CC - Item 8C - Possible Support for Assembly Bill 1180 rO S E E 9
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STAFF REPORT
M siED,959
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: BILL R. MANIS, CITY MANAGER a "
DATE: MARCH 28,2017
SUBJECT: POSSIBLE SUPPORT FOR ASSEMBLY BILL 1180 (AGENDIZED BY
COUNCILMEMBER CLARK)
SUMMARY
This item is presented to the City Council at the request of Councilmember Clark. Please see a
proposed draft letter of support (Attachment A) and the language for Assembly Bill (AB) 1180
(Attachment B).
STAFF RECOMMENDATION
Discuss and provide direction to staff.
FISCAL IMPACT—None
STRATEGIC PLAN IMPACT—None
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Marc Donohue,CiClerk
Attachment A: Draft Letter of Support—City of Rosemead
Attachment B: AB 1180 Language
ITEM NUMBER: eC
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Attachment A
Draft Letter of Support — City of Rosemead
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March 28, 2017
The Honorable Chris R. Holden
California State Assembly
State Capitol, Room 5136
Sacramento, CA 95814
FAX: (916) 319-2141
RE: AB 1180 (Holden) Stormwater Permit Compliance Fund. NOTICE OF SUPPORT
Dear Assembly Member Holden:
The City of Rosemead strongly supports your Assembly Bill (AB) 1180 to create the Stormwater
Permit Compliance Fund to offer competitive grants for statewide and regional programs that
address the effect of metals and contaminants in stormwater runoff.
AB 1180 increases the California tire fee by a modest $1.50 to raise revenue to fund projects and
programs for municipal separate storm sewer permit (MS4) compliance requirements that would
limit zinc pollutants caused by tires or other sources. When a vehicle is driven, the rubber tire
tread slowly wears off and mixes with other materials, like pavement debris and soils, which
eventually are washed into storm drains. This is becoming a high-level water quality threat to the
current collection of stormwater.
Under the 2012 MS4 permit adopted by the Los Angeles Regional Water Quality Control Board,
cities in Los Angeles County must meet the strongest water quality guidelines in the country.
Estimates of the total capital costs to comply with the permit exceed $20 billion to upgrade
infrastructure and implement stromwater capture technology. The City of Rosemead has reported
expending over $500,000 during fiscal year 2015-2016, and has budgeted over $750,000 for
fiscal year 2016-2017, to implement its stormwater compliance, monitoring program, and
upgrade City and County catch basins within the City. "fhe Upper Los Angeles River Watershed
Management Group (ULAR WMG) Enhanced Watershed Management Program (EWMP) Plan
has identified over $110,110,000 in needed capital expenditures, by 2037, for the City of
Rosemead alone, with another $3,760,000 per year in future operation and maintenance costs to
demonstrate sufficient progress towards achieve current MS4 permit objectives.
AB 1180 offers a much-needed funding tool to offset the costs of zinc pollutants and invests
resources into local and regional projects that benefit the state's water quality and supply.
For these reasons,the City of Rosemead supports your AB 1180.
Sincerely,
Sandra Armenta
Mayor
City of Rosemead
cc: Anthony Rendon, Assembly Speaker, assemblvmember.rendon(thassemblv.ca.aov
Ed Hernandez, State Senator, District 22, senator.hernandezna,senate.ca.gov
Ed Chau.Assembly Member. District 49, assemblvmember.chaurassembly.ca.aov
Jennifer Quan, Regional Public Affairs Manager,iquan@cacities.ore
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Attachment B
AB 1180 Language
CALIFORNIA LEGISLATURE-2017-18 REGULAR SESSION
ASSEMBLY BILL No. 1180
Introduced by Assembly Member Holden
February 17, 2017
An act to amend Sections 42885 and 42889 of, and to add Section
42888.5 to, the Public Resources Code, relating to tires, making an
appropriation therefor,and declaring the urgency thereof,to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 1180, as introduced, Holden. California tire fee: Stormwater
Permit Compliance Fund.
The California Tire Recycling Act,until January 1, 2024, requires a
person who purchases a new tire to pay a California tire fee of$1.75
per tire, for deposit, except for I 'A% retained by retailers and as
provided below, in the California Tire Recycling Management Fund,
for expenditure by the Department of Resources Recycling and Recovery
upon appropriation by the Legislature for prescribed purposes related
to disposal and use of used tires.Commencing January 1,2024,existing
law reduces the California tire fee to $0.75 per tire and changes the
retailers, share to 3%.
Existing law, until January 1, 2024, requires that S0.75 per tire on
which the California tire fee is imposed be deposited in the Air Pollution
Control Fund with these moneys to be available upon appropriation by
the Legislature for use by the State Air Resources Board and local air
districts to fund programs and projects that mitigate or remediate air
pollution caused by tires in the state, as provided.
This bill would increase the California tire fee by $1.50. The bill
would deposit the additional moneys in the Stormwater Permit
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AB1180 —2—
Compliance Fund, which would be established by the bill, and would
make the moneys available to the State Water Resources Control Board
Division of Financial Assistance. The bill would continuously
appropriate moneys in the fund for competitive grants for projects and
programs for municipal storm sewer system permit compliance
requirements that would prevent or remediate zinc pollutants caused
by tires in the state and for an annual audit of the fund. Money in the
fund would be available upon appropriation for the administrative
expenses of the fund,not to exceed 3%of the overall revenue annually
deposited in the fund, except as specified.
This bill would make conforming changes.
This bill would declare that it is to take effect immediately as an
urgency statute.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
1 SECTION 1. Section 42885 of the Public Resources Code, as
2 amended by Section 31 of Chapter 401 of the Statutes of 2013, is
3 amended to read:
4 42885. (a) For purposes of this section, "California tire fee"
5 means the fee imposed pursuant to this section.
6 (b) (1) A person who purchases a new tire, as defined in
7 subdivision (g), shall pay a California tire fee of—one-'eo.'rand
8 sevy..ty C e ev.,ts (51.75) three dollars and twenty-five cents
9 ($3.25) per tire.
10 (2) The retail seller shall charge the retail purchaser the amount
I I of the California tire fee as a charge that is separate from, and not
12 included in, any other fee, charge, or other amount paid by the
13 retail purchaser.
14 (3) (A) The retail seller shall collect the California tire fee from
15 the retail purchaser at the time of sale and may retain I % percent
16 of the fee as reimbursement for any costs associated with the
17 collection of the fee. Tl..,
18 (B) The retail seller shall remit the remainder to the state on a
19 quarterly schedule for deposit in the California Tire Recycling
20 Management Fund, which is hereby created in the State Tr.,asury.
21 Treasury, the Air Pollution Control Fund, and the Stormwater
22 Permit Compliance Fund, establishedpursuant to Section 42888.5.
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1 Of this amount,for each tire subject to the California Tire Fee,
2 seventy-five cents ($0.75) shall be deposited in the Air Pollution
3 Control Fund pursuant to Section 42889, one dollar andffty cents
4 ($1.50) shall be deposited in the Stormwater Permit Compliance
5 Fund, and the balance shall be deposited in the California Tire
6 Recycling Management Fund.
7 (c) The department, or its agent authorized pursuant to Section
8 42882,shall be reimbursed for its costs of collection,auditing,and
9 making refunds associated with the California Tire Recycling
10 Management Fund,but not to exceed 3 percent of the total annual
11 revenue deposited in the fund.
12 (d) The California tire fcc imposed pursuant to subdivision(b)
13 shall be separately stated by the retail seller on the invoice given
14 to the customer at the time of sale. Any other disposal or
15 transaction fee charged by the retail seller related to the tire
16 purchase shall be identified separately from the California tire fee.
17 (e) A person or business-who that knowingly, or with reckless
18 disregard,makes a false statement or representation in a document
19 used to comply with this section is liable for a civil penalty for
20 each violation or, for continuing violations, for each day that the
21 violation continues. Liability under this section may be imposed
22 in a civil action and shall not exceed twenty-five thousand dollars
23 ($25,000)for each violation.
