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                               CORRECTIVE REPRINT
        PRIOR PRINTER'S NOS. 1077, 2708               PRINTER'S NO. 2709

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 969 Session of 1999


        INTRODUCED BY ARGALL, MUNDY, HERSHEY, GEORGE, DALLY, HARHART,
           LEH, BELFANTI, BARD, HUTCHINSON, RUBLEY, McCALL, EACHUS,
           PHILLIPS, HASAY, BATTISTO, CALTAGIRONE, CAPPABIANCA, CAWLEY,
           CHADWICK, CIVERA, CLYMER, L. I. COHEN, CORRIGAN, CURRY,
           DeLUCA, FAIRCHILD, FREEMAN, GEIST, GRUCELA, HALUSKA, HARHAI,
           HENNESSEY, HERMAN, HORSEY, JOSEPHS, KENNEY, LAUGHLIN,
           LEDERER, LESCOVITZ, LEVDANSKY, LUCYK, MAHER, MASLAND,
           McILHINNEY, MELIO, MYERS, NICKOL, ORIE, RAMOS, READSHAW,
           ROONEY, SAINATO, SAYLOR, SEMMEL, SERAFINI, SEYFERT, SHANER,
           B. SMITH, STABACK, STEELMAN, STERN, SURRA, TANGRETTI,
           E. Z. TAYLOR, TIGUE, TRELLO, TRICH, VANCE, WILLIAMS, WILT,
           YOUNGBLOOD AND ZUG, MARCH 22, 1999

        AS REPORTED FROM COMMITTEE ON ENVIRONMENTAL RESOURCES AND
           ENERGY, HOUSE OF REPRESENTATIVES, AS AMENDED,
           NOVEMBER 17, 1999

                                     AN ACT

     1  Amending the act of December 19, 1996 (P.L.1478, No.190),
     2     entitled "An act relating to the recycling and reuse of waste
     3     tires; providing for the proper disposal of waste tires and
     4     the cleanup of stockpiled tires; authorizing investment tax
     5     credits for utilizing waste tires; providing remediation
     6     grants for the cleanup of tire piles and for pollution
     7     prevention programs for small business and households;
     8     establishing the Small Business and Household Pollution
     9     Prevention Program and management standards for small
    10     business hazardous waste; providing for a household hazardous
    11     waste program and for grant programs; making appropriations;
    12     and making repeals," ADDING DEFINITIONS; further providing     <--
    13     for disposal of whole waste tires, for the priority
    14     enforcement list and for remediation grants; providing for a
    15     registration program, for documentation and recordkeeping,
    16     for revocation of registration AND for collection programs;    <--
    17     FURTHER PROVIDING FOR TIRE RECYCLING INVESTMENT TAX CREDITS;
    18     PROVIDING for grants and, for waste tire storage AND FOR       <--
    19     DEMONSTRATION PROJECTS; and making appropriations.

    20     The General Assembly of the Commonwealth of Pennsylvania

     1  hereby enacts as follows:
     2     Section 1.  Section 106(a) 104 of the act of December 19,      <--
     3  1996 (P.L.1478, No.190), entitled, "An act relating to the
     4  recycling and reuse of waste tires; providing for the proper
     5  disposal of waste tires and the cleanup of stockpiled tires;
     6  authorizing investment tax credits for utilizing waste tires;
     7  providing remediation grants for the cleanup of tire piles and
     8  for pollution prevention programs for small business and
     9  households; establishing the Small Business and Household
    10  Pollution Prevention Program and management standards for small
    11  business hazardous waste; providing for a household hazardous
    12  waste program and for grant programs; making appropriations; and
    13  making repeals," is amended BY ADDING DEFINITIONS to read:        <--
    14  SECTION 104.  DEFINITIONS.                                        <--
    15     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
    16  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    17  CONTEXT CLEARLY INDICATES OTHERWISE:
    18     * * *
    19     "GENERATOR."  AN INDIVIDUAL OR BUSINESS THAT ACCEPTS WHOLE
    20  USED OR WASTE TIRES FOR STORAGE, A NEW OR USED TIRE RETAILER,
    21  WHOLESALER, MANUFACTURER, RETREADER, FLEET OPERATOR OR
    22  AUTOMOTIVE DISMANTLER.
    23     "HAULER."  A REGISTERED INDIVIDUAL OR COMPANY THAT COLLECTS
    24  OR TRANSPORTS WHOLE USED OR WASTE TIRES OR PROCESSED TIRES FOR
    25  STORAGE, PROCESSING OR DISPOSAL.
    26     * * *
    27     "PROCESSOR."  AN INDIVIDUAL OR BUSINESS THAT ALTERS OR
    28  CONVERTS WHOLE USED OR WASTE TIRES THROUGH SHREDDING, CHOPPING
    29  OR SPLITTING.
    30     * * *
    19990H0969B2709                  - 2 -

