BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 87
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          Date of Hearing:  April 13, 2009

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Nancy Skinner, Chair
                     AB 87 (Davis) - As Amended:  March 18, 2009
           
          SUBJECT  :  Solid waste:  single-use carryout bags.

           SUMMARY  :  This bill establishes a statewide fee of 25 cents for  
          single-use carryout bags (bags), of all types, beginning in  
          2010.  

           EXISTING LAW  :

          1)Requires operators of stores (defined as supermarkets and  
            stores over 10,000 square feet that include a pharmacy) to  
            establish an in-store plastic carryout bag recycling program.   
            The program must include: 

             a)   Plastic bags provided by the store to include a label  
               encouraging customers to return the bag to the store for  
               recycling;

             b)   Easily accessible recycling bins for plastic bags;

             c)   All plastic bags collected must be recycled in a manner  
               consistent with the local jurisdiction's recycling plan;

             d)   The store must maintain records relating to the program  
               for at least three years and must make the records  
               available to the local jurisdiction or California  
               Integrated Waste Management Board (CIWMB) upon request; and

             e)   The operator of the store must make reusable bags  
               available to customers.

          2)Requires manufacturers of plastic bags to develop educational  
            materials to encourage reducing, reusing, and recycling  
            plastic bags. 

          3)Pre-empts local governments from requiring stores that meet  
            these provisions to implement separate recycling programs or  
            from imposing a fee on plastic bags.

          4)Establishes a sunset on the above provisions of January 1,  








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            2013.

           THIS BILL  revises the existing in-store recycling program  
          (above) as follows: 

          1)States legislative findings related to bags and their  
            environmental impacts.  

          2)Defines terms used in the bill, included: 

             a)   "Biodegradable or compostable bag" as a bag provided  
               that is certified and labeled as meeting the current  
               American Society for Testing and Materials Standard  
               Specifications.  

             b)   "Green carryout bag" as a bag that is composed of at  
               least 40% post-consumer recycled content material; is  
               accepted in curbside recycling programs serving at least  
               80% of households in the state; and, is capable of  
               composting within 180 days, as determined by CIMWMB.  Green  
               carryout bag does not include a reusable bag.  

             c)   "Paper carryout bag" as a paper bag provided to a  
               customer that is not a reusable bag.  

             d)   Expands the definition of "store" to include a chain of  
               convenience stores primarily engaged in retailing a limited  
               line of goods that includes milk, bread, soda, and snacks,  
               with cumulative square footage of 10,000 square feet or  
               more.  

          3)On and after July 1, 2010, prohibits a store from providing a  
            single-use bag unless the store charges a Bag Pollution  
            Cleanup Fee (fee) of at least 25 cents per bag and requires  
            that all bags distributed meet the above definitions.   

          4)Exempts from the fee individuals using the California Special  
            Supplemental Food Program for Woman, Infants, and Children and  
            individuals using the State Department of Social Services Food  
            Stamp Program.  

          5)Authorizes a store to retain a portion of the fee, up to 5  
            cents for plastic, compostable plastic, and paper bags and up  
            to 7 cents for green carryout bags.  Requires the store to use  
            the fee to reimburse the store's costs associated with  








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            collecting the fee; develop in-store educational materials  
            encouraging the use of reusable bags; develop and implement an  
            educational campaign to encourage the use of reusable bags;  
            reimburse the store's costs associated with reusable bag  
            giveaways; and, reimburse the store's costs associated with  
            the purchase of single-use carryout bags that comply with the  
            definitions above. 

          6)The remainder of the fee is to be transmitted to the State  
            Board of Equalization (BOE) to be deposited into the Bag  
            Pollution Fund (Fund).  The Fund shall be spent, upon  
            appropriation by the Legislature, as follows:  

             a)   3% to CIWMB to cover the costs "for administration,  
               collection, enforcement, and auditing requirements."  

             b)   5% to CIWMB to develop and implement programs related to  
               the use of bags and to encourage and support pollution  
               prevention, abatement and cleanup, enforcement, "green  
               chemistry", water quality protection and cleanup, and  
               public education and outreach, in consultation with the  
               California Environmental Protection Agency, the State Water  
               Resources Control Board (SWRCB), and the Department of  
               Toxic Substances Control.  

             c)   The remainder to be allocated by CIWMB as payments to  
               local governments, on a per capita basis, for the following  
               activities to prevent and reduce litter and environmental  
               impacts from bags and to conduct reusable bag giveaways.   
               Clarifies that the funds awarded by CIWMB are only  
               available to local governments that have not banned any  
               single-use bags and that are collecting the fee.  

