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.