PRIOR PRINTER'S NOS. 2385, 2773               PRINTER'S NO. 2822

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, SERAFINI
           AND McGEEHAN, JUNE 29, 1995

        AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, NOVEMBER 20, 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; authorizing investment tax credits for
     4     utilizing waste tires; and providing remediation grants for
     5     the cleanup of tire piles.

     6                         TABLE OF CONTENTS
     7  Section 1.  Short title.
     8  Section 2.  Legislative findings.
     9  Section 3.  Purpose.
    10  Section 4.  Definitions.
    11  Section 5.  Powers and duties of department.
    12  Section 6.  Disposal of whole waste tires.
    13  Section 7.  Priority enforcement list.
    14  Section 8.  Penalties.
    15  Section 9.  Investment tax credits for equipment for
    16                 reducing, reusing or recycling whole used

     1                 or waste tires.
     2  Section 10.  Transfer of funds.                                   <--
     3  Section 11.  Waste Tire Pile Remediation Fund.
     4  Section 12.  Remediation grants.
     5  Section 13.  Report to General Assembly.
     6  Section 14.  Review by Commonwealth agencies.
     7  Section 15.  Effective date.
     8  SECTION 10.  FUNDS.                                               <--
     9  SECTION 11.  REMEDIATION GRANTS.
    10  SECTION 12.  REPORT TO GENERAL ASSEMBLY.
    11  SECTION 13.  REVIEW BY COMMONWEALTH AGENCIES.
    12  SECTION 14.  EFFECTIVE DATE.
    13     The General Assembly of the Commonwealth of Pennsylvania
    14  hereby enacts as follows:
    15  Section 1.  Short title.
    16     This act shall be known and may be cited as the Waste Tire
    17  Recycling Act.
    18  Section 2.  Legislative findings.
    19     The General Assembly finds and declares as follows:
    20         (1)  An estimated 36,000,000 waste tires are stockpiled
    21     in Pennsylvania.
    22         (2)  Waste tires and stockpiled tires continue to be an
    23     environmental threat to this Commonwealth.
    24         (3)  Approximately 12,000,000 waste tires are generated
    25     in Pennsylvania each year.
    26         (4)  Stockpiled tires create environmental hazards such
    27     as tire fires and heavy mosquito infestations.
    28         (5)  Landfilled whole tires and tire piles use valuable
    29     and productive land space.
    30         (6)  Financial incentives need to be created to help
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     1     stimulate waste tire markets.
     2  Section 3.  Purpose.
     3     It is the purpose of this act:
     4         (1)  To ensure that whole used and waste tires are
     5     collected and put to beneficial use or properly disposed.
     6         (2)  To provide for the abatement of whole used and waste
     7     tire dumps and their associated threats to public health and
     8     welfare.
     9         (3)  To encourage qualified investments by private
    10     companies to rehabilitate, expand or improve manufacturing
    11     processes, facilities, buildings and land to promote the use
    12     and recycling of waste tires.
    13         (4)  To reuse the current supply of waste tires generated
    14     each year in this Commonwealth.
    15  Section 4.  Definitions.
    16     The following words and phrases when used in this act shall
    17  have the meanings given to them in this section unless the
    18  context clearly indicates otherwise:
    19     "Commonwealth agency."  The Commonwealth and its departments,
    20  boards, commissions and agencies, Commonwealth-owned
    21  universities and the State Public School Building Authority and
    22  any other authority now in existence or hereafter created or
    23  organized by the Commonwealth.
    24     "Department."  The Department of Environmental Protection of
    25  the Commonwealth.
    26     "Disposal."  The dumping, spilling or placing of whole used
    27  or waste tires into or on the land or water in a manner that the
    28  tires or a constituent of the tires enters the environment.
    29     "Landfill."  A facility using land for disposing of solid
    30  waste.
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     1     "Person."  Any individual, partnership, corporation,
     2  association, institution, cooperative enterprise, municipal
     3  authority, Federal Government or agency, State institution and
     4  agency, including, but not limited to, the Department of General
     5  Services and the State Public School Building Authority, or any
     6  other legal entity whatsoever which is recognized by law as the
     7  subject of rights and duties. In any provisions of this act
     8  prescribing a fine, imprisonment or penalty, or any combination
     9  of the foregoing, the term "person" shall include the officers
    10  and directors of any corporation or other legal entity having
    11  officers and directors.
    12     "Priority site."  Any site designated by the Department of
    13  Environmental Protection to contain more than 10,000 stockpiled
    14  tires.
    15     "Recycling."  The systematic collection, sorting, cleaning
    16  and returning of waste tires to commerce for use as commodities.
    17     "Waste reduction, reuse or recycling equipment."  Machinery,
    18  equipment or facility modification designed to process or
    19  convert waste tires into a beneficial product or productive use.
    20     "Waste tire."  A tire that will no longer be used for the
    21  purpose for which it was originally intended.
    22  Section 5.  Powers and duties of department.
    23     The department shall have the power and its duty shall be to:
    24         (1)  Administer the whole used or waste tire management
    25     program pursuant to the provisions of this act.
    26         (2)  Consult with the Department of Revenue concerning
    27     matters of tax credit disbursements.
    28         (3)  Cooperate with local units of government and
    29     appropriate private businesses in carrying out the duties of
    30     this act.
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     1         (4)  Regulate the disposal of waste tires.
     2  Section 6.  Disposal of whole waste tires.
     3     (a)  Landfill disposal prohibited.--No person shall knowingly
     4  mix any whole used or waste tires with solid waste for disposal.
     5  Owners or operators of landfills shall not accept whole used or
     6  waste tires for disposal. Nothing in this section shall prohibit
     7  the disposal at landfills of occasional whole used or waste
     8  tires unknowingly and inadvertently mixed with solid waste.
     9     (b)  Exceptions.--Landfills may accept whole tires when:
    10         (1)  the landfill provides for shredding, chopping or
    11     splitting of whole used or waste tires prior to disposal;
    12         (2)  the landfill uses the whole used or waste tires for
    13     alternative uses, which may include onsite uses such as
    14     lining of roadways with waste tires, use in landfill
    15     construction as liner protection, alternative daily landfill
    16     cover, use in a landfill leachate collection system or as
    17     otherwise provided for by regulation; or
    18         (3)  the landfill makes available the whole used or waste
    19     tires to an appropriate facility for reuse, recycling or use
    20     as an alternative fuel source.
    21     (c)  Written management plan.--Landfills that accept whole
    22  used or waste tires shall prepare and implement a written plan
    23  that addresses the management of waste tires. The plan shall, at
    24  a minimum, consist of the following:
    25         (1)  Procedures for notifying transporters of solid waste
    26     to the landfill of the existence and purpose of the waste
    27     tire management program.
    28         (2)  Procedures for distributing information regarding
    29     alternative management methods for waste tires or processed
    30     tires.
    19950H1929B2822                  - 5 -

     1     (d)  Notice to department.--Landfills that transfer whole
     2  used or waste tires to an appropriate facility for reuse,
     3  recycling or processing or as an alternative fuel source shall
     4  submit an annual report to the department. Notification shall
     5  include information regarding the following:
     6         (1)  The name and address of the facility owner and
     7     operator to which waste tires are transferred.
     8         (2)  The name, address and location of the facility.
     9         (3)  The type of operation using the whole used or waste
    10     tires.
    11         (4)  The dates of shipments or transfers.
    12         (5)  The number of whole used and waste tires or the
    13     volume or weight of processed tires transferred.
    14  Section 7.  Priority enforcement list.
    15     (a)  Development of list of waste tire sites.--Within 90 days
    16  of the effective date of this act, the department shall identify
    17  and develop a Statewide list of waste tire sites with more than
    18  10,000 waste tires known or estimated to be stockpiled. The
    19  department shall rank the waste tire sites according to their
    20  potential for creating environmental health and safety hazards
    21  and designate these sites as priority sites to those facilities
    22  requesting tax investment credits under section 9.
    23     (b)  Maintenance of updated list.--The department shall
    24  review and update the priority enforcement list every two years.
    25  Section 8.  Penalties.
    26     (a)  Penalty for first violation.--For the first violation, a
    27  person commits a summary offense and shall, upon conviction, be
    28  sentenced to pay a fine of not less than $100 and not more than
    29  $1,000 per violation, or be subject to imprisonment for not more
    30  than 30 days, or both.
    19950H1929B2822                  - 6 -

