BILL ANALYSIS
AB 1173
Page 1
Date of Hearing: April 21, 2009
ASSEMBLY COMMITTEE ON ENVIRONMENTAL SAFETY AND TOXIC MATERIALS
Wesley Chesbro, Chair
AB 1173 (Huffman) - As Amended: February 27, 2009
SUBJECT : Recycling: compact florescent lamps.
SUMMARY : Prohibits the use of energy efficiency investment
fund money for compact florescent lights that do not meet
specified standards or by retailers that do not establish
specified recycling programs. Specifically, this bill :
1)Makes legislative findings, including declaring the intent of
the legislature to establish a system that is free and
convenient for end users, for the recycling of
residentially-generated fluorescent lamps.
2)Prohibits money from energy efficiency investment funds, or
any other funds generated from usage-based charges on
electricity distribution, from being distributed to any entity
for compact fluorescent lamps, unless all of the following
conditions exist:
a) All compact fluorescent lamps purchased are Energy Star
version 4.0 qualified, or the most recent version listed on
the Energy Star Internet Web site, including, but not
limited to, maximum allowable mercury content and a rated
lifetime requirement for compact fluorescent lamps.
b) The manufacturer or distributor of the compact
fluorescent lamps has done either of the following:
i) Implemented a comprehensive recycling program
for compact fluorescent lamps; or,
ii) Agreed to pay an unspecified amount for every
lamp for which funding is received into a compact
fluorescent lamp recycling fund.
3)Prohibits money from energy efficiency investment funds or any
other funds generated from usage-based charges on electricity
distribution from being distributed to a retailer, unless the
retailer has agreed to provide the public with a convenient
in-store collection opportunity for the recycling of compact
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fluorescent lamps.
EXISTING LAW :
1)Under the California Lighting Efficiency and Toxics Reduction
Act (Health and Safety Code 25210.9 and Public Resources Code
25402.5.4. et seq):
a) Prohibits the manufacture, on or after January 1, 2010,
of general purpose lights, as defined, for sale that
contain levels of hazardous substances prohibited in the
European Union (EU) pursuant to the RoHS Directive
("Restriction on the Use of Certain Hazardous Substances in
Electrical and Electronic Equipment" or Directive
2002/95/EC.)
b) Prohibits the sale of general purpose lights, on or
after January 1, 2010, under the following circumstances:
the lights would be prohibited in the EU pursuant to the
RoHS Directive; the manufacturer has not provided specified
information about the lights to the Department of Toxic
Substances Control (DTSC); and the lights are not certified
as being free of levels of hazardous substances that would
prohibit their sale in California.
c) Required DTSC, in coordination with the California
Integrated Waste Management Board (IWMB), to convene a task
force to consider and make recommendations, on or before
September 1, 2008, on the proper collection and recycling
of end-of-life general purpose lights.
d) Required, on or before December 31, 2008, the California
Energy Commission (CEC) to adopt minimum energy efficiency
standards for all general purpose lights. Required the
regulations, along with other programs, to reduce, by 2018,
average statewide electrical energy consumption by not less
than 50 percent from 2007 levels for indoor residential
lighting and by not less than 25 percent from 2007 levels
for indoor commercial and outdoor lighting.
e) Requires the CEC to make recommendations regarding
continual reductions in electrical consumption for lighting
beyond 2018.
f) Authorizes the CEC to establish programs to encourage
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the sale of general purpose lights that meet or exceed
energy efficiency standards.
1)Establishes a Public Goods Charge (PGC) that consumers pay on
electricity consumption for cost-effective energy efficiency,
renewable technologies, and public interest research.
FISCAL EFFECT : Unknown.
COMMENTS :
Purpose : The sponsor of the bill, Californians Against Waste
(CAW), argue that AB 1173 is aimed at substantially reducing
mercury emmmisions from residential florescent lighting through
market-based source reduction and recycling incentives. While
the environmental benefits of using florescent lighting over
incandecent lighting is clear, the current generation of
florescent lighting contains mercury. AB 1173 will directly
motivate manufacturers to reduce mercury in CFLs, while helping
to establish a free and convenient program for consumers to
properly dispose of florescent lighting.
Energy efficiency programs . Under the requirements of AB 1890,
(Brulte) Chapter 854, Statutes of 1996, and reconfirmed in
subsequent legislation, the California Public Utilities
Comission's (CPUC) energy efficiency programs are funded by the
electric PGC and natural gas demand side management (DSM) charge
applied to each customer's bill within each utility's service
territory. These surcharges provide the CPUC and the CEC with a
total of approximately $540 million to fund public purpose
programs.
The CPUC oversees the allocation of these energy efficiency
funds for program implementation to each of the four investor
owned utilities in California: Pacific Gas & Electric (PG&E),
Southern California Edison (SCE), Southern California Gas
Company (SCG), and San Diego Gas & Electric (SDG&E). Every
year, the CPUC approves each utility's plan for efficiency
programs, which the utility then carries out within its service
territory. A number of programs are also coordinated on a
statewide basis.
