PRINTER'S NO. 2385

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1929 Session of 1995


        INTRODUCED BY ARGALL, PETRONE, BATTISTO, CARONE, HARHART,
           PLATTS, HUTCHINSON, DeLUCA, LYNCH, MIHALICH, SATHER, BAKER,
           HERSHEY, HERMAN, DEMPSEY, JAROLIN, GODSHALL, MUNDY, FARGO,
           NAILOR, PETTIT, M. N. WRIGHT, LEVDANSKY, YOUNGBLOOD, BELARDI,
           BARD, SAYLOR, MANDERINO, COY, TRELLO, WAUGH, STURLA, RAYMOND,
           WOGAN, LAUGHLIN, D. W. SNYDER, MELIO, L. I. COHEN, MERRY,
           ALLEN, GAMBLE, EGOLF, STEELMAN, CIVERA, PISTELLA AND
           SERAFINI, JUNE 29, 1995

        REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
           JUNE 29, 1995

                                     AN ACT

     1  Relating to the recycling and reuse of waste tires; providing
     2     for the proper disposal of waste tires and the cleanup of
     3     stockpiled tires; establishing a registration and manifest
     4     system for tracking the transportation, storage and
     5     processing of waste tires; and authorizing investment tax
     6     credits for utilizing waste tires.

     7                         TABLE OF CONTENTS
     8  Section 1.  Short title.
     9  Section 2.  Legislative findings.
    10  Section 3.  Purpose.
    11  Section 4.  Definitions.
    12  Section 5.  Powers and duties of department.
    13  Section 6.  Disposal of whole waste tires.
    14  Section 7.  Generator registration.
    15  Section 8.  Transporter registration.
    16  Section 9.  Processor registration.


     1  Section 10.  Site storage registration and standards.
     2  Section 11.  Manifest system.
     3  Section 12.  Priority enforcement list.
     4  Section 13.  Penalties.
     5  Section 14.  Investment tax credits for equipment for reducing,
     6                 reusing or recycling whole used or waste tires.
     7  Section 15.  Report to the General Assembly.
     8  Section 16.  Effective date.
     9     The General Assembly of the Commonwealth of Pennsylvania
    10  hereby enacts as follows:
    11  Section 1.  Short title.
    12     This act shall be known and may be cited as the Waste Tire
    13  Recycling Act.
    14  Section 2.  Legislative findings.
    15     The General Assembly finds and declares as follows:
    16         (1)  An estimated 36,000,000 waste tires are stockpiled
    17     in Pennsylvania.
    18         (2)  Waste tires and stockpiled tires continue to be an
    19     environmental threat to this Commonwealth.
    20         (3)  Approximately 12,000,000 waste tires are generated
    21     in Pennsylvania each year.
    22         (4)  Stockpiled tires create environmental hazards such
    23     as tire fires and heavy mosquito infestations.
    24         (5)  Landfilled whole tires and tire piles use valuable
    25     and productive land space.
    26         (6)  Financial incentives need to be created to help
    27     stimulate waste tire markets.
    28  Section 3.  Purpose.
    29     It is the purpose of this act:
    30         (1)  To ensure that whole used and waste tires are
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     1     collected and put to beneficial use or properly disposed.
     2         (2)  To provide for the abatement of whole used and waste
     3     tire dumps and their associated threats to public health and
     4     welfare.
     5         (3)  To encourage qualified investments by private
     6     companies to rehabilitate, expand or improve manufacturing
     7     processes, facilities, buildings and land to promote the use
     8     and recycling of waste tires.
     9         (4)  To reuse the current supply of waste tires generated
    10     each year in this Commonwealth.
    11  Section 4.  Definitions.
    12     The following words and phrases when used in this act shall
    13  have the meanings given to them in this section unless the
    14  context clearly indicates otherwise:
    15     "Department."  The Department of Environmental Resources of
    16  the Commonwealth.
    17     "Disposal."  The placement of whole used waste tires into or
    18  on any land or water except as an integral part of systematic
    19  reuse or conversion.
    20     "Generator."  An individual or business that accepts whole
    21  used or waste tires for storage, a new or used tire retailer,
    22  wholesaler, manufacturer, retreader, fleet operator or
    23  automotive dismantler.
    24     "Landfill."  A facility using land for disposing of municipal
    25  solid waste.