24 (t) In addition to the civil penalty that maybe imposed pursuant
25 to subdivision (e), the department may impose an administrative
26 penalty in an amount not to exceed five thousand dollars($5,000)
27 for each violation of a separate provision or, for continuing
28 violations, for each day that the violation continues, on a person
29 who intentionally or negligently violates a permit,rule,regulation,
30 standard,or requirement issued or adopted pursuant to this chapter.
31 The department shall adopt regulations that specify the amount of
32 the administrative penalty and the procedure for imposing an
33 administrative penalty pursuant to this subdivision.
34 (g) For purposes of this section, "new tire"means a pneumatic
35 or solid tire intended for use with amoad on road or off-road motor
36 vehicles, motorized equipment, construction equipment, or farm
37 equipment that is sold separately from the motorized equipment,
38 or a new tire sold with a new or used motor vehicle, as defined in
39 Section 42803.5,including the spare tire,construction equipment,
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AB1180 —4—
I or farm equipment."New tire"does not include retreaded,reused,
2 or recycled tires.
3 (h) The California tire fee shall not be imposed on a tire sold
4 with, or sold separately for use on, any of the following:
5 (1) A self-propelled wheelchair.
6 (2) A motorized tricycle or motorized quadricycle, as defined
7 in Section 407 of the Vehicle Code.
8 (3) A vehicle that is similar to a motorized tricycle or motorized
9 quadricycle and is designed to be operated by a person who, by
10 reason of the person's physical disability, is otherwise unable to
11 move about as a pedestrian.
13 . . . . .. - . . . ,
14 - . . . - .. - . ..
15 This section shall remain in effect only until January 1, 2024.
16 and as of that date is repealed, unless a later enacted statute that
17 is enacted before January 1, 2024, deletes or extends that date.
18 SEC. 2. Section 42885 of the Public Resources Code, as
19 amended by Section 32 of Chapter 401 of the Statutes of 2013, is
20 amended to read:
21 42885. (a) For purposes of this section, "California tire fee"
22 means the fee imposed pursuant to this section.
23 (b) (I) Every-A person who purchases a new tire,as defined in
24 subdivision(g),shall pay a California tire fee of s�.cmy 6‘e-vents
25 ($0.75)two dollars and twenty-five cents ($2.25) per tire.
26 (2) The retail seller shall charge the retail purchaser the amount
27 of the California tire fee as a charge that is separate from,and not
28 included in, any other fcc, charge, or other amount paid by the
29 retail purchaser.
30 (3) (A) The retail seller shall collect the California tire fcc from
31 the retail purchaser at the time of sale and may retain 3 percent of
32 the fcc as reimbursement for any costs associated with the
33 collection of the fee. TI..,
34 (B) The retail seller shall remit the remainder to the state on a
35 quarterly schedule for deposit in the California Tire Recycling
36 Management Fund, which is hereby created in the Stat..T,eaouryc
37 Treasury, and the Stormwater Permit Compliance Fund
38 established pursuant to Section 42888.5. Of this amount,for each
39 tire subject to the California lire Fee, one dollar and fifty cents
40 ($1.50) shall be deposited in the Stormwater Permit Compliance
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1 Fund and the balance shall be deposited in the California 77re
2 Recycling Management Fund.
3 (c) The department,or its agent authorized pursuant to Section
4 42882,shall be reimbursed for its costs of collection,auditing,and
5 making refunds associated with the California Tire Recycling
6 Management Fund,but not to exceed 3 percent of the total annual
7 revenue deposited in the fund.
8 (d) The California tire fee imposed pursuant to subdivision(b)
9 shall be separately stated by the retail seller on the invoice given
10 to the customer at the time of sale. Any other disposal or
11 transaction fee charged by the retail seller related to the tire
12 purchase shall be identified separately from the California tire fee.