     1     SECTION 2.  SECTION 106(A) OF THE ACT IS AMENDED TO READ:
     2  Section 106.  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] or processed tires for disposal. Nothing in this section
     7  shall prohibit the disposal at landfills of occasional whole
     8  used or waste tires unknowingly and inadvertently mixed with
     9  solid waste.
    10     * * *
    11     Section 2 3.  The act is amended by adding sections to read:   <--
    12  Section 106.1.  Registration program.
    13     (a)  Duty of department.--The department shall establish a
    14  registration program for generators, haulers and processors of
    15  whole used or waste tires.
    16     (b)  Registration number to be issued.--The department shall
    17  issue a registration number for each generator, hauler and
    18  processor of whole used or waste tires.
    19     (c)  Annual renewal required.--Registration for generators,
    20  haulers and processors of whole used or waste tires shall be
    21  renewed annually. Registration expiration and renewal shall be
    22  determined by the department.
    23     (d)  Registration fee.--Each generator, hauler and processor
    24  of whole used or waste tires shall pay an annual registration
    25  fee of $50.
    26  Section 106.2.  Documentation and recordkeeping.
    27     (a)  Duty of generators, haulers and processors.--Each
    28  generator, hauler and processor of waste tires shall maintain
    29  daily records of tires collected, transported and processed. The
    30  daily record shall be on a form approved by the department.
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     1     (b)  Nature of records to be maintained.--Recordkeeping
     2  requirements shall be determined by the department and shall
     3  include at least the following:
     4         (1)  The number of tires collected.
     5         (2)  The number of tires to be transported and processed.
     6         (3)  The generator, hauler and processor registration
     7     numbers.
     8     (c)  Records to be retained for three years.--All daily
     9  records shall be retained by the generator, hauler and processor
    10  for a period of three years. The daily records shall be made
    11  available to the department upon request.
    12  Section 106.3.  Revocation.
    13     The department may suspend, revoke or deny any registration
    14  issued under this act for a specified length of time to be
    15  determined by the department for:
    16         (1)  Failure to maintain a complete and accurate daily
    17     record of collection, shipment and processing of waste tires.
    18         (2)  Alteration of recordkeeping documents.
    19         (3)  Delivery of waste tires or processed tires to a
    20     nonregistered disposal or storage facility.
    21         (4)  Use of a nonregistered hauler to transport waste
    22     tires.
    23         (5)  Failure to comply with any rule or regulation
    24     established by the department under this act.
    25         (6)  Illegal dumping of waste tires or processed tires.
    26     Section 3.  Sections 107 and 111(e) SECTION 4.  SECTIONS 107,  <--
    27  109, 111(E) AND 113 of the act are amended to read:
    28  Section 107.  Priority enforcement list.
    29     (a)  Development of list of waste tire sites.--Within 90 days
    30  of the effective date of this act, the department shall identify
    19990H0969B2709                  - 4 -

