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2024 SESSION

24106109D
HOUSE BILL NO. 496
AMENDMENT IN THE NATURE OF A SUBSTITUTE
(Proposed by the House Committee on Agriculture, Chesapeake and Natural Resources
on January 31, 2024)
(Patron Prior to Substitute--Delegate Garrett)
A BILL to amend and reenact §§ 10.1-1422.1, 10.1-1422.3, and 58.1-641 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 10.1-1418.6, relating to waste tire disposal by producers and haulers; fee; requirements.

Be it enacted by the General Assembly of Virginia:

1. That §§ 10.1-1422.1, 10.1-1422.3, and 58.1-641 of the Code of Virginia are amended and reenacted and that the Code of Virginia is amended by adding a section numbered 10.1-1418.6 as follows:

§ 10.1-1418.6. Disposal of waste tires by tire producers; requirements; report.

A. For the purposes of this section:

"Hauler" means a person or business licensed by the Department who picks up or transports waste tires from a tire producer for the purpose of removal to a permitted processing facility or recycling center.

"Processing facility" means a person, business, or governmental entity licensed by the Department who processes waste tires, including stamping, stripping, shredding, or crumbling, that operates under a permit issued by the local, state, or federal government.

"Recycling center" means a person or business licensed by the Department who repurposes a tire previously deemed to be a waste tire by a producer, in whole or in part, for commercial use, including the resale of such tire for its originally intended use for passenger vehicles or light trucks.

"Tire producer" means a person or business who in the course of business disposes of 50 or more tires in a year for passenger vehicles or light trucks in the Commonwealth or acquires 50 or more waste or used tires in a year from such vehicles in the course of the sale of new tires or application of new tires to such vehicles.

"Waste tires" means tires of passenger vehicles and light trucks that have been discarded because they are no longer suitable for their original intended purpose because of wear, damage, or defect.

B. A tire producer shall transfer all waste tires to a processing facility or a recycling center through a hauler. Such tire producer shall ensure that the waste tires for disposal are placed in a secure location that is not readily accessible to the public. No later than October 1, 2024, and October 1 annually thereafter, a tire producer shall register with the Department on a form provided by the Department.

C. A hauler that transports waste tires pursuant to this section shall transfer such tires to either a processing facility or a recycling center. Beginning February 1, 2025, a hauler shall submit a quarterly report to the Department on a form provided by the Department. Such report shall include (i) the name, address, and identification number of the hauler; (ii) the number of waste tires that the hauler transported and where the hauler transported the waste tires; (iii) the name and location of the tire producer from whom the hauler collected the waste tires; and (iv) any other information the Department deems necessary.

D 1. To qualify for a hauler license, an applicant shall provide the following information on an application provided by the Department, and such application shall be readily available on the Department's website: (i) the name and form of the applicant's corporate entity, mailing address, contact information, federal and state tax identification information, workers' compensation insurance policy number or certificate of compliance with the Virginia's Workers' Compensation Commission, and facility site name and address; (ii) the Vehicle Identification Number (VIN), make, model, year, license plate, and ownership or rental status for all vehicles used for the hauling of tires; and (iii) the intended destination information for the disposal of tires, to include the business name and address. Such applicant shall also state whether any hauled tires are to be stored at its facility and, if so, the location and description of the manner by which waste tires are stored; how the accumulation of tires at the facility shall be managed, as well as the storage capacity at the facility, including drop boxes, containers, trailers, other fully enclosed structures, and stockpiles; the average number of tires stored on site at any given time; the maximum number of tires that can be stored on site at any given time; the maximum number of tires, by number or weight, that can be received on a daily basis; a description of how the facility will comply with indoor and outdoor storage standards for scrap tires under the specifications described in the National Fire Protection Association's NFPA 231D: Standard for Storage of Rubber Tires; a description of how the facility will control mosquitoes and other insect infestations to prevent public nuisances or health hazards; a description of the measures that will be taken in construction of the facility to keep liquid runoff from entering the waters of the Commonwealth in the event of a tire fire; and assurance that the facility will develop an emergency preparedness manual that lists: (a) the names and telephone numbers of persons to contact in the event of a fire, flood, and any other emergency involving the facility; (b) the emergency response equipment present at the facility or available for use at the facility; (c) the location of the equipment and how it should be used in the event of a fire or other emergency; (d) the procedures to be followed by facility personnel, from discovery of an emergency until the situation is corrected, including the measures that shall be taken to minimize the occurrence, recurrence, or spread of fire, explosions, and releases; (e) a list of the locations of known water supplies, fire hydrants, dry chemical extinguishers, or other materials that may be used for firefighting purposes; and (f) a description of the procedure for reporting emergency situations to the Department without delay.

