September 22, 2004, Introduced by Reps. Kolb, Pastor, Ruth Johnson, Rivet and Bieda and referred to the Committee on Land Use and Environment.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 16901 and 16908 (MCL 324.16901 and
324.16908), as amended by 2002 PA 496.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 16901. As used in this part:
2 (a) "Abandoned scrap tires" means an accumulation of scrap
3 tires on property where the property owner is not, as determined
4 by the department, responsible in whole or in part for the
5 accumulation of the scrap tires. For the purposes of this
6 subdivision, an owner who purchased or willingly took possession
7 of an existing scrap tire collection site shall be considered by
8 the department to be responsible in whole or in part for the
9 accumulation of the scrap tires.
10 (b) "Bond" means a performance bond from a surety company
1 authorized to transact business in this state, a certificate of
2 deposit, a cash bond, or an irrevocable letter of credit, in
3 favor of the department.
4 (c) "Capital expenditure" means an expenditure for land and
5 improvements, transportation improvements, infrastructure
6 improvements, or equipment acquisition intended to enhance or
7 improve the overall value of scrap tires or scrap tire processed
8 materials into a product of higher value.
9 (d) (c) "Collection
site" means a site, other than a
10 disposal area licensed under part 115, a racecourse, or a feed
11 storage location, that contains any of the following:
12 (i) One or more pieces of adjacent real property where 500 or
13 more scrap tires are accumulated and that is not associated with
14 a retail operation as provided in subparagraph (ii), an
15 automotive recycler as provided in subparagraph (iii), or a
16 commercial contractor as provided in subparagraph (iv).
17 (ii) One or more pieces of adjacent real property where 1,500
18 or more scrap tires are accumulated if that property is owned or
19 leased by a person who is a retailer and is not associated with
20 an automotive recycler as provided in subparagraph (iii).
21 (iii) One or more pieces of adjacent real property where
22 2,500 or more scrap tires are accumulated if that property is
23 owned or leased by a person who is an automotive recycler as
24 defined in section 2a of the Michigan vehicle code, 1949 PA 300,
25 MCL 257.2a.
26 (iv) One or more pieces of adjacent real property where more
27 than 150 cubic yards of scrap tire processed material is
1 accumulated if that property is owned or leased by a commercial
2 contractor that is authorized to use the scrap tire processed
3 material as an aggregate replacement in a manner approved by a
4 designation of inertness for scrap tires or is otherwise
5 authorized for such use by the department under part 115.
6 (e) (d) "Department"
means the department of environmental
7 quality.
8 (f) (e) "End-user"
means any of the following:
9 (i) A person who possesses a permit to burn tires under
10 part 55.
11 (ii) The owner or operator of a landfill that is authorized
12 under the landfill's operating license to use scrap tires.
13 (iii) A person who converts scrap tires into scrap tire
14 processed material used to manufacture other products that are
15 sold in the market but does not manufacture the products that are
16 sold in the market.
17 (g) (f) "Feed
storage location" means a location on 1 or
18 more pieces of adjacent real property containing a commercially
19 operated farming operation where not more than 3,000 scrap tires
20 are used for the purpose of securing stored feed.
21 (h) (g) "Fund"
means the scrap tire regulatory fund created
22 in section 16908.
23 (i) (h) "Landfill"
means a landfill as defined in
24 section 11504 that is licensed under part 115.
25 (j) (i) "Racecourse"
means a commercially operated track
26 for go-carts, vehicles, off-road recreational vehicles, or
27 motorcycles that uses not more than 3,000 scrap tires for bumpers
1 along the track for safety purposes.
2 (k) (j) "Retailer"
means a person who sells or offers for
3 sale new, retreaded, or remanufactured tires to consumers in this
4 state.
5 (l) (k) "Scrap
tire" means a tire that is no longer being
6 used for its original intended purpose including, but not limited
7 to, a used tire, a reusable tire casing, or portions of tires.
8 Scrap tire does not include a vehicle support stand.
9 (m) (l) "Scrap
tire hauler" means a person who, as part of
10 a commercial business, transports scrap tires. Except as
11 otherwise provided in this section, a person who transports more
12 than 7 scrap tires in any truckload shall be considered to be in
13 the commercial business of transporting scrap tires. Scrap tire
14 hauler does not include any of the following:
15 (i) A person who is not operating a commercial business who
16 is transporting his or her own tires to a location authorized in
17 section 16902(1).
18 (ii) A member of a nonprofit service organization who is
19 participating in a community service project and is transporting
20 scrap tires to a location authorized in section 16902(1).
21 (iii) The owner of a farm as defined in section 2 of the
22 Michigan right to farm act, 1981 PA 93, MCL 286.472, who
23 transports only scrap tires that originated from his or her farm
24 operation or is are
intended for use in a feed storage
25 location.
26 (iv) A solid waste hauler as defined in part 115 that is
27 transporting solid waste to a disposal area licensed under part
1 115.
2 (n) (m) "Scrap
tire processed material" means rubber
3 material derived from tires that is marketable and no larger than
4 2 inches by 2 inches in size. Scrap tire processed material also
5 includes rubber material derived from tires that is larger than 2
6 inches by 2 inches if the rubber material was produced by a scrap
7 tire processor pursuant to a written contract that provides for
8 the quantity and the quality of the material and a time frame in
9 which the volume of material is to be provided, and the contract
10 is made available to the department upon request.