     1     (b)  Additional penalty for subsequent violations.--For the
     2  second and any subsequent violations, a person commits a
     3  misdemeanor of the third degree and shall, upon conviction, be
     4  sentenced to pay a fine of not less than $1,000 and not more
     5  than $5,000 per violation, or be subject to imprisonment for not
     6  more than 90 days, or both.
     7  Section 9.  Investment tax credits for equipment for reducing,
     8                 reusing or recycling whole used or waste tires.
     9     (a)  Equipment purchase, retrofitting or expansion of
    10  facilities tax credit.--Beginning with tax years beginning on or
    11  after January 1, 1994 1996, every taxpayer engaged in the         <--
    12  business of reducing, reusing or recycling whole used or waste
    13  tires that purchases waste reduction, reuse or recycling
    14  equipment or retrofits existing facilities for the purpose of
    15  reducing the number of whole used or waste tires or reusing or
    16  recycling whole used or waste tires or makes a qualified
    17  investment to rehabilitate, expand or improve buildings for the
    18  purpose of reducing, reusing or recycling whole used or waste
    19  tires for which an end market exists shall receive an investment
    20  tax credit equal to 30% of the cost of the waste reduction,
    21  reuse or recycling equipment or infrastructure investments. THE   <--
    22  CREDIT MAY BE CLAIMED AGAINST ANY TAX DUE UNDER ARTICLE III, IV
    23  OR VI OF THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE
    24  TAX REFORM CODE OF 1971, FOR THE TAX YEAR DURING WHICH THE COST
    25  WAS INCURRED.
    26     (b)  New business tax credit.--Beginning with tax years
    27  beginning on or after January 1, 1994 1996, every new business    <--
    28  created for the purpose of reducing, reusing or recycling whole
    29  used or waste tires which purchases waste reduction, reuse or
    30  recycling equipment or makes qualified infrastructure
    19950H1929B2822                  - 7 -

     1  investments for the purposes of waste tire reduction, reuse or
     2  recycling for which an end market exists shall receive an
     3  investment tax credit equal to 5% of the COST OF THE WASTE        <--
     4  REDUCTION, REUSE OR RECYCLING equipment or infrastructure
     5  investments. THE CREDIT MAY BE CLAIMED AGAINST ANY TAX DUE UNDER  <--
     6  ARTICLE III, IV OR VI OF THE TAX REFORM CODE OF 1971 FOR THE TAX
     7  YEAR DURING WHICH THE COST WAS INCURRED.
     8     (c)  Certification from department required.--To claim credit
     9  under this section, a taxpayer must obtain certification from
    10  the department certifying to the Department of Revenue all of
    11  the following:
    12         (1)  The taxpayer is engaged in the business of reducing,
    13     reusing or recycling whole used or waste tires.
    14         (2)  The equipment purchased or infrastructure investment
    15     is for the purpose of whole used or waste tire reduction,
    16     reuse or recycling.
    17         (3)  The taxpayer engaged in the business of whole used
    18     or waste tire reduction, reuse or recycling must demonstrate
    19     that at least 10% of the whole used or waste tires processed
    20     each year were collected from priority tire sites as
    21     identified by the department.
    22     (d)  Continuing tax credits.--For the years following the
    23  first year a taxpayer or business receives an investment tax
    24  credit under subsection (a) or (b), an investment tax credit of
    25  10% of the cost of the waste reduction, reuse or recycling
    26  equipment or infrastructure investments shall be allowed for
    27  each year in which a taxpayer engaged in the business of whole
    28  used or waste tire reduction, reuse or recycling demonstrates at
    29  least 25% of the waste tires processed were collected from
    30  priority tire sites as designated by the department.
    19950H1929B2822                  - 8 -