          7)Requires CIWMB, in consultation with SWRCB, the State Air  
            Resources Board (ARB), the regional water quality control  
            boards, and stakeholders, to report to the Legislature before  
            January 1, 2012, and biennially thereafter, regarding the  
            effectiveness of the bill and to make recommendations to  
            further encourage the use of reusable bags, including  
            expanding the definition of stores included in the bill and  
            increasing the fee.  

          8)Authorizes BOE to adopt rules and regulations related to this  
            bill, including provisions relating to fee collection,  
            reporting, refunds, and appeals.  








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          9) Repeals the January 1, 2013 sunset date on the existing  
            in-store bag recycling program.  

           FISCAL EFFECT  :  Unknown costs to CIWMB to administer grants to  
          local governments, implement source reduction efforts, conduct  
          mitigation projects, and develop reusable bag giveaway programs.  
           These costs should be covered by the fee established by this  
          bill.  

           COMMENTS  :

           1)Background
           
          According to the author, Californians use over 19 billion  
          plastic bags annually (approximately 552 per person), creating  
          over 147,000 tons of waste.  CIWMB staff estimates that only  
          5-6% of plastic materials are recycled in California.  The  
          author also states that paper bags also have negative  
          environmental impacts, including deforestation, air pollution,  
          and excessive energy consumption.  Compostable bags are not a  
          viable alternative.  

          Plastic bags are a significant contributor to litter and marine  
          debris.  Their light weight and expansive nature makes them  
          especially prone to blowing into waterways.  Even when disposed  
          of in the waste stream, these bags pose litter problems as they  
          blow off of trucks and out of solid waste handling operations.   
          According to the USEPA, marine debris has become a serious  
          problem along shorelines, coastal waters, estuaries, and oceans  
          throughout the world.  It is estimated that 60-80% of all marine  
          debris, and 90% of floating debris, is plastic.  Marine debris  
          can be life threatening to marine organisms and can wreak havoc  
          on coastal communities and the fishing industry.  Recent studies  
          by the Algalita Marine Research Foundation and the Southern  
          California Coastal Water Research Project have found that the  
          average mass of plastics in the seawater off the coast of Long  
          Beach is two and a half times greater than the average mass of  
          plankton.  After storms with excessive runoff, the mass of  
          plastics is even greater.  A similar study over seawater 1,000  
          miles west of San Francisco found the mass of plastics was six  
          times the mass of plankton in drifts where marine animals  
          congregate for feeding on plankton.  

          The Ocean Protection Council (OPC) has been at the forefront on  








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          this issue.  In February 2007, OPC adopted a resolution to  
          reduce marine debris, which included specific actions on  
          single-use plastics.  In November 2008, OPC adopted its final  
          implementation strategy for the resolution.   The strategy  
          includes three "priority actions for measurable success:" 1)  
          Implement a take-back program for convenience food packaging;   
          2)  Prohibit single-use products that pose significant ocean  
          littler impacts where a feasible alternative is available;  and,  
          3)  Assess fees on commonly littered items.   Plastic single-use  
          bags are included in action 2; OPC proposes that a fee be added  
          for all single use paper and plastic bags to incentivize people  
          to switch to reusable bags.  OPC goes on to suggest that if a  
          fee does not dramatically reduce the use of bags, a ban should  
          be considered.  

          Los Angeles County has also taken action on this issue by  
          preparing a report, An Overview of Carryout Bags in Los Angeles  
          County, in 2007.   The report included several key findings.   
          Plastic carryout bags have been found to significantly  
          contribute to litter and have other negative impacts on marine  
          wildlife and the environment.  Biodegradable carryout bags are  
          not a practical solution in Los Angeles County as there are no  
          local commercial composting facilities able to process the bags.  
           Reusable bags are more environmentally sustainable than paper  
          and plastic bags.  Accelerating the widespread use of reusable  
          bags will diminish plastic bag litter and redirect environmental  
          preservation efforts and resources toward "greener" activities.

          Reusable bags are the most environmentally benign alternative to  
          plastic bags.  Paper, the most likely replacement for plastic,  
          also has drawbacks, including being more costly for stores and  
          using more energy to produce and recycle.  However, these do  
          degrade when littered and do not pose the threats to marine life  
          that plastic bags do.  Additionally, compostable or degradable  
          plastic bags are not recyclable and contaminate recycling  
          equipment if they are mixed in with conventional plastic bags.   
          Moreover, most degradable bags do not break down in a marine  
          environment.