2. To qualify for a processing facility license, an applicant shall provide the following information on an application provided by the Department, and such application shall be readily available on the Department's website: (i) the name and form of the applicant's corporate entity, mailing address, contact information, federal and state tax identification information, workers' compensation insurance policy number or certificate of compliance with the Virginia's Workers' Compensation Commission, and facility site name and address and (ii) the Vehicle Identification Number (VIN), make, model, year, license plate, and ownership or rental status for all vehicles used for any off-site transportation of tires, whether in whole or part. Such applicant shall also state the hours of operation of the facility; a general description of the facility's operations, a technical description of methods or procedures used for the processing of tires; a description of the manner by which waste tires are stored; how the accumulation of tires at the facility shall be managed, as well as the storage capacity at the facility, including drop boxes, containers, trailers, other fully enclosed structures, and stockpiles; the average number of tires stored on site at any given time; the maximum number of tires that can be stored on site at any given time; the maximum number of tires, by number or weight, that can be received on a daily basis; the maximum quantity, by number or weight, to be accumulated or stored on site at the facility at any given time of each raw material, product, and residuals from processing; all on-site equipment that will be used for the placement, movement, shredding, chipping, or transportation of tires, in whole and in part; a description of the existing and proposed markets for the facility's tires or tire-derived products or raw material; a description of how the facility will comply with indoor and outdoor storage standards for scrap tires under the specifications described in the National Fire Protection Association's NFPA 231D: Standard for Storage of Rubber Tires; a description of how the facility will control mosquitoes and other insect infestations to prevent public nuisances or health hazards; a description of the measures that will be taken in construction of the facility to keep liquid runoff from entering the waters of the Commonwealth in the event of a tire fire; and assurance that the facility will develop an emergency preparedness manual that lists: (a) the names and telephone numbers of persons to contact in the event of a fire, flood, and any other emergency involving the facility; (b) the emergency response equipment present at the facility or available for use at the facility; (c) the location of the equipment, and how it should be used in the event of a fire or other emergency; (d) the procedures to be followed by facility personnel from discovery of an emergency until the situation is corrected, including the measures that shall be taken to minimize the occurrence, recurrence, or spread of fire, explosions, and releases; (e) a list of the location of known water supplies, fire hydrants, dry chemical extinguishers, or other materials that may be used for firefighting purposes; and (f) a description of the procedure for reporting emergency situations to the Department without delay. Such facility shall also provide a letter to the county or city where the proposed facility will be located requesting that the facility be added to the solid waste management plan during the next review period or seek a letter of affirmation that such facility is already included in such solid waste management plan. A copy of the response from the county or city shall be included with the application.

3. To qualify for a tire recycling license, an applicant shall provide the following information on an application provided by the Department, and such application shall be readily available on the Department's website: (i) the name and form of the applicant's corporate entity, mailing address, contact information, federal and state tax identification information, workers' compensation insurance policy number or certificate of compliance with the Virginia's Workers' Compensation Commission, and facility site name and address and (ii) the Vehicle Identification Number (VIN), make, model, year, license plate, and ownership or rental status for all vehicles used for the off-site transportation of tires, whether in whole or in part. Such applicant shall also state the hours of operation of the facility; a general description of facility's operations; a technical description of methods or procedures used for the recycling of tires; a description of the manner by which waste tires are stored; how the accumulation of waste tires at the facility shall be managed, as well as the storage capacity at the facility, including drop boxes, containers, trailers, other fully enclosed structures, and stockpiles; the average number of tires stored on site at any given time; the maximum number of tires that can be stored on site at any given time; the maximum number of tires, by number or weight, that can be received on a daily basis; and the maximum quantity, by number or weight, to be accumulated or stored on site at the facility at any given time of each raw material, product, and residuals from recycling; all on-site equipment that will be used for the placement, movement, shredding, chipping, and transportation of tires, in whole and in part; a description of the existing and proposed markets for the facility's tires or tire-derived products or raw material; a description of how the facility will comply with indoor and outdoor storage standards for scrap tires under the specifications described in the National Fire Protection Association's NFPA 231D: Standard for Storage of Rubber Tires; a description of how the facility will control mosquitoes and other insect infestations to prevent public nuisances or health hazards; a description of the measures that will be taken in construction of the facility to keep liquid runoff from entering the waters of the State in the event of a tire fire; and assurance that the facility will develop an emergency preparedness manual that lists: (a) the names and telephone numbers of persons to contact in the event of a fire, flood, and any other emergency involving the facility; (b) the emergency response equipment present at the facility or available for use at the facility; (c) the location of the equipment, and how it should be used in the event of a fire or other emergency; (d) the procedures to be followed by facility personnel from discovery of an emergency until the situation is corrected, including the measures that shall be taken to minimize the occurrence, recurrence, or spread of fire, explosions, and releases; (e) a list of the location of known water supplies, fire hydrants, dry chemical extinguishers, or other materials that may be used for firefighting purposes; and (f) a description of the procedure for reporting emergency situations to the Department without delay.