     1  and develop a Statewide list of waste tire sites with more than
     2  10,000 waste tires known or estimated to be stockpiled. The
     3  department shall rank the waste tire sites according to their
     4  potential for creating environmental health and safety hazards
     5  and designate these sites as priority sites to those facilities
     6  requesting tax investment credits under section 109.
     7     (b)  Maintenance of updated list.--The department shall
     8  review and update the priority enforcement list every two years.
     9     (c)  Municipal notification.--For the purposes of section
    10  112, the department shall notify in writing the counties and
    11  municipalities of the waste tire sites selected to be listed on
    12  the priority enforcement list that are located within their
    13  borders.
    14     (d)  Additional waste tire sites to be listed.--Within one
    15  year from the effective date of this subsection, the department
    16  shall identify and develop a Statewide list of waste tire sites
    17  with less than 10,000 tires known or estimated to be stockpiled.
    18     (e)  Maintenance of additional list.--The department shall
    19  review and update the list of waste tire sites with less than
    20  10,000 tires known or estimated to be stockpiled every two
    21  years.
    22  SECTION 109.  INVESTMENT TAX CREDITS FOR EQUIPMENT FOR REDUCING,  <--
    23                 REUSING OR RECYCLING WHOLE USED OR WASTE TIRES.
    24     (A)  EQUIPMENT PURCHASE, RETROFITTING OR EXPANSION OF
    25  FACILITIES TAX CREDIT.--BEGINNING WITH TAX YEARS BEGINNING ON OR
    26  AFTER JANUARY 1, 1997, EVERY TAXPAYER ENGAGED IN THE BUSINESS OF
    27  REDUCING, REUSING OR RECYCLING WHOLE USED OR WASTE TIRES THAT
    28  PURCHASES WASTE REDUCTION, REUSE OR RECYCLING EQUIPMENT OR
    29  RETROFITS EXISTING FACILITIES FOR THE PURPOSE OF REDUCING THE
    30  NUMBER OF WHOLE USED OR WASTE TIRES OR REUSING OR RECYCLING
    19990H0969B2709                  - 5 -

     1  WHOLE USED OR WASTE TIRES OR MAKES A QUALIFIED INVESTMENT TO
     2  REHABILITATE, EXPAND OR IMPROVE BUILDINGS FOR THE PURPOSE OF
     3  REDUCING, REUSING OR RECYCLING WHOLE USED OR WASTE TIRES FOR
     4  WHICH AN END MARKET EXISTS SHALL RECEIVE AN INVESTMENT TAX
     5  CREDIT EQUAL TO 30% OF THE COST OF THE WASTE REDUCTION, REUSE OR
     6  RECYCLING EQUIPMENT OR INFRASTRUCTURE INVESTMENTS. THE CREDIT
     7  MAY BE CLAIMED AGAINST ANY TAX DUE UNDER ARTICLE III, IV OR VI
     8  OF THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX
     9  REFORM CODE OF 1971, FOR THE TAX YEAR DURING WHICH THE COST WAS
    10  INCURRED.
    11     (B)  CERTIFICATION FROM DEPARTMENT REQUIRED.--TO CLAIM CREDIT
    12  UNDER THIS SECTION, A TAXPAYER MUST OBTAIN CERTIFICATION FROM
    13  THE DEPARTMENT CERTIFYING TO THE DEPARTMENT OF REVENUE ALL OF
    14  THE FOLLOWING:
    15         (1)  THE TAXPAYER IS ENGAGED IN THE BUSINESS OF REDUCING,
    16     REUSING OR RECYCLING WHOLE USED OR WASTE TIRES.
    17         (2)  THE EQUIPMENT PURCHASED OR INFRASTRUCTURE INVESTMENT
    18     IS FOR THE PURPOSE OF WHOLE USED OR WASTE TIRE REDUCTION,
    19     REUSE OR RECYCLING.
    20         (3)  THE TAXPAYER ENGAGED IN THE BUSINESS OF WHOLE USED
    21     OR WASTE TIRE REDUCTION, REUSE OR RECYCLING MUST DEMONSTRATE
    22     THAT AT LEAST 10% OF THE WHOLE USED OR WASTE TIRES PROCESSED
    23     EACH YEAR WERE COLLECTED FROM PRIORITY TIRE SITES AS
    24     IDENTIFIED BY THE DEPARTMENT.
    25         (4)  THE AMOUNT OF TAX CREDIT AVAILABLE TO THE TAXPAYER.
    26     (C)  CONTINUING TAX CREDITS.--FOR THE YEARS FOLLOWING THE
    27  FIRST YEAR A TAXPAYER OR BUSINESS RECEIVES AN INVESTMENT TAX
    28  CREDIT UNDER SUBSECTION (A), AN INVESTMENT TAX CREDIT OF 10% OF
    29  THE COST OF THE WASTE REDUCTION, REUSE OR RECYCLING EQUIPMENT OR
    30  INFRASTRUCTURE INVESTMENTS SHALL BE ALLOWED FOR EACH YEAR IN
    19990H0969B2709                  - 6 -

