BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 1173| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 1173 Author: Huffman (D), et al Amended: 7/23/09 in Senate Vote: 21 SENATE ENV. QUALITY COMMITTEE : 4-2, 7/6/09 AYES: Simitian, Corbett, Lowenthal, Pavley NOES: Runner, Ashburn NO VOTE RECORDED: Hancock SENATE APPROPRIATIONS COMMITTEE : 7-5, 8/17/09 AYES: Kehoe, Corbett, Leno, Oropeza, Price, Wolk, Yee NOES: Cox, Denham, Runner, Walters, Wyland NO VOTE RECORDED: Hancock ASSEMBLY FLOOR : 51-25, 6/2/09 - See last page for vote SUBJECT : Recycling: residential fluorescent lamps SOURCE : Californians Against Waste DIGEST : 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. ANALYSIS : Existing law, under the California Lighting Efficiency and Toxics Reduction Act (Health and Safety Code 25210.9 and Public Resources Code 25402.5.4. et seq): CONTINUED AB 1173 Page 2 1.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 pursuant to the RoHS Directive ("Restriction on the Use of Certain Hazardous Substances in Electrical and Electronic Equipment" or Directive 2002/95/EC.). 2.Prohibits the sale of general purpose lights, on or after January 1, 2010, under the following circumstances: the lights would be prohibited in the European Union pursuant to the RoHS Directive; the manufacturer has not provided specified information about the lights to the Department of Toxic Substances Control; and the lights are not certified as being free of levels of hazardous substances that would prohibit their sale in California. 3.Requires the Department of Toxic Substances Control, 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. 4.Requires, on or before December 31, 2008, the California Energy Commission to adopt minimum energy efficiency standards for all general purpose lights. Required the regulations, along with other programs, to reduce, by 2018, from 2007 levels for indoor residential lighting and by not less than 25% from 2007 levels for indoor commercial and outdoor lighting. 5.Authorizes the California Energy Commission to establish programs to encourage the sale of general purpose lights that meet or exceed energy efficiency standards. 6.Establishes a Public Goods Charge that consumers pay on electricity consumption for cost-effective energy efficiency, renewable technologies, and public interest research. 7.Establishes the Mercury Thermostat Collection Act of 2008 that sets forth a program for manufacturers of mercury-containing thermostats to manage the waste AB 1173 Page 3 thermostats. (Health and Safety Code 25214.8.10 et seq.). This bill: 1. Defines terms for the purposes of this chapter, including: 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 as described. 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. F. "Stewardship organization" means a nonprofit organization that implements and administers the residential fluorescent lamp recycling program. 2. Prohibits 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 AB 1173 Page 4 Public Utilities Code, from being distributed to any entity for the purchase and distribution of compact fluorescent lamps, unless all of the following conditions exist: 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 Department of Toxic Substances Control (DTSC) 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 DTSC standards. 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. C. Packaging for the subsidized compact fluorescent lamps sold in this state shall have a label, informing consumers that disposing of fluorescent lamps in the solid waste stream is prohibited and providing access to information on opportunities for proper recycling. 3. Prohibits 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, from being 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. 4. Requires the IWMB to, on July 1, 2010, and semiannually thereafter, post on its Internet Web site a notice AB 1173 Page 5 listing manufacturers that are not in compliance with conditions set forth in this bill. 5. Requires a manufacturer of residential fluorescent lamps sold in California to, individually or collectively with other manufacturers, or through a stewardship organization to establish and maintain a residential fluorescent lamp recycling plan to the IWMB within 90 days of receiving funds generated from usage-based charges on electricity distribution. The plan shall: A. Demonstrate sufficient funding for the residential fluorescent lamp recycling program and be free and convenient to all consumers. B. 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: o Signage that is prominently displayed and easily visible to the consumer. o 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. o Advertising or other promotional materials, or both, that include references to residential fluorescent lamp recycling opportunities. AB 1173 Page 6 A. 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. B. Encourage in-store collection by retailers and other outlets. 