BILL NUMBER: AB 1173	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 23, 2009
	AMENDED IN SENATE  JUNE 29, 2009
	AMENDED IN ASSEMBLY  MAY 5, 2009

INTRODUCED BY   Assembly Member Huffman
   (Coauthors: Assembly Members Portantino and Torlakson)
   (Coauthor: Senator DeSaulnier)

                        FEBRUARY 27, 2009

   An act to add Chapter 7.3 (commencing with Section 42420) to Part
3 of Division 30 of the Public Resources Code, relating to recycling
 , and making an appropriation therefor  .


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1173, as amended, Huffman. Recycling: residential fluorescent
lamps.
   The California Lighting Efficiency and Toxics Reduction Act
prohibits, on and after January 1, 2010, except for certain specified
circumstances, a person from manufacturing, selling, or offering for
sale in the state specified general purpose lights that contain
levels of hazardous substances prohibited by the European Union
pursuant to the RoHS Directive, as specified.
   The California Integrated Waste Management Act of 1989,
administered by the California Integrated Waste Management Board, is
required to reduce, recycle, and reuse solid waste generated in the
state to the maximum extent feasible in an efficient, cost-effective
manner to conserve water, energy, and other natural resources.
   This bill would prohibit the distribution of moneys from energy
efficiency investment funds or any other funds generated from
usage-based charges on electricity distribution that are provided by
California's retail sellers of electricity to any entity for the
purchase and distribution of compact fluorescent lamps, unless the
compact fluorescent lamps meet certain specifications, and the
manufacturer of the compact fluorescent lamps  has either
 , individually or collectively  with other
manufacturers or through a stewardship organization  ,  has
 implemented a residential fluorescent lamp recycling program
 or the manufacturer or distributor has agreed to pay an
amount, as specified,  for each residential fluorescent
lamp, as defined, sold in this state  for which funding is
received into the Fluorescent Lamp Recycling Fund   .
The bill would require the board, on July 1, 2010, and semiannually
thereafter, to post on its Internet Web site a notice listing
manufacturers that do not meet the above requirements  . The
bill would prohibit the distribution of moneys from funds generated
from usage-based charges on electricity distribution that are
provided by California's retail sellers of electricity to a retailer,
unless the retailer has agreed to provide the public an in-store
collection opportunity for the recycling of residential fluorescent
lamps.
   The bill would require the manufacturers of residential
fluorescent lamps sold in this state  to   ,
 individually or collectively  submit to the board
  with other manufacturers or through a stewardship
organization, to develop and maintain  a residential fluorescent
lamp recycling  plan   program containing
specified elements  within 90 days of receiving the funds
generated from usage-based charges.  The residential
fluorescent lamp recycling program described in the plan would be
required to contain certain elements and be implemented no later than
2 months after board approval or plan adoption.   The
bill would require a manufacturer, individually or collectively with
other manufacturers or through a stewardship organization, to submit
an annual report on the implementation of the residential fluorescent
lamp recycling program.  The bill would require the board to
establish an administrative fee to be paid by the manufacturers to
cover the cost of reviewing and approving the  plans
  annual report  and of oversight and enforcement
of the program. 
   This bill would establish the Residential Fluorescent Lamp
Recycling Fund in the State Treasury, as a continuously appropriated
fund thereby making an appropriation. The bill would require the
board to administer the fund and use the moneys to fund the
activities of a nonprofit public benefit corporation established by
persons designated by the board. The nonprofit public benefit
corporation would be required to engage in several activities,
including, but not limited to, organizing convenient and free
collection opportunities for residential fluorescent lamps, providing
compensation for the collection and recycling of residential
fluorescent lamps by approved collectors and recyclers, and
conducting consumer and retailer education and outreach efforts.

