MINUTES OF THE
SENATE NATURAL RESOURCES, AGRICULTURE, AND ENVIRONMENT STANDING COMMITTEE
Wednesday, March 6, 2019 • 8:30 a.m. • 220 Senate Building


Members Present:
Sen. Ralph Okerlund, Chair
Sen. Allen M. Christensen
Sen. David P. Hinkins
Sen. Jani Iwamoto
Sen. Derek L. Kitchen
Sen. Scott D. Sandall
Sen. Evan J. Vickers
Members Absent:
Sen. Keith Grover
Sen. Jerry W. Stevenson

Staff Present:
Mr. J Brian Allred, Policy Analyst
Ms. Paula Morgan, Committee Secretary

Note: A copy of related materials and an audio recording of the meeting can be found at www.le.utah.gov.

Chair Okerlund called the meeting to order at 8:35 a.m.
MOTION: Sen. Christensen moved to approve the minutes for March 4, 2019 The motion passed with a vote of 6-0-3.
Yeas - 6Nays-0Abs-3
Sen. A. Christensen
Sen. D. Hinkins
Sen. J. Iwamoto
Sen. R. Okerlund
Sen. S. Sandall
Sen. E. Vickers
Sen. K. Grover
Sen. D. Kitchen
Sen. J. Stevenson
1. H.J.R. 1 Proposal to Amend Utah Constitution -- Municipal Water Resources (Stratton, K.)
Rep. Keven Stratton explained the bill.
Steven Clyde, Water Attorney, spoke to the bill.
John Hiskey, Senior Policy Advisor, Utah League of Cities and Towns, spoke in favor of the bill.
MOTION: Sen. Iwamoto moved to pass H.J.R. 1 out favorably. The motion passed with a vote of 7-0-2.
Yeas - 7Nays-0Abs-2
Sen. A. Christensen
Sen. D. Hinkins
Sen. J. Iwamoto
Sen. D. Kitchen
Sen. R. Okerlund
Sen. S. Sandall
Sen. E. Vickers
Sen. K. Grover
Sen. J. Stevenson
2. H.B. 31 Water Supply and Surplus Water Amendments (Coleman, K.)
Rep. Kim Coleman explained the bill.
Steven Clyde, Water Attorney, spoke to the bill.
Richard Bay, General Manager, Jordan Valley Water Conservancy District, spoke in favor of the bill.
John Hiskey, Utah League of Cities and Towns, spoke in favor of the bill.
MOTION: Sen. Iwamoto moved to pass H.B. 31 out favorably. The motion passed with a vote of 6-0-3.
Yeas - 6Nays-0Abs-3
Sen. A. Christensen
Sen. J. Iwamoto
Sen. D. Kitchen
Sen. R. Okerlund
Sen. S. Sandall
Sen. E. Vickers
Sen. K. Grover
Sen. D. Hinkins
Sen. J. Stevenson
3. H.B. 126 Tire Recycling Modifications (Perry, L.)
Rep. Lee Perry explained the bill.
Rob Jahries, General Manager, Liberty Tire Recycling, spoke to the bill.
Sen. Hinkins moved to go to the next item on the agenda.
SUBSTITUTE MOTION: Sen. Kitchen moved to pass H.B. 126 out favorably.
Sen. Hinkins withdrew his motion.
Sen. Sandall moved to hold the bill.
Sen Sandall withdrew his motion.
MOTION: Sen. Sandall moved to amend H.B. 126 with Amendment #2. The motion passed with a vote of 7-0-2.
Amendment 2
H.B. 126
1.        Page 1, Lines 13 through 14: 
13                 ▸         addresses waste tire transporters complying with this part; and
14                 { ▸ Ĥ →         adjusts rates of partial reimbursement; and ← Ĥ   }

