BILL ANALYSIS AB 258 Page 1 Date of Hearing: May 16, 2007 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mark Leno, Chair AB 258 (Krekorian) - As Amended: April 9, 2007 Policy Committee: Natural Resources Vote: 6-3 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill establishes a comprehensive regulatory process to be implemented by the State Water Resources Control Board (SWRCB) for controlling the discharge of pre-production plastics (P3) from manufacturing facilities and facilities at which these plastics are transferred in order to reduce these plastics' contribution to marine debris. FISCAL EFFECT 1)Substantial one-time GF costs, in the range of $1.3 million in 2008-09, to the SWRCB to develop and implement the P3 discharge control procedures for affected facilities. 2)Moderate ongoing GF costs, in the range of $1 million starting in 2008-09, to the SWRCB and regional water boards to administer and enforce the P3 discharge control requirements. These costs may be covered by revenue generated by fees the board is authorized to impose. SUMMARY CONTINUED Specifically, this bill: 1)Requires the SWRCB and regional water boards, by January 1, 2009, to implement a program to control discharges of P3 (plastic pellets, plastic resin products, powdered coloring for plastics, plastic additives and plastic fragments). 2)Requires control measures to include P3 waste discharge, monitoring and reporting requirements at source facilities and AB 258 Page 2 transfer facilities. 3)Requires manufacturers, handlers, and transportation facilities to implement best management practices to control P3 discharges that include: a) Zero loss containment systems on all down-gradient storm drains. b) P3 transferred only in sealed watertight containers. c) P3 stored in a manner that prevents discharge. d) Capture devices must be installed under all loading and unloading points. e) A vacuum system for recapturing fugitive P3. 4)Requires the SWRCB to establish criteria for a "no exposure" certification requirement for facilities operated under a federal national pollutant discharge elimination system permit that would allow these facilities to operate without satisfying the requirements of #3 above. COMMENTS 1)Rationale . The author contends that a large portion of marine debris on the water and on coastal beaches is comprised of plastic resin pellets, commonly known as "nurdles," plastic powders, and production scrap. Since nurdles and other P3 are items used in the production of other products, the author contends P3 showing up in the marine environment and on beaches is originating from facilities that produce P3 and facilities that use P3 as a production component. By establishing an SWRCB process to control and reduce the discharge of P3 into storm drains at these facilities, the author hopes to significantly reduce P3's contribution to marine debris. 2)Operation Clean Sweep is a voluntary program developed by the Society of the Plastics Industry and the American Plastics Council to address problems associated with the release of P3 into the marine environment. The program developed best management practices designed to reduce P3 discharges through proper handling and cleanup. Facilities that have implemented Operation Clean Sweep have significantly reduced P3 discharges but, because the program is voluntary, many plastics manufacturers and processors have chosen not to implement the program AB 258 Page 3 Analysis Prepared by : Steve Archibald / APPR. / (916) 319-2081