13 (e) Any A person or business-who that knowingly, or with
14 reckless disregard, makes-any a false statement or representation
15 in-any a document used to comply with this section is liable for a
16 civil penalty for each violation or, for continuing violations, for
17 each day that the violation continues. Liability under this section
18 may be imposed in a civil action and shall not exceed twenty-five
19 thousand dollars ($25,000) for each violation.
20 (f) In addition to the civil penalty that may be imposed pursuant
21 to subdivision (e), the department may impose an administrative
22 penalty in an amount not to exceed five thousand dollars($5,000)
23 for each violation of a separate provision or, for continuing
24 violations, for each day that the violation continues, on-my a
25 person who intentionally or negligently violates-any a permit,rule,
26 regulation,standard,or requirement issued or adopted pursuant to
27 this chapter. The department shall adopt regulations that specify
28 the amount of the administrative penalty and the procedure for
29 imposing an administrative penalty pursuant to this subdivision.
30 (g) For purposes of this section,"new tire"means a pneumatic
31 or solid tire intended for use with onroal on-road or off-road motor
32 vehicles, motorized equipment, construction equipment, or farm
33 equipment that is sold separately from the motorized equipment,
34 or a new tire sold with a new or used motor vehicle, as defined in
35 Section 42803.5,including the spare tire,construction equipment,
36 or farm equipment."New tire"does not include retreaded,reused,
37 or recycled tires.
38 (h) The California tire fee 'tiny shall not be imposed on "ny a
39 tire sold with, or sold separately for use on, any of the following:
40 (1) Any-A self-propelled wheelchair.
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1 (2) Any A motorized tricycle or motorized quadricycle, as
2 defined in Section 407 of the Vehicle Code.
3 (3) Any A vehicle that is similar to a motorized tricycle or
4 motorized quadricycle and is designed to be operated by a person
5 who, by reason of the person's physical disability, is otherwise
6 unable to move about as a pedestrian.
7 (i) This section shall become operative on January 1,2024.
8 SEC.3. Section 42888.5 is added to the Public Resources Code,
9 to read:
10 42888.5. (a) The Stormwater Permit Compliance Fund is
11 hereby established in the State Treasury.Moneys in the Stormwatcr
12 Permit Compliance Fund shall be available to the State Water
13 Resources Control Board Division of Financial Assistance as
14 follows:
15 (1) Notwithstanding Section 13340 of the Government Code,
16 moneys in the fund shall be continuously appropriated, without
17 regard to fiscal year, for the following purposes:
18 (A) Competitive grants to fund projects and programs for
19 municipal separate storm sewer system permit compliance
20 requirements that would prevent or remediate zinc pollutants
21 caused by tires in the state. Grants that arc issued under this
22 subparagraph shall address zinc impairments and zinc total
23 maximum daily loads under the federal Clean Water Act(33 U.S.C.
24 Sec. 1251),and priority shall be given to applicants with zinc levels
25 that exceed the total maximum daily loads. Grants issued under
26 this subparagraph arc authorized for the development,
27 administration, and operation of a program to fund a municipal
28 permittee's compliance with municipal separate storm sewer
29 system permit requirements and the costs associated with that
30 program.
31 (B) An annual audit of the Stormwater Permit Compliance Fund
32 on the financial status of the Stormwater Permit Compliance Fund
33 as of June 30. The audit shall be submitted to the State Water
34 Resources Control Board and shall be posted on the State Water
35 Resources Control Board's Division of Financial Assistance
36 Internet Web site.
37 (2) Moneys in the fund shall be available upon appropriation
38 by the Legislature for the administrative overhead cost of the
39 Stormwater Permit Compliance Fund, not to exceed 3 percent of
40 the total revenue deposited in the Stormwater Permit Compliance
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1 Fund annually, or an amount otherwise specified in the annual
2 Budget Act. If moneys for administrative expenses arc not timely
3 appropriated, those expenses shall be advanced from the
4 Stormwater Permit Compliance Fund.Expenses advanced pursuant
5 to this paragraph shall be reimbursed in full to the Stormwater
6 Permit Compliance Fund upon enactment of an annual Budget Act
7 that appropriates those moneys.
