BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 283
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          Date of Hearing:  April 20, 2009

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Nancy Skinner, Chair
                    AB 283 (Chesbro) - As Amended:  April 13, 2009
           
          SUBJECT  :  Solid waste:  extended producer responsibility

           SUMMARY :  Enacts the California Product Stewardship Act of 2009  
          (Act).  The Act requires the California Integrated Waste  
          Management Board (CIWMB) to administer a program to provide  
          environmentally sound product stewardship protocols to foster  
          "cradle-to-cradle" producer responsibility.  

           EXISTING LAW  : 

          1)Pursuant to the California Integrated Waste Management Act of  
            1989, requires local governments to divert 50% of solid waste  
            generated from landfill disposal through source reduction,  
            reuse, and recycling.  

          2)Establishes the California Oil Recycling Enhancement Act,  
            which requires manufacturers of used oil to pay a fee of 4  
            cents per quart (16 cents per gallon) to CIWMB.  CIWMB then  
            pays a recycling incentive of 4 cents per quart to industrial  
            generators, curbside collection program operators, and  
            certified used oil collection center for used oil collected  
            from the public and transported for recycling.  This Act  
            includes related grants and loans, development and  
            implementation of an information and education program, and a  
            reporting, monitoring, and enforcement program.  

          3)Establishes the Electronic Waste Recycling Act of 2003, which  
            requires a retailer selling a covered electronic device (CED)  
            in California to collect a recycling fee (between $8 and $25)  
            from the consumer.  Fees are deposited into the Electronic  
            Waste Recovery and Recycling Account, which is continually  
            appropriated to CIWMB and the Department of Toxic Substances  
            Control (DTSC) to make electronic waste recovery payments to  
            cover the net cost of an authorized collector in operating a  
            "free and convenient" system for collecting, consolidating,  
            and transporting CEDs, and to make electronic waste recycling  
            payments to cover an electronic waste recycler's average net  
            cost of receiving, processing, and recycling CEDs.  The Act  
            defines CED as a product that contains a video display device  








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            4 inches and larger.  

          4)Establishes the Cell Phone Recycling Act of 2004, which  
            requires every retailer of cell phones to have in place a  
            system for the acceptance and collection of used cell phones  
            for reuse, recycling, or proper disposal.  

          5)Establishes the Rechargeable Batter Recycling Act of 2006,  
            which requires every retailer of rechargeable batteries to  
            have in place a system for the acceptance and collection of  
            used rechargeable batteries for reuse, recycling, or proper  
            disposal.  

          6)Establishes the Mercury Thermostat Collection Act of 2008,  
            which requires manufacturers to establish and maintain a  
            program for out-of-service mercury-added thermostats.   
            Requires the program to include collection, handling, and  
            arranging for appropriate management of out-of-service  
            mercury-added thermostats.   

           THIS BILL  establishes the Act, which: 

          1)Defines terms used in the Act, including: 

             a)   "Cradle-to-cradle design" as an ideal condition where  
               the product is developed for closed-loop systems in which  
               every ingredient is safe and beneficial.  

             b)   "Extended producer responsibility" (EPR) as the  
               extension of the shared responsibility of producers, and  
               all entities involved in the product chain, to reduce  
               cradle-to-cradle impacts of a product and its packaging,  
               with the primary responsibility placed on the producer who  
               makes design and marketing decisions.  

          2)Establishes the EPR Framework Program.  The program is  
            intended to provide sound product stewardship protocols that  
            encourage producers to research alternatives during the  
            product design and packaging phases to foster cradle-to-cradle  
            producer responsibility and reduce the end-of-life  
            environmental impacts.  Requires CIWMB to coordinate with  
            representatives of state and local government, producers,  
            retailers, consumers, transporters, haulers, recyclers,  
            nonprofit organizations, and other interested stakeholders  
            with respect to all regulations adopted.  After holding public  








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            workshops, requires CIWMB to adopt regulations for the program  
            by July 1, 2011.  Requires CIWMB to recommend, in consultation  
            with stakeholders, immediate incentives for producers to  
            stimulate waste reduction, pollution prevention, energy  
            efficiency, and increased use of recycled materials.  Requires  
            CIWMB to recommend long-term incentives to foster  
            environmental product design to reduce waste and use of  
            hazardous materials, to reward businesses for superior  
            environmental performance, and for investments that support  
            longer term strengthening of recycled materials markets.   

