BILL ANALYSIS                                                                                                                                                                                                    



                                                               SB 1344
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2005-2006 Regular Session
                                           
           BILL NO:    SB 1344
           AUTHOR:     Chesbro
           AMENDED:    As introduced
           FISCAL:     Yes               HEARING DATE:     April 17, 2006
           URGENCY:    No                CONSULTANT:       Randy Pestor
            
           SUBJECT  :    PLASTIC PACKAGING

            SUMMARY  :    
           
            Existing law  , under the Plastic Packaging Containers Law of  
           1989, requires every rigid plastic packaging container (RPPC)  
           sold or offered for sale in the state to, on average, meet  
           certain criteria (including recycling rates), with certain  
           exceptions.  An exception allows a manufacturer to be in  
           compliance with the Law if either of the following apply:

           1) The manufacturer consumed a volume of postconsumer material  
              generated in California in the manufacture of a RPPC  
              subject to the Law or a RPPC not subject to the Law, that  
              resulted in the consumption of an equivalent amount of  
              postconsumer material that the RPPC is otherwise required  
              to contain.

           2) The manufacturer arranged by a contractual agreement for  
              the purchase and consumption of postconsumer material  
              generated in California and exported to another state for  
              the manufacturer of RPPCs that is equivalent to, or exceeds  
              the volume of, postconsumer material that the RPPC is  
              otherwise required to contain.

            This bill  revises the above two exceptions by also allowing  
           the postconsumer materials to be used in "other plastic  
           products or plastic packaging."

            COMMENTS  :

            1) Purpose of Bill  .  According to the sponsor, Illinois Tool  
              Works, SB 1344 is a successor to SB 743 (Chesbro) Chapter  









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              666, Statutes of 2005, and notes that legislation "was  
              intended to promote more use of recycled plastic that was  
              collected in California for recycling; but due to a  
              technical drafting error, an important incentive for  
              increased recycling of California plastics was not  
              incorporated into the law enacted.  SB 1344 would correct  
              this error by broadening the incentives to recycle more  
              California waste and compliance options for divisions of  
              companies like Illinois Tool Works."

           The sponsor also notes that SB 1344 "would create new markets  
              for recycled plastic and create new businesses and jobs  
              based on the positive economic and environmental impacts of  
              recycling.  The net effect would be increased demand for  
              recycled plastic."

            2) Plastic Packaging Background  .  According to the CIWMB 1999  
              California Statewide Waste Disposal Characterization Study,  
              RPPCs represent 403,812 tons of the state's municipal solid  
              wastestream (1.08% of 37,500,002 tons).  The total amount  
              of RPPC recycled/reused was 88,046 tons (17.9% of the total  
              amount in the wastestream), leaving 315,766 tons disposed. 

              SB 235 (Hart) Chapter 765, Statutes of 1991, enacted the  
              Plastic Packaging Containers Law in the California Waste  
              Management Act of 1989.  The Law addressed RPPC  
              manufacturing requirements and provided for penalties,  
              regulations, reporting, waivers, and exemptions.

              Under the SB 235 manufacturing requirements, every RPPC  
              sold or offered for sale in the state must meet one of the  
              following five criteria:  a) be made from 25% postconsumer  
              material, b) have a recycling rate of 25%, c) have a  
              recycling rate of 55% if its primary material is PET (  
               i.e.  , polyethylene terephthalate meeting the labeling  
              requirements in Public Resources Code 18015), d) be a  
              reusable or refillable container, or e) be a source reduced  
              container.  SB 951 (Hart) Chapter 1076, Statutes of 1993,  
              required PETE material to be included in the 25% recycling  
              rate provision (b) above) and added a sixth allowable  
              criteria:  have a recycling rate of 45% if it is a  
              product-associated RPPC or is used in conjunction with a  










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              particular generic product line.  AB 2508 (House) Chapter  
              511, Statutes of 1996 added a seventh allowable criteria:   
              a container containing floral preservative that is  
              subsequently reused by the floral industry for at least two  
              years. 

              Under the SB 235 exemption provisions, the following three  
              exemptions were allowed:  a) RPPCs produced in or out of  
              the state that are destined for shipment to other  
              destinations out of the state and which remain with the  
              products upon shipment; b) RPPCs that contain drugs,  
              medical devices, medical food, or infant formula; and c)  
              RPPCs that contain toxic or hazardous products.  SB 466  
              (Boatwright) Chapter 1062, Statutes of 1993, added another  
              exemption to sunset January 1, 1996:  RPPCs that are  
              manufactured for use in the shipment of hazardous materials  
              and are prohibited from being manufactured with used  
              material by certain federal packaging material  
              specifications.  The SB 466 sunset was stricken by SB 605  
              (Mello) Chapter 171, Statutes of 1995.  SB 1155 (Maddy)  
              Chapter 754, Statutes of 1996, revised the second exemption  
              above by exempting RPPCs that contain cosmetics or food.   
              SB 1155 also allowed exempt RPPCs to be counted under  
              certain manufacturing recycled content requirements if  
              those exempt RPPCs are recycled.  SB 1729 (Chesbro) Chapter  
              561, Statutes of 2004, revised the definition of "recycling  
              rate" and deleted the requirement for certain containers to  
              be included in calculating the recycling rate.  SB 743  
              (Chesbro) Chapter 666, Statutes of 2005, defined "container  
              manufacturer" and revised the definition of "recycling  
              rate," provided that a manufacturer is in compliance with  
              the Law if other RPPCs resulted in the consumption of an  
              equivalent amount of postconsumer material, and added  
              certain penalties.

            3) Technical issues  .  Under the Plastic Packaging Containers  
              Law of 1989, a "recycling rate" is the proportion as  
              measured by weight, volume, or number of RPPC recycled in a  
              calendar year.  The exception amended by SB 1344, however,  
              uses the term "equivalent amount" in one paragraph (page 2,  
              line 18) and "volume" in another (page 2, line 27), thereby  
              enabling proportions of postconsumer waste to be determined  










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              by methods that are inconsistent with the definition of  
              "recycling rate."

           The terms in the two paragraphs should reflect the definition  
              of "recycling rate" in the Law and include consistent  
              terms.

            SOURCE  :        Illinois Tool Works  

           SUPPORT  :       Sierra Club California  

           OPPOSITION  :    None on file