    26     "Manifest system."  A written record identifying the
    27  quantity, origin, routing and destination from the point of
    28  origin to the point of storage, processing or disposal.
    29     "Priority site."  Any site designated by the Department of
    30  Environmental Resources to contain more than 100,000 stockpiled
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     1  tires.
     2     "Processed tire."  A whole used or waste tire that has been
     3  altered or converted through shredding, chopping or splitting.
     4     "Processor."  An individual or business that alters or
     5  converts whole used or waste tires through shredding, chopping
     6  or splitting.
     7     "Recycling."  The systematic collection, sorting, cleaning
     8  and returning of waste tires to commerce for use as commodities.
     9     "Retailer."  A person or business that sells or offers for
    10  sale new, retreaded or remanufactured tires to consumers.
    11     "Storage."  The accumulation of whole used tires or processed
    12  tires that does not constitute disposal. At a minimum, the
    13  accumulation must be an integral part of the systematic
    14  alteration, reuse, processing or conversion of waste tires.
    15     "Waste reduction, reuse or recycling equipment."  Machinery,
    16  equipment or facility modification designed to process or
    17  convert waste tires into a beneficial product or productive use.
    18     "Waste tire."  A scrap tire that has been disposed of and can
    19  no longer be used for the purpose for which it was originally
    20  intended.
    21     "Waste tire hauler."  A registered individual or company that
    22  collects or transports whole used or waste tires or processed
    23  tires for storage, processing or disposal.
    24     "Waste tire storage facility."  A registered facility at
    25  which whole used or waste tires or processed tires are collected
    26  and stored for future use as a material for recycling, reuse or
    27  recovery.
    28  Section 5.  Powers and duties of department.
    29     The department shall have the power and its duty shall be to:
    30         (1)  Administer the whole used or waste tire management
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     1     program pursuant to the provisions of this act.
     2         (2)  Consult with the Department of Revenue concerning
     3     matters of tax credit disbursements.
     4         (3)  Cooperate with local units of government and
     5     appropriate private businesses in carrying out the duties of
     6     this act.
     7         (4)  Regulate the storage, collection, transportation,
     8     processing and use of waste tires.
     9         (5)  Issue registrations and specify terms and conditions
    10     of such registration and conduct inspections of and abate
    11     public nuisances and hazards to implement the purposes and
    12     standards adopted pursuant to this act.
    13  Section 6.  Disposal of whole waste tires.
    14     (a)  Mixing tires with municipal waste prohibited.--No person
    15  shall knowingly mix any whole used or waste tires with municipal
    16  solid waste for disposal, and owners or operators of sanitary
    17  landfills shall not accept whole used or waste tires for final
    18  disposal.
    19     (b)  Exceptions.--Sanitary landfills may accept whole tires
    20  when:
    21         (1)  The landfill provides and maintains a means for
    22     shredding, chopping or splitting whole used or waste tires
    23     prior to disposal.
    24         (2)  The landfill uses the whole used or waste tires for
    25     alternative uses, which may include onsite practices such as
    26     lining of roadways with waste tires, alternative daily
    27     landfill cover or use in a landfill leachate collection
    28     system.
    29         (3)  The landfill makes available the whole used or waste
    30     tires to an appropriate facility for reuse, processing or use
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     1     as an alternative energy fuel source.
     2     (c)  Notice to department.--Landfills that make available
     3  whole used or waste tires to an appropriate facility for reuse,
     4  recycling or processing or as an alternative fuel source shall
     5  notify the department within 30 days of the date the whole used
     6  or waste tires are made available to the appropriate facility.
     7  Notification shall include information regarding the following:
     8         (1)  The name and address of the facility owner and
     9     operator.
    10         (2)  The name, address and location of the facility.
    11         (3)  The type of operation using the whole used or waste
    12     tires.
    13         (4)  The date of shipment.
    14         (5)  The number of whole used and waste tires made
    15     available.
    16  Section 7.  Generator registration.
    17     (a)  Businesses which are required to register.--An
    18  individual or business that regularly disposes of whole used or
    19  waste tires is designated as a waste tire generator and shall
    20  register with the department. Registration with the department
    21  as a waste tire generator may include the following:
    22         (1)  The name of the individual or business.
    23         (2)  The mailing address and physical address of the
    24     individual or business.