   Vote: majority. Appropriation:  yes   no
 . Fiscal committee: yes. State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  This act shall be known, and may be cited, as the
California Fluorescent Lamp Toxics Reduction and Recycling Act.
  SEC. 2.  (a) The Legislature finds and declares all of the
following:
   (1) California policy, including the California Lighting
Efficiency and Toxics Reduction Act (Chapter 534 of the Statutes of
2007), has put California on a path of transition from incandescent
lamps to more energy-efficient lighting, including substantially
increased utilization of fluorescent lighting.
   (2) Many existing lighting choices contain toxic materials. Most
fluorescent lighting products contain mercury. Most incandescent
lighting products contain lead. California prohibits disposing of
lighting products containing hazardous levels of metal in the solid
waste stream. The hazardous material in waste lighting products can
be reduced and managed through recycling, but recycling opportunities
are currently inconvenient or nonexistent for most consumers.
   (3) Fluorescent lighting products delivering the same level of
light at the same level of efficiency can have varying levels of
mercury. The Department of General Services has adopted a procurement
preference favoring low-mercury fluorescent lamps.
   (4) In 2007, the Legislature enacted the California Lighting
Efficiency and Toxics Reduction Act (Chapter 534 of the Statutes of
2007), which directed the Department of Toxic Substances Control
(DTSC) to convene a lighting task force to consider and make policy
recommendations to the Legislature for designing a statewide
collection program for end-of-life fluorescent lights. On September
1, 2008, the task force submitted recommendations to the Legislature
on the need and options for a convenient statewide system for the
collection and recycling of fluorescent lamps for residential
generators.
   (b) It is the intent of the Legislature to have an established
system for the recycling of residential generated fluorescent lamps
that is free and convenient for end users.
  SEC. 3.  Chapter 7.3 (commencing with Section 42420) is added to
Part 3 of Division 30 of the Public Resources Code, to read:
      CHAPTER 7.3.  FLUORESCENT LAMPS


   42420.  For the purposes of this chapter, the following terms have
the following meanings:
   (a) "Consumer" means a purchaser or owner of residential
fluorescent lamps, excluding a business, corporation, limited
partnership, nonprofit organization, or governmental entity.
   (b) "Distributor" means a person that has a contractual
relationship with one or more manufacturers to market and sell
fluorescent lamps to retailers.
   (c) "Manufacturer" means any person who, on or after the effective
date of this act, and regardless of the selling technique used,
including by means of remote sale, does one or more of the following:

   (1) Manufactures fluorescent lamps under its own brand for sale in
this state.
   (2) Manufactures fluorescent lamps for sale in this state without
affixing a brand.
   (3) Resells in this state fluorescent lamps produced by other
suppliers under its own brand or label.
   (4) Imports or exports fluorescent lamps into the United States
that are sold in this state. If a company from which an importer
purchases the merchandise has a United States presence, assets, or
both, that company, and not the importer, shall be deemed to be the
manufacturer.
   (d) "Residential fluorescent lamps" means compact fluorescent
lamps and any other fluorescent lamp intended for household use. 
   (e) "Residential fluorescent lamp recycling program" means a
system for the collection, transportation, recycling, and proper
disposal of fluorescent lamps that is financed, as well as managed or
provided, by a manufacturer individually, collectively with other
manufacturers, or through a stewardship organization.  
   (e) 
    (f)  "Retailer" means a person that sells 
subsidized  fluorescent lamps  intended for residential use
 in the state to a consumer. A sale includes, but is not limited
to, transactions conducted through sales outlets, catalogs, or the
Internet or any other similar electronic means. 
   (f) "Program" means a system for the collection, transportation,
processing, and disposal of fluorescent lamps that is financed, as
well as managed or provided, by a manufacturer or collectively with
other manufacturers.  
   (g) "Stewardship organization" means a nonprofit organization that
implements and administers the residential fluorescent lamp
recycling program. 
   42421.  (a)  (1)    Moneys from funds generated
from usage-based charges on electricity distribution, including, but
not limited to, energy efficiency investment funds, that are provided
by California's retail sellers of electricity, as defined in
subdivision (g) of Section 399.12 of the Public Utilities Code, shall
not be distributed to any entity for the purchase and distribution
of compact fluorescent lamps, unless all of the following conditions
exist: 
   (1) 
    (A)  All compact fluorescent lamps purchased are
qualified as the most recent ENERGY STAR version listed on the ENERGY
STAR Internet Web site, except that if the  California
Environmental Protection Agency   Department of Toxic
Substances Control  establishes standards on mercury levels
 , energy efficiency, and lamp life  that are more
stringent than ENERGY STAR for compact fluorescent lamps, the compact
fluorescent lamps purchased are required to meet the 
California Environmental Protection Agency   Department
of Toxic Substances Control  standards. 
   (2) One of the following requirements are met:  
   (A) The manufacturer, individually or collectively with other
manufacturers, is implementing a board-approved comprehensive

    (B)     The manufacturer, individually
collectively with other manufacturers or through a stewardship
organization, establishes and maintains a comprehensive 
residential fluorescent lamp recycling program to manage end-of-life
residential fluorescent lamps in an environmentally sound fashion,
including collection, transportation, processing, and disposal.