E. The Department shall adopt rules and regulations in accordance with the provisions of the Administrative Process Act (§ 2.2-4000 et seq.) for the implementation of this section. Such rules and regulations shall include (i) minimum standards for the operation, maintenance, monitoring, reporting, and suspension of each tire producer; (ii) procedures for reporting noncompliance by tire producers; and (iii) a procedure to provide reimbursements to haulers of $1 per tire.

F. The Office of the Attorney General may, upon request of the Department, take enforcement action against any person who violates the provisions of this section.

§ 10.1-1422.1. Disposal of waste tires.

The Department shall develop and implement a plan for the management and transportation of all waste tires in the Commonwealth. Such plan shall also include the requirements for the transportation and disposal of waste tires by tire producers pursuant to § 10.1-1418.6.

§ 10.1-1422.3. Waste Tire Trust Fund; use of moneys; purpose of Fund.

A. All moneys collected pursuant to § 58.1-642, minus the necessary expenses of the Department of Taxation for the administration of this tire recycling fee as certified by the Tax Commissioner, shall be paid into the treasury and credited to a special nonreverting fund known as the Waste Tire Trust Fund (the Fund), which is hereby established. Any moneys remaining in the Fund shall not revert to the general fund but shall remain in the Fund. Interest earned on such moneys shall remain in the Fund and be credited to it. The Department of Waste Management is authorized and empowered to release moneys from the Fund, on warrants issued by the State Comptroller, for the purposes enumerated in this section, or any regulations adopted thereunder.

B. Moneys from the Fund shall only be expended to:

1. Pay the costs of implementing the waste tire plan authorized by § 10.1-1422.1, as well as the costs of any programs created by the Department pursuant to such a plan;

2. Provide partial reimbursement to persons or businesses for the costs of compliance with the requirement for producers to secure the location of waste tires on site and for the costs of using waste tires, shredded tire materials, or chips or similar end-use tire materials, and such reimbursements shall be in an aggregate amount of no less than 20 percent of the moneys collected in the Fund in the fiscal year; and

3. Pay the costs to remove waste tire piles from property pursuant to § 10.1-1418.4, to the extent funds are available from the increased revenues generated by the increased tire recycling fee collected beginning July 1, 2003, and ending July 1, 2006 July 1, 2024, in accordance with § 58.1-641; and

4. Pay the costs of implementing the requirements for the transportation and disposal of waste tires by haulers in accordance with § 10.1-1418.6 in an aggregate amount of no less than 50 percent of the moneys collected in the Fund for the fiscal year or $1 for every tire collected, whichever is greater, unless the claims for reimbursement do not amount to 50 percent of moneys collected in such fiscal year .

C. In no case shall any moneys in the Fund be used for any other purpose except for the activities specified in subsection B.

D. Reimbursements under § 10.1-1422.4 shall not be made until regulations establishing reimbursement procedures have become effective.

§ 58.1-641. Imposition of tire recycling fee.

A. Beginning July 1, 2008, but before July 1, 2011, there is hereby levied and imposed upon every retailer of tires in the Commonwealth, in addition to all other taxes and fees of every kind now imposed by law, a tire recycling fee of $1.00 $1 for each new tire sold by a retailer. Beginning July 1, 2011, but before July 1, 2024, the fee shall be levied and imposed at a rate of $.50 $0.50 for each new tire sold by a retailer. Beginning July 1, 2024, the fee shall be levied and imposed at a rate of $2 for each tire sold by a retailer.