CFLs and energy efficiency programs . CFLs need a little more
energy when they are first turned on, but then use about 75
percent less energy than incandescent bulbs. According to CAW,
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since 1999, as part of their energy efficiency programs, PG&E,
SDG& E and SCE have funded an upstream lighting incentive
program to provide 'pre-bates' to CFL manufacturers and
distributors in order to buy down the purchase price of CFLs
sold at retail. Last year, the IOUs spent approximately $60
million collectively to buy down the price of an estimated 30
million lamps. The IOUs have proposed spending about $45
million annually to subsidize fluorescent lamp purchases for the
next 3 years.
CAW asserts that the main criteria used by the IOUs to determine
eligibility for these funds have been price. These low-priced
lamps, often imported from the Asia/Pacific region, tend to have
higher levels of mercury and do not last as long as their
counterparts that are manufactured in the United States.
Mercury is an essential part of CFLs because it allows the bulb
to be an efficient light source. Unfortunately, it is also a
neurotoxin.
Due to the trace amount of mercury in CFLs, the lamps are
classified as a hazardous waste and it is illegal for California
households to dispose of them in the trash. Currently, there is
no convenient and cost effective infrastructure in place for
California residents to recycle their lamps. There are only 210
permanent and recycle-only household hazardous waste facilities
in California. Most of these facilities have limited hours and
few locations, which makes it inconvenient for residents to
recycle CFLs.
Since IOUs continue to include substantial subsidies for
fluorescent lamp purchases in their programs, tens of millions
on CFLs will be purchased, installed, and eventually discarded
in California. It is imperative that California develop an
efficient program for collecting and properly recyling spent
lights.
Health effects of mercury exposure. While CFLS are much more
efficient than incandescent bulbs, they do contain a small
amount of mercury sealed within the glass tubing - an average of
4 milligrams. Under the Safe Drinking Water and Toxic
Enforcement Act of 1986 (Proposition 65), mercury and mercury
compounds were listed in 1990 as reproductive toxicants.
According to the US EPA, mercury exposure at high levels can
harm the brain, heart, kidneys, lungs, and immune system of
people of all ages.
AB 1173
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AB 1109 task force : The California Lighting Efficiency and
Toxics Reduction Act (AB 1109, Huffman, Chapter 534, Statutes of
2007) required DTSC, in coordination with the California
Integrated Waste Management Board (CIWMB), to convene a task
force to consider and make recommendations, on or before
September 1, 2008, on methods of collection, recycling,
education, outreach, labeling, and designations for end of life
residential fluorescent lamps, which are considered hazardous
waste upon disposal. Task force recommendations are
incorporated into AB 1173 and the author may wish to examine
additional recommendations for inclusion in the bill to ensure
an effective and efficient recycling program.
Opposition : Stop Hidden Taxes Coalition and the California Tax
Payers' Association argue that, while they applaud the effort to
restrict the use of fee revenue to the recycling of compact
florescent lamps, they oppose the bill because, especially in an
ailing economy, taxpayers are already overburdened. They also
argue that the Legislature should not authorize a fee unless it
knows the amount necessary to cover the costs of the program it
wishes to fund and it specifies the amount of the fee in the
bill.
Comprehensive takeback program : While this bill seeks to
provide a solution to the immediate and rapidly expanding
problem of CFLs, especially those funded by rate payer money, in
the waste stream, the Legislature may wish to consider a
comprehensive program in the future.
Technical amendments : The Committee recommends the following
amendments:
1)Clarify, in Section 42420(a), that the prohibition on the use
of energy efficiency investment funds is limited to the
purchase and distribution of CFLs.
2)Clarify, in Section 42420(a) (1), that covered CFLs must meet
the most recently established version of Energy Star
guidelines for CFLs. Clarify that covered CFLs must not
exceed the maximum allowable levels of mercury and must meet
the rated lifetime requirement as required by the most
recently established Energy Star guidelines.
AB 1173
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3)Clarify, in Section 42420(a) (2) (A), that the recycling
program must be approved by an entity, such as DTSC.
4)Clarify, in Section 42420(a) (2)(B), that the per lamp payment
amount that manufacturers make to the CFL recycling fund shall
be established by an entity, such as DTSC, at a level
sufficient to cover the cost of a florescent light recycling
program.
5)Establish a CFL recycling fund in the State Treasury for the
deposit of payments made pursuant to Section 42420(a) (2)(B).
6)Clarify that Section 42420(b) is limited to energy efficiency
investment funds paid to retailers for compact fluorescent
lighting programs.
Double referral : This bill is double-referred to the Assembly
Utilities and Commerce Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
Californians Against Waste (sponsor)
Opposition
Cal TAX
Stop Hidden Taxes Coalition
Analysis Prepared by : Shannon McKinney / E.S. & T.M. / (916)
319-3965