     1  WHICH A TAXPAYER ENGAGED IN THE BUSINESS OF WHOLE USED OR WASTE
     2  TIRE REDUCTION, REUSE OR RECYCLING DEMONSTRATES AT LEAST 25% OF
     3  THE WASTE TIRES PROCESSED WERE COLLECTED FROM PRIORITY TIRE
     4  SITES AS DESIGNATED BY THE DEPARTMENT.
     5     (D)  LIMITATION.--THE DOLLAR AMOUNT MADE AVAILABLE THROUGH
     6  THE DEPARTMENT OF REVENUE IN EACH CALENDAR YEAR FOR TAX CREDITS
     7  SHALL NOT EXCEED $2,000,000.
     8     (E)  GENERAL FUND REIMBURSEMENT.--AN AMOUNT EQUAL TO THE TAX
     9  CREDITS CLAIMED UNDER THIS SECTION SHALL BE TRANSFERRED FROM THE
    10  RECYCLING FUND CREATED BY SECTION 706 OF THE ACT OF JULY 28,
    11  1988 (P.L.556, NO.101), KNOWN AS THE MUNICIPAL WASTE PLANNING,
    12  RECYCLING AND WASTE REDUCTION ACT, TO THE GENERAL FUND.
    13     (F)  DETERMINATION OF DISTRIBUTION.--IF THE REQUESTS FOR TAX
    14  INVESTMENT CREDITS UNDER SUBSECTION (A) EXCEED $2,000,000 DURING
    15  ANY CALENDAR YEAR, THE DEPARTMENT SHALL DETERMINE WHICH
    16  TAXPAYERS ENGAGED IN THE BUSINESS OF WHOLE USED OR WASTE TIRE
    17  REDUCTION, REUSE OR RECYCLING SHALL RECEIVE THE INVESTMENT TAX
    18  CREDITS.
    19     (G)  SUNSET.--THE INVESTMENT TAX CREDITS UNDER SUBSECTION (A)
    20  SHALL EXPIRE [WITHIN THREE YEARS OF THE EFFECTIVE DATE OF THIS
    21  ACT] DECEMBER 31, 2005. NO INVESTMENT TAX CREDIT UNDER THIS ACT
    22  MAY BE CLAIMED AFTER [JANUARY 1, 2000] DECEMBER 31, 2005.
    23     (H)  COMPUTATION TO EXCLUDE CERTAIN COSTS.--THE COST OF
    24  FEASIBILITY STUDIES OR EQUIPMENT USED TO SERVICE THE WASTE
    25  REDUCTION, REUSE OR RECYCLING EQUIPMENT SHALL NOT BE USED TO
    26  COMPUTE TAX CREDITS.
    27  Section 111.  Remediation grants.
    28     * * *
    29     (e)  Limitation.--
    30         (1)  Grants under this section shall not be used for the
    19990H0969B2709                  - 7 -