          3)Requires CIWMB to establish penalties for violations of the  
            Act. 

          4)Clarifies that actions taken under the Act do not interfere  
            with existing efforts of the Department of Toxic Substances  
            Control (DTSC) relating to green chemistry; the California  
            Energy Commission relating to energy efficiency; the Air  
            Resources Board relating to climate change; the State Water  
            Resources Board relating to water quality; the Ocean  
            Protection Council relating to marine debris; the Department  
            of Conservation relating to the Bottle Bill; and, CIWMB  
            relating to Rigid Plastic Packaging Containers.  

          5)Beginning January 1, 2012 and in consultation with  
            stakeholders in public workshops, authorizes CIWMB to select  
            covered products according to specified requirements,  
            including: 

             a)   Products that pose a significant threat to public health  
               and safety when discarded; 

             b)   Products that pose a threat of increased greenhouse gas  
               emissions; and, 

             c)   Products that impose significant end-of-life management  
               costs on state or local government.  

          6)Requires CIWMB to consider numerous factors when selecting  
            products, including whether or not there is an existing  
            product stewardship or other regulatory system for the  
            product. 

          7)Specifies that all products banned from landfill disposal  
            (generally pursuant to a determination by DTSC that the  








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            product is hazardous) shall be managed under a product  
            stewardship program within one year.  

          8)In the selection process, requires CIWMB to take specified  
            actions, including: 

             a)   Select and define a covered product, which may include  
               historic or orphan products; 

             b)   Determine whether the packaging for a product will be  
               included; and, 

             c)   Establish implementation dates, performance goals, and  
               timeframes. 

          9)Beginning July 1, 2012, prohibits the sale of a covered  
            product unless the producer is in compliance with the Act.   
            The producer must:

             a)   Submit a product stewardship plan or participation in a  
               stewardship organization; 

             b)   Collect the individual covered product for recycling,  
               when appropriate; 

             c)   Provide for collection services without charging a fee  
               at the time of collection; and, 

             d)   Pay administrative and operational costs associated with  
               the Act.  

          10)Establishes requirements for the product stewardship plan and  
            requires the plan to be submitted by the producer to CIWMB  
            within 180 days of the selection of the product.   Requires  
            plan revision every 4 years.  

          11)Beginning June 30, 2012, and annually thereafter, requires  
            producers and stewardship organizations operating under the  
            Act to submit a report to CIWMB, which includes status of  
            meeting performance goals, a description of outreach and  
            education activities, and actions undertaken to manage and  
            reduce the life-cycle impacts of the covered product.  

          12)Establishes the Extended Producer Responsibility Account  
            (Account) and the Extended Producer Responsibility Penalty  








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            Subaccount (Subaccount) in the Integrated Waste Management  
            Fund.  

             a)   Requires producers subject to the Act to submit an  
               administrative fee to CIWMB to cover administrative costs  
               to be deposited into the Account.  

             b)   Requires all penalties collected under the Act to be  
               deposited into the Subaccount, which may be expended by  
               CIWMB to cover costs of implementing the Act.  

             c)   Specifies that the Account and Subaccount may be  
               expended by CIWMB for incentives to enhance recyclability  
               and redesign efforts and to reduce environmental and safety  
               impacts of covered products.  

          13)Establishes civil liability of up to $50,000 for violations  
            of the Act.  

           FISCAL EFFECT  :  Unknown

           COMMENTS  :

           1)Background 

           Expanded producer responsibility is a strategy to "close the  
          loop" by placing primary responsibility for life cycle  
          management on producers.  This approach is similar to that being  
          pursued for "green chemistry" in California.   In September  
          2007, CIWMB adopted an EPR Framework as an overall policy  
          priority and committed to seek statutory authority.   Prior to  
          adopting the Framework, CIWMB conducted a stakeholder workshop  
          on EPR.  The Framework was adopted by CIWMB in a public board  
          meeting, which included comments from stakeholders and the  
          public. 

          EPR is helpful in addressing recycling and waste reduction; it  
          also addresses another pressing concerns.  DTSC routinely tests  
          products for toxicity to determine if the product is "hazardous"  
          and therefore prohibited from landfill disposal.  However, there  
          is no system in place for the management of these products (or  
          the toxins they include).  