    25         (3)  The county in which the individual or business is
    26     located.
    27         (4)  The tax identification number of the business.
    28     (b)  Registration number.--The department shall issue
    29  registration numbers for each waste tire generator.
    30     (c)  Changes in original registration information.--The
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     1  generator shall notify the department within 15 days of any
     2  changes to registration information.
     3     (d)  Annual renewal of registration.--Registration for whole
     4  used or waste tire generators is required to be renewed
     5  annually. Registration expiration and renewal shall be
     6  determined by the department.
     7     (e)  Registration fee.--An annual registration fee of $50 is
     8  required for each waste tire generator.
     9     (f)  Uses of used or waste tires.--Registered generators of
    10  whole used or waste tires shall make available the whole used or
    11  waste tires to an appropriate facility for reuse or as an
    12  alternative fuel source.
    13  Section 8.  Transporter registration.
    14     (a)  Businesses which are required to register.--An
    15  individual or recycling business other than a generator that
    16  regularly transports whole used or waste tires or waste tire
    17  pieces for reuse, storage or disposal is designated as a waste
    18  tire hauler and shall register with the department. Registration
    19  with the department may include the following:
    20         (1)  The name, physical address, mailing address, county
    21     and telephone number of the applicant.
    22         (2)  The name, address and telephone number of any
    23     partner, officer or director.
    24         (3)  Description of vehicles and all relative vehicle
    25     registration information.
    26         (4)  The estimated number of tires to be hauled.
    27         (5)  The business identification number.
    28     (b)  Registration number.--The department shall issue
    29  registration numbers for each waste tire hauler.
    30     (c)  Changes in original registration information.--The
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     1  hauler shall notify the department within 15 days of any changes
     2  to registration information.
     3     (d)  Annual renewal of registration.--Registration for waste
     4  tire haulers is required to be renewed annually. Registration
     5  expiration and renewal shall be determined by the department.
     6     (e)  Registration fee.--An annual registration fee of $25 is
     7  required for each waste tire hauler.
     8     (f)  Delivery and storage of used or waste tires.--Registered
     9  haulers of whole used or waste tires or processed tires shall
    10  only deliver whole used or waste tires or processed tires to a
    11  registered storage facility or registered processor.
    12     (g)  Uses of used or waste tires.--Registered haulers of
    13  whole used or waste tires or processed tires shall make
    14  available the used tires or processed tires to an appropriate
    15  facility for reuse or use as an alternative fuel source.
    16  Section 9.  Processor registration.
    17     (a)  Businesses which are required to register.--An
    18  individual or business that regularly engages in the practice of
    19  altering or converting whole used or waste tires through
    20  shredding, chopping or splitting for resale is designated as a
    21  waste tire processor and shall register with the department.
    22  Registration with the department as a waste tire processor may
    23  include the following:
    24         (1)  The name of the individual or business.
    25         (2)  The address or physical location of the individual
    26     or business.
    27         (3)  The county in which the individual or business is
    28     located.
    29         (4)  The tax identification number of the business.
    30     (b)  Annual renewal of registration.--Registration for waste
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     1  tire processors is required to be renewed annually. Registration
     2  expiration and renewal shall be determined by the department.
     3     (c)  Uses of processed tires.--Waste tire processors shall
     4  make available the processed tires to an appropriate facility
     5  for reuse, recycling or use as an alternative fuel source.
     6  Section 10.  Site storage registration and standards.
     7     (a)  Businesses which are required to register.--Any open
     8  land or enclosed area used for the regular collection of whole
     9  used or waste tires or processed tires shall be considered a
    10  waste tire storage facility and shall be registered with the
    11  department in accordance with section 7(a). Storage of whole
    12  used or waste tires or waste tire pieces shall be considered a
    13  temporary means of holding such tires.
    14     (b)  Department to regulate certain standards of facility.--
    15  The department shall prescribe standards and requirements for
    16  the storage of whole used or waste tires, processed tires and
    17  tire-derived materials, including, but not limited to,
    18  restrictions on the size and location of waste tire storage
    19  sites, access controls, vector controls and fire hazard
    20  prevention.
    21     (c)  Changes in original registration information.--The
    22  storage facility shall notify the department within 15 days of
    23  any changes to registration information.
    24     (d)  Registration number.--The department shall issue
    25  registration numbers for each site storage.