     1     (e)  Limitation.--The dollar amount made available through
     2  the Department of Revenue in each calendar year for tax credits
     3  shall not exceed $2,000,000.
     4     (f)  Determination of distribution.--If the requests for tax
     5  investment credits under subsection (a) or (b) exceeds
     6  $2,000,000 during any calendar year, the department shall
     7  determine which taxpayers engaged in the business of whole used
     8  or waste tire reduction, reuse or recycling shall receive the
     9  investment tax credits.
    10     (g)  Sunset.--The investment tax credits under subsection (a)
    11  or (b) shall expire within three years of the effective date of
    12  this act.
    13     (h)  Computation to exclude certain costs.--The cost of
    14  feasibility studies or equipment used to service the waste
    15  reduction, reuse or recycling equipment shall not be used to
    16  compute tax credits.
    17  Section 10.  Transfer of funds.                                   <--
    18     (a)  General rule.--The sum of $1,000,000 shall be
    19  transferred on an annual basis for a period not to exceed five
    20  consecutive years from the Recycling Fund created by section 706
    21  of the act of July 28, 1988 (P.L.556, No.101), known as the
    22  Municipal Waste Planning, Recycling and Waste Reduction Act, to
    23  the Waste Tire Pile Remediation Fund created by section 11 for
    24  the purpose of implementing this act.
    25     (b)  Schedule.--The first transfer of funds shall be made 90
    26  days after the effective date of this act. Subsequent transfers
    27  of funds shall occur on the first day of January.
    28  Section 11.  Waste Tire Pile Remediation Fund.
    29     (a)  Establishment of fund.--All moneys transferred under
    30  section 10 and any other funds appropriated by the General
    19950H1929B2822                  - 9 -

     1  Assembly for the purposes of implementing this act, shall be
     2  paid into the State Treasury into a special fund to be known as
     3  the Waste Tire Pile Remediation Fund, which is hereby
     4  established.
     5     (b)  Education and assistance programs.--Up to 5% of the
     6  moneys in the fund may be expended annually by the department
     7  for the development and implementation of public education and
     8  technical assistance programs concerning the management of used
     9  tires.
    10     (c)  Unexpended funds.--Any unexpended funds left in the fund
    11  ten years after the establishment of this fund shall be
    12  transferred to the Solid Waste Abatement Fund.
    13  SECTION 10.  FUNDS.                                               <--
    14     (A)  ESTABLISHMENT OF RESTRICTED ACCOUNT.--THERE IS HEREBY
    15  ESTABLISHED IN THE GENERAL FUND A RESTRICTED ACCOUNT TO BE KNOWN
    16  AS THE USED TIRE PILE REMEDIATION RESTRICTED ACCOUNT. THIS
    17  ACCOUNT SHALL RECEIVE UP TO $1,000,000, TRANSFERRED UPON
    18  APPROVAL OF THE GOVERNOR, ON AN ANNUAL BASIS FOR A PERIOD NOT TO
    19  EXCEED FIVE CONSECUTIVE YEARS FROM THE RECYCLING FUND CREATED BY
    20  SECTION 706 OF THE ACT OF JULY 28, 1988 (P.L.556, NO.101), KNOWN
    21  AS THE MUNICIPAL WASTE PLANNING, RECYCLING AND WASTE REDUCTION
    22  ACT.
    23     (B)  APPROPRIATION OF FUND.--MONEYS IN THE ACCOUNT ARE HEREBY
    24  APPROPRIATED UPON APPROVAL OF THE GOVERNOR TO THE DEPARTMENT FOR
    25  THE PURPOSES OF THIS ACT. NO MORE THAN 5% OF THE MONEY IN THE
    26  ACCOUNT MAY BE USED FOR THE DEVELOPMENT AND IMPLEMENTATION OF
    27  PUBLIC EDUCATION AND TECHNICAL ASSISTANCE PROGRAMS CONCERNING
    28  THE MANAGEMENT OF USED TIRES.
    29     (C)  TRANSFER OF UNEXPENDED FUNDS.--ANY UNEXPENDED FUNDS
    30  REMAINING IN THE ACCOUNT TEN YEARS AFTER ITS ESTABLISHMENT SHALL
    19950H1929B2822                 - 10 -