           2)This bill 









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           According to the author, AB 283 proposes a comprehensive EPR  
          framework, which would establish one law to address a wide range  
          of products that end up in California landfills and have a  
          significant impact on our environment.   The author states "By  
          having producers share in the costs of managing product  
          discards, EPR harnesses the power of the free market to drive  
          environmental improvement."   This bill is modeled after the  
          CIWMB EPR Framework.  
           
          3)Arguments in support 

           Supporters of AB 283 include environmental groups and local  
          governments.  According to the League of California Cities,  
          cities and counties spend upwards of $500 million annually to  
          manage products disposed in landfills and those banned from  
          landfill disposal, which is ultimately passed on to ratepayers.   
          This bill would alleviate some of those costs by shifting the  
          responsibility for end-of-life management of products back to  
          the manufacturer.  

          This bill would alleviate the need for product-by-product  
          legislation.  Such legislation, while helpful in managing  
          specific products, has created numerous programs with little  
          consistency.  Many of the existing programs (including  
          electronic waste and used oil) include the collection of  
          separate fees by different entities, creating significant  
          administrative duties for the state.  This bill would alleviate  
          the need for separate programs and would instead create a  
          framework under which CIWMB can administer one program for a  
          variety of products.   
           
          4)Arguments in opposition 

           Opponents of the bill (including business organizations and  
          product manufacturers) argue that this bill grants broad  
          regulatory authority to CIWMB to select products with public  
          involvement limited to a minimum of one public workshop.  (The  
          Committee should note that the products are required to be added  
          at a public board meeting, which would be in addition to the  
          workshop.)   Opponents also state that the product selection  
          process is so broad that virtually any product could be  
          included, and that the bill would increase costs for businesses  
          and consumers.   Additionally, according to opponents, this bill  
          does not specify that products already being recycled in high  
          percentages at curbside or that are already subject to a product  








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          management program (such as e-waste) are excluded from the Act,  
          which may create duplicative requirements.  

           5)Suggested amendment

           This bill does not currently exempt products with an existing  
          product stewardship or recycling regulatory program.  In order  
          to insure that this bill applies to products that lack such a  
          program,  the committee may wish to adopt amendments specifically  
          exempting products for which a product stewardship or other  
          life-cycle management regulatory system exist  , such as those  
          listed under Existing Law.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          American Federation of State, County and Municipal Employees,  
          AFL-CIO
          California Association of Environmental Health Administrators
          Californians Against Waste
          California Association of Environmental Health Administrators
          California Product Stewardship Council
          California Resource Recovery Association
          California Senior Legislature
          California State Association of Counties
          City and County of San Francisco
          City of Chula Vista
          City of Cupertino
          City of Fremont
          City of Lathrop
          City of Napa
          City of Santa Cruz
          City of Stockton
          City of Sunnyvale
          City of Union City
          City of Torrance
          Clean Water Action
          County of San Joaquin
          Defenders of Wildlife
          Del Norte Solid Waste Management Authority
          Environment California
          Green Shanga
          Heal the Bay
          Humboldt Waste Management








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          League of California Cities 
          Long Beach Organic
          Marin County Board of Supervisors
          Marin County Hazardous & Solid Waste Management Joint Powers  
          Authority
          Marin Sanitary Service
          Napa County
          Planning and Conservation League
          Regional Council of Rural Counties
          San Diego Coastkeeper
          Santa Clara Valley Water District
          Sierra Club California
          Santa Monica Baykeeper
          SLV Redemption/Recycling Centers
          Solano County Board of Supervisors
          Solid Waste Association of North America
          Sonoma County Waste Management Agency
          Tamalpais Community Services District
          TDC Environmental
          7th Generation Advisors

           Opposition 
           
          American Chemistry Council
          AstraZeneca
          BIOCOM
          California Chamber of Commerce
          California Council for Environmental and Economic Balance
          California Film Extruders and Converters Association
          California Grocers Association
          California Healthcare Institute
          California League of Food Processors
          California Manufacturers & Technology Association
          California Paint Council
          Cal-Tax
          Family Winemakers of California
          Glass Packaging Institute
          Grocery Manufacturers Association
          Information Technology Industry Council
          Lassen Regional Solid Waste Management Authority
          National Paint and Coatings Association
          Pactive Corporation
          Pharmaceutical Research and Manufacturers of America
          Soap and Detergent Association
          TechAmerica








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          Western States Petroleum Association

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