11 (o) (n) "Scrap
tire processor" means a person who is
12 authorized by this part to accumulate scrap tires and is engaged
13 in the business of buying or otherwise acquiring scrap tires and
14 reducing their volume by shredding or otherwise facilitating
15 recycling or resource recovery techniques for scrap tires.
16 (p) (o) "Scrap
tire recycler" means a person who is
17 authorized by this part to accumulate scrap tires, who acquires
18 scrap tires, and who converts scrap tires into a product that is
19 sold or reused in a manner authorized by this part.
20 (q) (p) "Solid
waste hauler" means a solid waste hauler as
21 defined in part 115 who transports less than 25% by weight or
22 volume of scrap tires along with other solid waste in any
23 truckload.
24 (r) (q) "Tire"
means a continuous solid or pneumatic rubber
25 covering encircling the wheel of a tractor or other farm
26 machinery or of a vehicle.
27 (s) (r) "Tire
storage area" means a location within a
1 collection site where tires are accumulated.
2 (t) (s) "Vehicle"
means every device in, upon, or by which
3 any person or property is or may be transported or drawn upon a
4 highway, excepting devices exclusively moved by human power or
5 used exclusively upon stationary rails or tracks and excepting a
6 mobile home as defined in section 2 of the mobile home commission
7 act, 1987 PA 96, MCL 125.2302.
8 (u) (t) "Vehicle
support stand" means equipment used to
9 support a stationary vehicle consisting of an inflated tire and
10 wheel that is attached to another wheel.
11 Sec. 16908. (1) The scrap tire regulatory fund is created
12 in the state treasury. The fund shall receive money as provided
13 by law and any gifts or contributions to the fund. The state
14 treasurer shall direct the investment of the fund. Interest and
15 earnings of the fund shall be credited to the fund. Money in the
16 fund at the close of the fiscal year shall remain in the fund and
17 shall not revert to the general fund.
18 (2) Money in the fund shall be used, upon appropriation, for
19 all of the following purposes:
20 (a) For administrative costs of the department associated
21 with this part including the implementation and enforcement of
22 this part. However, money shall not be expended under this
23 subdivision for the
employment of to fund more than the
24 following:
25 (i) For state fiscal year 2002, 13.5 full-time equated
26 positions.
27 (ii) For state fiscal year 2003, 12 full-time equated
1 positions.
2 (iii) For state fiscal year 2004 and each subsequent state
3 fiscal year, 11 full-time equated positions.
4 (b) For the administrative costs of the secretary of state
5 associated with the collection of the tire disposal surcharge
6 pursuant to section 806 of the Michigan vehicle code, 1949
7 PA 300, MCL 257.806.
8 (c) For grants for capital expenditures.
9 (d) (c) For
the cleanup or collection of abandoned scrap
10 tires and scrap tires at collection sites. The department shall
11 give priority to funding activities under this subdivision at
12 collection sites in which the scrap tires were accumulated prior
13 to January 1, 1991 and to collection sites that pose an imminent
14 threat to public health, safety, welfare, or the environment.
15 The department shall make every effort to assure that all
16 abandoned scrap tires accumulated at collection sites prior to
17 January 1, 1991 are cleaned up or collected by September 31,
18 2009.
19 (3) Money expended
under subsection (2)(c) (2)(d) may be
20 expended for both of the following:
21 (a) Not more than $500,000.00 each year for reimbursement
22 grants to users of scrap tire processed material to support the
23 development of increased markets for scrap tire material other
24 than tire-derived fuel usage. A grant issued under this
25 subsection subdivision shall be for projects that
demonstrate
26 new uses for scrap tire processed material in manufactured
27 products, such as placement of scrap tire processed material in
1 modified asphalt, molded rubber products, extruded rubber
2 products, and aggregate replacement materials. A grant under
3 this subdivision shall reimburse the scrap tire processed
4 material user up to 50% of the cost of purchasing scrap tire
5 processed material, but shall not exceed a reimbursed cost of
6 $50.00 per ton. However, the scrap tire processed material
7 purchased shall be purchased from Michigan scrap tire processors
8 that produce scrap tire processed material under a grant issued
9 under subsection (2)(c)
(2)(d).
10 (b) For grants to end-users who receive scrap tires or tire
11 chips. However, as a condition of a grant under this
12 subdivision, an end-user who receives a grant under this
13 subdivision shall agree to purchase 1 ton of scrap tires or tire
14 chips for every 1 ton of scrap tires or tire chips received as a
15 result of the grant. The purchases shall be at the minimum rate
16 of the established statewide market price.
17 (4) Applications for grants under subsection (3) shall be
18 submitted on a form approved by the department and containing the
19 information required by the department. For grants under
20 subsection (3)(a), the department shall publish criteria upon
21 which the grants will be issued and shall make that information
22 available to grant applicants.
23 (5) Not later than 4
years after the effective date of the
24 amendatory act that
added this subsection July 3,
2006, the
25 department shall prepare an assessment of the impact that the
26 grants under subsection (3)(a) have had on the reduction in the
27 surplus of scrap tires in the state and on the establishment of
1 new end uses for scrap tires. A copy of this assessment shall be
2 provided to the standing committees of the senate and the house
3 of representatives with jurisdiction over subject matter
4 pertaining to natural resources and the environment.
5 (6) The department shall annually report to the standing
6 committees of the senate and house of representatives with
7 jurisdiction over subject matter pertaining to natural resources
8 and the environment on the utilization of revenues of the fund.