   (B) A manufacturer or distributor not covered by a program
implemented pursuant to subparagraph (A) is paying an amount
established pursuant to Section 42424, for each residential
fluorescent lamp sold in this state for which funding is received
into the Residential Fluorescent Lamp Recycling Fund established
pursuant to Section 42424.  
   (3) 
    (C)  Packaging for the subsidized compact fluorescent
lamps sold in this state shall have a label  , approved by
the board,  informing consumers that disposing of
fluorescent lamps in the solid waste stream is prohibited and
providing access to information on opportunities for proper
recycling. 
   (2) The manufacturer, individually or collectively with other
manufacturers through or a stewardship organization, may contract
with a retailer for in-store or out-of-store collection of
end-of-life residential fluorescent lamps.  
   (3) The prohibition in paragraph (1) shall be effective on the
120th day after the notice described in subdivision (d) listing a
manufacturer is posted on the board's Internet Web site and shall
remain in effect until the manufacturer is no longer listed on the
board's Internet Web site or the manufacturer has obtained a
certification letter pursuant to subdivision (e). 
   (b) Moneys from funds generated from usage-based charges on
electricity distribution, including, but not limited to, energy
efficiency investment funds, that are provided by California's retail
sellers of electricity, as defined in subdivision (g) of Section
399.12 of the Public Utilities Code, shall not be distributed to a
retailer for a residential fluorescent lamp program, unless the
retailer has agreed to provide the public with a convenient in-store
collection opportunity for the recycling of residential fluorescent
lamps. 
   (c) The board shall work with manufacturers, distributors,
retailers, and other stakeholders to develop a uniform label that can
be affixed or displayed on subsidized compact fluorescent lamps sold
in this state to meet the requirements of paragraph (3) of
subdivision (a).  
   (c) On July 1, 2010, and semiannually thereafter, the board shall
post on its Internet Web site a notice listing manufacturers that are
not in compliance with conditions set forth in paragraph (1) of
subdivision (a).  
   (d) Manufacturers that have been listed pursuant to subdivision
(d), but can demonstrate to the satisfaction of the board that they
are in compliance with conditions set forth in paragraph (1) of
subdivision (a) may request a certification letter from the board to
that effect. The letter shall constitute compliance with those
conditions.  
   (e) A retailer shall monitor the board's Internet Web site to
determine if the sale of a manufacturer's subsidized compact
fluorescent lamps is in compliance with this article. 
   42422.  (a) To meet the requirement of  subparagraph (A)
of  paragraph (2) of subdivision (a) of Section 42421, a
manufacturer of residential fluorescent lamps sold in this state
shall, individually  or collectively with other
manufacturers, submit a residential fluorescent lamp recycling plan
in accordance with this section to the board within 90 days of
receiving funds generated from   or collectively with
other manufacturers or through a stewardship organization, establish
and maintain a residential fluorescent lamp recycling program in
accordance with this section within   90 days of receiving
funds generated from  usage-based charges on electricity
distribution. 
   (b) The plan shall demonstrate sufficient funding for the
residential fluorescent lamp recycling program, as described in the
plan.  
   (b) The program shall demonstrate sufficient funding. 
   (c) The  plan   program  shall be free
and convenient to all consumers. 
   (d) The plan shall address the coordination of the residential
fluorescent lamp recycling program with local household hazardous
waste programs, including contracting for the costs for residential
fluorescent lamps collected by the household hazardous waste
programs, where practical.  
   (e) The plan shall include consumer and retail education and
outreach efforts to promote the source reduction and recycling of
residential fluorescent lamps. Manufacturers may organize and
coordinate education and outreach efforts with retail sellers of
electricity. Education and outreach efforts may include, but are not
limited to, developing, and updating as necessary, educational and
other outreach materials aimed at retailers of residential
fluorescent lamps. Those materials shall be made available to the
retailers. The materials may include, but are not limited to, one
 
