DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT

Solid and Hazardous Waste Commission
Hazardous Materials and Waste Management Division
6 CCR 1007-2

Statement of Basis and Purpose
 and Specific Statutory Authority for

Addition to Regulations Pertaining to Solid Waste Sites and Facilities (6 CCR 1007-2, Part 1) –Section 1.7.6 (Waste Tire Fee) 

Basis and Purpose
	
I.	Statutory Authority – House Bill 14-1352

The addition of 6 CCR 1007-2, section 1.7.6: Waste Tire Fee, is made pursuant to the authority granted to the Solid and Hazardous Waste Commission in section 30-20-1403, C.R.S.  These regulations are a direct result of, and implement the requirements of, House Bill (HB) 14-1352, passed by the legislature in 2014, transferring the authority to collect the Waste Tire Fee from the Department of Revenue to the Department of Public Health and Environment (the Department) and requiring the Commission to set the amount of the Waste Tire Fee.  This fee is not a new fee as the Department of Revenue was previously responsible for collecting the fee.	

II.	Purpose of new regulation:

This new regulation sets the Waste Tire Fee at $1.50.  

Discussion of Regulatory Proposal

The proposed section 1.7.6 requires retailers of new motor vehicle tires and new trailer tires to collect a waste tire fee in an amount of $1.50 on the sale of each new tire.  The fee will be collected on all new automobile, trailer, truck, motor home, and motorcycle tires.  The $1.50 fee is not a new fee as the Department of Revenue was previously responsible for collecting the fee.    
Description of Local Government Involvement in the Stakeholder Process 
	
	Executive Order D 2011-005 (EO-5), “Establishing a Policy to Enhance the Relationship between State and Local Government” requires state rulemaking agencies to consult with and engage local governments prior to the promulgation of any rules containing mandates.  The Department completed an EO-5 Internal Communication Form – Conception Phase that was transmitted to local governments.  The new regulation will have little effect on local governments as the Waste Tire Fee applies to retailers of new motor vehicle tires and new trailer tires.

Issues Encountered During Stakeholder Process: 

The $1.50 fee amount was vetted during the year-long legislation development stakeholder process. The waste tire industry understands and accepts the $1.50 waste tire fee as necessary to support Colorado’s waste tire management activities.  All of the revenue forecasts and stakeholder discussions supported continuing the $1.50 collected by the Department of Revenue. In addition, the fiscal note accompanying HB 14-1352 used the $1.50 per new tire as the fee amount to calculate fiscal impacts.  Therefore, the legislative stakeholders and legislators are expecting the Waste Tire Fee to be $1.50 to support the activities identified in HB14-1352. 

Regulatory Alternatives

	The Department and the stakeholders considered setting the fee lower than $1.50.  This alternative was not adopted because the Department needs the full $1.50 to administer the Waste Tire Program and to fund the Waste Tire Administration, Enforcement, and Cleanup Fund, the End Users Fund, and the Waste Tire Market Development Fund as anticipated by the HB 14-1352 legislative stakeholder process.  Further, the fiscal note accompanying HB 14-1352 relied upon the $1.50 to evaluate fiscal impacts.

Cost/Benefit Analysis

A cost-benefit analysis will be performed if requested by the Colorado Department of Regulatory Services. The Department and stakeholders evaluated fiscal impacts during the legislative stakeholder process and determined the $1.50 fee was the minimum amount needed to support the legislative requirements of the Waste Tire Program.