Additional Incentives Beneficial Use Waste Tires

Under current law:

• A generator of a waste tire pays a per tire fee, which the solid and hazardous waste commission can reduce by rule below its statutory level of $1.50. The fee is distributed as follows: 30% to the waste tire administration, enforcement, and cleanup fund; 65% to the end users fund; and 5% to the waste tire market development fund;
• To be eligible for a rebate from the end users fund for the use of whole waste tires, an end user must use the waste tire to generate energy or fuel; and
• Effective January 1, 2018, the waste tire fee is reduced to 55 cents, the end users fund and the waste tire market development fund will be repealed, and all of the money from the waste tire fee will be credited to the waste tire administration, enforcement, and cleanup fund.

Section 1 of the bill includes within the definition of an 'end user' a person who uses a whole waste tire, when baled with other waste tires, for an agricultural purpose.

Section 2 changes the amount of the waste tire fee and its allocation to the 3 funds as follows:

• Until December 31, 2021, the fee cannot exceed $1.50;
• From January 1, 2022 through December 31, 2022, the fee cannot exceed $1.25;
• On and after January 1, 2023, the fee cannot exceed $1;
• The state treasurer will distribute the fees as follows:
• Until December 31, 2021, 30% to the waste tire administration, enforcement, and cleanup fund; 65% to the end users fund; and 5% to the waste tire market development fund;
• Effective January 1, 2022 , through December 31, 2022, 36% to the waste tire administration, enforcement, and cleanup fund; 55% to the end users fund; and 9% to the waste tire market development fund;
• Effective January 1, 2023, through December 31, 2023, 30% to the waste tire administration, enforcement, and cleanup fund; 65% to the end users fund; and 5% to the waste tire market development fund; and
• On and after January 1, 2024, 45% to the waste tire administration, enforcement, and cleanup fund; and 55% to the waste tire market development fund.

Section 3 extends the repeal date of the end users fund to January 1, 2024.

Section 4 eliminates the January 1, 2018, repeal of the waste tire market development fund and modifies the grant and loan program financed by the fund to specify that:

• The commission must, by rule, allocate a minimum percentage of the fund's revenue to the grant and loan program; and
• If the recipient of a loan complies with the terms of the loan during an initial period, the loan converts to a grant.
  (Note: This summary applies to this bill as introduced.)