8 (b) Except as provided in paragraph (2) of subdivision (a),
9 moneys in the fund shall not be used or borrowed for any other
0 purpose.
1 SEC. 4. Section 42889 of the Public Resources Code, as
2 amended by Section 152 of Chapter 35 of the Statutes of 2014, is
3 amended to read:
4 42889. (a) Of the moneys collected pursuant to subparagraph
5 (B)of paragraph(3)of subdivision(b)of Section 42885,m,m,..,u,rt
7 the amount designated there for deposit in the Air
8 Pollution Control Fund shall be transferred by the State Board of
9 Equalization to thu Ai, Pullutiun Co„fiul Fund.that fund.The state
20 board shall expend those moneys,or allocate those moneys to the
21 districts for expenditure, to hind programs and projects that
22 mitigate or remediate air pollution caused by tires in the state, to
23 the extent that the state board or the applicable district determines
24 that the program or project rcmediates air pollution harms created
25 by tires upon which the fee described in Section 42885 is imposed.
26 (b) The narrairiei moneys eeIL,..tud remitted pursuant to
27 subparagraph (B) of paragraph (3) of subdivision (b) of Section
28 42885 that are designated for deposit in the California Tire
29 Recycling Management Fund shall be used to fund the waste tire
30 program,and shall be appropriated to the department in the annual
31 Budget Act in a manner consistent with the five-year plan adopted
32 and updated by the department. These moneys shall be expended
33 for the payment ofrefunds under this chapter and for the following
34 purposes:
35 (1) To pay the administrative overhead cost of this chapter,not
36 to exceed 6 percent of the total revenue deposited in the fund
37 annually, or an amount otherwise specified in the annual Budget
38 Act.
39 (2) To pay the costs of administration associated with collection,
40 making refunds, and auditing revenues in the fund, not to exceed
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1 3 percent of the total revenue deposited in the fund, as provided
2 in subdivision(c)of Section 42885.
3 (3) To pay the costs associated with operating the tire recycling
4 program specified in Article 3 (commencing with Section 42870).
5 (4) To pay the costs associated with the development and
6 enforcement of regulations relating to the storage of waste tires
7 and used tires. The department shall consider designating a city,
8 county, or city and county as the enforcement authority of
9 regulations relating to the storage of waste tires and used tires, as
0 provided in subdivision (c) of Section 42850, and regulations
I relating to the hauling of waste and used tires, as provided in
2 subdivision (b) of Section 42963. If the department designates a
3 local entity for that purpose,the department shall provide sufficient,
4 stable,and noncompetitive funding to that entity for that purpose,
5 based on available resources, as provided in the five-year plan
6 adopted and updated as provided in subdivision (a) of Section
7 42885.5.The department may consider and create,as appropriate,
8 financial incentives for citizens who report the illegal hauling or
9 disposal of waste tires as a means of enhancing local and statewide
20 waste tire and used tire enforcement programs.
21 (5) To pay the costs of cleanup, abatement, removal, or other
22 remedial action related to waste tire stockpiles throughout the state,
23 including all approved costs incurred by other public agencies
24 involved in these activities by contract with the department. Not
25 less than six million five hundred thousand dollars ($6,500,000)
26 shall be expended by the department during each of the following
27 fiscal years for this purpose:2001-02 to 2006-07, inclusive.
28 (6) To make studies and conduct research directed at promoting
29 and developing alternatives to the landfill disposal of waste tires.
30 (7) To assist in developing markets and new technologies for
31 used tires and waste tires. The department's expenditure of funds
32 for purposes of this subdivision shall reflect the priorities for waste
33 management practices specified in subdivision (a) of Section
34 40051.
35 (8) To pay the costs associated with implementing and operating
36 a waste tire and used tire hauler program and manifest system
37 pursuant to Chapter 19 (commencing with Section 42950).
38 (9) To pay the costs to create and maintain an emergency
39 reserve, which shall not exceed one million dollars ($1,000,000).
