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CC - Item 8C - Possible Support for Assembly Bill 1180 rO S E E 9 cc 6 ROSEMEAD CITY COUNCIL Is Ink KNco,e 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 AE, SM EO C PR DE 7 0 DFFpgATED X05 Attachment A Draft Letter of Support — City of Rosemead MAYOR: of V_ &Se111 $ASDUA A0.NFAiA MAI OR PROTEM: POE ulna 44 I "G 8838 E VAII F1 BOL LEVARD P O BOX 390 ROSI-NI AU CAI JI{)IiV1A 919"!0 (OUACII.MEMBERS: 569-2100IEIFpII0NI-(6261 M.II Luse AI ARE MARenRef CLARK IAX 026)30-9218 S ELVLN Lv 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 E S R �O CJ!C Yk DE iliary-,;,p >atAiED 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 99 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. 99 -3— AB1180 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, 99 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 99 -5— AR 1180 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. 99 AB1180 —6- 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 99 -7— AB1180 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 99 AB 1180 —8- 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). 99 -9- AB 1180 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 99 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 99