   (d) The program shall include education and outreach efforts to
promote the proper management of end-of-life fluorescent lamps.
Education and outreach efforts may include, but are not limited to,
any of the following: 
    (1)     Developing and updating as
necessary, educational and other outreach materials aimed at
retailers of residential fluorescent lamps. Those materials shall be
made available to the retailers. The materials may include, but are
not limited to, one  or more of the following: 
   (1) 
    (A)  Signage that is prominently displayed and easily
visible to the consumer. 
   (2) 
    (B)  Written materials and templates of materials for
reproduction by retailers to be provided to the consumer at the time
of purchase or delivery, or both. Written materials shall include
information on the prohibition of improper disposal of residential
fluorescent lamps  and recycling opportunities  . 
   (3) 
    (C)  Advertising or other promotional materials, or
both, that include references to residential fluorescent lamp
recycling opportunities. 
   (f) Two months after a plan is approved by the board or adopted
pursuant to subdivision (a) of Section 42423, whichever is later, a
manufacturer shall implement the residential fluorescent lamp
recycling program described in the approved or adopted plan.
 
   (g) Within one year of implementing an approved or adopted plan,
and each year thereafter, a manufacturer of fluorescent lamps sold in
this state shall, individually or collectively with other
manufacturers, submit a report to the board describing its
residential fluorescent lamp recovery efforts.  
   (2) Strategizing with retail sellers of electricity to encourage
their participation in the collection and proper management of
end-of-life fluorescent lamps. These strategies may include the
inclusion of an educational insert in their customers' utility bills.
 
   (3) Encourage in-store collection by retailers and other outlets.
 
   (e) Within one year of implementing a residential fluorescent lamp
recycling program, and annually thereafter, a manufacturer of
residential fluorescent lamps, individually, collectively with other
manufacturers or through a stewardship organization, shall submit an
annual report to the board describing its residential fluorescent
lamp recovery efforts. The report shall be posted on the manufacturer'
s Internet Web site. The annual report shall include all of the
following:  
   (1) A list of all manufacturers participating in the program.
 
   (2) The total number of end-of-life fluorescent lamps collected in
California during the previous year.  
   (3) A complete listing of all participating collection sites.
 
   (4) A description of the methods used to collect, transport,
recycle, and dispose of end-of-life fluorescent lamps.  
   (5) A description of the outreach strategies employed to increase
participation and collection rates.  
   (6) Examples of the outreach and educational materials used. 

   (7) The total cost of implementing the residential fluorescent
lamp recycling program by the following categories:  
   (A) Outreach and education.  
   (B) Administration.  
   (C) Collection, transportation, recycling, and disposal. 

   42423.  (a) The board shall review and approve the residential
fluorescent lamp recycling plan within 90 days of receipt. A plan not
acted upon by the board within 90 days shall be deemed adopted.