2.        Page 1, Line 26: 
26                 { 19-6-809, as last amended by Laws of Utah 2012, Chapter 263 }

3.        Page 7, Line 191 through Page 9, Line 249: 
191                 { Section 3. Section 19-6-809 is amended to read:
192                 19-6-809. Partial reimbursement.
193                 (1) (a) A recycler may submit an application under Section 19-6-813 to the local health
194         department having jurisdiction over the applicant's business address for partial reimbursement
195         for the cost of transporting and processing a waste tire or a material derived from a waste tire
196         that:
197                 (i) meets the requirements of Subsections (3) and (4); and
198                 (ii) is used within the state for:
199                 (A) energy recovery or production;
200                 (B) the creation of an ultimate product;
201                 (C) the production of crumb rubber, if a contract exists for the sale of the crumb rubber
202         for use, either within or outside the state, as a component in an ultimate product;
203                 (D) the production of a chipped tire, if:
204                 (I) the chipped tire is beneficially used, either within or outside the state; and
205                 (II) a contract exists for the sale of the chipped tire; or
206                 (E) a use defined in rule as recycling.
207                 (b) A recycler is not eligible to receive partial reimbursement for transportation or
208         processing costs related to the creation of an ultimate product if:
209                 (i) the recycler used crumb rubber as a component of the ultimate product; and
210                 (ii) the recycler, or another recycler, previously received under this section partial
211         reimbursement for transportation or processing costs related to the production of the crumb
212         rubber.
213                 (c) A recycler who qualifies under this section for partial reimbursement may waive the
  214         reimbursement and request in writing that the reimbursement be paid to a person who:
215                 (i) delivers a waste tire or material derived from a waste tire to the recycler; or
216                 (ii) processes the waste tire before the recycler receives the waste tire or a material
217         derived from the waste tire for recycling.
218                 (d) A recycler is not eligible to receive partial reimbursement for transportation or
219         processing costs for baling:
220                 (i) whole waste tires; or
221                 (ii) materials derived from waste tires that are larger than shredded waste tires.
222                 (2) Subject to the limitations in Section 19-6-816, a recycler is entitled to:
223                 (a) [$65] $80 as partial reimbursement for [each] a ton of waste tires or material
224         derived from waste tires converted to crumb rubber, if a contract exists for the sale of the
225         crumb rubber for use as a component in an ultimate product;
226                 (b) $50 as partial reimbursement for [each] a ton of waste tires or material derived
227         from waste tires recycled, other than as crumb rubber; and
228                 (c) $20 as partial reimbursement for [each] a ton of chipped tires used for a beneficial
229         use.
230                 (3) (a) A recycler is eligible for a partial reimbursement if the recycler establishes, in
231         cooperation with a tire retailer or transporter, or both, a reasonable schedule to remove waste
232         tires in sufficient quantities to allow for economic transportation of waste tires located in a
233         municipality, as defined in Section 10-1-104, within the state.
234                 (b) A recycler who is eligible for partial reimbursement under Subsection (3)(a) may
235         also receive partial reimbursement for recycling a tire received from a location within the state
236         other than those associated with a retail tire business, including a waste tire from a waste tire
237         pile or an abandoned waste tire pile, as provided by Section 19-6-810.
238                 (4) A recycler who applies for partial reimbursement under Subsection (1) shall
239         demonstrate to the local health department identified in Subsection (1)(a) that:
240                 (a) the waste tire or material derived from a waste tire that qualifies for the
241         reimbursement was:
242                 (i) (A) removed and transported by a registered waste tire transporter, a recycler, or a
243         tire retailer; or
244                 (B) generated by a private person who:
  245                 (I) is not a waste tire transporter as defined in Section 19-6-803; and
246                 (II) brings the waste tire to the recycler; and
247                 (ii) generated in the state; and
248                 (b) if the tire is from a waste tire pile or abandoned waste tire pile, the recycler
249         complied with the requirements of Section 19-6-810. }

Yeas - 7Nays-0Abs-2
Sen. A. Christensen
Sen. D. Hinkins
Sen. J. Iwamoto
Sen. D. Kitchen
Sen. R. Okerlund
Sen. S. Sandall
Sen. E. Vickers
Sen. K. Grover
Sen. J. Stevenson
MOTION: Sen. Kitchen moved to pass H.B. 126 as amended out favorably. The motion passed with a vote of 7-0-2.
Yeas - 7Nays-0Abs-2
Sen. A. Christensen
Sen. D. Hinkins
Sen. J. Iwamoto
Sen. D. Kitchen
Sen. R. Okerlund
Sen. S. Sandall
Sen. E. Vickers
Sen. K. Grover
Sen. J. Stevenson
4. S.C.R. 13 Concurrent Resolution on Public Lands Strategy (Hinkins, D.)
Sen. David Hinkins explained the bill.
MOTION: Sen. Hinkins moved to pass S.C.R. 13 out favorably. The motion passed with a vote of 7-0-2.
Yeas - 7Nays-0Abs-2
Sen. A. Christensen
Sen. D. Hinkins
Sen. J. Iwamoto
Sen. D. Kitchen
Sen. R. Okerlund
Sen. S. Sandall
Sen. E. Vickers
Sen. K. Grover
Sen. J. Stevenson
MOTION: Sen. Christensen moved to adjourn at 9:45 a.m. The motion passed with a vote of 7-0-2.
Yeas - 7Nays-0Abs-2
Sen. A. Christensen
Sen. D. Hinkins
Sen. J. Iwamoto
Sen. D. Kitchen
Sen. R. Okerlund
Sen. S. Sandall
Sen. E. Vickers
Sen. K. Grover
Sen. J. Stevenson
Sen. Okerlund adjourned the meeting at 9:45 a.m.