     1  BE TRANSFERRED TO THE SOLID WASTE ABATEMENT FUND.
     2  Section 12 11.  Remediation grants.                               <--
     3     (a)  Authorization.--The department shall award grants for
     4  the remediation of waste tire piles existing on or before the
     5  effective date of this act upon receipt of a proposal submitted
     6  by a person or municipality.
     7     (b)  Priority.--The department will announce the sites for
     8  which each proposal may be accepted. The department shall select
     9  these sites based on the environmental danger posed by the sites
    10  as determined by the department.
    11     (c)  Prerequisites.--
    12         (1)  Persons or municipalities submitting proposals to
    13     the department to remediate sites shall do so on a form
    14     provided by the department. The proposal at a minimum shall
    15     contain:
    16             (i)  A description of the person or municipality
    17         experienced in tire pile remediation.
    18             (ii)  Markets or uses for the remediated tires.
    19             (iii)  Schedule for the remediation of tires.
    20             (iv)  Proposed cost of the used tire pile
    21         remediation.
    22         (2)  Proposals shall include any additional information
    23     the department deems necessary. The department shall
    24     establish guidelines for awarding grants. These guidelines
    25     may be updated by the department as needed.
    26         (3)  The department shall establish a grant ceiling for
    27     each proposed tire pile to be remediated based on the number
    28     of tires contained in the pile and estimated processing
    29     costs. Proposals must request an amount that may not exceed
    30     the ceiling established by the department. The department
    19950H1929B2822                 - 11 -

     1     will give priority to those proposals indicating the removal
     2     of tires for reuse, recycling or energy recovery in that
     3     order. The department shall award a grant for the proposal
     4     requesting the fewest funds for any given site unless it
     5     determines, in its sole discretion, that a greater potential
     6     for environmental degradation would be remediated by a
     7     proposal for another site.
     8         (4)  Grant recipients shall apply funds received from the
     9     department under this section only to those purposes and
    10     activities authorized by contract with the department or
    11     otherwise approved by the department.
    12     (d)  Required grants.--The department shall not award a grant
    13  under this section to any person or municipality which has
    14  contributed in any manner to the creation of a waste tire pile.
    15     (e)  Limitation.--Grants under this section shall not be used
    16  for the purchase of equipment.
    17     (f)  Lapse of grant.--A grant offering under this chapter
    18  shall lapse automatically if funds for the grant are not
    19  encumbered within one year of the offering. The department may,
    20  in its sole discretion, reoffer the grant, offer the grant for
    21  the remediation of that site to another entity which submitted a
    22  proposal, or announce the solicitation for new proposals for
    23  that site.
    24     (g)  Lapse of encumbered funds.--Grant funds that have been
    25  encumbered shall lapse automatically to the Waste Tire Pile
    26  Remediation Fund if the funds are not expended by the grantee
    27  within two years after they have been encumbered. The department
    28  may, upon written request from the grantee, extend the two-year
    29  period for an additional period not to exceed three months.
    30     (h)  Availability of funds.--All obligations of the
    19950H1929B2822                 - 12 -

     1  Commonwealth under this section are contingent upon the
     2  availability of funds under section 11 10.                        <--
     3  Section 13 12.  Report to General Assembly.                       <--
     4     The department shall submit a report to the General Assembly
     5  concerning the implementation of this act, the success of the
     6  waste tire registration and recordkeeping system and the
     7  reduction of stockpiled waste tires not later than three years
     8  after the implementation of this act.
     9  Section 14 13.  Review by Commonwealth agencies.                  <--
    10     Commonwealth agencies shall review and revise their
    11  procurement procedures, regulations and specifications on a
    12  continuing basis to encourage the use and recycling of waste
    13  tires.
    14  Section 15 14.  Effective date.                                   <--
    15     This act shall take effect immediately.










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