    26     (e)  Annual renewal of registration.--Registration for whole
    27  used or waste tire storage facilities is required to be renewed
    28  annually. Registration expiration and renewal shall be
    29  determined by the department.
    30     (f)  Uses of used or waste tires.--Facilities that store
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     1  whole used or waste tires or processed tires shall make
     2  available the whole used or waste tires or processed tires to an
     3  appropriate facility for reuse, recycling or use as an
     4  alternative fuel source.
     5  Section 11.  Manifest system.
     6     (a)  Documentation and recordkeeping of generators.--
     7  Generators shall initiate and maintain a record of the whole
     8  used or waste tires collected and removed offsite. The record
     9  shall be in the form of a manifest or similar documentation
    10  approved by the department. The manifest shall contain the
    11  following:
    12         (1)  Name and address of the individual or business that
    13     generated the whole used or waste tires.
    14         (2)  The generator's registration number.
    15         (3)  Date of tire shipment.
    16         (4)  Name and registration number of the hauler.
    17         (5)  Number of tires or weight in pounds and the type of
    18     whole used or waste tires collected.
    19         (6)  Signatures of generator and hauler acknowledging
    20     that the manifest information is correct.
    21         (7)  Name, address or location of registered disposal,
    22     storage, processing or recycling facility to receive the
    23     waste tire shipment.
    24     (b)  Documentation and recordkeeping of haulers.--Waste tire
    25  haulers shall maintain a record of the transported whole used or
    26  waste tires or processed tires. The record shall be in the form
    27  of a manifest or similar documentation approved by the
    28  department. The manifest shall contain the information outlined
    29  in subsection (a).
    30     (c)  Documentation and recordkeeping by facility operators.--
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     1  Owners and operators of storage facilities shall maintain a
     2  record of the whole used or waste tires or processed tires
     3  received from the hauler. The record shall be in the form of a
     4  manifest or similar documentation approved by the department.
     5  The manifest shall contain the information outlined in
     6  subsection (a).
     7     (d)  Documentation and recordkeeping by processors.--Waste
     8  tire processors shall maintain a record of the whole used or
     9  waste tires received for processing. The record shall be in the
    10  form of a manifest or similar documentation approved by the
    11  department. The manifest shall contain the information outlined
    12  in subsection (a).
    13     (e)  Records to be retained for three-year minimum.--All
    14  manifest records shall be retained by the generator, hauler,
    15  processor and storage facility owner or operator for a period of
    16  three years. Manifest records shall be made available to the
    17  department upon request.
    18     (f)  Transporters shall be registered.--All waste tire
    19  storage facilities, generators and processors of whole used or
    20  waste tires that do not transport their own tires shall use
    21  waste tire haulers that are registered with the department under
    22  section 8.
    23  Section 12.  Priority enforcement list.
    24     (a)  Development of list of waste tire sites.--Within 90 days
    25  of the effective date of this act, the department shall identify
    26  and develop a Statewide list of waste tire sites with more than
    27  100,000 waste tires known or estimated to be stockpiled. The
    28  department shall rank the waste tire sites according to their
    29  potential for creating environmental health and safety hazards
    30  and designate these sites as priority sites to those facilities
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     1  requesting tax investment credits under section 14.
     2     (b)  Maintenance of updated list.--The department shall
     3  review and update the priority enforcement list every two years.
     4  Section 13.  Penalties.
     5     (a)  Suspension of registration.--The department may suspend,
     6  revoke or deny any registration issued under this act for a
     7  specified length of time to be determined by the department for:
     8         (1)  Failure to maintain a complete and accurate record
     9     of collection, shipment and storage of whole used or waste
    10     tires.
    11         (2)  Alteration of manifest documents.
    12         (3)  Delivery of whole used or waste tires or processed
    13     tires to a nonregistered storage facility.
    14         (4)  Failure to comply with any rule or regulation
    15     established by the department under this act.
    16         (5)  Illegal dumping of whole used or waste tires or
    17     processed tires.
    18         (6)  Collection, transportation or storage of whole used
    19     or waste tires or processed tires without registration
    20     numbers.
    21         (7)  Failure to notify the department of any changes in
    22     the registration information required in sections 7(a) and
    23     8(a).
