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: 9/4/09 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 enacts the California Fluorescent Lamp Toxics Reduction and Recycling Act, which on and after January 1, 2011, prohibits the sale or offering for sale in this state of luminaires and lighting fixtures that are intended for general lighting purposes and contain preheat ballasts for operation of preheat linear fluorescent lamps. This bill requires manufacturers and retailers of compact fluorescent light bulbs that receive funding from electricity ratepayers to develop and implement recycling CONTINUED AB 1173 Page 2 programs for those light bulbs. Senate Floor Amendments of 9/4/09: (1) Add a provision that bans the sale of new luminaires and lighting fixtures containing preheat ballasts on or after January 1, 2011, and (2) streamline and make conforming, technical changes, to the operative provisions relating to the recycling program for fluorescent lamps required pursuant to this bill. 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): 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 CONTINUED AB 1173 Page 3 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 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. "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. C. "Residential fluorescent lamps" means compact fluorescent lamps and any other fluorescent lamp intended for residential use. D. "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 receiving funds individually, collectively with other manufacturers, or through a stewardship organization. CONTINUED AB 1173 Page 4 E. "Stewardship organization" means an 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 electrical corporations and local publicly owned electric utilities as defined, 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, and contain no more mercury than the amount referenced in the most recent ENERGY STAR version, or four milligrams of mercury for any basic lamp of up to 25 watts, whichever is less. B. The manufacturer, individually, collectively with other manufacturers, or through a stewardship organization, establishes and maintains a comprehensive residential fluorescent lamp recycling program for all residential lamps sold by retailers selling the manufacturer's subsidized lamps, to manage end-of-life residential fluorescent lamps in an environmentally sound fashion, including collection, transportation, recycling, and proper disposal. Collection of end-of-life residential fluorescent lamps may occur through a variety of collection methodologies and locations. 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. 1. Specifies that moneys from funds generated from usage-based charges on electricity distribution, CONTINUED AB 1173 Page 5 including, but not limited to, energy efficiency investment funds, that are provided by California's electrical corporations and local publicly owned electric utilities, as defined, shall not be used to fund manufacturer or retailer recycling activities required under this chapter. 2. 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: 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. CONTINUED AB 1173 Page 6 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. 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 under the residential lamp recycling program implemented by that manufacturer. 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: CONTINUED AB 1173 Page 7 (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. 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. The fee shall not exceed $5,000 per manufacturer and shall bear a reasonable relationship to actual costs. 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 CONTINUED AB 1173 Page 8 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 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 9/8/09) Californians Against Waste (source) California Refuse Recycling Council California Retailers Association City of Sebastopol General Electric CONTINUED AB 1173 Page 9 Marin Sanitary Service OSRAM Sylvania San Luis Obispo County Integrated Waste Management Authority Sierra Club TURN OPPOSITION : (Verified 9/8/09) 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 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 CONTINUED AB 1173 Page 10 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 9/8/09 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED