BILL ANALYSIS SB 1344 Page 1 Date of Hearing: June 19, 2006 ASSEMBLY COMMITTEE ON NATURAL RESOURCES Loni Hancock, Chair SB 1344 (Chesbro) - As Amended: April 24, 2006 SENATE VOTE : 34-0 SUBJECT : Plastic packaging. SUMMARY : Expands options for meeting the State's recycling content for rigid plastic packaging containers (RPPCs). EXISTING LAW : Under the Plastic Packaging Containers Law of 1989 (Law): Requires every 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 manufacturerer 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." FISCAL EFFECT : According to the Senate Appropriations Committee, in FY 2006-07, the bill has a cost of over $100,000. These costs would be for developing and promulgating regulations. In subsequent years, the bill will have costs for minor, on-going enforcement. COMMENTS : SB 1344 Page 2 1) Background Under existing law, RPPCs are entirely comprised of plastic, except for lids, caps, or labels. They have capacity of at least 8 fluid ounces but no more than 5 gallons and can maintain their shape while holding a product. In addition, they are capable of multiple reclosures and are sold with an attached or unattached lid or cap. In 1991, in an attempt to help increase markets for post-consumer plastics, and help meet the State's solid waste diversion goals, the State enacted the RPPC law. The law requires a certain percentage of an RPPC to contain recyclable materials or be recycled. Under existing law, companies that produce RPPCs can essentially self-certify that they are meeting the state statutes. However, if the state recycling rates of RPPCs do not meet mandated levels, the CIWMB can ask regulated companies to demonstrate compliance. Last year, SB 743 (Chesbro), Chapter 666, Statutes of 2005, provided container manufacturers with an additional compliance option under the RPPC requirements. According to the sponsor, Illinois Tool Works, SB 1344 is a successor to SB 743, 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." REGISTERED SUPPORT / OPPOSITION : Support California Against Waste (source) SB 1344 Page 3 Illinois Tool Works Sierra Club Opposition None on file Analysis Prepared by : Kyra Emanuels Ross / NAT. RES. / (916) 319-2092