 118 (b) "Ultimate product" includes pyrolized materials derived from: 119 (i) waste tires; or 120 (ii) chipped tires. 121 (c) "Ultimate product" does not include a product regarding which a waste tire remains 122 after the product is disposed of or disassembled. 123 [(28)] (29) "Waste tire" means: 124 (a) a tire that is no longer suitable for the tire's original intended purpose because of 125 wear, damage, or defect; or 126 (b) a tire that a tire retailer removes from a vehicle for replacement with a new or used 127 tire. 128 [(29)] (30) "Waste tire pile" means a pile of 200 or more waste tires at one location. 129 [(30)] (31) (a) "Waste tire transporter" means a person engaged in picking up or 130 transporting at one time more than 10 whole waste tires, or the equivalent amount of material 131 derived from waste tires, generated in Utah for the purpose of storage, processing, or disposal. 132 (b) "Waste tire transporter" includes a person engaged in the business of collecting, 133 hauling, or transporting waste tires or who performs these functions for another person, except 134 as provided in Subsection [(30)] (31)(c). 135 (c) "Waste tire transporter" does not include: 136 (i) a person transporting waste tires generated solely by: 137 (A) that person's personal vehicles; 138 (B) a commercial vehicle fleet owned or operated by that person or that person's 139 employer; 140 (C) vehicles sold, leased, or purchased by a motor vehicle dealership owned or 141 operated by that person or that person's employer; or H.B. 236 Enrolled Copy - 6 - 142 (D) a retail tire business owned or operated by that person or that person's employer; 143 (ii) a solid waste collector operating under a license issued by a unit of local 144 government as defined in Section 63M-5-103, or a local health department; 145 (iii) a recycler of waste tires; 146 (iv) a person transporting tires by rail as a common carrier subject to federal regulation; 147 or 148 (v) a person transporting processed or chipped tires. 149 Section 2. Section 19-6-811 is amended to read: 150 19-6-811. Funding for management of certain waste tire piles -- Limitations. 151 (1) (a) A county or municipality may apply to the director for payment from the fund 152 for costs of a waste tire transporter or recycler to remove waste tires from an abandoned waste 153 tire pile [or a landfill waste tire pile operated by a state or local governmental entity] located 154 within that county or municipality and deliver the waste tires to a recycler. 155 (b) (i) Subject to Subsection (1)(b)(iii), an operator of a state or local government 156 landfill or of a transfer station may apply to the director for payment from the fund for costs to 157 remove waste tires from a waste tire pile located at that landfill or transfer station and deliver 158 the waste tires to a recycler. 159 (ii) If the removal and delivery of waste tires is to be conducted by a registered 160 third-party waste tire transporter or recycler, the operator of a state or local government landfill 161 or transfer station is subject to the competitive bidding process of Subsections (3) through (5). 162 (iii) For a state or local government landfill or a transfer station located in a county of 163 the first or second class, the division: 164 (A) shall reimburse under Subsection (1)(b)(i) an operator of the state or local 165 government landfill or of a transfer station in the order that the operator submits a completed 166 request for reimbursement under Subsection (1)(b)(i); and 167 (B) may not reimburse an operator of a state or local government landfill or a transfer 168 station located in a county of the first or second class if, at the time the operator submits the 169 operator's request for reimbursement, the aggregate of the reimbursements to state or local Enrolled Copy H.B. 236 - 7 - 170 government landfills or transfer stations located in a county of the first or second class made 171 under Subsection (1)(b)(i) in a fiscal year equals $80,000. 172 (iv) Subsection (1)(b)(iii) does not apply to a state or local government landfill or 173 transfer station that is located in a county of the third through sixth class. 174 [(b)] (c) (i) The director may authorize [a maximum] reimbursement of[: (i) subject to 175 Subsection (1)(d), 100% of] a waste tire transporter's or recycler's costs, subject to Subsections 176 (1)(e) and (f) and as allowed under Subsection (2), to remove waste tires from an abandoned 177 waste tire pile located in a municipality or county or a state or local government landfill waste 178 tire pile and deliver the waste tires to a recycler[, if:]. 179 [(A) waste tires have been added to the abandoned waste tire pile or landfill waste tire 180 pile on or after July 1, 2001; and] 181 [(B) the county is a county of the third, fourth, fifth, or sixth class, or the municipality 182 is located in a county of the third, fourth, fifth, or sixth class;] 183 [(ii) subject to Subsection (1)(d), 60% of a waste tire transporter's or recycler's costs 184 allowed under Subsection (2) to remove waste tires from an abandoned waste tire pile or 185 landfill waste tire pile and deliver the waste tires to a recycler, if:] 186 [(A) waste tires have been added to the abandoned waste tire pile or landfill waste tire 187 pile on or after July 1, 2001; and] 188 [(B) the county is a county of the first or second class, or the municipality is in a 189 county of the first or second class; or] 190 [(iii) subject to Subsection (1)(d), 60% of waste tire transporter's or recycler's costs 191 allowed under Subsection (2) to remove waste tires from an abandoned waste tire pile or 192 landfill waste tire pile and deliver the waste tires to a recycler if the waste tires have been 193 added to the abandoned waste tire pile and landfill waste tire pile on or after July 1, 2001, and 194 the reimbursement is for:] 195 [(A) an interlocal cooperative agency;] 196 [(B) a special district; or] 197 [(C) a waste transfer station.] H.B. 236 Enrolled Copy - 8 - 198 (ii) The cost of transporting waste tires from a transfer station to a landfill operated by 199 a governmental entity is not eligible for reimbursement. 