Tire fee increase in California goes through; asphalt rubber requirement doesn´t

Posted on October 5, 2004

On Sept. 1, ran a story on the likely increase in the state-wide tire fee in California ("Tire fee increase in California appears inevitable"). It proved prophetic.

AB 923 (Firebaugh, D-South Gate) which, among other things, will increase the fee on new tires sold in California to $1.75 in order to fund air pollution prevention programs, recently was signed into law by Governor Arnold Schwarzenegger.

In his California Tire Report, lobbiest Terry Leveille wrote that tire dealers were not consulted about the potential legislation, which originally was slated to increase the current $1 fee on the sale of new tires to $1.50.

But amendments from a special hearing of the Senate Environmental Quality Committee added a quarter to the proposed tire fee increase.

The bill will go into effect Jan. 1, 2005.

According to Leveille, air pollution prevention programs will receive 75 cents and the California Integrated Waste Management Board (CIWMB) will continue to fund state tire programs with $1 from the fee.

Leveille also told that Governor Schwarzenegger vetoed AB 338 (Levine, D-Van Nuys), which would have required CalTrans to use at least 20%, by ton, of asphalt rubber derived from United States waste tires in its projects by Jan. 1, 2006. The percentage would have increased to 25% by Jan. 1, 2009, and 35% by Jan. 1, 2012.

In his veto message, Schwarzenegger said the following:

"While I am supportive of the overall policy of this bill, I am concerned that by limiting the product to those of U.S. origin only may violate various trade agreements. In addition, this bill may invite sanctions from other nations against products produced in California.

"I encourage the author to revisit this issue next legislative session and, with the Secretary of the State and Consumer Services Agency and the Secretary of the Business, Transportation and Housing Agency, find appropriate language that would alleviate any possible legal challenge which would invalidate otherwise good public policy. For these reasons I am returning Assembly Bill 338 without my signature."

Comments ( 0 )
More Stories
Brian Wheeler, vice president of business development and marketing for Cloyes, holds the AAPEX best new product award the company won for its VVT Chain Kits.
News Cloyes VVT Timing Chain Kits Win AAPEX Best New Product Honors

Cloyes Gear & Products Inc. earned the best new product award for its Variable Valve Timing (VVT) Chain Kits at the 2019 Automotive Aftermarket Product Expo (AAPEX).

The Razr AT, seen here at last week's Specialty Equipment Market Association Show, is Maxxis' new all-terrain light truck tire.
News Maxxis Launches Razr AT Light Truck Tire

Maxxis International-USA showcased its new Razr AT premium all-terrain light truck tire during last week's Specialty Equipment Market Association Show.

Toyo heavily promoted its Treadpass area that connected the south and central halls of the Las Vegas Convention Center during the 2019 SEMA Show.
News Toyo Will Continue to Tap 'Influencers'

"Influence the influencers" will be Toyo Tire U.S.A. Corp.'s mantra as it continues to build purchase intent among consumers, Tim Chaney, the company's vice president of marketing, told Modern Tire Dealer during last week's Specialty Equipment Market Association (SEMA) Show.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!