     1     purchase of equipment.
     2         (2)  No grant recipient may dispose of whole used or
     3     waste tires or processed tires in landfills.
     4         (3)  Grant recipients shall make the whole used or waste
     5     tires or processed tires available to an appropriate facility
     6     for reuse, recycling or energy recovery.
     7     * * *
     8  SECTION 113.  COMMONWEALTH RECYCLING AND USE OF WASTE TIRES.      <--
     9     (A)  USE OF WASTE TIRES BY COMMONWEALTH AGENCIES.--WITHIN TWO
    10  YEARS AFTER THE EFFECTIVE DATE OF THIS ACT, THE DEPARTMENT OF
    11  CONSERVATION AND NATURAL RESOURCES, THE DEPARTMENT OF
    12  CORRECTIONS, THE DEPARTMENT OF EDUCATION, THE DEPARTMENT OF
    13  ENVIRONMENTAL PROTECTION [AND], THE DEPARTMENT OF
    14  TRANSPORTATION, THE STATE SYSTEM OF HIGHER EDUCATION AND THE
    15  STATE-RELATED UNIVERSITIES SHALL, TO THE MAXIMUM EXTENT
    16  PRACTICABLE AND FEASIBLE, GIVE DUE CONSIDERATION TO THE USE OF
    17  WASTE TIRES IN ALL APPROPRIATE CONSTRUCTION AND ENGINEERING
    18  ACTIVITIES WHICH ARE PAID WITH PUBLIC FUNDS.
    19     (B)  REPORTS.--WITHIN THREE YEARS AFTER THE EFFECTIVE DATE OF
    20  THIS ACT, THE DEPARTMENT OF CONSERVATION AND NATURAL RESOURCES,
    21  THE DEPARTMENT OF CORRECTIONS, THE DEPARTMENT OF EDUCATION, THE
    22  DEPARTMENT OF ENVIRONMENTAL PROTECTION [AND], THE DEPARTMENT OF
    23  TRANSPORTATION, THE STATE SYSTEM OF HIGHER EDUCATION AND THE
    24  STATE-RELATED UNIVERSITIES SHALL SUBMIT A REPORT TO THE
    25  ENVIRONMENTAL RESOURCES AND ENERGY COMMITTEE OF THE SENATE AND
    26  THE ENVIRONMENTAL RESOURCES AND ENERGY COMMITTEE OF THE HOUSE OF
    27  REPRESENTATIVES CONCERNING THE IMPLEMENTATION OF THIS SECTION.
    28  THE REPORT SHALL INCLUDE A DESCRIPTION OF WHAT ACTIONS THE
    29  AGENCIES HAVE TAKEN IN THE PREVIOUS TWO YEARS TO IMPLEMENT THIS
    30  SECTION.
    19990H0969B2709                  - 8 -

     1     Section 4 5.  The act is amended by adding sections to read:   <--
     2  Section 114.  Waste tire collection programs.
     3     (a)  General rule.--A person, local government, business,
     4  corporation or other organization shall operate waste tire
     5  collection programs only in accordance with requirements
     6  established by the department.
     7     (b)  Registration and department approval.--No person, local
     8  government, business, corporation or other organization shall
     9  establish a program for the collection of whole used or waste
    10  tires without approval from the department.
    11     (c)  Qualifications.--No person, local government, business,
    12  corporation or other organization may be selected to operate a
    13  waste tire collection program unless the ability to properly
    14  collect, transport and process waste tires is demonstrated to
    15  the satisfaction of the department.
    16     (d)  Program recordkeeping.--Each approved program shall
    17  maintain records regarding the collection, transportation and
    18  processing of whole used or waste tires. Recordkeeping
    19  requirements shall be determined by the department and shall
    20  include at least the following:
    21         (1)  The number of whole used or waste tires collected.
    22         (2)  The number of tires transported.
    23         (3)  The hauler and processor registration numbers.
    24     (e)  Availability of records.--All records shall be made
    25  available to the department upon request.
    26  Section 115.  Grants for waste tire collection programs.
    27     (a)  General rule.--The department may provide grants to
    28  persons, local governments, businesses, corporations or other
    29  organizations for reimbursement of eligible costs for waste tire
    30  collection programs approved by the department.
    19990H0969B2709                  - 9 -