200 [(c)] (d) The director may deny an application for payment of waste tire pile removal 201 and delivery costs, if the director determines that payment of the costs will result in there not 202 being sufficient money in the fund to pay expected reimbursements for recycling or beneficial 203 use under Section 19-6-809 during the next quarter. 204 [(d)] (e) [In order to] To be eligible for reimbursement under [Subsections (1)(a) and 205 (b)] Subsection (1)(b)(ii), a county or municipality shall receive a minimum of two eligible 206 bids for transportation or recycling, unless it is impossible to receive two eligible bids due to a 207 transporter or recycler: 208 (i) declining to offer a bid for the project; or 209 (ii) not being in compliance with state statute or rules made in accordance with Title 210 63G, Chapter 3, Utah Administrative Rulemaking Act. 211 (f) To be eligible for reimbursement under Subsection (1)(b), an operator of a state or 212 local government landfill or transfer station shall submit to the director: 213 (i) a statement: 214 (A) confirming that the waste tires were received at the landfill or transfer station; 215 (B) confirming that the landfill waste tire pile consists solely of waste tires diverted 216 from the landfill or transfer station waste stream; and 217 (C) describing the size and location of the landfill waste tire pile; and 218 (ii) landfill or transfer station waste receipt records indicating the origin of the waste 219 tires. 220 (2) (a) The maximum number of miles for which the director may reimburse for 221 transportation costs incurred by a waste tire transporter under this section is the number of 222 miles, one way, between the location of the waste tire pile and the [State Capitol Building, in 223 Salt Lake City, Utah, or to the recycler, whichever is less] recycler. 224 (b) This maximum number of miles available for reimbursement applies regardless of 225 the location of the recycler to which the waste tires are transported under this section. Enrolled Copy H.B. 236 - 9 - 226 (c) The director shall, upon request, advise any person preparing a bid under this 227 section of the maximum number of miles available for reimbursement under this Subsection 228 (2). 229 (d) The cost under this Subsection (2) shall be calculated based on the cost to transport 230 one ton of waste tires one mile. 231 (3) (a) [The] When waste tire piles are removed or transported by a third-party waste 232 tire transporter or recycler, the county or municipality shall through a competitive bidding 233 process make a good faith attempt to obtain a bid for the removal of the [landfill or] abandoned 234 waste tire pile and transport to a recycler. 235 (b) The county or municipality shall submit to the director: 236 [(i) (A) (I) a statement from the local health department stating the landfill waste tire 237 pile is operated by a state or local governmental entity and consists solely of waste tires 238 diverted from the landfill waste stream;] 239 [(II) a description of the size and location of the landfill waste tire pile; and] 240 [(III) landfill records showing the origin of the waste tires; or] 241 [(B)] (i) a statement from the local health department that the waste tire pile is 242 abandoned; and 243 (ii) (A) the bid selected by the county or municipality; or 244 (B) if no bids were received, a statement to that fact. 245 (4) (a) If a bid is submitted, the director shall determine if the bid is reasonable, taking 246 into consideration: 247 (i) the location and size of the [landfill or] abandoned waste tire pile; 248 (ii) the number and size of any other [landfill or] abandoned waste tire piles in the area; 249 and 250 (iii) the current market for waste tires of the type in the [landfill or] abandoned waste 251 tire pile. 252 (b) The director shall advise the county or municipality within 30 days of receipt of the 253 bid whether or not the bid is determined to be reasonable. H.B. 236 Enrolled Copy - 10 - 254 (5) (a) If the bid is found to be reasonable, the county or municipality may proceed to 255 have the [landfill or] abandoned waste tire pile removed pursuant to the bid. 256 (b) The county or municipality shall advise the director that the [landfill or] abandoned 257 waste tire pile has been removed. 258 (6) The recycler or waste tire transporter that removed the [landfill or] abandoned 259 waste tires pursuant to the bid shall submit to the director a copy of the manifest, which shall 260 state: 261 (a) the number or tons of waste tires transported; 262 (b) the location from which they were removed; 263 (c) the recycler to which the waste tires were delivered; and 264 (d) the amount charged by the transporter or recycler. 265 (7) An operator of a state or local government landfill or transfer station shall submit to 266 the director a statement providing: 267 (a) the number or tons of waste tires removed from the landfill or transfer station; 268 (b) the location from which the waste tires were removed; 269 (c) the recycler to which the waste tires were delivered; and 270 (d) if applicable, the amount charged by a third-party waste tire transporter or recycler 271 to transport the waste tires to the recycler. 272 [(7)] (8) Upon receipt of the information required under Subsection (6) or (7), and 273 determination that the information is complete, the director shall, within 30 days after receipt 274 authorize the Division of Finance to reimburse the waste tire transporter or recycler the amount 275 established under this section. 276 (9) A person reimbursed under this section may not be reimbursed under Section 277 19-6-809, 19-6-812, or 19-6-813 for the same activities that underlay eligibility for 278 reimbursement under this section. 279 Section 3. Section 19-6-822 is amended to read: 280 19-6-822. Criminal penalties. 281 A person is guilty of a third degree felony if the person knowingly or intentionally Enrolled Copy H.B. 236 - 11 - 282 provides or submits false information under the following provisions: 283 (1) Subsection 19-6-809(1)(a); 284 (2) Subsection 19-6-809(1)(c); 285 (3) Subsection 19-6-809(4); 286 (4) Subsection 19-6-810(1)(c); 287 (5) Subsection 19-6-810(2)(d); 288 (6) Subsection 19-6-811(3)(b); 289 (7) Subsection 19-6-811(6); 290 (8) Subsection 19-6-811(7); 291 [(8)] (9) Subsection 19-6-812(2); or 292 [(9)] (10) Subsection 19-6-813(1).