   (b) 
    42423.   (a)    The board shall review
the annual report required pursuant to Section 42422 and within 90
days of receipt shall adopt a finding of compliance or noncompliance
with the provisions of this act. 
   (c) 
    (b)  The board shall enforce this chapter. 
   (d) 
    (c)  The board shall establish administrative fees to be
paid by manufacturers to cover the cost of reviewing and approving
 plans   the annual report  and the cost of
oversight and enforcement of the residential fluorescent lamp
recycling program. 
   42424.  (a) The initial amount to be collected from a manufacturer
and distributor of residential fluorescent lamps pursuant to
subparagraph (B) of paragraph (2) of subdivision (a) of Section 42421
shall be five million dollars ($5,000,000) divided by the total
number of fluorescent lamps for which energy efficiency investment
funds were paid in 2008, paid in equal shares.
   (b) On and after January 1, 2011, the amount to be collected from
a manufacturer or distributor of residential fluorescent lamps
pursuant to subparagraph (B) of paragraph (2) of subdivision (a) of
Section 42421 shall be the total amount of funds projected to be
needed to make the payments pursuant to subdivision (d), and the
amount needed to cover the costs of implementing a successful
residential fluorescent lamp recycling program pursuant to Section
42425, divided by the total number of fluorescent lamps for which
energy efficiency investment funds were paid in the previous year,
paid in equal shares. The total amount collected shall not exceed 10
million dollars ($10,000,000).
   (c) (1) Any amount collected from a manufacturer or distributor of
residential fluorescent lamps pursuant to subparagraph (B) of
paragraph (2) of subdivision (a) of Section 42421 shall be deposited
into the Residential Fluorescent Lamp Recycling Fund which is hereby
created in the State Treasury.
   (2) Notwithstanding Section 13340 of the Government Code, the
money in the fund is hereby continuously appropriated to the board
for the purposes of carrying out this chapter.
   (d) Moneys in the fund shall be used to make payments to
retailer-based collectors, local governments, and other approved
collectors and recyclers of residential fluorescent lamps generated
by households in this state.
   (e) The amount of payments established pursuant to this section
shall be at a level sufficient to cover the average cost of
collecting and properly recycling residentially generated fluorescent
lamps and to encourage public, private, and nonprofit entities to
establish convenient locations for that collection.
   (f) The amount of the payments established pursuant to
subparagraph (B) of paragraph (2) of subdivision (a) of Section 42421
shall be at a level necessary to provide sufficient funds for the
requirements of this section and Section 42425.  
   42425.  (a) (1) The board shall designate persons to establish a
non-profit public benefit corporation. The corporation shall be
solely responsible for managing a cost-efficient and environmentally
sound collection, transportation, processing, and disposal system for
residential fluorescent lamps.
   (2) The corporation shall be funded by the board using moneys from
the Residential Fluorescent Lamp Recycling Fund.
   (b) Specific responsibilities of the corporation shall include,
but are not limited to, the following:
   (1) Organizing, administering, and ensuring that residential
fluorescent lamp collection opportunities are available and provided
in a manner that is free and convenient to all consumers.
   (2) Encouraging the use of existing collection and consolidation
infrastructures for handling residential fluorescent lamps to the
extent that the infrastructure is accessible on a regular and ongoing
basis, is cost effective, and meets environmentally sound management
requirements.
   (3) Providing compensation for the collection and recycling of
residential fluorescent lamps, by approved collectors and recyclers
whether by local government, for-profit corporations, nonprofit
corporations, retailers, manufacturers, or any other party, for the
reasonable costs associated with these activities.
   (4) (A) Conducting consumer and retailer education and outreach
efforts to promote the source reduction and recycling of residential
fluorescent lamps. The corporation may organize and coordinate
education and outreach efforts with retail sellers of electricity.
   (B) Education and outreach efforts may include, but are not
limited to, developing, and updating as necessary, educational and
other outreach materials aimed at retailers of residential
fluorescent lamps. Those materials shall be made available to the
retailers and may include, but are not limited to, one or more of the
following:
   (i) Signage that is prominently displayed and easily visible to
the consumer.
   (ii) Written materials and templates of materials for reproduction
by retailers to be provided to the consumer at the time of purchase
or delivery, or both. Written materials shall include information on
the prohibition of improper disposal of residential fluorescent
lamps.
   (iii) Advertising or other promotional materials, or both, that
include references to residential fluorescent lamp recycling
opportunities.
   (5) Submitting a report to the board annually on the
implementation of the system during the previous calendar year. The
report shall be posted on the corporation's Internet Web site and
shall include all of the following:
   (A) A list of all manufacturers participating in the system and
the total amount collected.
   (B) A list of all parties participating in the system whom the
corporation has designated as approved to receive payments, the
amount of payments it has made to those parties, and the purpose of
those payments.
   (C) The total number of residential fluorescent lamps collected
the previous year.
   (D) A summary of funds expended by the following categories:
   (i) Education.
   (ii) Administration.
   (iii) Collection.
   (iv) Transportation.
   (v) Recycling.
   (vi) Disposal.
   (vii) Other.
   (E) Any surplus funds carried forward.
   (F) A complete listing of all collection sites and the amount of
material collected at each site.
   (6) Maintaining an Internet Web site with up-to-date listings of
where consumers can bring residential fluorescent lamps for
recycling.