    24     (b)  Additional penalty for first violation.--For the first
    25  violation, a person commits a summary offense and shall, upon
    26  conviction, be sentenced to pay a fine of not less than $100 and
    27  not more than $1,000, or be subject to imprisonment for not more
    28  than 30 days, or both.
    29     (c)  Additional penalty for subsequent violations.--For the
    30  second and any subsequent violations, a person commits a
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     1  misdemeanor of the third degree and shall, upon conviction, be
     2  sentenced to pay a fine of not less than $1,000 and not more
     3  than $5,000, or be subject to imprisonment for not more than 90
     4  days, or both.
     5  Section 14.  Investment tax credits for equipment for reducing,
     6                 reusing or recycling whole used or waste tires.
     7     (a)  Equipment purchase, retrofitting or expansion of
     8  facilities tax credit.--Beginning with tax years beginning on or
     9  after January 1, 1995, every taxpayer engaged in the business of
    10  reducing, reusing or recycling whole used or waste tires for
    11  commercial purposes that purchases waste reduction, reuse or
    12  recycling equipment or retrofits existing facilities for the
    13  purpose of reducing the number of whole used or waste tires or
    14  reusing or recycling whole used or waste tires or makes a
    15  qualified investment to rehabilitate, expand or improve
    16  buildings for the purpose of reducing, reusing or recycling
    17  whole used or waste tires shall receive an investment tax credit
    18  equal to 30% of the cost of the waste reduction, reuse or
    19  recycling equipment or infrastructure investments.
    20     (b)  New business tax credit.--Beginning with tax years
    21  beginning on or after January 1, 1995, every new business
    22  created for the purpose of reducing, reusing or recycling whole
    23  used or waste tires for commercial purposes that purchases waste
    24  reduction, reuse or recycling equipment or makes qualified
    25  infrastructure investments for the purposes of waste tire
    26  reduction, reuse or recycling shall receive an investment tax
    27  credit equal to 5% of the equipment or infrastructure
    28  investments.
    29     (c)  Certification from department required.--To claim credit
    30  under this section, a taxpayer must obtain certification from
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     1  the department certifying to the Department of Revenue all of
     2  the following:
     3         (1)  The taxpayer is engaged in the business of reducing,
     4     reusing or recycling whole used or waste tires.
     5         (2)  The equipment purchased or infrastructure investment
     6     is for the purpose of whole used or waste tire reduction,
     7     reuse or recycling.
     8         (3)  The taxpayer engaged in the business of whole used
     9     or waste tire reduction, reuse or recycling must demonstrate
    10     that at least 10% of the whole used or waste tires processed
    11     each year were collected from priority tire sites as
    12     identified by the department.
    13     (d)  Continuing tax credits.--For the years following the
    14  first year a taxpayer or business receives an investment tax
    15  credit under subsection (a) or (b), an investment tax credit of
    16  10% of the cost of the waste reduction, reuse or recycling
    17  equipment or infrastructure investments shall be allowed for
    18  each year in which a taxpayer engaged in the business of whole
    19  used or waste tire reduction, reuse or recycling demonstrates at
    20  least 25% of the waste tires processed were collected from
    21  priority tire sites as designated by the department.
    22     (e)  Limitation.--The dollar amount made available through
    23  the Department of Revenue in each calendar year for tax credits
    24  shall not exceed $2,000,000.
    25     (f)  Determination of distribution.--If the requests for tax
    26  investment credits under subsection (a) or (b) exceeds
    27  $2,000,000 during any calendar year, the department shall
    28  determine which taxpayers engaged in the business of whole used
    29  or waste tire reduction, reuse or recycling shall receive the
    30  investment tax credits.
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     1     (g)  Sunset.--The investment tax credits under subsection (a)
     2  or (b) shall expire within three years of the effective date of
     3  this act.
     4     (h)  Computation to exclude certain costs.--The cost of
     5  feasibility studies or equipment used to service the waste
     6  reduction, reuse or recycling equipment shall not be used to
     7  compute tax credits.
     8  Section 15.  Report to the General Assembly.
     9     The department shall submit a report to the General Assembly
    10  concerning the implementation of this act, the success of the
    11  waste tire registration and manifest system and the reduction of
    12  stockpiled waste tires not later than three years after the
    13  implementation of this act.
    14  Section 16.  Effective date.
    15     This act shall take effect immediately.










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