1. Requires a manufacturer of residential florescent lamps, within one year of implementing a residential fluorescent lamp recycling program, and annually thereafter to 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: A. A list of all manufacturers participating in the program. B. The total number of end-of-life fluorescent lamps collected in California during the previous year. C. A complete listing of all participating collection sites. D. A description of the methods used to collect, transport, recycle, and dispose of end-of-life fluorescent lamps. E. A description of the outreach strategies employed to increase participation and collection rates. F. Examples of the outreach and educational materials used. G. The total cost of implementing the residential fluorescent lamp recycling program by the following categories: (1) Outreach and education. (2) Administration. (3) Collection, transportation, recycling, and disposal. AB 1173 Page 7 1. Requires, within one year of implementing a plan, and each year thereafter, a manufacturer shall, individually or collectively with other manufacturers, submit a report to the IWMB describing its residential fluorescent lamp recovery efforts. 2. Requires the IWMB to review the annual report and within 90 days of receipt shall adopt a finding of compliance or noncompliance with the provisions of this act. 3. Requires the IWMB to enforce this chapter. 4. Requires the IWMB to establish administrative fees to be paid by manufacturers to cover the cost of reviewing and approving plans and the cost of oversight and enforcement of the chapter. 5. Requires the initial amount to be collected from a manufacturer and distributor of residential fluorescent lamps, who are not submitting a plan, 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. Comments According to the author's office, due to the presence of mercury in compact florescent lights, the lamps are classified as hazardous waste when discarded and their disposal in the trash is prohibited. Mercury is an essential part of fluorescent lamps because it allows the bulb to be an efficient light source. Unfortunately, mercury is also a neurotoxin, affecting the brain and nervous system. It accumulates up the food chain and humans are exposed to mercury mainly through eating fish and shellfish. 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 AB 1173 Page 8 inconvenient for residents to recycle fluorescent lamps. Californians likely generated about 10 million 'end-of-life' compact florescent lights in 2008. That number is expected to grow over the next several years: 15 million in 2009, 30 million in 2012 and up to 45 million by 2015 and beyond. Due to insufficient awareness and opportunity, the current recycling rate for compact florescent lights appears to be less than 10 percent. End-of-life lamps have virtually no value, so the collection, recycling and mercury recovery of these lamps represent a cost. With little economy of scale or efficiency, that cost is in the range of 35 cent to as much as $1 dollar per lamp recycled. FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee: Fiscal Impact (in thousands) Major Provisions 2009-10 2010-11 2011-12 Fund Waste Board Review and Enforcement $20 $40 $40 Special* * Integrated Waste Management Account (fully offset by fees). SUPPORT : (Verified 8/19/09) Californians Against Waste (source) California Refuse Recycling Council City of Sebastopol San Luis Obispo County Integrated Waste Management Authority TURN OPPOSITION : (Verified 8/19/09) California Taxpayers' Association City and County of San Francisco Natural Resources Defense Council Stop Hidden Taxes Coalition AB 1173 Page 9 ARGUMENTS IN SUPPORT : The bill's sponsor asserts that this bill is aimed at reducing mercury emissions from residential florescent lighting through market-based source reduction and recycling incentives. They contend that while the environmental benefits of using florescent lighting over incandecent lighting is clear, the current generation of florescent lighting contains mercury. Proponents argue that this bill will motivate manufacturers to reduce mercury in CFLs, while helping to establish a free and convenient program for consumers to properly dispose of florescent lighting. ARGUMENTS IN OPPOSITION : Opponents 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. ASSEMBLY FLOOR : AYES: Adams, Ammiano, Arambula, Beall, Blakeslee, Blumenfield, Brownley, Buchanan, Caballero, Charles Calderon, Carter, Chesbro, Coto, Davis, De La Torre, De Leon, Eng, Evans, Feuer, Fong, Fuentes, Fuller, Hall, Hayashi, Hernandez, Hill, Huffman, Jones, Krekorian, Lieu, Bonnie Lowenthal, Ma, Mendoza, Monning, Nava, John A. Perez, V. Manuel Perez, Portantino, Price, Ruskin, Salas, Saldana, Skinner, Smyth, Solorio, Swanson, Torlakson, Torres, Torrico, Yamada, Bass NOES: Anderson, Bill Berryhill, Tom Berryhill, Conway, DeVore, Duvall, Fletcher, Gaines, Galgiani, Garrick, Gilmore, Hagman, Harkey, Huber, Jeffries, Knight, Logue, Miller, Nestande, Niello, Nielsen, Silva, Audra Strickland, Tran, Villines NO VOTE RECORDED: Block, Cook, Emmerson, Furutani TSM:nl 8/19/09 Senate Floor Analyses AB 1173 Page 10 SUPPORT/OPPOSITION: SEE ABOVE **** END ****