          While it is anticipated that the fee would reduce the number of  
          bags used in the state significantly, it is worth noting that if  
          the current estimated 19 billion bags continue to be used, the  
          fee would generate $4.75 billion annually.

          In 2006, AB 2449 (Levine), Chapter 845, was enacted, requiring  








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          all stores to establish a plastic bag recycling program.  The  
          stated goal of this legislation was to increase recycling, and  
          to create the infrastructure necessary to collect and recycle  
          plastic bags.  That bill also pre-empted local governments from  
          enacting a per-bag fee on plastic bags.  Local governments have  
          indicated concerns with the pre-emption created by AB 2449,  
          arguing that the fee could be used to discourage bag  
          distribution and fund anti-litter or recycling programs.

           2)This bill 
           
          The author notes that over $375 million is spent annually by  
          California public agencies to address litter cleanup, and bags  
          contribute disproportionately to the litter stream.  Single-use  
          paper and compostable plastic bags are not a solution, as they  
          have significant environmental impacts as well.  

          This bill attempts to dramatically reduce the overall use of  
          disposable bags and instead shift consumers toward the use of  
          reusable bags.  

          Fees do reduce the use of bags.  In 2002, Ireland instituted a  
          fee equivalent to 25 cents, in the first three months the amount  
          of shopping bags used by consumers decreased 90% and raised  
          $3.45 million. After one year the plastic bag use decreased by  
          94% and raised $9.6 million.  In 2007, Ikea instituted a 5 cent  
          fee on bags in the US and achieved a 92% reduction in bag use.   
          Ikea also offers plastic reusable bags for 59 cents.  

           3)Suggested amendments 
           
          Should this bill move forward, the committee may wish to  
          consider the following amendments: 

             a)   This bill allocates 3% to CIWMB to cover administrative  
               costs, but does not allocate any funding to reimburse BOE's  
               costs associated with the collection of the fee.  The  
               committee may wish to adopt amendments to additionally  
               allocate 3% to BOE for administrative costs.

             b)   It is not clear why the ARB is included in the  
               preparation of the report to the Legislature required by  
               Section 42256 as this is not an air-quality issue.  The  
               committee may wish to consider deleting the ARB from this  
               section.  








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           4)Related legislation

              a)   This bill is similar to AB 68 (Brownley), which would  
               also establish a 25 cent fee on single-use carryout bags.   
               AB 68 will also be heard at the April 13th hearing.  

             Both AB 68 and AB 87 are similar to two bills, with the same  
               sponsors, as AB 2058 (Levine) and AB 2928 (Davis)  
               introduced last year.   Assemblymembers Davis and Brownley  
               became joint-authors on AB 2058, which was the only of  
               those bills to pass out of Assembly Natural Resources.  It  
               was held on the Senate Appropriations Suspense File.  

             b)   AB 1141 (Calderon) expands the existing in-store plastic  
               bag recycling program established by AB 2449 (Levine),  
               Chapter 845, Statutes of 2006.   This bill will be heard in  
               this committee on April 20th.  

             c)   SB 228 (DeSaulnier) requires bags labeled "compostable"  
               or "marine degradable" to be readily and easily  
               identifiable to assist in their collection and sorting.   
               This bill has been referred to the Senate Environmental  
               Quality Committee.  

             d)   SB 531 (DeSaulnier) establishes the "Single-Use Carryout  
               Bag Responsibility Act" and requires suppliers of  
               single-use carryout bags (paper and plastic) to remit a fee  
               of $0.001 per bag to the Single-Use Carryout Bag  
               Responsibility Fund to award grants to abate and cleanup  
               bag litter and to encourage the proper disposal and  
               collection of bags.  This bill will be heard in the Senate  
               Environmental Quality Committee on April 20.   

           REGISTERED SUPPORT / OPPOSITION  :

           Support 

           County of Los Angeles (sponsor)
          American Federation of State, County and Municipal Employees
          Breathe California
          California State Association of Counties
          Californians Against Waste 
          City of Glendale
          City of Torrance








                                                                  AB 87
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          Coalition for a Safe Environment Long Beach boardmembers Weeks  
          and Maciel
          earthpins 
          Long Beach Coalition for a Safe Environment
          Los Angeles County Solid Waste Management Committee
          Marin Sanitary Service
          Sierra Club California
          Tamalpais Community Services District



           Opposition 
           
          Cal-Tax
          California Film Extruders & Converters Association
          California Grocers Association
          California Independent Grocers Association
           

          Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092