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I (10) To pay the costs of cleanup, abatement, or other remedial
2 action related to the disposal of waste tires in implementing and
3 operating the Farm and Ranch Solid Waste Cleanup and Abatement
4 Grant Program established pursuant to Chapter 2.5 (commencing
5 with Section 48100)of Part 7.
6 (I 1) To fund border region activities specified in paragraph(8)
7 of subdivision(b) of Section 42885.5.
8 (12) For expenditure pursuant to paragraph (3) of subdivision
9 (a)of,and paragraph (3) of subdivision (b)of, Section 17001.
10 (c) This section shall remain in effect only until January 1,2024,
11 and as of that date is repealed, unless a later enacted statute that
12 is enacted before January 1,2024, deletes or extends that date.
13 SEC. 5. Section 42889 of the Public Resources Code, as
14 amended by Section 153 of Chapter 35 of the Statutes of 2014, is
15 amended to read:
16 42889. Funding--ftn -The moneys remitted pursuant to
17 subparagraph (B) of paragraph (3) ofsubdivision (b) of Section
18 42885 that are not for deposit in the Stormwater Permit
19 Compliance Fund shall be used to fund the waste tire program and
20 shall be appropriated to the department in the annual Budget Act.
21 The moneys in the fund shall be expended for the payment of
22 refunds under this chapter and for the following purposes:
23 (a) To pay the administrative overhead cost of this chapter, not
24 to exceed 5 percent of the total revenue deposited in the fund
25 annually, or an amount otherwise specified in the annual Budget
26 Act.
27 (b) To pay the costs of administration associated with collection,
28 making refunds, and auditing revenues in the fund, not to exceed
29 3 percent of the total revenue deposited in the fund, as provided
30 in subdivision-(b) (c) of Section 42885.
31 (c) To pay the costs associated with operating the tire recycling
32 program specified in Article 3 (commencing with Section 42870).
33 (d) To pay the costs associated with the development and
34 enforcement of regulations relating to the storage of waste tires
35 and used tires. The department shall consider designating a city,
36 county, or city and county as the enforcement authority of
37 regulations relating to the storage of waste tires and used tires, as
38 provided in subdivision (c) of Section 42850, and regulations
39 relating to the hauling of waste and used tires, as provided in
40 subdivision (b) of Section 42963. If the department designates a
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AB1180 —10-
1 local entity for that purpose,the department shall provide sufficient,
2 stable,and noncompetitive funding to that entity for that purpose,
3 based on available resources, as provided in the five-year plan
4 adopted and updated as provided in subdivision (a) of Section
5 42885.5.The department may consider and create,as appropriate,
6 financial incentives for citizens who report the illegal hauling or
7 disposal of waste tires as a means of enhancing local and statewide
8 waste tire and used tire enforcement programs.
9 (e) To pay the costs of cleanup, abatement, removal, or other
10 remedial action related to waste tire stockpiles throughout the state,
11 including all approved costs incurred by other public agencies
12 involved in these activities by contract with the department. Not
13 less than six million five hundred thousand dollars (S6,500,000)
14 shall be expended by the department during each of the following
15 fiscal years for this purpose: 2001-02 to 2006-07, inclusive.
16 (0 To fund border region activities specified in paragraph (8)
17 of subdivision (b) of Section 42885.5.
18 (g) For expenditure pursuant to paragraph(3)of subdivision(a)
19 of, and paragraph (3) of subdivision(b)of, Section 17001.
20 (h) This section shall become operative on January I,2024.
21 SEC. 6. This act is an urgency statute necessary for the
22 immediate preservation of the public peace,health,or safety within
23 the meaning of Article IV of the California Constitution and shall
24 go into immediate effect.The facts constituting the necessity arc:
25 To help grant recipients achieve municipal separate storm sewer
26 system permit compliance requirements that would prevent or
27 remediate zinc pollutants caused by tires in the state at the earliest
28 possible time, it is necessary that this act take effect
29 immediately.
0
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