BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1173|
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                                 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): 

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          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  

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            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  

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              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.  Requires the IWMB to, on July 1, 2010, and semiannually  
              thereafter, post on its Internet Web site a notice  
              listing manufacturers that are not in compliance with  
              conditions set forth in this bill.

          4.  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:

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               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:

                               Signage that is prominently displayed  
                      and easily visible to the consumer.

                               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.

                               Advertising or other promotional  
                      materials, or both, that include references to  
                      residential fluorescent lamp recycling  
                      opportunities.

               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.


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          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 IWMB  
              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.

          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.


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          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  
          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  

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          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        
          $40Special*

          * Integrated Waste Management Account (fully offset by  
          fees).

           SUPPORT  :   (Verified  8/27/09)

          Californians Against Waste (source) 
          California Refuse Recycling Council
          City of Sebastopol
          San Luis Obispo County Integrated Waste Management  
          Authority
          TURN

           OPPOSITION  :    (Verified  8/27/09)

          California Product Stewardship Council
          Department of the Environment, City and County of San  
          Francisco (unless amended)
          Natural Resources Defense Council (unless amended)

           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  

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          convenient program for consumers to properly dispose of  
          florescent lighting.

           ARGUMENTS IN OPPOSITION  :    According to the City and  
          County of San Francisco, Department of the Environment, "AB  
          1173 ties participation in recycling programs with receipt  
          of a subsidy for CFL lighting provided through the Public  
          Good Charge.  Once the subsidy goes away, there will be no  
          incentive for participating manufacturers to keep  
          collecting and recycling spent bulbs.  Thus, we believe  
          this bill will not provide the needed long-term financial  
          relief that local governments are looking for.

          "In addition, the bill's linkage with receipt of subsidy  
          funds means that not all manufacturers who sell fluorescent  
          lights will have to participate in taking them back at the  
          end of the useful life.  Limiting required participation in  
          a statewide recycling program to just a few of the  
          potential manufacturers will result in insufficient  
          recycling infrastructure to handle the collection the  
          hundreds of thousands of fluorescent bulbs that come  
          through our programs on an annual basis."  
           

           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  8/27/09   Senate Floor Analyses 


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                         SUPPORT/OPPOSITION:  SEE ABOVE

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