     1     (b)  Grant disbursement.--The department shall establish a
     2  grant ceiling for each proposed collection program based on the
     3  number of tires to be collected and the estimated processing
     4  costs.
     5     (c)  Restrictions.--Grants awarded under this section shall
     6  be subject to the following:
     7         (1)  Grant recipients shall apply the funds received from
     8     the department only to those purposes and activities
     9     authorized by the department or otherwise approved by the
    10     department.
    11         (2)  The department may not award the grants to any
    12     person, local government, business, corporation or other
    13     organization which has contributed in any manner to the
    14     creation of a waste tire pile.
    15         (3)  Any additional restrictions which the department, by
    16     regulation, may designate so long as the restriction is
    17     promulgated in regulation.
    18     (d)  Appropriations.--The following amounts are hereby
    19  appropriated to the Department of Environmental Protection from
    20  the Recycling Fund created by section 706 of the act of July 28,
    21  1988 (P.L.556, No.101), known as the Municipal Waste Planning,
    22  Recycling and Waste Reduction Act, for awarding grants under
    23  this section:
    24         Fiscal year           Amount
    25           1999               $250,000
    26           2000                250,000
    27           2001                250,000
    28           2002                250,000
    29           2003                250,000
    30  Section 116.  Waste tire storage.
    19990H0969B2709                 - 10 -

     1     (a)  Limited storage time.--No generator, hauler or processor
     2  of whole used or waste tires may store whole used or waste tires
     3  for more than 100 days.
     4     (b)  Public health and safety concerns.--A generator, hauler
     5  or processor of whole used or waste tires that stores whole used
     6  or waste tires shall prevent and eliminate conditions that are
     7  harmful to the public health, safety or the environment, or
     8  conditions that attract vectors, create fire safety hazards or
     9  other public nuisances.
    10     (c)  Penalty.--A generator, hauler or processor of whole used
    11  or waste tires found in violation of subsections (a) and (b)
    12  shall be subject to the penalties provided for in section 108.
    13     (D)  APPLICABILITY.--THIS SECTION SHALL NOT APPLY TO A PERSON  <--
    14  OR BUSINESS WHO OWNS OR HAS CONTROL OF FEWER THAN 100 TIRES AND
    15  IF THE PRIMARY PURPOSE AND MAIN SOURCE OF REVENUE FOR THAT
    16  PERSON OR BUSINESS IS THE SALE OF TIRES FOR COMMERCIAL AND
    17  PERSONAL VEHICLES.
    18  SECTION 117.  DEMONSTRATION PROJECTS.
    19     WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION, THE
    20  SECRETARY OF TRANSPORTATION SHALL ESTABLISH NOT LESS THAN SIX
    21  DEMONSTRATION PROJECTS WHICH USE ASPHALT MODIFIED WITH PRODUCT
    22  DERIVED FROM WASTE TIRES FOR ROAD REPAIR AND CONSTRUCTION. THE
    23  PROJECTS SHALL TEST THE PERFORMANCE OF THE MODIFIED ASPHALT
    24  UNDER VARIOUS CLIMATES AND USE CONDITIONS. THESE PROJECTS SHALL
    25  BE IN ADDITION TO ANY OTHER PROJECTS PREVIOUSLY ESTABLISHED.
    26  ADDITIONALLY, THE SECRETARY OF TRANSPORTATION SHALL GIVE DUE
    27  CONSIDERATION AND PREFERENCE FOR THE USE OF WASTE TIRES IN
    28  TRANSPORTATION-RELATED CIVIL ENGINEERING APPLICATIONS THROUGHOUT
    29  THIS COMMONWEALTH. THE SECRETARY OF TRANSPORTATION SHALL REPORT
    30  ANNUALLY TO THE GENERAL ASSEMBLY STUDY RESULTS OF EACH
    19990H0969B2709                 - 11 -

     1  DEMONSTRATION PROJECT AND ON THE USAGE OF WASTE TIRES IN
     2  TRANSPORTATION-RELATED CIVIL ENGINEERING APPLICATIONS.
     3     Section 5 6.  This act shall take effect in 60 days.           <--


















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