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