BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1173 (Huffman)
          
          Hearing Date:  08/17/2009           Amended: 07/23/2009
          Consultant:  Brendan McCarthy   Policy Vote: EQ 4-2














































          AB 1173 (Huffman)
          Page 2


          _________________________________________________________________ 
          ____
          BILL SUMMARY: This bill requires manufacturers and retailers of  
          compact fluorescent light bulbs that receive funding from  
          electricity ratepayers to develop and implement recycling  
          programs for those light bulbs.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           
          Waste Board review and $20        $40         $40       Special  
          *
             Enforcement

          * Integrated Waste Management Account. Fully offset by fees.
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: 
          
          Current law establishes a public goods charge that consumers pay  
          on electricity consumption for cost-effective energy efficiency,  
          renewable energy technologies, and public interest research. In  
          addition, over the next three years, the state's utilities  
          propose to spend about $45 million per year in electricity  
          ratepayer funds to subsidize the cost of compact fluorescent  
          light bulbs (CFLs). While CFLs are more energy efficient than  
          traditional incandescent light bulbs, they also contain mercury  
          and thus are classified as hazardous waste.

          This bill generally requires manufacturers and retailers of CFLs  
          that receive funding from the public goods charge or other  
          ratepayer funds to implement programs to recycle them.

          In order to receive ratepayer funds, manufacturers and retailers  
          must: 1) ensure that their CFLs meet Energy Star or higher  
          efficiency ratings; 2) participate in a recycling program,  
          either individually or collectively; and 3) label their CFLs  
          with information about recycling options. In addition, the bill  
          requires retailers who receive ratepayer funds to operate  
          in-store recycling programs. 

          The bill requires the Integrated Waste Management Board (Waste  







          AB 1173 (Huffman)
          Page 2


          Board) to post on its website a list of manufacturers that are  
          not in compliance with the bill. Retailers would be responsible  
          to monitor the list to ensure that they only sell subsidized  
          CFLs from manufacturers that are in compliance.

          Pursuant to the requirement that manufacturers participate in a  
          recycling program, they are obligated to establish a recycling  
          program that is sufficiently funded, is free and convenient to  
          consumers, and includes education and outreach to consumers.  
          Manufacturers will be required to file annual reports with the  
          Waste Board including specified information on the operation of  
          the recycling program. 

          The Waste Board is required to review the reports and certify  
          that the manufacturers are in compliance with the requirements  
          of the bill. The Waste Board is charged with enforcing the  
          provisions of the bill. The Waste Board is also authorized to  
          establish administrative fees on manufacturers to pay for its  
          costs to review the plans and enforce the requirements of the  
          bill. The Waste Board indicates it will require one half-time  
          position to review annual reports and enforce the provisions of  
          the bill.